A financial expert, Prof. Uche Uwaleke, on Wednesday expressed optimism that the Nigerian stock market would rebound by the second quarter of 2019.
Uwaleke, Head of Banking and Finance Department, Nasarawa State University, Keffi, expressed the optimism in an interview with the News Agency of Nigeria (NAN) in Lagos while reacting to the persistent lull in the nation’s bourse.
He said that the equities market would rebound after the general elections beginning from second quarter of 2019.
Uwaleke noted that his optimism was based on reduced political risk, return of foreign investors, favourable oil price and strong fundamentals.
He said that investors should not panic but recognise that the stock market, like every other market, was prone to business cycles of up and down.
Uwaleke said that investors must be encouraged not to panic and be selling down but be patient and wait for the market to rebound possibly after the elections next year.
He said that the major reason for the downturn was the exit of foreign investors occasioned by political uncertainties ahead of 2019 general elections.
Uwaleke urged stockbrokers and registrars to ensure that they played by the rules of the game, providing honest advice to their clients on the best ways to weather the current storm.
He said that investors should invest in stocks with strong fundamentals, noting that banking stocks hold a lot of promises as many of them appear undervalued now.
“The likes of Stanbic IBTC, GTB, Zenith and FBN Holdings will drive that sector. Industrial sector will be lifted by Dangote Cement. I equally see Nestle and some other consumer goods doing well,” Uwaleke said.
NAN reports that the All-Share Index in October shed 300.10 points or 0.92 per cent to close at 32,466.27 compared with 32,766.37 achieved in September.
Similarly, the market capitalisation which opened at N11.962 trillion lost N110 billion or 0.92 per cent and closed at N11.852 trillion.