Last week, the Nigerian equities market halted its bullish run as the NSEASI declined by 0.05% to settle at 25,591.95pts, bringing YtD return to -4.66%. In line with the prevailing market sentiment, all sectoral indices, except the NSEIND (+0.35%), closed in the negative territory. ETERNA (+28.85%) stayed atop the gainers’ chart while ROYALEX was the week’s biggest loser shedding 15.15%.
Although market performance bucked the trend last week, we anticipate a resurgence of interest on quality counters that present attractive dividend yield. We expect investors to keep their eyes peeled for counters with upcoming qualification dates for interim dividends. However, in the absence of inspiring domestic macros and fragile global economic conditions we expect investors to remain cautious while seeking bargain hunting opportunities. We project that elevated system liquidity following the maturities in the fixed income space, and a dearth of attractive alternative investment options would spur some buying interest in the equities market. We thus expect the market to close positive this week.
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