The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Oscar Onyema, said on Monday crude oil price and production, global economy, political stability and business environment were key factors that would determine Nigeria’s economic outlook in 2020.
Onyema stated this at the 2019 Market Recap/2020 Outlook in Lagos.
He affirmed that the dynamics of crude oil price and production would continue to influence the capital markets and large economy because of Nigeria’s reliance on oil for foreign reserves.
He said the current crisis between the United States and Iran, oil supply shocks and progress in trade negotiations between the US and China may exert pressure on crude oil in the year.
According to him, enhanced focus on infrastructure renaissance and promotion of laws that would support the business environment would be key to Nigeria’s success in 2020.
He said: “Domestically, market sentiments may be buoyed by a steady and stable recovery in the domestic economy, alongside continued sustainability in monetary policy.”
Onyema said the signing of Finance Bill into law and implementation of the 2020 budget might positively impact on companies’ earnings and consumer spending this year
“Accordingly, the exchange will continue to advocate for business-friendly economic environment, working in conjunction with both the public and private sectors,” the NSE chief added.
On 2019 market performance, he said the NSE All-Share Index posted a negative return of -14.60 percent to the year at 26,842.07, having reached a year high of 32,715.20 in February 2019.
He said the equity market capitalisation increased by 10.55 percent to N12. 97 trillion from N11.73 trillion in 2018 due to sustained primary market activities throughout the year.
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