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Nigeria GDP On The Radar Ahead Of February 16 Presidential Election

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It has been a positive trading week for the Nigerian stock market with the All-Share Index pushing higher despite US-China trade talks pessimism which may be denting the global market with the risk of export sentiments.

 

However, local equity markets in Nigeria are seen pushing higher during the second (2nd) week as Nigeria’s GDP growth for Q4 exceeds market expectations.

Also, away from macro fundamentals, the presidential elections will be in sharp focus. Whatever the election outcome, it will have a strong impact on the Nigerian economy in as much as the global risk sentiment continue to hit by trade pessimism.

More so, the negative disposition far-reaching across financial markets during the preceding week continues to highlight how investor sentiment remains extremely sensitive to any changes in the narrative with US-China trade developments.

In the same vein, the global equities knockdown for a third straight day on Friday after Donald Trump declined to meet with Chinese President Xi Jinping before the March 1, 20-19 trade deadline. This unfavorable development has certainly raised concerns over trade talks dragging on beyond the 90-day tariff truce.

Additionally, with geopolitical risks and fears around faltering world growth already leaving global sentiment on edge, there is a high risk that there could be another sell-off in the markets if the United States once again increases tariffs on Chinese goods early next month.

This development would no doubt enhance markets in developing countries and if all things being equal, Nigeria's GDP will continue to grow.

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