Stock: Ex­perts pre­dict bleak out­look for H2

Daily Trust - - BUSINESS - From Omobayo Azeez, Lagos

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.

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