Nigerian Capital Market Update

pwc Nigerian Capital Market Update - September 2020 Overview Equities market Debt market Commercial papers Nigerian capital market: summary of major events year-to-date What lies ahead About us As the global markets recover from the initial shock of COVID-19, which created an extreme market volatility in Q1 2020, there has been renewed issuer and investor confidence with a surge in IPO activity in developed markets, especially in the US and China. We expect to see issuers in the tech and healthcare space take advantage of the current market sentiments as more companies within these sectors continue to prepare for an IPO. Despite the recoveries noted, there are still uncertainties around the speed of global economic recovery. The US presidential elections in November 2020 and the Brexit transition in December 2020 are all factors which may impact global market performance. On the domestic front, we expect a quiet primary market activity in the short term given the current macroeconomic concerns and blurry economic outlook. However, it is expected that the key market-led initiatives introduced within the year will encourage more companies, especially start-ups to explore the opportunity of accessing the capital market for long term funding. It is expected that corporates will continue to take advantage of the low interest rates and the huge market demand for relatively higher yields in the bond market. However, given that market conditions are highly unpredictable, time to market is very important for corporates wishing to capitalize on this window of opportunity. Nigerian capital market update - September 2020 PwC 鐵 D September 2020 8

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