Investors have been urged to take advantage of prevailing low equities pricing in the stocks market, to boost their investments in the market in order to take opportunities of market reversal commencing end of second quarter.
Professor of Finance & Capital Market, and head, Banking and Finance Department, Nasarawa State University, Keffi, Prof. Uche Uwaleke gave the advice in Lagos, as guest lecturer at the Capital Market Correspondent’s Association of Nigeria (CAMCAN), quarterly forum.
Unveiling higher earnings opportunities in the Nigerian stock market, Unalike expressed optimism that the stock market would rebound in the third quarter.
He said that the country’s market PE ratio ranks lower that established PE ratio index of established global investment firms, therefore establishing greater room for growth.
Uwaleke, who lectured on the theme ‘Stock Market in the first quarter 2019 and post-election prospects” said that that the Nigerian market which ranked as the world’s third most rewarding market in 2017, ranking only after Turkey and Argentina, and became bearish subsequently, is poised to enter into another bullish era.
On the factors that will drive market in the third quarter, Uwaleke said that unfolding internal and external factors would impact the equities market positively.
He said that swearing in of the newly elected president and early constitution of cabinet members, lowering Monetary Policy Rate (MPR) by the Monetary Policy Committee (MPC), increase in minimum wage, increase in oil price and continued stability in foreign exchange (FX) would impact on the market.
Uwaleke who also double as the Chartered Institute of Bankers of Nigeria (CIBN), Abuja branch, President listed other factors that will drive stock market’s reversal in third quarter to include, continued moderation in inflation, steady growth in Nigeria’s Gross Domestic Product (GDP), early signing of 2019 budget and implementation, improved growth in the non oil sector amongst others, adding that “all these projections are higher than what we saw in 2018”
He said that the planned introduction of derivative instruments in the market by the Securities and Exchange Commission (SEC), of which preparations have reached advanced stage at both SEC and the Nigerian Stock Exchange (NSE), would help investors both foreign and indigenous investors to hedge their investments.
