The Nigerian Stock Exchange All Share Index has been predicted to grow by 11.05% in 2013, according to Meristem Securities, one of the leading stockbroking and research firms in Nigeria.
The stock market has been bullish for some time now, with the ASI hitting its highest point in 48 months yesterday, as it closed at 30,093.83.
Speaking at the presentation of Meristem Outlook 2013 in Lagos on Tuesday, the company’s Director, Investment Research, Mr. Gary Watson said the NSE would not see similar levels of growth as it did in 2012.
He said, “Our bullish portfolio for 2012 returned 42 per cent, however, the NSE Index returned 35.45 per cent for the same year. We believe that fundamentally, the market should go up by about 11.05 per cent and may be slightly higher, added to the 35 per cent that was recorded last year.
“However, what investors should note is that even though the index may record 11.05 per cent, it doesn’t mean that stocks would turn in that same amount, some stocks may turn in as high as 50 to 70 per cent returns to investors. So, we still advise investors to invest in the right stocks.”
The Group Managing Director, Meristem Securities, Mr. Oluwole Abegunde, also speaking at the event said, “Our 2013 expectation for the equities market is expected to be driven by the financial services sector, majorly the banks. And so, for us, that sector is still one to look out for, post consolidation, as the banks now have better risk management systems and their asset quality has also gone up. This would manifest in their full year results.”