… stockbrokers react
By Ebenezer Adaramodu
Following reports by National Bureau of Statistics (NBS) which indicated that Nigeria has exited recession with a positive growth of 0.55 percent, stockbrokers at the Nigerian Stock Exchange (NSE) has reacted.
The members of the Exchange have come out to react to the implications of the nation’s exit from global economic meltdown while other brokers believe Nigeria is yet to be fully out of recession but more can still be done by the federal government to sustain the economic growth.
Stockbroker, Tajudeen Olayinka, speaking at the Honeywell’s fact behind the figures said; “I wouldn’t say we are out of recession yet, but we are trying.”
In an enquiry made by the Nigerian NewsDirect correspondent, another stockbroker, Azeez Bello said the report released by NBS showed that there was a marginal growth since the nation fell into recession and that if the government continues to sustain the policy of safeguarding economic diversification and revenue generation, there would be more upturn improvement in subsequent quarters.
“It is obvious that the economic growth is so marginal. There was a gradual tinker of the growth rate since recession, and you would expect that if the government continues to sustain the policy of safeguarding economic diversification and the possibilities of improving our revenue status, the foreign reserve has constantly improved from the effect of all these policies that are in place and an improvement will also be noted in subsequent quarters,” Bello said.
When he was further quizzed on the implications of recession in the capital market, Bello said; “with regards to the implications in capital market, the equity market has already factored in the positive outcome of the economic growth. We would still see flattish growth, there isn’t going to be a significant height like in the last three months. We expect that there would still be a constant growth, and it is possible that equity market will close positive and would be sustained till the end of the year.”
Bello noted that any further improvement or growth will depended on government providing a platform for investors and exporters’ window and there is no policy that would bring down the sustainability.
“The continuous improvement will still be dependedent on the ability of the government to sustain the investors and exporters’ window. If the government sustains the policy in that window and there is no policy misalignment or change that would disturb the situation, we expect that the capital market would see more improvement in the near future, but at the moment, we expect flattish growth,” he said.