Nigeria: 2021 Full Year Outlook – Awaiting Dawn

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

Drawing inspiration from the Irish poem “Second Coming”, written in the aftermath of the First World War in 1919 amid a rampaging flu pandemic, we argue that the fate of several countries hangs in the balance in the face of the second wave of the deadly COVID-19 virus.

The re-opening of economies combined with slack preventive measures and the evolution of mutated strains of the virus opened the doors to the second wave of widespread infections. The globe’s economic fate now rests on the success or otherwise of distributing a few vaccines, with broad expectation skewed in favour of a V-shaped recovery.

Nigeria: 2021 Full Year Outlook - Awaiting Dawn

In Nigeria, the V-shaped recovery is likely to be led by the non-oil sector on the impact of 2020 low base effect, a ramp-up of government spending, increase in credit creation and sustained normalisation of economic activities.

The current pace of yield increases is likely to moderate in Q1’21 on the impact of excessive liquidity but pick pace in Q2’21. Our expectation of an eventual pick-up in yields reflects lower OMO maturities, lesser dovish inclinations on macro recovery, and a wider budget deficit.

Read Also:  Lagos Trade Fair Complex To Be Concessioned, Not Sold – Bureau of Public Enterprises
- Advertisement -

Thus, investors are likely to stay short in the fixed income space. The government could also frontload greater than expected domestic borrowing ahead of a potential pick-up in yields, especially if there are signs that external funding conditions could deteriorate.

Read Also:  Equity market sheds 1.05% to begin the week in the red.

In the equities market, we expect investors to take advantage of bargain hunting opportunities in cheap, fundamentally strong names with a track record of shareholder wealth creation or veritable evidence of structural breaks from previous constraints.

Investors are likely to follow volatilities in these names and try to take advantage of mispricing when they occur.

Please click here for the full report.

- Advertisement -
Nigeria: 2021 Full Year Outlook - Awaiting Dawn - Brand SpurNigeria: 2021 Full Year Outlook - Awaiting Dawn - Brand Spur

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.

- Advertisement -

1 COMMENT

  1. […] Nigeria: 2021 Full Year Outlook – Awaiting Dawn […]

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.

Nigeria: 2021 Full Year Outlook - Awaiting Dawn - Brand SpurNigeria: 2021 Full Year Outlook - Awaiting Dawn - Brand Spur

Latest News

DLM Group Celebrates IWD With Abike Dabiri And Juliet Ehimuan

DLM Group continues its commitment to celebrate and enable Women leaders on International Women’s Day 2021. In commemoration of...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Nigeria: 2021 Full Year Outlook - Awaiting Dawn - Brand SpurNigeria: 2021 Full Year Outlook - Awaiting Dawn - Brand Spur