FBN Quest Capital Remains Bullish on Equities Market, Projects 10% Growth

MARKET REPORT

The Nigerian equities market ended the first half of 2018 with a marginal growth of 0.09 per cent as indicated by the Nigerian Stock Exchange (NSE) All-Share Index that closed at 38,278.55, compared with 38,243.62 at the beginning of the year.

But despite the marginal close in the first half of the year, FBN Quest Capital, a subsidiary of FBN Holdings Plc, is optimistic that the market would end year with a gain of about 10 per cent.

After recovering from a two-year loss to gain 43.2 per cent in 2017, the market was projected to maintain the positive performance in 2018. Although it started the year, maintaining a bull run that lasted in the first quarter, persistent profit taking in the second quarter eroded the gains recorded the in Q1 to end the H1 flat.

However, the Head, Equities, Head, FBNQuest Capital said Bunmi Asaolu, the index would recover the lost ground and end the year with a minimum growth of 10 per cent at the end of the year.

According to him, the macro economic outlook was still supportive with all prices remaining firm.

Asaolu said: “Our view is that the macro outlook is still supportive, with oil prices remaining firm, and that this should offset potential uncertainty stemming from political risk going into H2 2018. Although we do not expect consensus earnings estimates to see significant upwards revisions through the rest of the year, valuations are yet to fully capture earnings outlook expectations, especially among the Tier 1 banks. As such, we expect the index to recover lost ground, with a minimum of 10 per cent gain by the end of the year.”

Meanwhile, Ashaolu has restated the commitment of  FBN Quest to continue to assist clients in navigating  through the rapidly changing financial environment by providing clear guidance through in-depth and qualitative research.

“We deliver reliable, independent, quality research to aid investment decision-making and strategy development to existing and prospective investors.

“Our in-depth and qualitative research covers macroeconomics, fixed income and equities, offering timely market commentary and detailed analysis of the local economy, major sectors listed on the  NSE and the fixed income and foreign exchange markets,” he said.

According to him, they  are bold about  their  recommendations as they are made from thorough and objective study of the relevant companies within the context of their respective industries, the local market and international peer set.