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Equities to sustain positive momentum this week

As analysts bet on Access Bank, CAP, others

By Nkiruka Nnorom

OPERATORS in the capital market have said that the equities market will record another week of positive momentum after two consecutive weeks of rally.

The anticipated bullish run, according to them, followed increasing investors’ confidence in equities.

According to analysts at Vetiva Capital, “With a positive close across all but one key sector and consistently strong positive market breadth to close out the shortened week, we expect this upbeat sentiment to filter into the start of next week.’’

Similarly, analysts at Meristem Securities stated: “We attribute the positive close to the bullish sentiments observed on counters in the consumer goods and banking space. We expect the current trend to be maintained in the coming week, following increased investors’ confidence towards the Nigerian bourse.”

Specifically, Meristem Securities said that the positive mood in the banking and the consumer goods sectors will be sustained throughout the last month of the year.

This comes as analysts at Cowry Asset Management have placed a buy rating on the shares of Access Bank Plc, Chemical and Allied Products, CAP Plc, Dangote Cement Plc, Eterna Plc, Ecobank Transnational Incorporated, ETI, and Fidelity Bank Plc with a full year price target of N12.42, N43.00, N371.87, N8.51, N25.20 and N4.19 per share respectively..

Others are Flourmills of Nigeria Plc, Nestle Nigeria Plc, United Bank for Africa, UBA Plc, Unilever Nigeria Plc and Zenith Bank Plc with price target of N41.29, N1,612.56, N14.74, N83.11 and N34.58 per share respectively.

Meanwhile, a breakdown of transactions last week shows that with dominance of positive sentiments in the equities market for the second week in a row, the All Share Index, ASI, gained on three out of the four trading days. Consequently, the index advanced by 1.55 percent to close at 37,944.6 points. From 37,365.91 points, settling the year-to-date return at 41.19 percent.

Similarly, the market capitalisation advanced by N206 billion or 1.58 percent to close at N13.215 trillion from N13.009 trillion last week.

All sectored gauges closed in green territory with the industrial goods sector rising by 1.15 per cent, propelled by 1.66 per cent and 1.63 per cent increase in Dangote Cement and Lafarge Africa Plc respectively. The consumer goods sector appreciated by 1.32 per cent on the back of 11.59 percent gain in Dangote FlourMills Plc and 9.75 percent growth in Cadbury Nigeria Plc. Analysts at Meristem Securities opined that the rally in the sector was driven by buy pressures on several other companies, saying that the bulls would continue to outpace the bears in the sector in the coming weeks. The banking and the oil and gas sectors increased by 1.43 percent and 1.37 percent to close at 470.74 points and 290.76 points respectively.

Market activities also improved, causing both the number of deals and volume of transactions to advance by 2.09 percent and 36.64 percent respectively.

Fidelity Bank Plc closed as the top performing stock in the week, after gaining 21.18 percent to close at N2.06, followed by Forte Oil Plc with 14.98 percent increase to close at N45.99. Law Union & Rock, Caverton Offshore Group and Dangote Flourmills Plc closed as the last three on the top five gainers table, appreciating by 14.75 percent, 14.40 percent and 11.59 percent to close at N0.70, N1.43 and N10.30 per share respectively.


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