By CHINEDU IBEABUCHI

Given the level of performance in 2012, the capital market is expected to witness another impressive performance this year, Mr. Wusu, Head of Research at Sterling Capital Markets Limited has projected.

He said the performance would be driven more by strong macroeconomic environment, good corporate performance and companies’ fundamentals.

He noted that the expected monetary policy easing in 2013 would likely induce investment switch to favour stock market.

Presenting a paper at the 2nd Financial Correspondents Association of Nigeria, FICAN roundtable on the Economy, in Lagos, he projected: “The market is expected to benefit immensely from increased government spending from budgetary allocations for the year. Government expenditure earmarked in 2103 is expected to sustain market liquidity, improve the level of growth and income as well as savings and investment from which the market will benefit immensely in the economy and we expect continuous bond issuance by sub nationals.

“We also expect regulators to continue to create an environment for sound and efficient markets. All said, market is expected to record stronger growth in 2013, and this time the growth will be more driven by sound macroeconomic environment, strong fundamentals and good corporate performance,” he said.

He said there would be renewed interest in Nigerian bond market as Barclays includes FGN bond into its index by March 2013 which would stimulate portfolio rebalancing.

It would be recalled that as against the pessimism that sufficed in the early part of the year, the Nigerian market closed 2012 with a return of 35.45 per cent.

Market capitalisation rose from N6.532trn at the beginning of the year to N8.974trn. This performance was an improvement over the lull experienced in 2011 when market witnessed a negative return of 17.42 per cent.

Meanwhile, impressive performances on the share prices of United Bank for Africa Plc (UBA), Forte Oil Plc and fifty other equities drove-up the total market capitalisation of equities listed on the Nigeria Stock Exchange, NSE by N128.22 billion last week.

The market capitalisation which opened at N9,12 trillion rose by 2.39 per cent to close at N9.34 trillion. Another market indicator, the All-Share Index in the week under review appreciated by 2.33 per cent to close at 29,202.01 points from 28,538.06 points.

The numbers of gainers in the week closed at fifty-two (52) compared with fifty-one (51) appreciations recorded penultimate week. United Bank for Africa Plc, UBA, topped the gainers chart for the week with 29.82 per cent share price appreciation to close N5.52 per share from N4.56 per share. This was followed by Forte Oil Plc that rose by 21.21 per cent to close at N9.83 per share, and Airline Services and Logistic Plc gained 19.32 per cent to close at N5.25 per share, among others.