Afrinvest market analysts have identified the four major elements that will propel the Nigerian stock market in 2019.
In a report, Afrinvest explained that they are anticipating the performance of the stock market to be strengthen in 2019, and they listed four factors that would determine this. They are post-election, new listings, macroeconomic indicators and corporate earnings.
According to Afrinvest, before 2018, foreign investors have been the key players in the Nigerian stock market. Recently, local investors have contributed immensely to the stock market as a result of the pulling out of foreign investors from the local market.
“In 2019, we expect foreign investors to return to the Nigerian stock market after the conclusion of the elections and as such anticipate an improvement in performance.
“Furthermore, given current pricing of the market, which we believe is attractive – even more attractive in dollar terms – we expect foreign investors to take advantage of this whilst domestic investors will react accordingly.”
Analysts and experts have had different views on the factors that will shape up the Nigerian stock market in 2019 and how it would finish since Q4 of 2018. A few weeks ago, analysts at the United Capital Plc also had something to say about the stock market for 2019.
They all believe that in 2019 that there will be a change in the stock market and it would pick up from a last year’s poor performance of -17.8%. Although a few companies/organisations gained while some were on the losing end.
Afrinvest (West Africa) Ltd is an independent investment banking firm with a focus on West Africa and active in four principal areas: investment banking, securities trading, asset management, and investment research. It is regulated by the Securities and Exchange Commission (SEC) as an Issuing House and Underwriter.
It is both a provider of research content on the Nigerian market and an adviser to companies across West Africa on M&A and international capital market transactions. They also provide financial advisory services as well as capital raising solutions to High Net-worth individuals, corporations and Governments.