Equities: 34 company post gains in 2019

IT seems not yet uhuru for the Nigerian stock market, as the local bourse was largely bearish through 2019, save for February when it added  0.92 gain, thereby closing the year with 15 per cent Year-to-Date loss.

During the year, about 34 stocks out of 166 posted gains. While 99 stocks posted losses during the year, 33 stocks remained flat.

Cornerstone Insurance topped the chart as the best stock posting a return of 125 per cent, followed by AG Leventis and Thomas Wyatt with 104 per cent and 65 per cent, respectively. Access Bank posted the best amongst banks and Blue Chip stocks with a return of 47 per cent. Zenith Bank, First Bank of Nigeria Holdings, United Bank for Africa, and Guaranty Trust Bank all closed the year in the red.

However, the worst performing stock for the year went to International Breweries having posted a negative return of 69 per cent. All brewery stocks also posted losses.

The Nigerian Stock Exchange All-Share index ended 2019 with a year-to-date loss of 14.6 per cent. This marks the second year straight of losses after it ended 2018 with a loss of 17.81 per cent.

The index has been negative for most part of the year, as both local and foreign investors abstained for reasons such as the 2019 general elections, government policies, trade wars, volatility in oil prices and other geopolitical uncertainties across the globe.

Experts, however, expect continued lacklustre performance at the equity market in 2020, as a result of unfriendly-business reforms which erode investor confidence.

However, increased interest by institutional investors in fundamentally-sound stocks is foreseen; which would boost the market, at least in near term, but unsustainable without the implementation of growth-stimulating policies.