Lagos – Some capital market operators on Thursday expressed optimism that the Nigerian Stock Exchange (NSE) would witness increased growth in the second half of 2016.
They told the News Agency of Nigeria (NAN) in Lagos that the market would stabilise with the Federal Government implementation of the 2016 budget, which would boost liquidity in the system.
The President, Association of Stockbroking Houses of Nigeria (ASHON), Mr Emeka Madubuike, said that the performance would be better because of the uncertainties affecting economic growth would have reduced.
Madubuike urged the CBN to sort out the uncertainties surrounding the new foreign exchange policy.
“For instance, high exchange rate will affect the performance of the manufacturing sector and this should be settled fast,’’ Madubuike told NAN.
He explained that manufacturers were spending more naira to buy foreign exchange for importation of raw materials.
According to him, people are still watching and looking to see how the policy will impact positively on the lives of ordinary Nigerians.
He said that some investors were still watching to ascertain the impact of Britain exit from the European Union (EU).
Madubuike explained that the banking stocks, consumer goods and oil and gas would dominate market activities during the period due to the government policy direction so far.
Also speaking, the Chief Operating Officer, InvestData Ltd., Lagos, Mr Ambrose Omordion, said that budget delay, appointment of ministers and unclear economic policy affected market growth in the first half of 2016.
Omordion said that economic activities were stagnated which led to a negative Gross Domestic Product (GDP) in the first quarter.
He said that implementation of the budget would kick start activities that would gradually pull the economy away from recession.
According to him, the new CBN FX policy, if well implemented, would provide the needed liquidity available in the system.
“The actual impact of government policy will be felt in 2017,’’ Omordion said.
NAN reports that the NSE All-Share Index’s year-to-date return stood at 4.09 per cent as at June 29. (NAN)