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Stocks: Expectation of economic recovery to further boost confidence this week

By Peter Egwuatu

INDICATIONS have shown that the equity market will receive further boost this week as expectation of economic recovery continues to heighten given the bullish trend recorded in recent weeks.

However, market analysts and operators have expressed mixed views as some believe that some investors will take profit from the recent bull run to sell, while others said that bargain hunting will characterise the market to sustain bullish trend.

Also, on a year-to-date basis, the   Nigerian Stock Exchange, NSE All share index increased by 16.73 per cent.   The sector   gauges, showed that the NSE Banking Index, the NSE Insurance Index, the NSE Consumer   Goods Index and the NSE Industrial Index revved   by 400 bps, 608 bps, 768 bps and 917 bps to close at 376.44 points, 140.75 points, 776.06 bps and 1,853.65 points respectively.

Market outlook:

Market analysts from Cowry Asset Management said “This week, we expect a mix of profit taking and bargain hunting activities amid boost in investor confidence.”

Analysts from  Meristem Securities Limited stated “Positive investor sentiments continued into the week, as we saw significant appreciations on stocks trading at low prices compared to their historical levels. We also note that the 15.67 per cent gain on Dangote Cement   to N192.93 pushed the market further into the positive region. In the coming week, while we expect the positive sentiments to continue, we may see some profit taking on counters which have recorded share price appreciation.”

Market Transactions:

Meanwhile, a total turnover of 2.319 billion shares worth N23.813 billion in 22,310 deals were traded last   week by investors on the floor of the Exchange in contrast to a total of 1.877 billion shares valued at N20.055 billion that exchanged hands last week in 19,979 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.950 billion shares valued at N15.479 billion traded in 14,381 deals; thus contributing 84.12 per cent and 65.00 per cent   to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 156.358 million shares worth N2.875 billion in 2,804 deals. The third place was occupied by Conglomerates Industry with a turnover of 70.452 million shares worth N168.377 million in 739 deals. Trading in the Top Three Equities namely – Diamond Bank Plc, FBN Holding Plc and United Bank for Africa Plc (measured by volume) accounted for 978.710 million shares worth N4.137 billion in 5,028 deals, contributing 42.21 per cent and 17.37 per cent to the total equity turnover volume and value respectively.



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