| Reviews & Outlooks |    1465 VIEWS  |
| Reviews & Outlooks | |
| 1465 VIEWS | |
 |
Tuesday, January 21, 2020 / 04:25 PM / By CardinalStone Research / Header Image By: CardinalStone Research
Executive Summary
We expect improvement in the domestic economy on the
back of the structural changes that began in 2019. Notwithstanding, per capita
income is likely to remain frail with scope for further changes in consumption
patterns and, possibly, excess capacity for a few companies. Monetary bias
could remain largely dovish, with administrative measures set to leave system
liquidity at elevated levels and yields mostly lower in H1'20. Bold reforms
would be needed to lubricate proposed implementation of Nigeria's N10.6 trillion
budget to properly stimulate growth.
In equities, we expect investors to take advantage of
bargain hunting opportunities in fundamentally strong names. We see scope for
capital gains in ZENITHBANK, UBA, GUARANTY, and FBNH in the banking space. The
investment case of WAPCO and UACN are also compelling following recent
restructuring efforts/plans. The performance of a few other consumer names
(such as FLOURMILL and NB) is likely to be buoyed by debt refinancing initiatives.
We also like MTNN and DANGCEM, with reduced regulatory tension and strong
market positioning set to buoy growth for respective duo.
On fixed income, investors are more likely to stay
short in view of expected recovery in interest rate in coming quarters.
Related News
1.
Increasing External Risks and Weak Public Finances Keep
2020 Outlook on SSA Sovereigns Negative
2.
NSR H1 2020 (10) - Monetary Policy - CBN Caressing Both
FPIs and Economic Growth
3.
NOVA Economic Outlook H1 2020 - Nigerian Economy To Grow
By 2.4% YoY Over 2020
4.
NSR H1 2020 (9) - GDP - Economic Growth Should Remain
Anemic, Flatlined at 2.2%
5.
NSR H1 2020 (8) - Inflation Set for a Double Whammy in
2020!
6.
Year Ahead 2020 - Re-risking The Financial System
7.
NSR H1 2020 (7) - Currency - How Long Can The CBN Keep
Up?
8.
NSR H1 2020 (6) - Balance of Payment - Edge of the Cliff
9.
NSR H1 2020 (5) - EM Portfolio Flows - Happy Days Ahead
for EM Foreign Portfolio Flows
10.
Fitch Revises IHS's Outlook to Negative; Affirms at 'B
plus'
11.
Fitch Revises Outlook on UBA Subsidiaries to Negative on
Parent Action
12.
NSR H1 2020 (4) - Commodity Prices - Contrasting Fortunes
for Global Soft Commodity Market
13.
NSR H1 2020 (3) - Global - After a Slowdown in 2019, 2020
Growth Receives a Timely Boost
14.
NSR H1 2020 (2) - Crude Oil - Tug of War; the Bears Win
15.
NSR H1 2020 (1) - MEA Region: Modest Growth With Positive
Outlook
16.
Top Priorities for the African Continent 2020-2030
17.
Global Growth: Modest Pickup to 2.5% in 2020 amid
Mounting Debt and Slowing Productivity Growth
18.
Economic Associate's Conference on 'Nigeria's Economic
Outlook' To Hold On Feb 19, 2020
19.
Meristem Research 2020 Outlook - Finding Alpha Amidst The
Haze
Nigeria in 2020: Awakening the Sleeping Giant
Signup with Facebook
Signup with Twitter
