[files] Nigerian Stock Exchange (NSE). Photo: THEAFRICAREPORT The local bourse ended the first trading week of 2021 on a bearish note, as losses recorded on the second and last trading days eroded gains from the other trading sessions. The All-Share Index (ASI) and market capitalisation depreciated by 0.37 per cent to close the week at 40,120.22 and N20.978 trillion respectively.
However, all other indices finished higher with the exception of Nigerian Stock Exchange (NSE) Premium, NSE Lotus II and NSE industrial goods which depreciated by 2.99 per cent, 1.22 per cent and 2.29 per cent respectively while the NSE ASeM and NSE Growth Indices closed flat.
However, analysts expressed optimism that positioning for the full year 2020 dividends would continue to support positive sentiment amid negative real returns in the fixed income market.
Analysts at Vertiva Dealing and Brokerage firms said: “In spite of the dominance of the bulls for most of the sessions during the week (evidenced by gains in three of the five trading sessions, and bullish sectroral performances), the index ended the week lower amidst significant declines in the Industrial goods sector.
“We expect a recovery in the coming week, as the current price drop in the Industrial goods sector is expected to drive some buying interest in that region. Also, we anticipate some more positive patronage in the oil and gas sector as we continue to see improvement in the prices of crude oil,” they said.
Analysts at Codros Capital said: “We do not rule out intermittent profit-taking. However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”
A look at the market performance last week showed that transactions on the equity sector of the NSE reopened the year on a positive note on Monday, as market capitalisation appreciated by N458 billion.
At the close of trading, ASI increased by 876.67 absolute points, representing a growth of 2.18 per cent to close at 41,147.39 points. Similarly, the market capitalisation gained N458 billion to close at N21.515 trillion.
The positive performance was triggered by gains recorded in medium and large capitalised stocks, including BUA Cement, Lafarge Africa, Guaranty Trust Bank, Flour Mills of Nigeria and Dangote Sugar Refinery.
Following renewed profit-taking, the stock market reversed gains to close on a downturn on Tuesday, as the ASI depreciated 1.83 per cent. On Tuesday, the ASI declined by 751.25 absolute points, representing a […]
