Last week, the Nigerian equities closed in the red zone as the NSEASI declined by 0.08% to settle at 25,572.57pts, bringing the YtD return to -4.73%. All sectoral indices, except the NSEIND (+0.50%), closed in the negative territory. WAPIC (+12.12%) emerged atop the gainers’ chart while ABCTRANS was the week’s biggest loser shedding 16.67%. Profit-taking on large and mid-cap stocks like SEPLAT, DANGSUGAR, and OANDO (following price upticks in prior weeks) drove the performance of the market.
Inflation rate continued its uptrend, peaking at 13.22% YoY in August. Economic fundamentals still point, largely, towards a weak macro environment. Also, on the corporate scene, there are no catalysts to look forward to this week as most companies have released their January to June results and announced dividend details.
We, however, opine that due to the sell-offs that took place last week, some counters are currently trading at quite attractive prices. Coupled with the bargain hunting opportunities, the elevated liquidity in the system following the maturities in the fixed income space is expected to influence a positive movement in the market this week.
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