2 January 2013

Nigeria: 'NSE All-Share Index Will Cross 30,000 Mark in Q2'

Barring any unforeseen circumstances such as slow progress of macroeconomic policy reforms and sustained insecurity in the Northern Nigeria, the Nigerian Stock Exchange (NSE) All-Share Index will cross the 30,000 mark in the first half of 2013 and to return between 15 per cent and 20 per cent, analysts at BGL Securities Limited have said.

The last time the exchange's benchmark index got to that point was in 2008 when the market hit its highest point before the global financial meltdown that led to stock market crashes around the world.

However, the market had since the beginning of last year returned to profitability ending 2012 with a 34 per cent return on equity.

In their equity market review for 2012, analysts at BGL Securities, scanned the local investment environment and identified outlooks for the equities market in 2013.

"Basically, we hinged our projections on the on-going reforms of the federal government, and other notable macro-economic dynamics. Major reforms and policies introduced by the government attracted an estimated N1.5 trillion into the country inform of huge foreign portfolio investment. The country still remains investors' delight as an emerging economy with potentials to give substantial returns on every penny invested while also relatively safe for capital preservation," said BGL analysts.

THISDAY had on Monday reported that investors, who dared the bearish trend in the Nigerian stock market at the beginning of 2012, witnessed a bumper harvest in form of capital gains at the end of 2012.

The report revealed that while the Nigerian Stock Exchange (NSE) All-Share Index, which measures the aggregate performance of the equities market, is posting a growth of 34 per cent for the year, investors are going home with higher capital gains. One of the stocks, Paints and Coating Manufacturers Plc, even fetched investors a capital gain of 263 per cent.

According to the report investors, who bought share of International Breweries Plc, Diamond Bank Plc, National Salt Company of Nigeria Plc (NASCON), Livestock Feeds Plc, recorded capital gains of 181 per cent, 154 per cent, 102 per cent, 98 per cent respectively.

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