03.11.08
Can the market maintain its momentum?
The capital market has continued to defy analysts’ calculations and expectations, two months into the current year. Most analysts agreed that the market has strong growth potential and that it is going to continue to grow, though at a much slower rate than witnessed last year (this magazine also shared the view), especially in the first quarter of the year. They hinged their argument, among others, on the fact that the primary market, which was expected to be very active in the quarter, would lure most investors from the secondary market – that has not happened.
Thus far, the All-Share index has appreciated by over 14%, closing the first week in March at 66,121.93 from the 57,990.22 it started the year at. The market capitalization shows that investors have gained over N2 trillion, from N10.18 trillion at the start of the year to N12.60 trillion on March 7, a 23% gain.
Now, analysts are beginning to wonder if the market can sustain this momentum. Some believe it can. If that happens then the market’s average return for the year will most certainly surpass the 74% average growth it achieved last year.