Stock: Experts predict bleak outlook for H2
The assessment of the Nigerian Stock Exchange (NSE) by some capital market analysts has projected unclear or rather bleak outlook in the second half of this year (H2), 2016.
In a report titled ‘Nigeria Half Year 2016 Outlook: Clear Picture; Dim Outlook’ by Cordros Research, analysts noted that the Nigerian equities market witnessed mixed sentiments over the H1, though with marginal upward lift of 3.34 per cent in the benchmark index within the period.
The report noted that the rally on the domestic bourse was largely driven by the expectation and eventual announcement of government economic policies and decisions.
“Our view going into the second half is that the positive market environment witnessed in the first half do not point to a more sustainable recovery for equities,” Cordros Research analysts however warned.
Daily Trust also noted that expected strong sentiment that followed some of the announcements only lasted brief moments as the market has lately embarked on continuous loss from daily to weekly bearish transactions.
Available data indicate that the global macroeconomic conditions remain fragile thus far in 2016, and developing economies have not shown any sign of recovery from their economic challenges of 2015.