Proshare Logo
   Market Date: 24-04-2014   
Agriculture All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs STOCKPICKS Taxation Telcos Travel & Tours Unlisted Stocks World of Business

2013 Investors Guide As Sentiments Appear Bullish

Category: Investors NewsBeat


  Read (2698)
2013 Investors Guide  As Sentiments Appear Bullish

Thursday, December 20, 2012 / The Analyst
 

“Insights from deep historical research shows measurement indices point to more winning stocks in 2013”

In the year 2012, investors were cautious towards investments in the equities market, displaying a moderate but fluctuating risk appetite, particularly in the early periods as crunched data have shown.
 

Apart from the brilliant recovery initiatives from stakeholders and regulators, the real game changer was the introduction of market-making in the year while the forbearance package from the Government of Nigeria (GON) consolidated all the impressive recovery initiatives by management of the NSE. This key success factors (not discounting the impact of timing and exhaustion of pending issues) has moved the market from a bottomed-out position into an accumulation phase.
 

We are really optimistic about the possibility of a continued accumulation trend in the New Year which might then possibly take the market to a price mark-up phase. Given that uncertainty and volatility rule stock markets, it is pertinent to assume that the analysis here serves as a rational guide towards investment in equities in 2013.
 

Despite the impressive returns witnessed in the market so far and the possibility of more impressive gains before the year end, we acknowledge that some investors in 2012 had their fair share of losses and reversals; which should encourage a more value investing approach in 2013 – the central theme of theis review/guide.

2013 – Good Reason to be Optimistic, Favourable Monetary Policies Hoped For  

In 2013, the expectation is towards more market gyration along with sustained accumulation trends, mainly from the sophisticated traders. Proprietary trading will wear a new look in the year, considering the absence of debt overhang, while more stock traders may cautiously return to the market as attention shifts from ‘bond to equity market’ as the sentiments suggests more rewarding atmosphere in the equity market during the year. Needless to add, this position will be aided by more favourable monetary policies in order to solidify the healthy baseline achieved so far.
 

Having said that, we are cautiously optimistic that market performance will stay above the two digits of inflation figure as investments in equities is encouraged by returns, particularly towards value stocks within medium capitalisation that are trading at penny prices currently. These stocks may dominate investors’ radar in the new year.
 

To maximise the benefits that is on the horizon, we solicit a long term investment strategy for appreciable returns irrespective of your needs, returns expectation and risk profile - this is absolutely necessary because speculative trading is likely to be the order of the day as proprietary trading improves in 2013.
 

Where You May Shop From  

As an income investor, you may need to concentrate and accumulate stocks that have a reasonably good history of steady yield in terms of continued price appreciation, dividends and bonuses, even as your portfolio experiences swings as market gyration moves up and down. And for higher returns, you may need to buy high-dividend blue-chip stocks at the current low prices - probably below sector average price.
 

In this review, we did not give growth investors much attention as they are considered sophisticated swings traders in the market. They may take solace in the certainty of momentums.
 

In the table below, performance of all listed equities have been reviewed and ranked, taking their three years historical performances into consideration as this technically revealed a deep insight into investors’ sentiments while providing us a better and robust guide to the bargain outlook in the coming year.
 

In our summarised analysis below, stocks marked in amber colour are the set of stocks that have performed and still performing impressively with strong tendency to sustain the trend as the sentiments and historical trends have indicated.  They have completely recovered from the market crash and strongly regained investors bargain confidence as some of them are already trading at their five-years high.
 

On the other hand, stocks marked red are the set that have not been doing well in the past and still not doing well in the current year as majority in red are trading within the range of their five years low - an indication of sustained negative sentiments towards the stocks. Though, their depressed postures may ignite intermittent rally in the year.
 

The tables below show details of the listed equities and serve as a first line guide to where value resides and as a shopping aide memoiré in 2013, even as sentiments appear bullish.

Legend Guide

 
3yrs Performance History with YTD Gains
 

 

 5yrs History of Dividend Paying Equities - With YTD Gains

  

 

The Full Investment Guide in 2013 will be released in January 2013.
 

 

About the Authors: Taiwo OLOGBON-ORI is an analyst in Proshare and Reshu BAGGA is a Director for The Analyst & COO, Technical Services. 
 

Disclaimer/Advice to Readers:
Past performance is not a guarantee for future outcomes but it does guide steps well before putting heads in. While the website is checked for accuracy, we are not liable for any incorrect information included. The details of this publication should not be construed as an investment advice by the author/analyst or the publishers/Proshare. Proshare Limited, its employees and analysts accept no liability for any loss arising from the use of this information. All opinions on this page/site constitute the author’s best estimate judgement as of this date and are subject to change without notice. Investors should see the content of this page as one of the factors to consider in making their investment decision. We recommend that you make enquiries based on your own circumstances and, if necessary, take professional advice before entering into transactions. This information is published with the consent of the author(s) for circulation in/to our online investment community in accordance with the terms of usage. Further enquiries should be directed to research@proshareng.com or/and analyst@proshareng.com.

 

 

 



Tags: 2013 Shoppers Guide,  Dividend Performance Review,  Capital Appreciation,  2012 Review,  The Analyst,  Nigerian Stock Exchange,  NSE,  SEC,  Dividends,  Investment Guide,  Sectoral Analysis,  Technical Analysis,  Value Investors,  Stockbrokers,  Equities,  Fundamental Analysis,  Investors,  Sentiments Analysis, 



Comment With Your Facebook or Yahoo! ID


Latest news


News on Investors NewsBeat

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Newsletter
Contact Us
Message from CEO
Resources

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
WebTV
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

#1minNews
News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Newsletters
Discussion Forum
Policy

Subscriber Agreement
Privacy Policy
Data Policy
Disclaimer
Copyright Policy
Trademarks
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Training
Legal Support Services
Web/Technology Services
File a Complaint