Nigeria's equities maintain positive trend

Nigeria's equities market faced challenges today as the NACO Shanghai index ended the day slightly lower, closing at 27,233 points. This comes after trading within a narrow range as many investors, especially foreign investors, expressed concerns about the value of the local currency. The market's performance has been impacted by various factors, including earnings reports trickling in and fluctuations in the currency markets. Rotimi Fakayejo, the Managing Director of Enterprise Capital Partners, joined CNBC Africa to discuss the day's trading activities and share insights on the market's outlook. Fakayejo highlighted that while some companies' earnings met expectations, others fell short, leading to mixed reactions from investors. Transcorp Holdings, for example, reported significant losses due to foreign exchange devaluation, raising concerns among shareholders. Despite challenges faced by companies like Transcorp, Fakayejo suggested that investors may not rush to dump their shares, citing a similar trend with Guinness Nigeria, where investors maintained their positions despite losses reported. He advised caution and emphasized the importance of closely monitoring companies' performance before making investment decisions. Looking ahead to the coming year, Fakayejo emphasized the significance of government policies and budgetary decisions on the market's stability and growth prospects. He noted that the Senate's scrutiny of the government's borrowing plans could impact market sentiment and urged for clarity and transparency in policy implementation to foster investor confidence. Fakayejo also shared his outlook on potential investment opportunities, highlighting the banking sector as a favorable option for investors due to expected rewards in the near term. He pointed to the resilience of banks and oil and gas companies in delivering returns to shareholders, providing a glimpse of hope amid the challenging market conditions. As the year comes to a close and investors position themselves for the new year, Fakayejo's insights offer valuable guidance on navigating Nigeria's equities market amidst uncertainties and opportunities.