The Cordros Capital Limited, a financial services group licensed as broker-dealer issuing house, has said Nigeria will record positive equity while the fixed-income market will remain volatile.
During a press conference with the theme, ‘Charting through a pervasive slowdown’, the company disclosed its market and economic expectations for the year advice on best investment opportunities.
During his presentation at the event, Associate, Research and Strategy, Mr Opeoluwa Oluwa, highlighted expectations for 2023 and an overview of 2022.
He said, “In line with our expectations for 2022, the fixed-income market was largely volatile given the hawkish stance adopted by the monetary policy authority and the demand and supply imbalance in the domestic market amid the inability to utilise its external debt programme.”
“For 2023, the fixed-income market is expected to remain volatile. We expect the direction of market activities will be swayed by global monetary policy and external debt markets, demand and supply dynamics, domestic monetary policy expectations, the electioneering process, and fiscal authorities’ management post-election.
“Overall, we estimate that the average treasury bills and bonds yields will increase in the year and settle at c.10.8per cent and c.15.5per cent.”
Oluwa also disclosed projections for the Nigerian equity market.
“We expect the performance of the Nigerian equities market to be positive in H1-23 following investors’ positioning for 2022FY results ahead of positive corporate earnings and re-investment of dividends amid higher yields in the fixed-income market,” he said.
According to him, the market sentiments were expected to be shaped by a combination of the electioneering process/outcome of the 2023 elections, implementation of market-friendly policy or reforms, the direction of monetary policy in Nigeria and the impact on the fixed income market and stock-specific events.
The Managing Director, Cordros Securities Limited, Christian Orajekwe, and Head of Research and Strategy, Jolomi Odonghanro, explained the possibility of high inflation and a volatile equity market in 2023.
