Rotimi Fakayejo, managing director of Lagos-based Enterprise Stockbrokers says the listed sectors on the Nigerian Stock Exchange (NSE) that would benefit most from the implementation of Nigeria’s recently signed 2018 budget are the consumer goods and industrial sectors.
Fakayejo however said that the consumer goods sector, being a very important sector to all, will be more impacted following the implementation of the budget, adding that it is a sector that most investors would be headed and we sees transactions remaining northward in the sector.
The N9.12 trillion appropriation bill signed into law Wednesday, June 20, 2018, comes 7 months after its presentation to a joint session of the National Assembly on 7 November 2017, with capital expenditure accounting for over 31 percent.
Just a day after the signing, the NSE consumer goods index sustained gains previously recorded with an appreciation of 0.47 percent on Thursday.
On his choice of securities for investment in the second half of the year, Fakayejo said majority of the stocks he would recommend going by results to be released are in the consumer goods and industrial goods indices.
“We may not see much appreciation because of the election year effect, but at the same time, we saw very good performances coming from them in the first quarter and I believe very strongly we will see better of that as times goes on. This is not to leave out the banking sector stocks, as one or two of them is expected to do better but we may not see much of an appreciation for those securities in the short run.”
Speaking on the impact of the signed budget to trading at the market generally, Fakayejo said the event, which is an epoch making one is going to create a lot of positive impact, as it will help organizations, industries and companies in better planning with respect to the financial year.
“Going forward we expect things to begin to turn around but the effect of the election year will still be there, but I believe the signing of the budget itself will definitely impact positively on the economy and the market,” Fakayejo said.
Frontpage September 29, 2020