Home Business 2020 Economic Outlook Report: United Capital projects 5.3% for equities market
2020 Economic Outlook Report: United Capital projects 5.3% for equities market

2020 Economic Outlook Report: United Capital projects 5.3% for equities market

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United Capital Plc has released the 2020 Nigeria Economic Outlook Report and projects that equities market would likely return at +5.3 per cent, driven by local demand for high-quality dividend-paying stocks and increased system liquidity. The report, tagged:  “A Different Playing Field’’, carefully considers events in the international economic environment.

United Capital Plc has released the 2020 Nigeria Economic Outlook Report and projects that equities market would likely return at +5.3 per cent, driven by local demand for high-quality dividend-paying stocks and increased system liquidity. The report, tagged:  “A Different Playing Field’’, carefully considers events in the international economic environment.
It takes these parameters into consideration, (combined with local happenings on the political and economic policy scene) to project the nature and movement of the economy in 2020.

For Nigeria, the report noted that the continued auction of high yield Open Market Operation (OMO) bills to Foreign Portfolio Investors (FPIs) may keep foreign interest in local equity market tepid. This is amidst fears of a Naira devaluation and confidence deficit in the economy.

“FPIs are likely to continue their flight to safety by swapping/selling equities for low-risk OMO bills. “Our outlook for stocks in 2020 is anchored on developments in the domestic and global economy with monetary policy as the biggest factor to watch. “From all indications, the only justification for an uptick in the equities market is the lower yield environment, supported by increased local currency liquidity. “However, this will not be enough to trigger a major rally in the absence of the demand from FPIs,” it said. The report also contains projections for the Nigerian economy in the light of global, regional and local events in addition to projected growth levels of the country’s economy at intervals throughout the year based on extensive research. Speaking on the report, Mr Peter Ashade, United Capital Group Chief Executive Officer, said that the underlying theme of the outlook report for this year was change. Ashade stated that changes in key indicators such as oil prices, the status of the US-China trade war, domestic fiscal and monetary policy environment would vary the investment landscape in Nigeria in 2020.

DAILY TRUST

 

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