Mr. Oderinde Taiwo, National Coordinator, Proactive Shareholders Association of Nigeria, PROSAN
I EXPECT the third quarter (Q3:17) performance of companies quoted on the Nigerian Stock Exchange, NSE, to be better than the corresponding period in 2016. You know there was economic recession during that period, but Nigeria exited in June this year.
So, it is expected that companies will do better this period than last year when the Foreign Exchange, forex, was difficult and more expensive to secure. Their performance might not be too fantastic as the economy has not fully recovered.
Owolabi Peter, Chairman, Integrated Supreme Shareholders Association of Nigeria
I THINK we should see improved performance from our companies in the third quarter, although the margin might not be much as the country is still on the path of recovery. The recent rally in the market shows that investors’ confidence is gradually returning.
This will impact the market positively. I see the banks turning out impressive performance as most of their income will come from the Foreign Exchange transactions. The interest income might not yield substantial amount as there was marginal growth in the economy. This means that both corporates and individuals will not have tangible reasons to borrow from the banks.
Boniface Okezie, Chairman, Progressive Shareholders Association of Nigeria, PSAN
FOR me, I think there will be mixed performance. Some companies will do well why others will not do well. We have to look at the sectoral performance.
Like from the manufacturing companies, we may not see much progress as most of them are still operating under harsh operating environment.
In a situation, where companies do not have regular power and water supply and the inflation rate is still on the high side, how do you expect the companies to release impressive results? For banks, they make their money from different sources. Many of the banks make their money from Foreign Exchange and not from the normal interest income.
Mr. Godwin Anono, Chairman, Standard Shareholders Association of Nigeria
I DON’T expect fantastic performance for these companies in the third quarter. The economy is still on the path of recovering. However, some companies will do better than others, especially banks.
The manufacturing companies may not do well because of the high operating cost caused by high interest rate, inflation, Foreign Exchange problem, irregular power supply, and so on.
We may see improved performance in the fourth quarter if the economy grows faster that what it recorded in first half.