STOCK EXCHANGE BANKS ON NIGERIAN RECOVERY 2017

The  Nigerian stock exchange (NSE) is banking on a modest 0.6% growth in gross domestic product to get Nigeria out of recession this year.

According to its CEO Oscar Onyema while presenting the exchange's recap of 2016 and 2017 projection  this hope is hinged on some key factors:

* Vigour of fiscal policy implementation with keen focus on articulation of desired goals.

* Lower disruption rate to oil infrastructure from resolution of the Niger Delta conflict 

* Crude oil prices remaining above the Federal Government's 2017 budget benchmark of $42.5 per barrel.

* Positive impact of the war against corruption manifesting in ease of doing business in Nigeria.

* Policies aimed at boosting productivity like improved allocation to capital expenditure and exit from the joint venture cash call arrangement.

Mainwhile, according to Onyema, year 2016 was so bad for the market that of the eleven indices currently in place with which to monitor sectoral and overall market performance, only two recorded growth in 2016.

The premium index went up by 6.98% and the banking index closed 2.37% up.

The overall Allshare index dropped by 6.17% but this was even mild when compared to leading downswings recorded in Industrial index (26.37%); oil and gas index (12.31%); Insurance index (11.44%) and main board index (10.02%).

Less dramatic drops were recorded in NSE 30 index (7.18%), Lotus Islamic index (7.87%) and the pension index (0.63%).

2016 also saw 7.61% decline in listed companies to 170; in listed equities by 7.79% to 175; and in listed securities 3.89% to 247.

Reflecting increasing government appetite for funds to finance mounting budget deficit, listed bonds recorded the only increase in 2016 by 6.67% to 64.

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