The Nigerian equities market ended the week on a positive note, as the NSEASI gained 2.53% WoW to close at 26,985.77pts. The YtD return, therefore, turned positive to settle at 0.54%. All sectoral indices except the NSEFBT10 (which shed 0.70%) closed in the positive zone. TOTAL emerged top gainer with a gain of 21.00% WoW, while UPL shed 12.68% off its price to lead the losers. The bullish momentum in the market was sustained by the rally seen on fundamentally sound stocks spread across sectors but particularly within the industrial goods and banking sectors.
The sustained depression of yields in the fixed income space, coupled with the dearth of attractive investment options is expected to continue to drive funds into the equities this week. This drive is expected to be supported by increased liquidity in the system, particularly from OMO maturities which can not be rolled over due to the CBN restriction. Investors are also expected to begin to take positions on low-priced quality tickers ahead of the release of 9M:2020 financial results. Though we do not rule out the possibility of slight profit-taking on counters which have recorded significant gains, we expect the combination of factors highlighted above to drive the market to a positive close.
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