Buhari’s 100 days in Office: How has the capital market reacted?

Must Read

Guinness Nigeria unveils new Guinness Smooth Stout

Guinness Nigeria Plc has introduced its newest brand, Guinness Smooth stout into the market.According to the company, Guinness Smooth...

HOW TO GET FUNDS FOR YOUR SMALL BUSINESS

No doubt, startups can be very exciting, but the challenge of raising capital for it to get some footing...

Mom’s Aloe Enters Nigeria’s Juice and Beverage Market

The number of brands in Nigeria’s Juice and beverage market has increased by one, following the introduction of Mom’s...
- Advertisement -
- Advertisement -

On May 29, President Muhammed Buhari was sworn-in for the second term as the President of the Federal Republic of Nigeria, to some positive cheer of fixed-income investors who expect his second tenure to be similar to that of his first. In this write-up, we take stock of how the capital market has welcomed the President back to the office.

More than 100 days since Buhari’s resumption and as the initial euphoria around his resumption fizzled out, the overall market sentiment seems underwhelming. For the equity market, foreign investors reacted negatively to the long delay that trailed the announcement/formation of the executive cabinet members as policies such as the implementation of the new minimum wage were left unattended. This was exacerbated by the wave of the global market events – majorly the downturn in crude oil price, below Nigeria’s $6 0.0/b budget benchmark – which left a negative imprint on the Nigerian economy. Also, for the fixed income market, while a high level of demand drove short term rates to near single digit, the volatility in the crude oil market spoked foreign investors.

Read:  President Buhari Finally Endorses AfCFTA Agreement
Read:  Sterling Bank emerges Best Bank in Support of Agriculture

Going forward, we expect investors sentiments to remain the same, especially in the absence of any bold policy reforms. Meanwhile, the recent formation of the executive cabinet provides a glimmer of hope for the broader market as the implementation of policies such as the new minimum wage is anticipated to bolster aggregate spending going forward.

 

United Capital Plc Research

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

HOW TO GET FUNDS FOR YOUR SMALL BUSINESS

No doubt, startups can be very exciting, but the challenge of raising capital for it to get some footing...

The Biggest Day For Oil In 50 Years

There is only one real story this week: the Abqaiq attack was the largest supply disruption in more than 50 years and it led...

PZ Cussons commences entries for Cussons Baby Moments’ 6th season

PZ Cussons has announced the commencement of entries of the 6th season of its eponymous baby competition in Nigeria tagged ‘Cussons Baby Moments’. The announcement...

Guinness Nigeria unveils new Guinness Smooth Stout

Guinness Nigeria Plc has introduced its newest brand, Guinness Smooth stout into the market.According to the company, Guinness Smooth is a new expression of...

More Articles Like This