Nigeria Business Information
No Result
View All Result
Wednesday, May 18, 2022
  • Login
  • Register
  • Home
  • Tenders
  • Auction
  • News
  • Grant
  • Subscription
Subscribe
Nigeria Business Information
  • Home
  • Tenders
  • Auction
  • News
  • Grant
  • Subscription
No Result
View All Result
Nigeria Business Information
No Result
View All Result
Home Nigeria News

Stocks: Inflationary Pressure May Pose Fresh Threat

by SAMUEL Olugbenro
October 19, 2020
in Nigeria News
Nigerian Stock Exchange

Inspite of the a rebund in both year-to-date (YtD) and month-to-date (MtD) returns seen in the stock market, investments experts have said that uptick in inflationary pressure and weakness in the macroeconomic environment may constitute a threat to the continued recovery of the stock market.

The experts project that the year-end may not be rosy due to the impending staflation, as headline inflation rose to 13.71 per cent, according to September inflation report by the National Bureau of Statistics, and is projected to rise further through December.

READ: How To Invest in Nigeria Treasury Bills, Even with Low Capital

Performance of the stock market last week shows a sustained uptrend on the back of negaive real returns in fixed income and significant buy pressure in some highly capitalised stocks. As a result of this, the benchmark All Share Index (ASI) rose by 0.9 percent to settle at 28,659.45 points, while the MtD and YtD return for the index grew to 6.8 per cent. The market had closed the week flat on four of the five trading sessions, but was driven to another positive close after 1.11 percent gains recorded on Friday session.

Commenting on the issue, Daid Adonri, Managing Director/CEO, Highcap Securities and Investment said: “Performance of equities beats every imagination. The market moved in opposite direction of the economy. Perhaps the expansionary monetary policy and NESP N2.3 trillion rescue package have positively impacted equities.

RelatedPosts

Check out 10 Nigerian stocks that returned over 50% in the First Half of 2021

The Nigerian Stock Exchange (NSE) Upgrades Data Portal

“Delibrate measures to force down interest rate may also have facilitated migration of financial assets to equities. The rally may not be sustainable due to expectation of ravaging inflation. More so, the fundamentals of the economy does not support rally. Year end may not be rosy because of reaction to impending staflation.”

Analysts at Cordos Capital, a Lagos-based investment banking firm projected that the stock market might continue to benefit as domestic investors seek alpha-yielding opportunities in the face of increasingly real returns in the fixed income market. However, they advise investor to trade in only fundamentally justified stocks as the weak macro environment remains a significant hedwin for listed companies.

TOOLKIT: Are You New to Tenders/Contract Bidding and Require Assistance? CLICK HERE

Tags: Stock Exchange
ShareTweetShare

POPULAR

  • Tenders And Contracts Info - May 2022

    Check List of NGO/Governments Tenders with May 2022 Deadlines

    0 shares
    Share 0 Tweet 0
  • How to Check for your Individual TIN (Tax Identification Number) Online

    0 shares
    Share 0 Tweet 0
  • Bureau Of Public Enterprises (BPE)- Invitation For Expression Of Interest (EOI) For The Provision Of Facility Management Services And Provision Of Corporate Security Services (2 Lots)

    0 shares
    Share 0 Tweet 0
  • How to Check Your Ikeja Electric (IKEDC) E-bills Online

    0 shares
    Share 0 Tweet 0
  • Federal Ministry Of Education- Invitation For Tender/Expression Of Interest (EOI) For Goods, Works And Services For Execution Of 2022 Appropriation (34 Lots)

    0 shares
    Share 0 Tweet 0

Copyright © 2021. All Right Reserved Nigeria Business Information

No Result
View All Result
  • Home
  • Tenders
  • Auction
  • News
  • Grant
  • Subscription

Copyright © 2021. All Right Reserved Nigeria Business Information

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

instagram volgers kopen volgers kopen buy windows 10 pro buy windows 11 pro

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.