Nigeria’s equities market to remain positive in 2022, say analysts

Agency Report
Agency Report

Parthian Securities’ analysts have predicted that the Nigerian equities market will remain positive due to the increased participation of domestic players in 2022, despite being a pre-election year.

Parthian Securities said in a statement that four months after the maiden edition of its free investment clinic tagged ‘Bears and bulls series’, it had held another insightful session with the theme, ‘Equities, bonds, and bills: Q1 review and H1 expectations’.

It said the session reviewed market performance in the fixed income and equities market for first quarter of 2022 in line with projections made by the research team during the maiden edition and also discussed the outlook for the first half of 2022.

Speaking during the virtual session, Parthian Securities’ Head of Investment Research, Oluwaseun Dosunmu, commented on the predictions made by the team at the beginning of the year.

Dosunmu said, “The first session we had at the start of this year was quite insightful. We made some predictions for 2022 which have already played out well in Q1.

“The market moved in shocking directions just as we had predicted, and 90 per cent of the stocks we recommended are currently among the top-performing stocks in the market.

“Notable among these stocks are Guinness, Seplat, Presco, Airtel Africa, and United Capital. Guinness increased significantly to 168 per cent – its share price moved up from N39 at the start of the year to its current N88.45.

“Also, Seplat Petroleum Development Company rose by 68 per cent – its share price increased from N650 at the start of the year to its current price of N1,000.”

On the equities market review for the first quarter of 2022, the presentation showed a positive market performance in Q1 despite prevailing uncertainties.

Dosunmu stated, “Every pre-election year, investors become wary and cautious of investing in the market. However, things have been moving in the opposite direction this year and the market performance has been impressive.

“Among the key drivers of this movement are year start rally due to BUA listing on the NGX; investors’ reaction to companies’ full-year earnings and dividend declarations; predominance of domestic players over foreign players in the market, and low yields in the fixed income market which forced investors to consider more profitable securities in the equity market.”

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