Last week, the Nigerian equities market powered on to a positive close, as the NSEASI gained 6.39% WoW to settle at 30,530.69pts. Thus, raising the YtD return to 13.74%. All sectoral indices closed in the positive region, with the NSEFBT10 (+12.20%) and NSEBNK10 (+8.00%) advancing the highest. PORTPAINT emerged top gainer with a gain of 32.20% WoW, while MORISON shed 10.00% off its share price to lead the losers. Low yields in the fixed income market, the release of corporate results, and the robust system liquidity drove the gains recorded last week. Lockdowns are beginning to resurface in Europe as the Coronavirus continues to plague the continent adding an extra layer of risk to the global economy.
In the domestic economy, financial results for the July- September period have been mixed across sectors. System liquidity has, however, remained elevated, driving the increased participation in the equities market. We acknowledge the opportunity that exists for profit-taking across sectors this week. However, we expect the momentum on equities to be sustained due to the paltry yield on fixed income instruments and robust liquidity in the financial system.
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