The growth seen in Stock markets across the last two months is a sign that the stock markets have been resilient despite the challenges facing them especially Nigeria which goes to the Polls in a matter of days.
Financial and Investment Analyst, Gbenga Ogunrinola, disclosed this while speaking on the trends of Development within the Stock market in Nigeria, Africa and the rest of the World with Tolulope Ogunjobi on Business Nigeria.
Mr Ogunrinola who was speaking from the United Kingdom said the Nigerian Stock Market ended the year 2022 on a positive note and started the year 2023 on a positive which has continued to move up despite the onset of the Elections.
He disclosed that local investors are the ones participating in the market since the advent of Covid which had made it a bit more of an anomaly to see foreign investors coming into the market.
This trend according to Mr Ogunrinola has ensured that the trend of dumping of stocks syndrome that comes at the onset of an election in Nigeria.
He said this has ensured that the market and stocks have maintained their value all through.
He disclosed that the investment climate for Investment which is now dominated by local investors is very good ensuring that more investment is made in the Nigerian market by local investors.
He described the Nigerian Local Investment market is good with Companies doing relatively well making it difficult for local investors to move their Money out of Nigeria to Other jurisdiction which are not doing as well as Nigeria.
On the performance of Other countries especially in the United Kingdom, he said countries are bothered about inflation and have raised interest rates as a result.
He disclosed that this is also designed to ensure their is no capital flight from their Economy.
He disclosed that the Markets in the United Kingdom with an inflation rate of just over 10% and a market gain of over 6%.
According to him Other indices in the United Kingdom have also been on the up while in the United States, the Inflation Rate is just over 6% with a 4.5% Interest rate and Other indices too doing very well.
For Other developed parts of the World the Inflation rate is still high though interest rates are also a bit up with Other indices going up and a target for the interest rate to be halved before the end of the year.
He urged the Central Bank of Nigeria and the incoming government headed by whoever wins to work towards reducing the interest rate and the Inflation rate which he said is still very high.
He called for the implementation of intentional policies that will affect the Country’s Economy positively.
On the Scarcity of New Naira notes, he said the currency redesign is a good policy but that the current realities is that the Cost Benefit Analysis has shown that the Policy has pushed many people into hardship.
He urged the Central Bank of Nigeria to come out clean to Nigerians for better understanding of the situation so that the masses can bear with them.
He urged the Central Bank of Nigeria to do something fast to ensure the situation does not degenerate beyond what it is.
Going Further, He said most of the developed world have no capacity for full scale war and most Economies will not go to war especially in respect of the Russia-Ukraine War with the main target being Economic sustainability.
He added that the market will globally improve during the first quarter globally and progressing through the year and developing further with a modest capital market recovery of about twenty percent with a decline in the global inflation rate especially if the Russia-Ukraine war does not see a further escalation.
He said the UK too will not be seeing any major upheaval especially with the new law put inplace to limit the number of days workers can go on strike for.
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