Analysts reiterate positive near-term outlook for stock market
Increasing buy decisions at the Nigerian bourse have continued to push Nigerian equities prices higher. This trend further justifies most analysts’ expectation of a near-term positive performance as the market yield return well in excess of 43percent.
Equity market transactions on the floor of the Nigerian Stock Exchange (NSE) became stronger as investors and traders continue to react to positive economic data within Nigeria’s investment space.
Just last week, investors gained N206billion as bargain hunting continued. In just two trading days to Tuesday this week, stocks value advanced by additional N191billion evidenced in the value of listed equities which rose to N13.406trillion as at Tuesday.
Currently, a number of portfolio managers as well as stock traders are reassessing and rebalancing their portfolio holdings ahead of year end.
According to research analysts at United Capital Plc who had expected some level of profit-taking to play-out earlier this week, “investors will start looking at a likely Santa-clause rally to close-out the year.”
Afrinvest Securities analysts who noted that their weekly sentiment indicator advanced to 4.1 points from 3.3 points recorded the preceding week also anticipated a slight pullback in early trades this week, due to profit-taking.
The analysts reiterated their positive near-term outlook for the market, “As fund managers continue to rebalance portfolios ahead of fiscal year end.” Afrinvest medium term outlook remains bullish “as improving macroeconomic indicators feed into investor appetite for Nigerian assets”.
Amid positive closes across all but one key sector last week and consistently strong positive market breadth which led to close out last shortened week, Vetiva Capital research analysts expect the record upbeat sentiment to filter into this week.
In just eleven months to November 30, only ten stockbroking firms accounted for N1.491trillion worth of stocks exchanged on the floor of the Nigerian bourse.
The top 10 stockbrokers were responsible for 94.63percent of the total value between January 3, 2017 and November 30, 2017, according to latest broker performance report.
They brokers and the value of deals the accounted for are: Stanbic IBTC Stockbrokers Limited (N371.139billion); Rencap Securities (Nig) Limited (N211.411billion); Cordros Securities Limited (N208.875billion); and Meristem Stockbrokers Limited (N164.561billion).
Others are: CSL Stockbrokers Limited (N162.419billion); A.R.M Securities Limited (N81.245billion); FBN Securities Limited (N78.125billion); United Capital Securities Limited (N77.547billion); EFCP Limited (N74.304billion); and Chapel Hill Denham Securities Limited (N62.10billion).
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