DAILY PRICE LIST FOR MUTUAL FUNDS, REITS and ETFS

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‘Clearer  Govt’s Economic Policy Direction will Boost Equities Market’
By Goddy Egene
The clarity of the economic policy direction of the federal   government   holds the short-to-medium term needed upward push for the equity market, analysts at FSDH Research have said. In their economic   monthly outlook for November 2016 obtained by THISDAY, analysts at FSDH Research said   unclear economic direction and shortages of foreign exchange continue to weigh down risk appetite in the equity market.
The market has recorded year-to-date decline of 9.72 per cent due to persistent fall in the prices of shares resulting from many factors. However, FSDH said  the clarity of the economic policy direction of the federal   government   can push  the equity market to the positive side.
Reviewing the performance of the market for the month October, they said  investors’ sentiments waned at the equity market in October 2016.
“The unclear economic direction and shortages of foreign exchange continue to weigh down risk appetite in the equity market. The Nigerian Stock Exchange All Share Index (NSE ASI) depreciated by 3.94 per cent  in October 2016 to close at 27,220.09. Market activities decreased in the month of October 2016, compared with September 2016. The volume of stocks traded decreased by 54.13 per cent to 3.67 billion shares . The value of stocks traded also decreased by 34.97 per cent  to N32.02 billion,” they said.
Looking ahead, they said the lacklustre trading pattern may continue except: there is an evidence that the stock of the foreign reserve will increase, there are clear policies from the federal government to lift the economy; the expected weak performance in most of the quoted company may also lead to additional poor performance in the equity market; going by historical performance.
“The equity market may receive a boost from the investment activities of institutional investors (pension funds and insurance companies) to end the year 2016. However, going by the current weak macroeconomic environment, and low liquidity in the equity market the market may not witness improvement in activities towards the end of the year,” they said.
On investment strategy to adopt, they said: “We recommend that investors should maintain a medium-to-long term position in the equity market. We reiterate that long-term investors should take long positions in stocks that have strong fundamentals,” they said.