Nigeria’s Stock Market to Rebound in Q3’19 – Finance Prof.

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The Professor of Finance & Capital Market, and Head, Banking and Finance Department of the Nasarawa State University, Keffi, Prof. Uche Joe Uwaleke has expressed optimism on the rebound of prices of stocks in the capital market, come Q3 2019.

According to him, the country’s market Price Earning (PE) ratio ranks lower than established PE ratio index of established global investment firms, therefore establishing greater room for growth.

L-R: Chinyere Joel-Nwokeoma, Chairman, Capital Market Correspondents Association of Nigeria (CAMCAN), Prof. Uche Uwaleke of Nasarawa State University Keffi and Research Fellow, the Securities and Exchange (SEC) and Mr. Abimbola Babalola, Head, Marketing Surveillance and Investigation of the Nigerian Stock Exchange (NSE) at the 2019 First Quarter Forum of CAMCAN in Lagos.

Uwaleke gave this glimmer of hope in a lecture themed ‘Stock Market in the first quarter 2019 and post-election prospects,” at the quarterly forum of the Capital Market Correspondent’s Association of Nigeria (CAMCAN).

The professor explained that the Nigerian market which ranked as the world’s third most rewarding market in 2017, ranking only after Turkey and Argentina, to later become bearish subsequently, is poised to enter into another bullish era.

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The factors that will drive positive market sentiments in the third quarter, according to Uwaleke, will be both unfolding internal and external factors, such as swearing in of the newly elected president and early constitution of cabinet members.

The professor also noted that lowering Monetary Policy Rate (MPR) by the Monetary Policy Committee (MPC), increase in minimum wage, increase in oil price and continued stability in foreign exchange (FX) would impact on the market.

Uwaleke who doubles as the President of the Chartered Institute of Bankers of Nigeria (CIBN), Abuja branch, listed other factors that will drive the stock market’s reversal in third quarter to include: continued moderation in inflation, steady growth in Nigeria’s Gross Domestic Product (GDP), early signing of 2019 budget and implementation, improved growth in the non-oil sector amongst others, adding that “all these projections are higher than what we saw in 2018.”

He therefore urged investors to take advantage of the low prices prevalent among most stocks in the capital market so as to improve their earnings when the anticipated reversal commences at the end of the year’s second quarter.