Last week, investors in the Nigerian equities market maintained a largely bullish stance as the NSEASI gained 1.59% WoW to settle at 31,016.17pts. The Year-to-Date return, thus, increased to 14.52%. All sectoral indices except the NSEINS (-1.32% WoW) and the NSEOG5 (-0.77% WoW) closed positive. LIVESTOCK emerged top gainer with a gain of 30.86% WoW, while INTBREW shed 11.80% off its share price to lead the losers. Although the market saw pockets of profit taking activities last week, high system liquidity, coupled with depressed fixed income yields remained the major driver of performance last week.
Economic fundamentals remain weak, further threatened by an increase in COVID-19 cases especially in Lagos. Equities are, however, still relatively attractive given the low yields on fixed income instruments. The release of key banking sector tickers may influence the market direction this week, even as high system liquidity remains a key driver of performance. We expect mixed sentiments this week as profit-taking activities continue. However, we expect buying pressure to dominate and drive the market to a positive close.
Click on the link below to access the full report:
