Some financial experts on Tuesday said that sustenance of good performance of the stock market in 2018 would depend on quick implementation of 2018 budget.
Speaking in Lagos the experts said the market performance in 2018 would depend mainly on budget passage and implementation.
Dr Uche Uwaleke, the Head of Banking and Finance Department, Nasarawa State University, Keffi, said that the performance of the stock market in 2018 would center on budget implementation, especially the capital component.
Uwaleke said that another factor that would impact positively on market performance was easing of monetary policies early next year.
He foresaw a bullish stock market in 2018 in response to sustained favourable crude oil price in the wake of extension of output cut agreement by OPEC/Non OPEC countries till the end of 2018.
Uwaleke said that the surge in foreign reserves to over 40 billion dollars, further improvement in the ease of doing business and further moderation in inflationary pressure would impact positively on market performance in 2018.
“The expected increase in liquidity will enhance lending by deposit money banks which is good news for the stock market.
Uwaleke said that the market would, however, benefit from possible listing of the telecommunication giant, MTN, and the passage of NSE demutualization bill currently before the National Assembly.
Mallam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd, said that quick passage of the budget was crucial to sustain the market and economic growth in 2018.
Kurfi said that sustainability of the foreign exchange policy by the Central Bank of Nigeria (CBN) in 2018 would help to boost foreign investors’ confidence in the market for growth and development.
Also, the market capitalisation, which opened for the year at N9.250 trillion, grew by N4.46 trillion or 48.19 per cent to close at N13.798 trillion on Dec. 22.
NAN reports that the index in 2016 declined by 6.2 per cent to close at 26,874.62, while the market capitalisation lost N600 billion to close at N9.250 trillion. (NAN)