Broadly reflecting performance across global equities so far in 2017, the local equities market opened the year surrounded by lots of economic uncertainties.
The economy was battling recession, investor confidence had been shattered by inconsistent policy responses and militancy in the Niger-Delta region was threatening the future of a near-term recovery.
As such, the equities market ended the first quarter of the year lower, down 5.1 percent q/q.
As such, the equities market ended the first quarter of the year lower, down 5.1 percent q/q.
However, a sequence of positive developments changed this narrative in the second quarter with broader index jumping 29.8 percent q/q.
The rally peaked in July when the All Share Index (ASI) crossed the 38,000 points mark amid impressive half-year earnings.
This drove year-to-date (YTD) return above 40 percent, corresponding to our optimistic case for the year.
Expectedly, investors sold the July rally in August and September, as such, the ASI retreated to 35,439.98 points to bring YTD return to 31.9 percent at the end of the third quarter of the year.
In the last four trading days, equities have rallied 3.9 percent with the benchmark index settling at 36,831.9 points and YTD return has improved from 31.9 percent to 37.1 percent as at Monday, Oct. 9.
In the last four trading days, equities have rallied 3.9 percent with the benchmark index settling at 36,831.9 points and YTD return has improved from 31.9 percent to 37.1 percent as at Monday, Oct. 9.
With the third quarter earnings already filtering into the system, we are of the view that the market may be set for another rally as the ASI heads for the 38,000 points mark again.
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