SUN DEC 29 2024-theGBJournal| In 2025E, improving macroeconomic conditions, including enhanced FX liquidity, moderating inflation, and policy reform stability, are expected to drive more foreign portfolio investors (FPIs) to the domestic equities market.
The Nigerian equities present compelling opportunities, with undervaluation across key sectors and strong growth potential, making them increasingly attractive to FPIs.
By early December, the All-Share Index has delivered a 31.7% YTD return, keeping it on track to meet our base case return estimate of +39.3%.
Nonetheless, persistent global risks, particularly geopolitical tensions and macroeconomic uncertainties may drive risk aversion among foreign portfolio investors (FPIs), limiting their appetite for emerging and frontier markets like Nigeria.
Moreover, the growing significance of domestic investors means that even as FPI inflows recover, their relative share of market activity may remain subdued, with local institutional and retail investors continuing to drive market performance in the medium term.
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