Analysts express optimism for Nigerian stock market

Analysts at United Capital Plc are optimistic as they predict a good finish for the Nigerian stock market in 2019 despite their poor performance in 2018 and a dwindling start in 2019.

This prediction is noted in the Nigerian outlook for investment banking, asset management, securities trading, and trustee services for 2019, themed: ‘Sailing through the storm’.

The report focuses on the progression and regression of the global economic outlook from 2015 till date, and possible steps and risks to take to shape it up.

The Group Chief Executive Officer (GCEO) of United Capital Plc. Peter Ashade said, the uncertainties around the election and transition period, and the need to implement bold policy changes are the biggest issues identified for investors in 2019.

“Asides the need to address the badly needed policies changes, as well as take bold decisions and implement them our 2019 Economic Outlook provides insights into how local and foreign investors could wade through uncertainties and make decisions that would take them to the next level”.

Meanwhile since the first trading session in 2019, the bears at the Nigerian Stock Exchange (NSE) has continued to dominate trading with the crucial market indicators declining further by 1.20 per cent on Wednesday.

Specifically, the All-Share Index, which opened at 30,400.28, shed 364.13 points or 1.20 per cent to close at 30,400.28 recorded on Monday.

Similarly, the market capitalisation lost N136 billion or 1.20 per cent to close at N11.200 trillion compared with N11.336 trillion achieved on Monday.

Analysts at Cordros Capital reiterated that equities market would remain on a negative outlook in the short to medium term. “We reiterate our negative outlook for the equities market in the short to medium term, amidst political concerns ahead of the 2019 elections, and the absence of a positive market trigger.

“However, positive macroeconomic fundamentals remain supportive of recovery in the long term,” they said.

The Nigerian stock market had negative returns of -17.4% and -6.2% in 2015 and 2016 respectively but had a major come-back of 42% in 2017. Prior to this, its index ended in the red, down 17.81% in 2018.