Chart: Bloomberg
Phew 2014 is finally over for Nigerian stocks!!! What a year it has been for the Nigerian All Share Index. The year opened with very high expectations following a resounding 47% posted in 2013. However, 2014 turned out to be a very challenging year as stocks wobbled through many boom and bust cycles. Stocks trended lower in the first quarter of 2014 before picking up again in the early stages of the second half of the year. Then came the great fall in oil prices and the devaluation of the Naira. Stocks foresaw the impacts of these twin evils and fell the most in years between October and December 2014.
Where it not for the massive rallies recorded in the last 10 days of 2014, the slide this year would perhaps have crossed 20%. However, the All Share Index ended 2014 with negative return of 16.14%. Though, still bad but much better than a dire 25% that was staring at us just two weeks ago. Most of the major sub indices also look set to record double digit negative returns. The NSE 30, NSE Banking, NSE Consumer, NSE Oil and Gas are all expected to post negative returns.
Nevertheless, we look forward to 2015 with renewed optimism for greater returns. No better way to start a portfolio or improve your portfolio than to start from a negative position. Happy New Year!!!