TheCable

Lukman Otunnuga, research analyst at FXTM, says the Nigerian Stock Exchange (NSE) is becoming a champion among emerging markets across the world.

Speaking on the recovery in the Nigerian economy and the stock market, Otunuga said the outlook for the Nigerian economy is quite encouraging.

“The improving sentiment towards the Nigerian economy boosted further on Tuesday following reports of the nation’s inflation declining for a third consecutive month in April at 17.24%,” he said.

“This visible display of price stability has boosted investor confidence towards the nation with the Nigerian Stock Market marching into gains and becoming a champion among its emerging market peers.

“With the Nigerian parliament recently approving the government’s seven trillion naira budget to revive the economy, the overall outlook is starting to look quite encouraging in the longer term with 2017 acting as the first major test.”

He added that investors are waiting for the country’s GDP results to make a callon the economy.

“A vulnerable Dollar continues to offer some support to the Nigerian Naira with the local currency set to gain further ground if the Dollar continues to weaken.

“Investors may direct their attention towards Nigeria’s pending GDP report issued this Thursday which could boost confidence towards the nation’s economic recovery if Q1 growth exceeds estimates.”