The Nigerian equities market recorded another positive week as the NSEASI advanced by 0.86% WoW to settle at 28,659.45pts. This marked the third week of consecutive gains. The YtD return thus, stood at 6.77%. All sectoral indices closed positive, except the insurance sector with a week-on-week performance of -0.68%. ETERNA was the top performer having gained 34.99% WoW, while ETRANZACT shed 26.38% to close as the week’s biggest loser. The equities market continues to benefit from the unattractive yields in the fixed income market amid copious system liquidity.
While there was reduced activity in the market last week, evinced by the declines in value and volume traded, we expect the positive sentiment witnessed on Friday to trickle into the new week. Also, we expect to see some bargain hunting activities especially on heavyweight stocks such as NESTLE and DANGCEM which traded flat last week.
Although, we do not rule out pockets of profit taking on counters that have seen significant share price appreciation, we hold that general market sentiment are still geared towards the positive. The elevated level of liquidity in the system, unattractive fixed income yield and paucity of investment alternatives inform our opinion. We thus expect the market to close positive this week.
Click on the link below to access the full report:
