Nigeria stock market maintains upward streak

The Nigeria Stock Exchange All Share Index continued its positive streak, closing slightly higher and rising by about 2.10% in the latest trading session. The Naira also showed strength, trading around 305 Naira to the dollar. Austin Ejola, Head of Equity Trading at Planet Capital, joined CNBC Africa to provide insights into the market trends. Despite recent economic challenges and the official confirmation of a recession, the stock market has remained resilient and optimistic. Ejola highlighted the surprising 2.1% contraction in the GDP, which was worse than the expected 1.6% but noted that the market seemed to have priced in the recession already. He expressed hope for potential improvements in the coming quarters with government policies focusing on economic diversification. In light of the struggling oil and gas sector, Ejola advised caution in investing, pointing to the weak crude oil prices and ongoing uncertainties. Instead, he recommended focusing on the agricultural sector, which has shown promising growth, along with selected financial services companies that are weathering the economic storm. Looking ahead, Ejola cautiously predicted a potential market recovery in the second half of the year as government policies take effect and spending increases, driving down input costs and creating new opportunities. While the outlook remains uncertain, there is optimism for gradual improvement in the market conditions.