A financial expert, Prof. Uche Uwaleke, on
Wednesday expressed optimism that the
Nigerian stock market would rebound by the
second quarter of 2019.
Uwaleke, Head of Banking and Finance
Department, Nasarawa State University,
Keffi, expressed the optimism in an interview
with the News Agency of Nigeria in Lagos
while reacting to the persistent lull in the
nation’s bourse.
He said the equities market would rebound
after the general elections beginning from
second quarter of 2019.
Uwaleke noted that his optimism was based
on reduced political risk, return of foreign
investors, favourable oil price and strong
fundamentals.
He said investors should not panic but
recognise that the stock market, like every
other market, was prone to business cycles
of up and down.
Uwaleke said investors must be encouraged
not to panic and be selling down but be
patient and wait for the market to rebound
possibly after the elections next year.
He said the major reason for the downturn
was the exit of foreign investors occasioned
by political uncertainties ahead of 2019
general elections.
Uwaleke urged stockbrokers and registrars to
ensure that they played by the rules of the
game, providing honest advice to their
clients on the best ways to weather the
current storm.
He said investors should invest in stocks
with strong fundamentals, noting that
banking stocks hold a lot of promises as
many of them appear undervalued now.
He said: “The likes of Stanbic IBTC, GTB,
Zenith and FBN Holdings will drive that
sector.
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“Industrial sector will be lifted by Dangote
Cement.
“I equally see Nestle and some other
consumer goods doing well.”
NAN reports that the All-Share Index in
October shed 300.10 points or 0.92 per cent
to close at 32,466.27 compared with
32,766.37 achieved in September.
Similarly, the market capitalisation which
opened at N11.962 trillion lost N110 billion
or 0.92 per cent and closed at N11.852
trillion.
source: today.ng
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