Stakeholders are reported to be reeling from what has been described as one of the worst years in the worldwide financial market. As a result of the inflation crisis, banks were forced to increase the interest rates, as well as halting the supply of cheap money. According to reports, the global stocks lost about a fifth of its value over the last year as a result of the surging inflation that preceded the pandemic and the Russia-Ukraine crisis. In fact, with the MSCI All-Country World Index of stocks losing one fifth of its value, Bloomberg described this crisis as a “$18tn rout”. Europe’s stock exchange for instance, depreciated by 12 percent last year, the continent’s worst recorded performance since 2018.
As inflation increased, shares were immensely affected. The tech and bond market were badly hit. However, the stock market has witnessed a major growth over the last two months, signaling the stock market’s resilience in spite of the numerous challenges faced, especially in Nigeria where the general election is expected to take place in days. Gbenga Ogunrinola, a Financial and Investment Analyst, revealed this whilst in an interview on the development trends existing in Nigeria’s stock market, as well as Africa’s and the global stock market with Tolulope Ogunjobi on Business Nigeria.
Climate of investment in Nigeria now dominated by local investors.
Mr. Ogunrinola, who was commenting from the United Kingdom, noted that the Nigerian Stock Market ended on a positive note in 2022 and commenced 2023 on a positive slate. He indicated that despite the impending general elections, the market’s value has continually surged. He revealed that since the advent of the Covid-19 pandemic, local investors had immensely participated in the market, making it quite an anomaly for foreign investors coming into the Nigerian market.
The Financial and Investment Analyst indicated that the trend had been very important in halting the dumping of stocks syndrome that commences at the beginning of elections in Nigeria. He insisted that the trend had helped the market and stock maintain their value. He explained that it was a good measure that the climate of investments was being dominated by local investors, as it would prompt more local investors. He also explained that the Nigerian local investments would make it cumbersome for local investors to move their money out of Nigeria to other countries.
Naira scarcity in Nigeria pushing people into cumbersome situations.
Speaking on the performance level of other countries like the United Kingdom, Mr. Ogunrinola further noted that most countries had raised their interest rates, as a result of the worrying situation of the global inflation. He said this measure was also aimed at ensuring no capital flight from their economy. He indicated that the markets within United Kingdom was over 10 percent and the market gain submitted at 6 percent. He again pointed out that indices in the United Kingdom had increased. In America however, the inflation rate was revealed at over 6 percent and that their interest rate is 4.5 percent.
It was indicated that the inflation rate in some developed countries were still high, as well as their interest rates. He encouraged the Central Bank of Nigeria and the coming president of Nigeria to ensure a reduction in the country’s inflation rate and interest rate, as they were still quite high. He also urged the necessary bodies to implement intentional policies that would positively impact the country’s economy. On the current scarcity of naira in the country, Mr. Ogunrinola explained that while it was a good initiative, the cost benefit analysis had evidently indicated that the policy was pushing the people into a cumbersome situation.
Global stock market predicted to witness improvements in 1st quarter.
He however urged the Central Bank of Nigeria to be open with the people, for better understanding of the current situation, whilst procuring viable solutions to curb the crisis before it degenerates. He also predicted that the global stock market would witness improvements in the first quarter and also develop further with a capital market recovery. It was also noted that with no further escalation of the Russia-Ukraine crisis, the global space would witness a decline in the inflation rate.
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Global stock market to regain losses in 2023 – Nigeria’s stock market commences 2023 on a positive slate, despite election. – Express your point of view.
The global stock market might have gone through a lot of problem last year. I just hope the economy will get better this period so the global stock market can rise.
It will be nice if the stock market regain losses it as been down since a while that the stock market is bad which is not helpful to our economy
It has been said that stakeholders are still suffering from what has been described as one of the worst years in the global financial sector.
As a result of the spiraling inflation that preceded the epidemic and the dispute between Russia and Ukraine, the value of the world’s stock markets has dropped by approximately one fifth over the course of the past year.
During an interview on Business Nigeria with Tolulope Ogunjobi, he discussed recent developments in the Nigerian stock market, as well as those in Africa and the rest of the world.
We should know that the stock market in Europe had a decline of 12 percent in value in 2018, marking the worst performance for the continent since 2018 was recorded.
Since the beginning of the COVID-19 pandemic, local investors had enormously participated in the market. As a result, it had been rather unusual for international investors to enter the Nigerian market.
The global stock market would exhibit signs of improvement in the first three months of the year and would continue to advance as a result of a rebound in the capital markets.
The phenomenon had been very useful in reducing the dumping of equities syndrome that occurs at the beginning of election season in Nigeria. This condition typically begins around this time of year.
Regarding what this content is all about, the CBN and in coming president should ensure there’s a reduction in the country’s inflation rate and interest rate; the necessary bodies to implement intentional policies that would positively impact the country’s economy should be made available.
Seeing the stock market recover some of its recent losses would be great, as its current state is not beneficial to the economy.
This is a great news in the Nigerian stock market.for a long time our stock exchanges are not doing well but now it has regained losses in 2023.
Due to several things that have happened in the pass years: inflation, covid-19, etc. The Nigerian stock has lossed significantly but this year 2023 they were able to recover from their losses.
Local investors have been quite active in the market ever when the COVID-19 outbreak first emerged. This meant that outside investors rarely entered the Nigerian market.
Over the past year, the value of the world’s stock markets has decreased by almost one-fifth due to factors such as the virus and the crisis between Russia and Ukraine.
Global stock market to regain losses in 2023. It is very important and necessary fine that the global stock market is regaining their losses. They need to put more effort
The topic of this article is whether or not the Central Bank of Nigeria (CBN) and the incoming president will be able to bring down inflation and interest rates in the country and whether or not they will be able to put in place the institutions needed to implement policies that will have a positive effect on the economy.
This a good new for everyone in the year because this will change many things if it happens and global economy will be better for it after three years of strongly.
The Financial and Investment Analyst stated that the trend had been crucial in putting an end to the Nigerian election-related stock-dumping phenomenon.
Stakeholders are reportedly still feeling the effects of what has been called one of the worst years for the global financial sector.