…As FICAN Holds February Forum In Lagos
With the economic downtown in Nigeria and indeed the world at large, investment enthusiasts are skeptical on where to put their monies and not loose them.
Are you one of those who are worried about where to safely invest your money in 2023 ,then this information is for you.
Short duration investments and dollar assets have been tipped as the best in 2023 to minimize risks and still make profits.
Leaders in global fixed-income, equities market and structured finance offered this advice while speaking at the February 2023 forum of the Finance Correspondents Association of Nigeria, FICAN, in Lagos.
The duo of Oluwaseun Dosunmu and Ronke Akinyemi advised investors to stay short and liquid, take advantage of higher yields and invest in dollar assets ,Eurobonds as well as dollar placements bearing in mind that
the rules about diversification still stands.
In his presentation, Dosunmu said those with interest in equities market should focus on : top 20 fundamentally strong stocks in terms of market capitalization in the Nigerian Exchange; stocks that are liquid and those that pay good dividends.
He said the dominance of domestic investors in the nation’s equities market is a good development because it shields the market from the impacts of funds outflow from emerging markets and global headwinds.
On what to expect from the market that will guide investment decisions Mrs. Akinyemi said there will be Public-private partnerships to reduce pressure on budget funding.
He explained that, “Just as there will be debt issuances on the back of these partnerships and opportunities to invest in these issues.
“Uptick in interest rates is however anticipated in second quarter, resulting from a reduced level of liquidity and huge budget deficit
“We expect the market to commence this year with some depression in yield, owing to expected liquidity elevation in first quarter,”
“Generally, the investment expert noted that the market is expected to be choppy and largely driven by political transitioning, oil price fluctuations, trade wars, possibility of interest rate hikes by other economies and risk off/on sentiments”.
According to her, the Monetary Policy Rate (MPR) is likely to increase and credit conditions may remain tight in 1st quarter of 2023.
Further, the experts agreed that there will be increased financial speculation and weakened investors confidence.