EQUITIES trading on the Nigerian Stock Exchange (NSE) In the just concluded week, the closed in green territory as speculators mopped up the banking and insurance shares amid expected improvement in dividend yields.
Thus, the All Share Index (ASI), closed higher at 31,426.63 points, having gained 1.36 per cent Week-on-Week. The NSE Banking Index and NSE Insurance Index closed in the green as they rose by 7.15 per cent and 1.95 per cent to 406.64 points and 124.75 points respectively.
However, NSE Consumer Goods Index, NSE Oil/Gas Index and NSE Industrial Index moderated by 0.41, 1.32 and 2.02 per cents to 720.88 points, 278.95 points and 1,318.97 points respectively.
Elsewhere, market activty picked as total deals, transaction volumes and value rose by 11.32 per cent, 42.27 per cent and 28.01 per cent to18,332 deals, 1.81 billion shares and N17.23 billion despite the closeness of the February elections, which as previously anticipated, should have scared investors away.
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Nigeria’s equity market extended its gains from the prior week as the benchmark index increased through the week save for Monday. Against that backdrop, the MtD loss is now at a tamer 0.01 per cent.
In spite of this week’s rally, Analysts at Cordros continues to favour cautious trading pattern in the equities market amidst brewing political jitters ahead 2019 elections, and the absence of a positive market trigger. However, we expect the positive macroeconomic fundamentals to drive recovery in the long-term.
In the coming week, Cowry Asset analysts expect profit taking activity to outweigh bargain hunting activity, especially on banking stocks, as speculators are expected to book their profits, following the bullish run in the just concluded week.
“More so, as the timeline for the Presidential election gets closer and the fixed income securities become more attractive, investors are likely to stay on the sidelines. Hence, the local bourse should close in red territory.”
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