Share
NSE Industrial Goods Index drag equities lower
Losses in the NSE Industrial Goods Index weighed on the markets today as the NSE continues its losing streak for the 4th consecutive trading session. Ayodeji Ebo, Managing Director of Afrinvest Securities joins CNBC Africa for more.
Thu, 06 Jun 2019 14:06:42 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The Nigerian market is facing challenges due to the NSE Industrial Goods Index dragging equities lower for four consecutive trading sessions, prompting concerns among investors and analysts.
- Ayodeji Ebo emphasized the importance of policy-driven catalysts, calling for major policies from fiscal authorities to unlock growth in sectors like manufacturing and improve access to credit.
- Ebo highlighted the delays in government decision-making compared to other countries, stressing the need for the Nigerian government to prioritize economic stability, partner with private investors, and stimulate confidence to drive economic growth.
The Nigerian Stock Exchange (NSE) has been facing challenges in recent days, with the NSE Industrial Goods Index dragging equities lower for the 4th consecutive trading session. This downward trend has raised concerns among investors and market analysts, who are looking for catalysts to drive a positive turnaround. Ayodeji Ebo, the Managing Director of Afrinvest Securities, recently shared his insights on the current market situation in an interview with CNBC Africa.
Ebo highlighted the importance of policy-driven catalysts for the market to thrive. He expressed the need for major policies from fiscal authorities to unlock growth in various sectors of the economy. According to Ebo, the manufacturing sector, which has recently emerged from a recession, requires focused attention and increased access to credit. He pointed out that lending to the manufacturing sector has been limited, with a small number of customers receiving credit from banks. Ebo emphasized the significance of credit in driving economic growth and called for government intervention to address structural bottlenecks hindering lending.
The discussion also touched on the delays in government decision-making, particularly in comparison to other countries like South Africa and India. Ebo raised concerns about the urgency of policy decisions and their impact on the economy. He emphasized the need for the Nigerian government to prioritize economic stability and create a conducive environment for private sector participation. Ebo urged the government to partner with private investors to boost confidence and stimulate economic growth.
Assessing the market performance in the second quarter of the year, Ebo described it as volatile. He noted that despite positive results in certain sectors, such as consumer goods and banking, foreign investors were cautious due to uncertainty about the government's direction. Ebo highlighted the shift of domestic institutional investors towards fixed income investments, leading to moderated yields in that space.
In conclusion, Ebo's insights shed light on the challenges facing the Nigerian market and the critical need for policy reforms and government direction to drive sustainable economic growth. Investors and stakeholders are closely monitoring developments in the market, awaiting positive catalysts that can steer the NSE towards a path of recovery and stability.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.