Despite the fact that 2022 is a pre-election year, Parthian Securities experts expect that the Nigerian stock market will remain bullish due to increasing local involvement.
Parthian Securities stated in a statement that four months after the first edition of its free investment clinic, dubbed the “Bears and Bulls series,” it presented another informative session dubbed “Equities, Bonds, and Bills: Q1 Review and H1 Expectations.”
The session analyzed fixed income and equity market performance for the first quarter of 2022 in keeping with estimates made by the research team during the inaugural edition, as well as the outlook for the first half of 2022, according to the report.
Speaking during the virtual session, Parthian Securities’ Head of Investment Research, Oluwaseun Dosunmu, commented on the predictions made by the team at the beginning of the year.
Dosunmu said, “The first session we had at the start of this year was quite insightful. We made some predictions for 2022 which have already played out well in Q1.
“The market moved in shocking directions just as we had predicted, and 90 per cent of the stocks we recommended are currently among the top-performing stocks in the market.
“Notable among these stocks are Guinness, Seplat, Presco, Airtel Africa, and United Capital. Guinness increased significantly to 168 per cent – its share price moved up from N39 at the start of the year to its current N88.45.
“Also, Seplat Petroleum Development Company rose by 68 per cent – its share price increased from N650 at the start of the year to its current price of N1,000.”
On the equities market review for the first quarter of 2022, the presentation showed a positive market performance in Q1 despite prevailing uncertainties.
Dosunmu stated, “Every pre-election year, investors become wary and cautious of investing in the market. However, things have been moving in the opposite direction this year and the market performance has been impressive.
“Among the key drivers of this movement are year start rally due to BUA listing on the NGX; investors’ reaction to companies’ full-year earnings and dividend declarations; predominance of domestic players over foreign players in the market, and low yields in the fixed income market which forced investors to consider more profitable securities in the equity market.”
