Nigerian stocks will probably outperform bonds this year as company’s earnings grow, while inflation expectations limit gains in the debt market, according to Lagos-based Vetiva Capital Management Ltd.
Equities offer total return of 19 percent in 2012, including dividend yield of 7 percent, Vetiva said in a report e-mailed today. Bonds will return 16 percent, with a 1 percent price gain and 15 percent coupon, it said.
“With attractive market valuation on fundamentally sound stocks, we favor equities as an asset class over fixed income,” Vetiva said.
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