The January effect, weak corporate earnings released within the period, coupled with external factors like the socio-politically unstable environment affected the stock market as revealed by the composite NSE All Share Index for the first quarter of the year.
The Index shed 1,358.28 point to close at 25,516.34 points from the opening figure of 26,874.62 points, representing a 5.1% drop on a huge volume of 14.55bn shares traded by stockbrokers, from previous quarter’s 14.89bn shares transacted.
Similarly, market capitalisation for the period lost N417.97bn, closing lower at N8.83tr, from an opening value of N9.25tr, representing 4.54% depreciation in value.
Below is the performance of three banking stocks to boost your portfolio in Q1 recommended at the beginning of the year by INVESTDATA, bearing in mind that January trading is always very dicey.
Two of the stocks were among the best performing equities for the period under review.
Within this period UBA, Access and Zenith Bank hit respective highs of N5.99, N7.18 and N16.00 in addition to mouthwatering dividend with yields above 8%. On the average for the quarter the banking stocks have returned more than 10% better than the proposed Federal Government Savings Bond that offers quarterly returns of 3.25%.
As the market has entered second quarter with mixed expectations, Investors in these stocks can still hold position as first earnings reports are underway. Also our Q2 picks will soon be out.
MR. OMORDION AMBROSE
CHIEF OPERATING OFFICER