ShareBarring any unforeseen contingencies, value of investment at the Nigerian stock market is expected to rise by 14 per cent at the end of the 2012 financial year, First Bank of Nigeria (FBN), Capital has said. The leading investment adviser said the forecast for equities growth in the New Year was underpinned by the attractive valuation for shares of banks in the financial services sector of the economy. However, FBN said that its forecast for fixed income asset (bond) was neutral, noting that “the government must pursue its reform agenda if double-digit growth is to be achieved, and has made a start with the deregulation of petrol. The challenge with all its reforms will be to hold its nerve against opposition from vested interests, but some additional palliative measures may be required to fully win the argument. If it holds firm on one reform, it becomes emboldened to implement the next, which could be the new electricity tariff, the petroleum industry bill or the sovereign wealth fund. The FBN’s weekly newsletter entitled ‘Investment research 2012 outlook’ said: “We are positive on equities for 2012 but neutral on fixed income as a broad asset class. Our end-2012 target for the All Share Index is 23,500, 14 per cent over December 31, 2011 levels. Our view is underpinned by attractive valuation for banks in particular. Within the fixed income space, the long end of the curve appeals to us. On the economy, FBN said: “We see Nigeria’s Gross Domestic Product (GDP) growth reaching 8.1 per cent this year, rising gently to 8.2 per cent in 2013. The non-oil economy will again be the driving force. Private consumption remains robust. A recovery in oil production following the Niger Delta amnesty will play a supporting role. FBN explained that the government which had since begun fiscal consolidation was moving to overcome the fiscal laxity of its predecessor, and thereby easing pressure on foreign exchange and interest rates. “The progress is necessarily gradual because of the predominance of recurrent spending in the budget. Fiscal and monetary policy, if not harmonised, are now set with a shared mindset.