Some capital market operators have listed events that will shape the stock market and the economy in 2022.
Talk with the Nigeria News Agency Tuesday in Lagos, they said the market and the economy would be affected by the monetary policy committee, the implementation of the 2022 budget, the consumer price index, among others.
Mr. Ambrose Omordion, COO, InvestData Ltd., said budget implementation, economics, political activities and the removal of fuel subsidies will determine activities for the coming year.
He added that OPEC meetings, year-end business profits in December, interest rates and industrial production would also shape economic activities in 2022.
It also listed agriculture, financial services, telecommunications, manufacturing, industrial goods and healthcare as sectors that would drive stock market growth in 2022, based on their contributions to GDP.
Omordion added that there would be more opportunities for financial services, especially banks which are expected to take advantage of the free trade area agreement.
“Telecom companies, especially MTNN and Airtel, which are increasing their cash flow due to the pursuit of the digital economy, the banking license of payment services and others, will increase performance during the new year, ”Omordion said.
He explained that removing fuel subsidies and restructuring the sector with the GDP in operation would open up new business opportunities in the industry.
Omordion, however, said the outlook for the stock market and the economy in 2022 remained mixed and risky being a pre-election year with expectations for changes in the government’s economic policies.
Also speaking, Mr. Rotimi Olubi, Managing Director of Morgan Capital Securities Ltd., said that the performance of the stock market in 2022 will be characterized by several factors.
Olubi said the introduction of IFRS 17 for insurance companies would have an impact on the reporting of contracts of insurance companies.
He added that total deregulation of the oil and gas sector would cause the price of gasoline to rise at the pump and the ripple effect would lead to inflation.
According to him, the recapitalization of insurance and pension companies will lead to numerous mergers and acquisitions as well as possible hostile takeovers in 2022.