Acting Executive Chairman, Federal Inland Revenue Service , Dr Zacch Adedeji with the United Nations Development Programmes resident representative in Nigeria, Lealem Dinku, during a visit to Adedeji at the Revenue House in Abuja.The hope of return of foreign portfolio investors to Nigeria’s market may not materialise anytime soon following MSCI’s potential reclassification of Nigerian indexes from the frontier to standalone market, experts have warned.
The analysts said: “Given the CBN’s unbanning of importers of all the 43 items previously restricted from the Nigerian Autonomous Foreign Exchange Market since 2015, the market realised that FX supply is still minimal at the official market faster than we anticipated. Vice President of Highcap Securities Limited, David Adonri, also stated: “MSCI’s planned reclassification of the capital market indicates the overall strength of the markets. After emerging markets, the least classification is frontier markets. Stand-alone is classless. It does not fit into any category because of its unpredictability.”
This comes as the naira regained some lost ground at both the official and parallel markets last week. They believe that the local currency would regain stability if the CBN is firmer on de-dollarisation. President Bola Tinubu, he said, should also have a direct engagement with bank CEOs to generate ideas and use moral suasion to enlist their support for the market reforms.
On the equities market last week, the financial services industry led the activity chart with 958.1 million shares valued at N14.4 billion traded in 13,270 deals, thus contributing 66.26 per cent to the total equities turnover volume. On the price movement chart, investors’ renewed interest in Geregu and Seplat outweighed losses in MTNN and STANBIC .
“The ongoing geopolitical tension will continue to drive global and domestic market volatility, so investors and traders anywhere in the world should factor this uncertainty into their trading and investment plans. He said the direction of market performance will be shaped by the ongoing Q3 earnings season as investors cherry-pick sound stocks.
Additionally, a total of 42,264 units of bonds, valued at N39 million were traded in 31 deals compared with a total of 187,866 units valued at N196.5 million transacted in 28 deals.