2023 elections may affect investor sentiments – PwC

The 2023 elections in Nigeria might affect investor sentiments across all markets, PwC Nigeria has said in a new report.

PwC, in its Nigerian Capital Market Update report, said the Nigerian stock market recorded 21.3 percent year-to-date return with a 25 percent increase in market capitalisation as at June 2022, despite surging inflation, Monetary Policy Rate increase to 13 percent and global downturn across major equity markets.

It noted that the yield on the benchmark 10-year FGN bond declined to 12.26 percent as at June 2022, from 12.6 percent at the end of 2021.

According to the report, about N235 billion was raised via corporate bonds issuances as companies continued to access the corporate debt market to raise funds, with Dangote Cement Plc bond issuance of N116 billion in May 2022 being the largest corporate bond issuance in the history of the Nigerian capital market.

It said N500 billion worth of commercial papers were issued in the first half of 2022 in 58 issuances, with the top three issuances accounting for 45.55 percent of total value raised.

It said: “The recent increase in MPR may influence the direction of the market. However, as institutional and retail investors seek higher real returns, an avenue exists for corporates to access funding from the corporate debt market.

“Although the results of the upcoming elections are uncertain, this might play a role in investor sentiments across all markets.”