Banking stocks, driven by Tier-One banks, offered the best returns to investors in the equities market in Nigeria in 2017. The banking sector of the Nigerian Stock Exchange, which was rated second best bourse in Africa and 11th best in the world, gave equity investors a 73.3 per cent return on investment in one year.

“Given the resilience demonstrated by the banks amidst tougher operating conditions, the banking index was unsurprisingly the best performing sector in 2017, up 73.3%. Performance of the banks remained driven by resilient earnings, supported by interest income (due to higher interest rate environment),” a report on the performance of the market released by Afrivest Research last week disclosed.


On aggregate, the NSE All Share Index delivered 42.3 per cent annual return to share investors (local and foreign) in the review financial year ended 2017.

“It was a significant bounce back following a three year losing streak,” analysts with Afrinvest Research disclosed.

The overall performance of the Nigerian stock market has been attributed to renewed interest by domestic and foreign investors following stability in macroeconomic fundamentals recorded by Africa’s biggest economy in 2017.

Analysts with Afrinvest revealed that the resilient performance from the banks, especially top Tier-One banks in the likes of Guaranty Trust Bank Plc, Zenith Bank Plc, Access Bank Plc, and United Bank for Africa (UBA) Plc, was responsible for the favourable performance of the sector in the review period.

According to Afrinvest, investors showed significant interest in Tier-One banks, which led to Guaranty Trust Bank (GTB) Plc recording 64.9 per cent price appreciation in the period, while Zenith Bank Plc recorded 73.8 per cent price gain. Access Bank Plc increased its share value with a gain of 78 per cent, while United Bank for Africa Plc emerged the most improved stock in terms of price appreciation with 128.9 per cent growth.

Fidelity Bank, a Tier-Two bank, however, joined in the price gainer’s list with 196.4 per cent growth in share price in 2017.

The next most profitable sector for investors in 2017 was Consumer Goods. The sector’s index offered 37 per cent, following distance banking. Analysts have attributed the favourable performance of the sector in 2017 to increase in product prices and improvement in access to foreign exchange, as well as the relative peace in the north-eastern part of the country. Those factors, according to Afrinvest, positively impacted earnings of companies in the index.

The best performing stock in the Consumer Goods sector in 2017 was Dangote Sugar Refinery Plc. The stock, a member of the Dangote Group, boosted investor’s money by 229.8 per cent price appreciation. This was followed by International Breweries Plc, which increased investors’ investment by 192 per cent price gain, as investors cheered the decision of its parent company – AB Inbev – to merge operations of all its subsidiaries in Nigeria.

In the same vein, the Industrial Goods index increased 23.8 per cent on the back of gains in Beta Glass Plc 69.2 per cent price gain, followed by Dangote Cement Plc, the most capitalised stock on the Nigerian bourse, which grew its share price with 32.1 per cent.

The Insurance index grew 10.4 per cent, as Linkage Assurance Plc increased share value by 32 per cent, while Mansard Insurance went up by 20.9 per cent.

The Oil and Gas index gained 5.8 per cent for the year, emerging the least rewarding sector. Seplat Petroleum Plc emerged the best gainer in that index with 56.9 per cent price gain while Oando Plc, despite the challenges faced with regulators in the year, delivered 27.4 per cent gain to investors. The positive performance of the oil and gas industry was mainly due to performance of upstream players, which was bolstered by the cessation of attacks on oil installations in the Niger Delta as well as improved global oil prices. “Sentiment towards the downstream players remained soft during the year, due to absence of reforms needed to revitalise the sector,” Afrinvest Research noted.

The NSE All Share Index had declined 6.2 per cent as at April 20th, 2017 prior to the launch of the I&E FX window. However, following the launch of the window, massive buy interest returned to the domestic equities market to take advantage of cheap valuation of assets. Corporate releases for the rest of the year were reflective of the improving conditions in the broader economy; hence the rally was sustained all year. The NSE ASI gained 42.3 per cent in 2017, the second highest year-on-year index return in 10 years.

“Broad-based rally recorded across sectors as a result of the improved sentiment in the market. A broad-based rally was recorded, which drove all sectors to close in the green for 2017,” analysts said.

In its outlook for 2018, Afrinvest Research has projected that the banking index will again take the lead with 88.2 per cent return. Consumer Goods was tipped to return 37 per cent, like it did in 2017.

http://www.akelicious.com/2018/02/banking-stocks-emerge-best-performers.html

They should make these stocks more accessible to the average Nigerian and more transferable.

When information is distorted greatly to fit the narrative. Only 4 Bank stocks are reliable to invest in, the rest are junks. Well good enough they listed the Banks - GTb, Zenith, Access Bank and UBA

I know veryyyy little about stocks....but 73% ROI?....by a bank?...something is definitely wrong.

Tell that to skye bank share holders. Wud rather stake on bet than these ponzi schemes

I'm not surprised, the way banks will just deduct your money beyond reasons.
Smh

The rate bank are buying dollar this days ehn.

Originalsly:
I know veryyyy little about stocks....but 73% ROI?....by a bank?...something is definitely wrong.

What is wrong Sir?

yeyerolling:
Tell that to skye bank share holders. Wud rather stake on bet than these ponzi schemes

Skye bank has done more than 100% Year - to - date.

If your banks like UBA, GTB, Zenith, Access are charging you higher fees on SMS, checkbook and ATM card, you know what to do? Buy their shares and recoup your money.

Follow my blog on Nigerian Stocks To Buy Now For Tips On How I Made 400% Return In 2017, Click Here




Follow my blog on Nigerian Stocks To Buy Now For Tips On How I Made 400% Return In 2017, Click Here

davide470:
What is wrong Sir?

Skye bank has done more than 100% Year - to - date.

show us way

davide470:
What is wrong Sir?

Skye bank has done more than 100% Year - to - date.

What is d the essence of stock dt appreciates without payment of dividends to shareholders. remember not all investors are into buying and selling of shares, some bought for dividends which is ROI. SKYE BANK IS POOR IN DIVIDEND PAYMENT.

Correct

See GTB even after liepod's boycott. Useless fla..theads !!!

igbodefender:
They should make these stocks more accessible to the average Nigerian and more transferable.

You can trade your shares online by yourself nowadays.

Just use Google and don't assume sir.

Boss13:
When information is distorted greatly to fit the narrative. Only 4 Bank stocks are reliable to invest in, the rest are junks. Well good enough they listed the Banks - GTb, Zenith, Access Bank and UBA

FirstBank, Fidelity, UBN, StanbicIBTC?

Baba just say I no know and ask

DaV8King:


You can trade your shares online by yourself nowadays.

Just use Google and don't assume sir.

Why is that knowledge widely available? And besides, if one buys shares today, one should be able to flip them easily by tomorrow.

I know someone who got a stroke because he bought shares worth N1 billion and couldn't sell them at the right time till the shares were down to a mere N100 million. So, I know what I am talking about, Sir.

igbodefender:
Why is that knowledge widely available? And besides, if one buys shares today, one should be able to flip them easily by tomorrow.

I know someone who got a stroke because he bought shares worth N1 billion and couldn't sell them at the right time till the shares were down to a mere N100 million. So, I know what I am talking about, Sir.

And I am telling you that in the past you would have been 100% right.

But now, you can buy and sell online with a click on your device ANYWHERE in the world.

Read https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick/3092 from the beginning of thread

Or ask this same question let other nairalanders like me also educate you.

You're welcome in advance.

Toscoas2:

What is d the essence of stock dt appreciates without payment of dividends to shareholders. remember not all investors are into buying and selling of shares, some bought for dividends which is ROI. SKYE BANK IS POOR IN DIVIDEND PAYMENT.

You only pay dividends when you make profit na. Abi you want them to borrow in other to pay dividends?

Dividend payment is one of the objectives of investing but it should not be the sole aim; capital appreciation alone can give you your investing fund back within a month.

E.g. Lalasticlala bought 100,000units of SkyeBank on the 2nd of Jan at 0.52kobo, now the share price is at N1.2, that is over 100% ROI. Cash out and re-invest in the ones that will give you dividends.

ednut1:
show us way

Una no fit buy shares na..

have you heard about meritrade dot com ?

igbodefender:
They should make these stocks more accessible to the average Nigerian and more transferable.

Slapsticker:
have you heard about meritrade dot com ?

Point taken.

ogedanny:
If your banks like UBA, GTB, Zenith, Access are charging you higher fees on SMS, checkbook and ATM card, you know what to do? Buy their shares and recoup your money.

Follow my blog on Nigerian Stocks To Buy Now For Tips On How I Made 400% Return In 2017, Click Here




Follow my blog on Nigerian Stocks To Buy Now For Tips On How I Made 400% Return In 2017, Click Here

I read your blog and I am quite interested in stock market from now, how can I register a broker online and which one would you recommend as d best. thanks.