FSL Securities said based on the N9.18 trillion budget deficit of 2024, there will be high level of Bond activities in order to tackle the budget and to be able to achieve the targeted growth.
Speaking at the FSL Securities’ Economic Review and Outlook for 2024, with the theme “Navigating the tides”, Victor Chiazor, its Head of Research and Investment, said: “Given the need to fund the budget deficit, private sector activity in the segment of the market is needed. We see the bond market remaining active this year as money would be raised from the market to fund the deficit budget.
“Also, Appetite for state bonds continue to wane, but we anticipate states with high revenues to access the bond market given the number of reconstruction done on some state bonds.”
On the economy, he said: “Year 2024 will see the federal government struggle with the current elevated debt levels as its current debt to service ratio remains significantly high.
“The equities market will likely struggle to achieve the performance reported in 2023, but will be dominated by domestic players as we expect foreign investors interest in the market to be low. The market will majorly be impacted by a dovish stance of the CBN and company performance.
The visibility of the fiscal authority is expected to improve in the year, but monetary policy for 2024 is expected to remain mixed as it will continue to monitor unfolding events and decide whether to adopt an expansionary policy or contractionary monetary policy.”