Lagos — United Capital Plc, formerly UBA Capital, has said the
Nigerian economy is to face one of the most difficult times in history
as global crude oil prices, a key anchor for fiscal and macroeconomic
stability, continue on a downward trajectory this year.
Group Chief Executive Officer of United Capital Plc, Mrs. Oluwatoyin Sanni, stated this while unveiling the firm's research work on the Nigerian economy and financial markets for 2015 titled 'A Tale of Two Halves' in Lagos yesterday.
Sanni who said the financial markets are likely to be more challenging relative to 2014, itemised four major factors to shape the markets this year.
The factors, according to her, are post-election scenarios, aggressive tightening by the Central Bank of Nigeria (CBN), variability in foreign portfolio flows and the downward trajectory of crude oil prices.
She said, the factors are largely expected to dictate movements in both equity and fixed income markets though in different degrees during the year.
The report believed that the Nigerian fixed income market mirrored sentiment's that impacted emerging markets fund flow in 2014.
The report submitted that: "With the US Fed's tapering in full gear, foreign portfolio inflows into the fixed income market receded sharply in first quarter pressuring yields to the upside. However, the stability witnessed in the Naira/USD as well as the sustained single digit inflation level ensured sizeable amounts of foreign investors' portfolio flow into naira fixed income assets."
Read more Click here / www.trade4x.net
Group Chief Executive Officer of United Capital Plc, Mrs. Oluwatoyin Sanni, stated this while unveiling the firm's research work on the Nigerian economy and financial markets for 2015 titled 'A Tale of Two Halves' in Lagos yesterday.
Sanni who said the financial markets are likely to be more challenging relative to 2014, itemised four major factors to shape the markets this year.
The factors, according to her, are post-election scenarios, aggressive tightening by the Central Bank of Nigeria (CBN), variability in foreign portfolio flows and the downward trajectory of crude oil prices.
She said, the factors are largely expected to dictate movements in both equity and fixed income markets though in different degrees during the year.
The report believed that the Nigerian fixed income market mirrored sentiment's that impacted emerging markets fund flow in 2014.
The report submitted that: "With the US Fed's tapering in full gear, foreign portfolio inflows into the fixed income market receded sharply in first quarter pressuring yields to the upside. However, the stability witnessed in the Naira/USD as well as the sustained single digit inflation level ensured sizeable amounts of foreign investors' portfolio flow into naira fixed income assets."
Read more Click here / www.trade4x.net
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