THE recent rally seen in the equities market may be sustained this week as the market is set to benefit from some positive developments in the macro-economic environment, even as investors are expected to ride on the back of the recent rally to take profits.
Some of the positive development expected to impact the market, according to market watchers, include the passage of the Petroleum Industry Bill, PIB, last week, further slowdown in GDP contraction to 0.52 per cent in the first quarter with reality of exiting recession in the current quarter and the passage of the budget penultimate week by the National Assembly, NASS.
“Owing to the recent positive developments witnessed in the economy, we expect the bullish sentiment to be sustained in the week ahead,” said analysts at Afrinvest.
They, however, opined that the possibility of investors taking profit in the early trading days of the week may not be ruled out as market is currently around the overbought region.
“With many bellwethers remaining at the bid cart at the close of the week, buying momentum remains strong on the exchange and we see another green close for All Share Index, ASI, at week open,” said Vetiva Capital.
Also, analysts at Cowry Assets Management said: “This week, we expect a mix of profit taking and bargain hunting activities especially in favour of low-priced value stocks”.
Meanwhile, the market capitalisation of the listed equities advanced by N329 billion at the end of trading session Friday to close at N10.05 trillion from N9.72 trillion, representing 3.38 per cent increase. The All Share Index rose by the same margin to 29,064.52 from 28,113.38 points the previous week as euphoria that accompanied the launch of the Investors’ & Exporters’ FX window remained evident during the week.
Sector performance mirrored the broader index as four out of the five indices appreciated during the week. The banking and insurance sector appreciated the most, rising by 7.6 per cent and 3.7 per cent on account of gains in GT Bank, which rose by 12 per cent, Zenith Bank that appreciated by 6.9 per cent, including 20.3 per cent and 8.6 per cent jump in Mansard Insurance and Linkage assurance respectively.
The consumer goods sector followed, adding 1.7 per cent on account of 4.2 per cent increase in Nestles Nigeria Plc’s shares and 0.7 per cent rise in Nigerian Breweries Plc’s shares, the industrial goods sector also inched 0.1 per cent higher as a result of 2.3 per cent price appreciation in Dangote Cement Plc, and 13 per cent increase in Cement Company of Northern Nigeria, CCNN.
On the contrary, the oil and gas sector depreciated by 0.9 per cent on losses sustained by Mobil, which fell by 9.7 per cent and Forte Oil that also recorded price decline of 3.9 per cent.
Volume, value traded
A total turnover of 1.877 billion shares worth N20.055 billion in 19,979 deals were traded by investors in contrast to a total of 2.271 billion shares valued at N32.647 billion that exchanged hands the previous week in 20,710 deals.