By Nkiruka Nnorom

EARLY appointment of ministers by President Muhammadu Buhari to man various sectors of the economy as well as his policy decisions will play major role in determining the direction of the equities market not just this week, but in the entire second half of 2019, H2’19, stock market operators have said.

It’s been one month and two days since this administration was sworn-in for a second term but no mention has been made of ministerial appointment, raising the fear that the government might toe the same line in 2015 when it took the president six months to announce the cabinet members.

According to the operators, the market has already exhausted all the expected boosters in H1, including the listing of MTN Communication Nigeria Plc and re-appointment of Godwin Emefiele as the Central Bank of Nigeria, CBN, governor in the second quarter of the year and now requires new catalysts to move on.

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According to analysts at Vetiva Securities, a Lagos based investment house, “While the election season and MTN listing were the two major factors that shaped market performance in H1, we believe the second half of the year will be primarily driven by economic policy direction (early appointment of cabinet members) and expected listing of large corporates, amongst others.

“While current cheap valuations on the exchange support an expectation for market correction in H2’19, we expect the market to continue to exhibit a mixed trading pattern as investors remain wary of unimpressive macroeconomic conditions,” they said.

In their own view, analysts at Cordros Capital, another Lagos based investment house, projected a conservative outlook on equities in the absence of any positive catalyst this week.

However, analysts at Cowry Asset Management Limited, another investment house in Lagos, noted the possibility of a positive closure this week as the Q2 earning season approaches and investors take advantage of the low share prices.

Meanwhile, analysis of transaction last week showed that the market rebounded with the All Share Index, ASI, rising by 0.39 percent to close at 29,966.87 points.