Those running Nigeria's Economy not Professionals ― NES

•As investors await Tier-1 banks results

•Gain N497bn in 5 days

By Peter Egwuatu

Analysts have projected  that investors would intensify realignment of their portfolios in the equities market as they await the release of Tier-1 banks’ first half 2021, H1’21, results as well as other macro economic data such as the second quarter, Q2’21, Gross Domestic Products, GDP.

Meanwhile, it was yet another very volatile and mixed sessions on the Nigerian Exchange Limited, NGX, last week as All Share Index, oscillated by 1.9 per cent Week-on-Week,  W-o-W, to close at 39,533.97 points  due to repositioning and profit taking activities of market players.

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Stock market analysts say the ongoing portfolio reshuffling and sector rotation supported the prevailing market wave ahead of some key corporate H1’21 results and economic data.

But the market recorded a second consecutive weekly gain. This came at the backdrop of foreign investors’ sustained interest in Airtel Afica Plc with an upsurge of 15.0 per cent to buoy market performance.

Consequently, the  market capitalization which represents investors’ worth in the market increased by N497 billion in the five trading days from N20.094 trillion to close at N20.591 trillion  on Friday while  Month-to-Date, MtD, return rose to 2.6 per cent, and the Year-to-Date, YtD, return for the index moderated to -1.8 per cent.

Activity levels were stronger, as trading volume and value grew W-o-W by 66.4 and 55.0 per cent, respectively. Also, sectoral performance was broadly positive following gains in the Banking index  by  five per cent, Oil and Gas Index  0.4 per cent and Consumer Goods  Index 0.3 per cent in and declines in the Insurance index -2.5 per cent , and Industrial Goods  Index -1.4 per cent.

Analysts at Cordros Securities Limited stated: “In this week, we expect investors to be focused on the bond auction scheduled to hold on Wednesday as they keep an eye on the movement of yields in the Fixed Income market.

‘‘As a result, we envisage cautious trading amid intermittent profit-taking activities. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.”

Reacting, analysts at InvestData Consulting Limited said: ‘‘We expect the mixed trend to continue on profit booking and repositioning in value and growth stocks on the strength of half-year earnings reports, while investors continue their portfolio reshuffling and studying of the corporate earnings ahead of the July inflation, and Q2 GDP data release, as well as results from interim dividend-paying banks.

‘‘Also, investors are still observing the interplay of market forces following recent developments in the forex, FX market with the decision to stop the sale of US$ to Bureau De Change, BDC operators.”

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