Banking, Industrial Stocks Push Stock Market To Gain 0.28%
The Nigerian stock market recorded its first weekly gain for the year, last week after a bearish start of the previous week.
The All Share Index (ASI) rose by 0.28 per cent week-on-week to close at 26.325.93 points, driven by sustained positive sentiment in banking and industrial stocks. Accordingly, Year-To-Date (YTD) loss paired to 2.04 per cent, while market capitalisation improved by N26 billion week-on-week to close at N9.058 trillion.
Contrary to the previous week, performance across sectors was mixed as the Banking Index appreciated the most, up by 3.27 per cent last week on account of strong buy sentiment across Tier-1 and Tier-2 stocks. The Industrial Goods Index trailed with a marginal gain of 0.07 per cent against the backdrop of moderate appetite for Dangote Cement.
On the flip side, the Oil and Gas Index topped sector losers, down by 3.15 per cent as a result of sell-offs in Forte Oil and Mobil. Similarly, declines in Nestle and Seven Up dragged the Consumer Goods index 1.82 per cent lower while the Insurance index dipped by 0.34 per cent on losses in Mansard Insurance and NEM Insurance.
Stocks Activities Movement For The Week
Trading during the week was very volatile, with gains recorded in two sessions more than outweighing the losses recorded in three sessions. The market opened the week strongly with a gain of 1.25 per cent. It reversed in the second trading session with 0.88 per cent loss to sway back in the third trading session with 0.15 per cent gain which ended the pendulum swing. The last two trading sessions of the week recorded a decline of 0.21 per cent and 0.02 per cent respectively.
Market breadth was negative, with 30 gainers versus 34 losers. Total volume traded declined by 74.13 per cent to 1.12 billion shares, with FBN Holdings, UBA and United Capital accounting for 22.03 per cent of total volume. Total value traded increased by 22.57 per cent to N9.04 billion, exchanged in 16,482 deals, with Zenith Bank, Forte Oil and Access Bank accounting for 15.39 per cent of total value.
Outlook For This Week
Analysts at APT Securities and Funds Limited said the equities market experienced an oscillatory movement last week as investors’ uncertainty towards the equities market and the economy at large held strong.
However, they foresee investors taking position in this week to counter last week profit taking; therefore we envisage a stable market in this week.
Meanwhile, analysts at Cordros Capital noted that pending clarity in the policy space to drive optimism among investors; we do not expect any impressive performance in this space.
Also, analysts at Afrinvest Limited added that “Although the performance last week was in line with our expectation of a rebound in counters, Banking stocks remain the major driver while interest across non-banking sector counters seems to be weighed down by poor earnings expectation. We expect the rally in banking stocks to moderate in subsequent trading sessions, as such overall return in the week ahead may be negative.”