Economy
Vetiva Predicts 20% Growth for Nigerian Stock Market in 2018
By Dipo Olowookere
Investors in the Nigerian capital market should expect more gains in 2018 as the nation’s stock market will further grow next year, analysts at Vetiva Research have predicted.
In its recently released report titled ‘Nigeria 2018 Outlook: Acta Non Verba,’ Vetiva research said the growth would be boosted by stability in the country’s foreign exchange (forex) market in 2017.
“Despite the 2017 equity market rally driven by a partial liberalization of the country’s exchange rate regime, the Nigerian Stock Exchange remains relatively undervalued.
“Now, favourable external conditions support further growth; bolstered by stability in FX and energy supply, receding cost pressure and strengthening consumer demand.
“Amidst this, we project a strong equity market performance in 2018, with an estimated full year return of 15 percent-20 percent (Bear: -10 percent, Bull: 30 percent).
“Meanwhile, late-2017 likely marked the end of Nigeria’s golden yield environment as the monetary authorities chart a path towards lower interest rates in the country.
“Material monetary easing is expected in 2018, the intensity of which would be driven by the relative demands of economic growth and the pace of moderation in inflation,” the 169-page report stated.
The report said in 2017, the Nigerian bourse enjoyed a very good performance, advancing 43 percent by the close of business on December 15 and chief among the drivers of this surge was the introduction of the ‘Investors & Exporters’ foreign exchange window (I&E window) which revived investor confidence and boosted liquidity in the foreign exchange market (FX).
“Going forward, we anticipate continued progress on this front amidst a positive outlook for FX earnings on the back of stable oil prices and production levels. Supplementing this, recent regulation points towards a more significant role for domestic institutions in the Nigerian market which would inevitably support demand.
“Amidst these, an improving economic environment (2017E GDP growth: 0.6%, 2018F GDP growth: 2.0%) would buoy company earnings and risk appetite in the market, especially given our expectation of lower interest rates in 2018,” it said.
Continuing, the report said, “We expect this performance to be driven by strong growth across undervalued Tier 2 banking names and continued recovery in the consumer goods sector.
“In the long run, steps to improve corporate governance and investor sophistication are necessary to achieve the desired level of market deepening and diversity.
“We consider initiatives such as a thriving derivatives market and demutualization of the Nigerian Stock Exchange (NSE) as precursors to this and hope to see progress on these fronts in 2018.”
On the economy, the Vetiva report said in the year 2018, Nigeria’s Gross Domestic Product (GDP) is expected to increase by 2 percent.
“Amidst brighter prospects for global economic growth and the OPEC decision to extend the output cut agreement through 2018, we expect Nigeria to pursue its growth agenda within a relatively favourable global economic landscape.
“A promising revenue outlook and another record budget present a case for a year of strong fiscal stimulus – contingent on a deviation from the recent trend of delayed budget passage. The FX market, a significant win in 2017, would remain essential in the coming year.
“Overall, driven by expansive fiscal and monetary policies, as well as strengthening consumer wallets, we anticipate 2.0 percent y/y GDP for Nigeria 2018 in our base scenario (Bear: -0.3 percent y/y, Bull: 2.9 percent y/y). As the Nigerian economy looks set to reach another gear, the timing of the potential political disruption from 2019 elections is unwelcome.
“Despite this, we anticipate an outsized influence of the imminent elections on economic and political stakeholders as 2018 winds down, hopefully only at a minor cost to economic activities,” the report said.
By Aduragbemi Omiyale
One of the paint makers in Nigeria, Premier Paints Plc, is currently in talks with a new investor, Xenergi Limited, for the purchase of 51 per cent stake in the company.
Xenergi Limited intends to acquire shares of Clover Global Resources Limited and TGHL Capital Limited in the organisation.
Business Post gathered that the new investor will buy 39.02 per cent from Clover Global Resources Limited and 15.20 per cent from TGHL Capital Limited.
The deal, according to a regulatory notice issued on Tuesday on the Nigerian Exchange (NGX) Limited, will involve about 63 million shares of Premier Paints.
At the current share price of the paint producer, this should be about N630 million as it closed at N10.00 per unit on NGX on December 16, 2025.
“Subject to obtaining required regulatory approvals, the transaction is expected to close before January 31, 2026.
“The company will continue to inform the public of the progress of the transaction,” the disclosure signed by the company secretary, Alozie Nwokoro, said.
By Adedapo Adesanya
The Naira was flat against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, December 16, retaining the previous closing value of N1,451.82/$1.
In the same vein, the local currency saw no movement against the Pound Sterling and the Euro in the spot market during the session at N1,943.98/£1 and N1,705.74/€1, respectively.
Also, the Nigerian Naira remained unchanged in the black market yesterday at N1,475/$1 and was N1,460/$1 at the GTBank forex counter.
The Central Bank of Nigeria (CBN) has strengthened US Dollar supply with $250 million to authorised dealer banks at the official window cumulatively as foreign portfolio investors, exporters and non-bank corporate supply dripped.
The spread between official and other non-regulated markets decreased to N30.59$/1 from N44.57/$1, from the previous week, research subsidiary of Coronation Merchant Bank Limited said in a report.
FX analysts said foreign exchange inflows through the Nigerian Foreign Exchange Market decreased to $716.3 million from $844.70 million in the previous week , a 15 per cent drop in a week.
Foreign portfolio investors accounted for the highest share of inflows at 32.98 per cent, followed by exporters at 30.84 per cent, the CBN (17.36 per cent), Non-bank Corporates (16.94 per cent), others (0.72 per cent) and Individuals (0.63 per cent).
On Monday, Nigeria’s headline inflation rate eased to 14.45 per cent in November 2025, down from 16.05 per cent recorded in October, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS), representing a decrease of 1.6 percentage points month-on-month and marks a significant moderation compared to the same period last year.
As for the cryptocurrency market, there was some recoveries after overall capitalization falling below $3 trillion for the third time in a month. Large-cap assets, particularly those with Exchange Traded Fund (ETF) exposure, are experiencing selling pressure as institutional investors reassess risk.
Ripple (XRP) appreciated by 1.5 per cent to $1.92, Litecoin (LTC) expanded by 1.5 per cent to $78.91, Dogecoin (DOGE) rose by 0.8 per cent to $0.1308, Solana (SOL) went up by 0.4 per cent to $127.60, Binance Coin (BNB) grew by 0.3 per cent to $865.40, and Bitcoin (BTC) gained 0.2 per cent to sell at $86,735.17.
On the flip side, Cardano (ADA) depreciated by 1.0 per cent to $0.3802 and Ethereum (ETH) slumped by 0.4 per cent to $2,935.85, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) were flat at $1.00 each.
By Dipo Olowookere
A marginal 0.01 per cent rise was recorded by the Nigerian Exchange (NGX) Limited on Tuesday. This was different from the flattish mode of the market the previous day.
Investor sentiment remained bullish as Customs Street finished with 31 price gainers and 26 price losers, implying a positive market breadth index.
Aluminium Extrusion topped the gainers’ log after it improved its price by 10.00 per cent to N9.35, Guinness Nigeria appreciated by 9.98 per cent to N263.40, Multiverse expanded by 9.95 per cent to N12.15, MeCure Industries also soared by 9.95 per cent to N45.85, and Sovereign Trust Insurance advanced by 9.89 per cent to N4.11.
Conversely, Haldane McCall led the losers’ chart after it shed 9.93 per cent to settle at N3.72, Veritas Kapital lost 9.09 per cent to close at N1.60, LivingTrust Mortgage Bank also declined by 9.09 per cent to N3.50, and Linkage Assurance depreciated by 5.71 per cent to N1.65.
During the trading day, the All-Share Index (ASI) went up by 21.23 points to 149,459.11 points from the previous day’s 149,437.88 points and the market capitalisation increased by N14 billion to N95.281 trillion from N95.267 trillion.
Yesterday, traders transacted 1.0 billion equities for N21.8 billion in 23,701 deals compared with the 553.1 million equities valued at N13.3 billion traded in 28,907 deals on Monday, representing a decline in the number of deals by 18.01 per cent, and a surge in the trading volume and value by 80.80 per cent and 63.91 per cent apiece.
Access Holdings traded 385.8 million stocks worth N7.7 billion, Champion Breweries transacted 111.8 million shares valued at N817.8 million, Sterling Holdings exchanged 85.5 million equities for N589.9 million, FCMB sold 74.7 million shares valued at N791.5 million, and First Holdco transacted 51.9 million equities worth N1.8 billion.
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