Bulls Ready In New Week On Stocks’ Soaring Demand.
The market is ready to be bullish this week following soaring demands for quality stocks in a way to compensate for the loss of the previous two sessions in the week ended May 15th.
For the week ended May 15, 2020, the domestic bourse retreated, after two consecutive weeks of gains, as the All-Share Index declined by 0.1 percent w/w, to settle at 23,871.33 points.
Experts attributed the loss to profit-taking by investors in DangCem which dipped by 4.3 percent and MTNN that declined by 2.2 percent.
Thus, the MTD return reduced to +3.7 percent, as the YTD loss increased to -11.1 percent. The sectoral performance was broadly negative, following losses in the Industrial Goods dipped by 2.2 percent, the Insurance index dropped by 0.6 percent and Banking index by -0.0 percent. The Consumer Goods index appreciated 2.3 percent and the Oil & Gas index by +1.6 percent recorded the only gains.
For the five days trading session last week, trading closed bearish on three sessions (Monday, Tuesday and Friday) while closing bearish on two sessions (Wednesday and Thursday).
Cordros Research noted “In our opinion, risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions. Thus, we continue to advise investors to trade cautiously and seek trading opportunities in only fundamentally justified stocks”.
Domestic Equities Market on Friday fell marginally by 0.09 percent on renewed bearish activity; while NIBOR rose for most tenor buckets amid sustained liquidity strain.
The Local Bourse All Share Index (ASI) dwindled by 0.09% amid renewed profit-taking activity despite the Exchange recording 13 losers as against 18 gainers at the close of the trading session.
Hence, the year to date loss of the NSE ASI rose to 11.06 percent. Investors booked profit on Counters such as DANGCEM, MTNN, WAPCO, and OANDO as their respective share prices moderated by 1.71 percent, 0.45 percent, 0.93 percent, and 3.21 percent. Hence, the NSE Oil/Gas and NSE industrial dipped by 1.98 percent and 0.60 percent respectively. However, NSE Banking, NSE Insurance, and NSE Consumer goods closed northwards by 1.03 percent, 0.35 percent, and 0.03 percent respectively.
Meanwhile, the volume and value of shares traded rose by 21.18 percent and 5.14 percent to 0.22 billion units and 2.44 billion.
Elsewhere, NIBOR on Friday rose for most tenor buckets amid sustained liquidity strain; 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.
Comments are closed.