Equities Market To Continue Positive Momentum In 2023 – Analysts

Parthian Securities Limited and i-Invest, have predicted a positive outlook for the Nigerian equities market in 2023.

This was made known at the  Parthian Securities Limited and i-invest  January 2023 edition of their Bears & Bulls Series with the theme ‘An Investor’s Guide to Building Wealth on the Nigerian Exchange’.

The online investment clinic  offered investors free insights and analysis on the Nigerian equities market.

Speaking at the investment clinic, head of Investment Research at Parthian Securities Limited, Oluwaseun Dosunmu, reminded investors that true to Parthian Securities’ earlier market predictions last year, the Nigerian equities market defied the odds in 2022, posting an upbeat performance despite the risk-off sentiments that rattled the global equities market.

He stated that the global central themes of 2022 were the Russian-Ukraine war, the zero COVID policy in China, high crude oil prices, elevated inflation rates and the hawkish stance adopted by most central banks which made major economies experience a slowdown in economic activities, resulting in high cost of living and doing business. The Nigerian economy did not do better either as the key macro-economic numbers were disappointing.

He forecasted that in 2023, the dominant events of 2022 will likely persist albeit with a mild twist, saying “for the global economy, the tightening by the central banks would likely persist at a slower rate while in Nigeria, the forthcoming elections would ultimately determine the next direction of the foreign exchange (FX) market. In addition, it is expected that the inflation rate would decline due to the high base effect of 2022.

“In addition to a credible and fair election, he listed low-interest rates, new listing/capital market reforms and strong corporate earnings as some of the factors that would drive market performance in the year.

“We are optimistic that in 2023, the equities market would continue the positive momentum driven largely by the dominance of domestic investors, better corporate earnings and lower interest rates.

“Favourable FX policies and a peaceful election would likely get foreign investors trooping into the country in 2023.”

He explained that this is the right time to buy stocks as many investors would likely return to the market after the February presidential election, thus pumping the prices of equities.

Also, chief operating officer of i-Invest, an investment app of the Parthian Group, Tobi Olusoga, enjoined investors to consider flexibility and diversification in the management of their investment portfolios.

She explained that i-Invest would help investors to achieve this in a safe, secure, and convenient way.

According to her, with i-Invest, investors can access an array of competitive investment opportunities such as Treasury Bills, Commercial Papers, Fixed Deposit Notes, Eurobonds, and much more.