Analysts at Cordros Capital Limited, an investment banking firm, have said the equities market will remain bullish for most part of the second half (H2) of 2017.

The market recorded an outperformance in the first half (H1) of 2017 with the Nigerian Stock Exchange (NSE) All-Share Index rising by 23.2 per cent. Although there have been occasional profit taking since the H2 began, the market has appreciated by 13.3 per cent as at Monday, bringing the year-to-date growth to 39.6 per cent.

However, in a special report obtained, Cordros Capital said following the outperformance in H1, they look forward to a sustained uptrend in domestic equities over the remaining part of the year.

“The gains will be supported by consistency and sustainability of policies that speak to near term macroeconomic recovery, in addition to better-than-2016 corporate earnings,” they said.

According to them, they acknowledge downside risks from around the globe, notably rising geopolitical tensions, higher interest rates in the United States, and most profoundly, hazy outlook for oil prices –which could particularly threaten forex stability and consequently spark capital flow reversal.

Cordros Capital, however, stated that developments in the domestic economy signal recovery in the near term which will further strengthen investor appetite. “We look for the economy exiting recession in Q2-2017 (we project output to expand by 1.80 per cent during the quarter and 0.97 per cent for the full year). As a leading indication, manufacturing and non-manufacturing activities expanded in the second quarter of the year, as revealed by the Purchasing Managers’ Index (PMI) which averaged 52.2 and 52.1 points respectively during the three months period. We expect that to be consolidated by fiscal spending related gains from the record 2017 budget,” they added.

The analysts noted that further supporting the argument for a bullish run on the domestic bourse, the Central Bank of Nigeria (CBN)’s Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) window has the potential to further buoy foreign portfolio investment (FPI) inflows over H2.

According to them, still on expected increased participation in the equities space, the likely implementation of the amended Regulation on Investment of Pension Fund Assets, particularly the introduction of the multi-fund structure released by the National Pension Commission (PENCOM) on 18th April, 2017, will further bolster local pension funds’ exposure to equities.

“The impact of this on pension fund managers exposure to risky asset will be positive for dealers who are already taking advantage of cheap valuation in local proprietary positions. Compared to 2016, most listed companies appear better positioned to deliver better-than-anticipated results over the remaining part of the year. Drilling on activities in the consumer goods space, we hinge our optimism on notable upside factors including improved access to the dollar (potentially limiting finance cost), moderately recovering consumer confidence, easing energy challenges, balance sheet deleveraging, rebounding aggregate demand (amid expected fiscal stimulus), and cost-reflective pricing,” they added.

The Cordros Capital analysts explained that speaking volume to their confidence in this environment is the rebound (after four-quarter negative growth) in manufacturing GDP – with food, beverage and tobacco being the biggest component, accounting for 44 per cent) – in the first three months of the year.

http://investorsking.com/39-6-growth-analyst-still-bullish-nigerian-equities-market/

Now I know how FTC feels....

Please any body wey read every thing there and understood it should explain for me because I am not understanding

FTC

Ok

Most people on this thread do not understand, and didn't read the whole thing

Hmm

i just like comment...
I swear, I no understand sh*t.

[quote author=harffie post=59291254][/quote]hater sported

harffie:

Now I know how FTC feels....

how does it feel?

Where is the growth?

All na wash

summary pls

Bullish ehn? Ok now.
Please, anybody that read and understand should just help summarize in English.
I will be back.

KayDEAN:
Most people on this thread do not understand, and didn't read the whole thing

It just simply means there is aggressive confidence in the market with room for more growth before EOY17.

Comments like this make investors decide on actions to take.

That what a bullish market means in simple terms (rising share prices) that has not peaked yet . More room for growth

Sad thing it this is not a reflection of the economy in the bigger picture when it comes to Nigeria as the market is full of sharp practices where
shareholders and equity is secretly manipulated by the big boys with borrowed money just to prop up share value and cash in.

You can see the report says some peeps have cashed in but no full explanation where and how

Nigeria we hail thee

Bullish or not , what i want to know is did market gain / increase ? the answer is yes, then im satisfied

the wolves that chopped all the chicken in the treasury forgot that the surviving chicken has to be fertile , lay eggs , hatch it , and feed it till it grows


Growth won't rapid , but slow and steady wins the race

Abeg who know say e don read that epistle finish.. Make e help me explain.. Na how to make money dey my brain... Nor be to read this super story..

"However, in a special report obtained, Cordros Capital said following the outperformance in H1, they look forward to a sustained uptrend in domestic equities over the remaining part of the year".

Wow. This is great news. Seems we are finally coming out of the woods.

God bless Nigeria.

crunchyg:
Please any body wey read every thing there and understood it should explain for me because I am not understanding

They said a man called analyst is bulling Nigerian equities.

You're welcome.

I don't understand this language o

PIDGIN TRANSLATION SUMMARY


E get this analyser company wey chook eye for our economy talk se 9ja economy grow with 39% even if bad belle people no gree se 9ja go better.

Him come talk se, upon the war and fight fight wey countries dem for obodo Oyibo de do, plus the dollar rate wey high like Zuma rock,... Despite these things 9ja bin still use eye see this improvement for him economy.

Him also talk se with the way things de go, this recession wey carry big yansh sidon for our head, we go soon use caterpillar pack am comot by next year.

Oyibo people de come our country wella invest and na better thing


That's the summary.
I know you guys will wonder and say we are not feeling the improvements. Me too I join una. But may be true what he said.

Lawd.....See jargons

too many problems in naija. not enough answers

Often a bullish stock market signifies investor confidence in an economy. It could be funds are being moved into equities more from the money market

Shortyy:

They said a man called analyst is bulling Nigerian equities.

You're welcome.

Hahahahaha, me sef understand small pass you, teacher abeg don't teach me nonsense

crunchyg:

Hahahahaha, me sef understand small pass you, teacher abeg don't teach me nonsense

Shortyy:

good morning pretty

please help me , am lost here ... abeg who is bulling who ? this one pass me oo