Positive Sentiment Drives 4.5% w/w NSE-ASI Growth
ISMAIL MUSA
Positive sentiment in the Nigerian equities market is expected to persist in the new week despite the growing profit taking by investors.
Cheap assets prices, gradual lockdown easing, and inflows of budget facilities from the IMF were penned by key analysts as the key drivers of risk assets accumulation over the week, as bullish investors sentiment closed the week ended May 08th, 2020 with all key performance measuring indices recorded significant boost.
Accordingly, the YTD loss moderated to -10.4 per cent. Sectoral performances during the week were positive, as gains bellwether stocks spurred gains across all sector indices. The Consumer Goods index that rose 8.5 percent led the gains, followed by the Banking index with 4.0 percent growth, Oil & Gas with +2.8 percent, Insurance by +2.8 percent, and Industrial Goods index by +2.2 percent.
Remarkably, the NSE All-Share Index and Market Capitalization both appreciated by 4.45 percent to close the week at 24,045.40 and N12.531 trillion respectively. All other indices finished higher with the exception of NSE ASeM, which depreciated by 0.18 percent,
The week’s price movement chart showed that 39 equities appreciated in price during the week, higher than 28 equities in the previous week. The decliners chart showed that 22 equities depreciated in price, lower than 20 equities in the previous week, while One 102 equities remained unchanged, lower than one 115 equities recorded in the preceding week.
The outgone week posted four days of positive trades against one bearish trend that closed the week on Friday.
ARDOVA emerge the highest gainer for the week with N3.75 or 32.47 percent growth in share price, closing the week at N15.30 per share, followed by WAPIC with N0.07 or 26.92 percent growth, closing the trade at N0.33 per share, while NB closed trade as the third-best gainer for the week at N37.50 per share, having gained N7.50 or 25.00 percent.
Consolidated Hallmark Insurance as the week’s fourth-best gainer, appreciated by N0.06 or 20.00 percent, closing at N0.36 per share, Prestige Assurance clinched fifth-best gainer position with N0.10 or 20.00 percent, to end the week at N0.60 per share.
Linkage Assurance led the week’s top decliners chart with N0.09 or 16.98 percent decline in share price, ending the week at N0.44 per share, followed by C&I Leasing with N0.50 or 10.00 percent dip, closing at N4.50 per share, while MCNICHOLS, the third-highest loser for the week, dipped by N0.04 or 8.70 percent, to close at N0.42 per share.
NEM Insurance closed the week at N2.16 per share, having declined by N0.19 or 8.09 percent, LAFARGE AFRICA, fifth on losers chart closed lower at N11.00 per share, following a decline by N0.80 or 6.78 percent,
Friday
On the last trading session of the week, the equities market which has maintained bullish trends for the preceding four sessions, declines by 1.27 percent on renewed profit taking activity; this was as the NIBOR moved in mixed directions across tenor Buckets.
Following nine consecutive days of bullish activities, the Local Bourse All Share Index (ASI) declined on Friday by 1.27 percent amid renewed bearish activity. Also, the Exchange recorded 17 losers as against 15 gainers at the close of trade. Subsequently, the year to date loss (YTD) of the NSE ASI worsened to 10.41 percent on Friday.
Given the sell=offs on Bellwether stocks last trading session, share prices of MTNN, GUARANTY, BUACEMENT, and OANDO moderated by 6.67 percent, 2.44 percent, 1.24 percent, and 3.64 percent respectively.
Hence, the NSE Banking, NSE Industrial, and NSE Oil/Gas Indices tanked by 0.45 percent, 0.41 percent, and 0.63 percent respectively. Meanwhile, market activity waned as the volume and value of stocks traded dipped by 51.67 percent and 58.31 percent to 0.20 billion units and 2.1 billion.
Elsewhere, on the last trading session of the week, NIBOR moved in mixed directions across tenor buckets; however, NITTY declined for most maturities tracked. In the OTC bonds market, the values of FGN bonds were flattish for most maturities tracked; however, FGN Eurobond rose for most maturities tracked on sustained bullish activity.
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