The bulls dominated the Nigerian equities market for the second week in a row as the NSEASI gained 1.09% to close at 24,693.73pts. The YtD return thus moderated to -8.00%. On a sectoral basis, the NSEBNK10 (+3.00%) and NSEIND (+3.60%) closed positive, while the NSEOILG5 and NSEFBT10 recorded week on week losses. The NSEINS, however, remained flat.
So far, the results released for the April – June financial period has been mixed, reflecting the varying impact of the coronavirus pandemic on businesses. Nonetheless, bargain hunting activities ahead of the announcement of interim dividends should fuel positive investors’ sentiment. Ultimately, the equities market is expected to maintain the renewed optimism observed in the past two weeks. Also, considering the cheap prices at which some stocks are currently trading, we see headroom for bargain hunting activities on counters that have shown resilience in their fundamentals. Thus, we expect the market to close up this week.
Click on the link below to access the full report:
STOCK RECOMMENDATION – 3rd August 2020
CORPORATE BENEFITS TRIGGER – 3rd August 2020
