Capital Bancorp Plc, a frontline capital market operator, has identified critical factors that will further boost the performance of the Nigerian capital market this year.
The firm outlined these factors in its report titled: ‘Economic Review and Outlook For 2018,’ released yesterday. Speaking on the report yesterday in Lagos, Managing Director, of the company, Mr. Higo Aigboje explained that the performance boosters are: stability of oil prices, effective management and improved liquidity of the foreign exchange market, improvement on the corporate earnings, significant focus on the non-oil sector to increase output and lower interest rate regime.
“Others are passage, passage of Petroleum Industry Bill, unbundling of Nigerian National Petroleum Corporation and listing of resultant companies and deliberate efforts aimed at encouraging more listing on The Exchange company such as Telecom, Gencos among others,” Aigboje said.
The stockbroker, however, explained that issues such as sudden rise in insecurity can trigger exit of the foreign portfolio investors (FPI), political instability owing to forthcoming general elections, sudden reversal in oil prices, an upturn in the yields of fixed income securities and failure in the banking sector which may trigger a sell-off can cause further damage to the entire stock market.
He noted the company’s review of the global and Nigeria’s financial markets was designed to serve as a compass for both indigenous and foreign investors as well as potential investors.
Speaking on Bancorp e-Trade, Aigboje noted that it was a high-technological innovation aimed at promoting financial inclusion in Nigeria.
According to him, the product allows an investor to trade online in the stock market and it is being upgraded for additional uses.
Presenting the Executive Summary on the economy, the company’s Chief Analyst, Mr. Victor Chiazor, Capital Bancorp has forecast that the global economic growth would hit 3.5 per cent this year as against 3.1 per cent last year.
“With ample opportunities in some stocks in the Banking and Consumer Goods sectors of the equities market , we have projected a 25 per cent return for the Nigerian stock market in 2018, though downward risks to achieving this target remain visible,” Chiazor said.