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Friday, January 27, 2023

Parthian Securities, i-invest, list stocks to watch in 2023, forecast reduction in inflation –

In keeping with its promise to connect investors with curated investment opportunities, Parthian Securities Limited and i-invest are hosting the January 2023 edition of the Bears and Bulls series, entitled “An Investor’s Guide to Building Wealth on Nigerian Exchanges”.

Online Investing Clinic on January 18, 2023 provides investors with free insights and analysis on the Nigerian stock market.

Speaking at Investment Clinic, Oluwaseun Dosunmu, Head of Investment Research at Parthian Securities Limited, reminded investors that in line with Parthian Securities’ market forecast earlier last year, the Nigerian stock market bucked the trend in 2022 and remained positive despite the risks – Disrupt The mood in global stock markets was subdued.

He said the central global theme for 2022 is the Russo-Ukraine war, China’s zero-covid policy, high crude oil prices, high inflation and the hawkish stance taken by most central banks leading to a slowdown in economic activity in major economies leading to high living and doing business cost. The Nigerian economy was also not much better as key macroeconomic data disappointed.

He predicts that the main events of 2022 could persist through 2023, albeit with a slight twist. For the global economy, central bank tightening is likely to continue at a slower pace, while in Nigeria, the upcoming elections will ultimately determine the next direction of the foreign exchange (FX) market. In addition, inflation is expected to decline due to a high base effect in 2022.

Along with a credible and fair election, he cited low interest rates, new listings/capital market reforms and strong corporate earnings as some of the factors driving market performance this year.

“We are optimistic that the positive momentum in equities will continue through 2023, largely driven by the dominance of domestic investors, better corporate earnings and lower interest rates. Favorable foreign exchange policy and peaceful elections could It will flood the country with foreign investors in 2023,” he said. He further explained that now is an opportune time to buy stocks as many investors are likely to return to the market after the presidential election in February, pushing up stock prices.

On the downside, Dosunmu warned that continued monetary tightening, election violence and poor returns on listed stocks could trigger negative outcomes. He expects continued but slower monetary tightening and higher oil prices in 2023, adding that some of the issues that defined economic performance last year will persist this year, albeit with a lesser degree.

According to analysts, Airtel and Seplat led Nigerian stocks with returns of 71.2% and 69.2% respectively in 2022, followed by BUA Foods, BUA cement and newly listed Geregu Power. He picked Airtel and Seplat again, along with MTN, Zenith Bank, UBA, Nestle, Dangote Cement and Lafarge as stocks to watch this year, with Nigerian Breweries and Total Energies also on the list.

Additionally, Tobi Olusoga, chief operating officer of i-invest, the Parthian Group’s investment app, asked investors to consider flexibility and diversification when managing their portfolios. She explained that i-invest will help investors achieve this in a safe, secure and convenient manner.

“Through i-invest, investors have access to a range of competitive investment opportunities such as treasury bills, commercial paper, time deposit notes, Eurobonds and more. They can also trade on the Nigerian Exchange ( NGX) to buy and sell stocks, create a one-time or recurring savings plan, and accrue interest at attractive rates,” she said.

The Bears & Bulls Series is an initiative of Parthian Securities, a subsidiary of the Parthian Group, to provide those wishing to invest in the stock market with critical knowledge and resources to help them achieve their investment goals and earn value.

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