RESPITE NOT IN SIGHT FOR STOCK MARKET.

It may take a long while yet before the Nigerian stock market recovers from its current bearish outlook.
This is because, just like it happened before the 2008 crash, the banks are likely to once again report profitability depressed by increased provisions for bad debts or related matters.
Nine months into 2015 only a handful did not see the need to reassess and increase impairment provisions. More importantly, if recent notice by FBN Holdings PLC are anything to go by, higher provision during the last quarter could be the case.
FBN Holdings PLC which depends so much on First Bank its subsidiary, in a notice to the market dated February 24 and signed by Company Secretary, Tijjani M Borodo esq, warned that 2015 audited earnings "will be materially lower than for 2014" as a result of impairment charges from reassessment of First Bank's loan portfolio.
The reassessment, it said was driven by "challenging macro environment, coupled with fiscal and monetary headwinds which have resulted in marked reduction in domestic output"
FBN Holdings assures that the reassessment was a prudent measure while active remedial actions have been taken on the specific accounts affected.
The statement assures though that merchant banking, asset management and insurance activities of the group remain strong and resilient.
In the coming months banks are likely to unleash 2015 audited figures on the market and stockbrokers reaction to disappointing results could depress the market further.
This because the banks still dominate market capitalisation even market leader remains Dangote Cement.
Happily, the Nigerian stock market is better equipped to handle and respond to the situation than it was in 2008.

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