Equities Market Recovers, Gains 5.03% Week-on-Week — Leadership Newspaper
Connect with us
Advertise With Us

BUSINESS

Equities Market Recovers, Gains 5.03% Week-on-Week

Published

on


The Nigerian equities market halted an 11-day bearish run last week as it recorded the first Week-on-Week (W-o-W) gain in seven weeks.

Stocks market analysts noted that the local bourse rebounded week-on-week by 5.03 per cent as retail and domestic institutional investors continued to ‘buy the dip’ in anticipation of improved quarter two corporate earnings and also to ‘average their costs’.

The NSE-All Share Index rose by 1,852.94 points or 5.03 per cent to close at 38,669.23 points, as a result, the Year-to-Date and Month-to-Date returns turned positive, at 1.11 per cent and 1.48 per cent, respectively. Likewise, market capitalisation increased by N672 billion to close at N14.008 trillion.

The week’s positive performance was largely driven by a rally in market high capitalised stocks, Nigerian Breweries, Guaranty Trust Bank and Zenith Bank.

Consequently, most sectored guages rose W-o-W. The Industrial Goods index advanced the most in the week, up 9.36 per cent following price appreciation in Dangote Cement and Lafarge Africa. The Consumer Goods index followed, up 6.55 per cent on the back of gains in Nigerian Breweries and Unilever Nigeria, while the Banking index climbed 4.48 per cent due to rallies in Guaranty Trust Bank and Zenith Bank. Conversely, losses in Total Nigeria, Seplat, Law Union and Rock Insurance and NEM Insurance dragged the Oil and Gas and Insurance indices 1.34 per cent and 0.87 per cent lower.

Investor sentiment as measured by market breadth improved as 49 stocks advanced against 29 that declined. The best performing stocks were Japaul Oil, Prestige Assurance and Nascon Allied Industries gained 40.91 per cent, 39.58 per cent and 17.89 per cent, respectively. While NPF Microfinance Bank, Consolidated Hallmark Insurance and First Aluminum Nigeria shed by 14.51 per cent, 12.90 per cent and 9.09 per cent respective as the worst performers.

Meanwhile, total volume transaction for the week declined by 35.18 per cent as 1.749 billion shares worth N31.183 billion in 24,604 deals were traded by investors on the floor of the Exchange in contrast to a total of 2.699 billion shares valued at N84.775 billion that exchanged hands previous week in 19,715 deals.

Outlook For This Week

This week, analysts expected the local bourse to close flat in the green territory as both retail investors and portfolio managers continue to buy the dip in order to average their costs to embellish their books by taking advantage of the low prices of some fundamentally sound stocks.

Analysts at Afrinvest Limited said “this week, we expect to see sustained profit taking in early trades, however we believe this negative trend will be reversed before the end of the week on account of bargain hunting by investors.”



Copyright LEADERSHIP.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from LEADERSHIP Nigeria Newspapers. Contact: editor@leadership.ng







Advertisement

You must be logged in to post a comment Login

MOST POPULAR