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Investors in Nigerian stock market raked-in about N1.4billion in the first-quarter (Q1) of 2018 as equities appreciated.
This feat was achieved despite that investor’s recouped profit from earlier positions entered in January, even as corporate earnings failed to rekindle some investors’ appetite towards the end of the review quarter.
The Nigerian equity market rose by 8.5percent in Q1’2018 despite that it suffered from largely bearish sentiment in February and March.
The impressive first-quarter was predominantly driven by 16.3percent rally in the first three weeks of January amid stronger-than-expected oil prices, and a positive outlook for 2018 company earnings.
The local bourse maintained downward trend for the second consecutive week in March, indicating largely bearish performance.
Stocks that helped buoy this growth in Q1’2018 include that of Caverton Offshore Support Group Plc which advanced by 107percent to N2.67; Cement Company of Northern Nigeria Plc which advanced by 96.8percent to N18.70; and Eterna Plc which also increased by 63.8percent to N6.65 in Q1 under review.
Other stocks under INVESTOR watch that exceeded 50percent gain in the review quarter are: FCMB Group Plc which gained 60.8percent to N2.38; Fidson Healthcare Plc stock price gained 54.1percent in Q1 to close at N5.70; GlaxoSmithKline Consumer Nigeria Plc stock appreciated by 57.3percent to N34; the stock price of NEM Insurance Plc which closed Q1 at N2.75 gained 65.7percent in the review period. NPF Micro Finance Bank Plc at N2.12 gained N69.6percent.
At 77kobo, the share price of Skye Bank Plc increased by 54percent; while that of Sterling Bank Plc at N1.75 as at last trading day in March gained 62percent in Q1’2018.
Unity Bank Plc share price at N1.22 at the end of first-quarter implies 130.2percent increase; while at 99kobo, Wema Bank Plc share price has risen by 90.4percent.
The Nigerian stock market opened year 2018 on a positive note as the Nigerian Stock Exchange (NSE) All Share Index (ASI) recorded 0.06percent gain in the first trading day of the year.
The NSE ASI appreciated from record 38,264.79 points on January 2, to 41,504.51 points on March 29, the last trading day in the review period.
In the first three months into this year, the value of listed equities also increased from N13.617trillion to N14.993trillion.
Sectoral performance in the review first-quarter period shows NSE Premium Index increased by 15.06percent; the NSE-Main Board Index appreciated by 4.71percent; NSE ASeM Index declined by 9.09percent; NSE 30 Index increased by 7.30percent; NSE Banking Index rose by 9.49percent; while NSE Insurance Index was also up by 8.41percent.
The NSE Consumer Goods Index gained 0.21percent; also, NSE Oil/Gas Index increased by 4.90percent; NSE Lotus II advanced by 5.41percent; NSE Industrial Goods Index gained 10.96percent; while NSE Pension Index increased by 14.84percent.
“Despite the recent bearish trend, we anticipate another modest performance in second-quarter (Q2) 18, driven by improving economic landscape and expectation of better Q1’18 earnings.
“In particular, Tier-2 banks should benefit from a low base in 2a017 whilst energy diversification and economic recovery should continue to support Industrial stocks – the highest gainer year-to-date (ytd) (+10.9percent)”, said equity research analysts at Lagos-based Vetiva Capital in their recent note.
According to Vetiva, the primary headwinds to their outlook are policy instability and a reversal in economic sentiment, “perhaps due to a sizable retreat in global oil prices.”
Iheanyi Nwachukwu
