Stock market experts have expressed optimism that the capital market would sustain the positive outlook in 2018.
They believe that with 2018 being a pre-election year the government would be under severe pressure to reflate the economy and generate demand needed to expand the real sector and create jobs.
Whereas nobody can predict the capital market with accuracy, experts have always tried to make projections which could be close sometimes and outright wrong at other times.
Almost all the measurement indices seem to favour a continued bullish trend.
Analysts believe that some of the stocks are undervalued given their price earnings ratio.
Whatever may be the case, analysts are almost convinced that the debt market may give way for the equities market to dominate investment in 2018 if the Federal Government continues to borrow externally.
Former President, Association of Stock Broking Houses of Nigeria (ASHON), Mr. Emeka Madubuike explained that the macro-economic environment of 2018 would determine what happens to the equities market. Madubuike expressed sentiments that the economy will fare better in 2018 than in 2017.
According to him, the issues that are holding the economy down appear to be loosening for the better. However, he noted the main problem of the economy was lack of productivity.
For Dr. Afolabi Olowokere of Financial Derivatives Company Limited, Equity Market may attract more attention than the Debt Market next year. He explained that if the government continues to borrow externally, the debt market may be low and investors may shift to equity.
Olowokere projected that the equity market may grow by 15 per cent next year. “Interest rate may come down next year’’, said Olowokere.
In his view, Managing Director, Crane Securities Limited, Mr. Mike Ezeh, submitted that the capital market will receive a boost in 2018 better than in 2017 when foreign investors dominated activities in the market.