The Nigeria Equity Market Continues the Bullish Run

The first Nine trading days of 2018 had been remarkable, with trading patterns reflecting the pattern it attained prior to the 2008 Market correction and eventual collapse. Stocks are trading in regions that can only force a trader to ask questions,is this for real? Even at the height of the Market in 2008 GtBank only traded N40.15k, but this time around it has attained an unprecedented N50.00 in the course of trade within the last nine trading days of 2018. While a whole lot are still years behind their 2008 peak, GtBank is blazing the trail. The all share index (ASI) is considered one out of the many that are still far behind their height. the ASI attained 66,162.17 in 2008 before the crash, it currently trade at 42,898.90 which is still 35.16% below its peak. on the order hand, the Market Capitalization stood at N15.37 trillion as at the close of business on Friday 12th January, 2018. This is higher than the N12.6 trillion it attained on 11th March, 2008 at the Market height of that period. No thanks to stocks like , Nestle, International Breweries, Dangote Cement, GTBank, NB, Stanbic Bank, 7up and Beta Glass trading in new territories. In the same vein, the listing of Seplat, Transcorp Hotel and Jaiz bank also added to these. We should also not forget that that about 90 companies were also delisted from the Market but not enough to affect the Market Cap.

Even as the trading pattern in 2018 had change the course of trading trend in January, defeating the historical belief of Market slow down in January, the earliest year end 2017 financial report would not come in until the third week of March 2018, before then there would be a lot of mop up and sell off as had been experienced in the last two weeks of trading.

Worthy of note are the following stocks that had set the tune for 2018:

Stock	Appreciation
STERLNBANK	76.85%
FCMB	71.62%
DIAMONDBNK	69.33%
SKYEBANK	68.00%
HONYFLOUR	67.62%
ETERNA	62.56%
UNITYBNK	54.72%
WEMABANK	51.92%
TRANSCORP	44.52%
CHAMPION	41.83%

The ASI had only gained 12.17% Year to Date (YTD). An investment in the ASI would have been deprived of the scintillating returns shown above. The few trading days of this year had shown that penny stock would rule the wave. At this point a FUND of penny stocks wouldn't be a bad idea after all.

We don't expect much deviation from what was experienced in the first two weeks of trading, even though there were massive profit takings on 5th and 12th of January respectively we expect the Market to pick up momentum when the Market open next.

The Micro and Macro economic variables still remain favorable, and with the foreign reserve and crude oil price at $40billion and $70 per barrel respectively the Nigerian Market would still be a toast of foreign portfolio investors.

While we continue to celebrate the trail blazers, the following stocks had not started the year well: 

Stock	decline
NEM	-6.63%
NESTLE	-4.24%
MOBIL	-2.36%
GLAXOSMITH	-0.51%

The few entry above reflect the fact that their was much positive sentiment towards our equity Market, and this will continue until the results start rolling in.

Let us enjoy this euphoria while it last. Happy trading!!!