The Managing Director of Apt Securities Mallam Kassim Garba Kurfi has expressed optimism that the capital market will experience a boom in year 2020.
He stated this against the backdrop of developments within the Nigerian economy as well as the global economy.
Speaking at a forum of the Capital Market Correspondents Association of Nigeria, CAMCAN, Mallam kurfi explained that statistical evidences reveals that all things being equal the confidence level is likely to improve very significantly resulting in improved activity level.
According to him the move towards demutualization of the Nigerian Stock Exchange, the exemption of some products from the Value Added Tax (VAT) amongst others are some of the measures likely to impact positively on the market.
Mallam Kurfi maintained that Companies that benefit from VAT exemption such as water, sanitary products will likely declare better profit e.g. Nestle food.
Again, the dematerialization of the Nigerian Stock Exchange which is tantamount to unlocking the dead capital to the brokers and non-dealing members, added to the release of the rules for derivatives trading, he said are measures that will enable the exchange match with the likes of Johannesburg Stock Exchange (JSE), Nairobi Securities Exchange (NSE) among others.
To this end, he projected that ” the All Share Index is likely going to close for the year 2020 in positive and may close in double digits. Both Technical Analysis and Fundamental Analysis move to the positive direction. However, the market may experience volatility because of the changes in financial reporting as adopted by the Exchange without adequate awareness of the brokers.
“Many unaudited reports for the fourth quarter ended December 2019 were released in January by over seventy (70) companies without reflecting much to their price appreciation. The educational and marketing awareness adopted by the exchange will bridge the gap and better the market.
Mallam Kurfi equally advised retail and uninformed investors to take advantage of collective investment schemes to play in the market as this will avail them opportunities of having their investments managed by experts rather than take investment decisions that will either not give them the maximum expected yield or make them lose their investments completely.