… as economy opens up, more coys release Q1 results
Rhoda Ogunseye
Inspite of the lockdown occasioned by the Covid-19 pandemic, the Nigerian stock market sustained a positive sentiment in the month of May.
The key performance measure, the All-Share Index in May, gained 8.8 percent to close at 25,267.82 as at May 29, 2020, from an opening level of 23, 021.01 in the beginning of the month.
The stock market capitalisation grew to 13.168 trillion naira at the end of the month from an opening value of 11.997 trillion naira.
Managing Director of APT Security and Funds Ltd, Malam Garba Kurfi, said the achievement of the market in spite of the Covid-19 pandemic came as a surprise.
According to him, “The market really surprised us, because if you look at the month of May, the All-Share Index gained about nine percent. If you look at it in the month of April, it gained about 9 per cent. So, in the two consecutive months, it gained about 18 per cent.
“As at March, our losses was around 24 per cent, but now, our loss is around six per cent, but the Index is likely to return to positive before the end of June.”
Kurfi said although the capital market had done well in April and May and would likely continue in June, but would return to negative in July.
“The market may not continue to sustain that; simple reason is obvious- most of the market was up, based on the year end result and 1Q result of quoted companies. Interestingly, some of these companies are still coming up with their results. In July we are foreseeing the market is likely going to go negative because the result will start showing the full impact of the Covid-19 lockdown, a development that will discourage the market rising,” he said.
On his part, Managing Director of Cowry Asset Management Limited, Johnson Chukwu, said the capital market outlook was expected to remain positive as the economy.
He said, “If the economy is re-opened as expected, I want to believe that the capital market outlook will remain positive in the month of June.
“Again, considering the fact that we see some level of recovery in oil price, we still saw a positive growth in the GDP by 1.8%. So, these are things that should ordinarily propel investors to look in the direction of the capital market.”
Chukwu added that the stock market had remained attractive as rate on fixed income instrument had dampened.
Giving an advice on what to look out for, he said, “Some of the banking stocks remain attractive, the pharmaceutical and consumer goods stocks would also show some rebound, the building material segment may also show some recovery as the economy opens up and people go back into construction. “
Inspite of the lockdown occasioned by the Covid-19 pandemic, the Nigerian stock market sustained a positive sentiment in the month of May.
The key performance measure, the All-Share Index in May, gained 8.8 percent to close at 25,267.82 as at May 29, 2020, from an opening level of 23, 021.01 in the beginning of the month.
The stock market capitalisation grew to 13.168 trillion naira at the end of the month from an opening value of 11.997 trillion naira.
Managing Director of APT Security and Funds Ltd, Malam Garba Kurfi, said the achievement of the market in spite of the Covid-19 pandemic came as a surprise.
According to him, “The market really surprised us, because if you look at the month of May, the All-Share Index gained about nine percent. If you look at it in the month of April, it gained about 9 per cent. So, in the two consecutive months, it gained about 18 per cent.
“As at March, our losses was around 24 per cent, but now, our loss is around six per cent, but the Index is likely to return to positive before the end of June.”
Kurfi said although the capital market had done well in April and May and would likely continue in June, but would return to negative in July.
“The market may not continue to sustain that; simple reason is obvious- most of the market was up, based on the year end result and 1Q result of quoted companies. Interestingly, some of these companies are still coming up with their results. In July we are foreseeing the market is likely going to go negative because the result will start showing the full impact of the Covid-19 lockdown, a development that will discourage the market rising,” he said.
On his part, Managing Director of Cowry Asset Management Limited, Johnson Chukwu, said the capital market outlook was expected to remain positive as the economy.
He said, “If the economy is re-opened as expected, I want to believe that the capital market outlook will remain positive in the month of June.
“Again, considering the fact that we see some level of recovery in oil price, we still saw a positive growth in the GDP by 1.8%. So, these are things that should ordinarily propel investors to look in the direction of the capital market.”
Chukwu added that the stock market had remained attractive as rate on fixed income instrument had dampened.
Inspite of the lockdown occasioned by the Covid-19 pandemic, the Nigerian stock market sustained a positive sentiment in the month of May.
The key performance measure, the All-Share Index in May, gained 8.8 percent to close at 25,267.82 as at May 29, 2020, from an opening level of 23, 021.01 in the beginning of the month.
The stock market capitalization grew to 13.168 trillion naira at the end of the month from an opening value of 11.997 trillion naira.
Managing Director of APT Security and Funds Ltd, Malam Garba Kurfi, said the achievement of the market in spite of the Covid-19 pandemic came as a surprise.
According to him, “The market really surprised us, because if you look at the month of May, the All-Share Index gained about nine percent. If you look at it in the month of April, it gained about 9 per cent. So, in the two consecutive months, it gained about 18 per cent.
“As at March, our losses was around 24 per cent, but now, our loss is around six per cent, but the Index is likely to return to positive before the end of June.”
Kurfi said although the capital market had done well in April and May and would likely continue in June, but would return to negative in July.
“The market may not continue to sustain that; simple reason is obvious- most of the market was up, based on the year end result and 1Q result of quoted companies. Interestingly, some of these companies are still coming up with their results. In July we are foreseeing the market is likely going to go negative because the result will start showing the full impact of the Covid-19 lockdown, a development that will discourage the market rising,” he said.
On his part, Managing Director of Cowry Asset Management Limited, Johnson Chukwu, said the capital market outlook was expected to remain positive as the economy.
He said, “If the economy is re-opened as expected, I want to believe that the capital market outlook will remain positive in the month of June.
“Again, considering the fact that we see some level of recovery in oil price, we still saw a positive growth in the GDP by 1.8%. So, these are things that should ordinarily propel investors to look in the direction of the capital market.”
Chukwu added that the stock market had remained attractive as rate on fixed income instrument had dampened.
Giving an advice on what to look out for, he said, “Some of the banking stocks remain attractive, the pharmaceutical and consumer goods stocks would also show some rebound, the building material segment may also show some recovery as the economy opens up and people go back into construction. “