Saturday, May 15, 2021

What Investors Should Expect at Nigerian Stock Market This Week

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Gbenga Samson
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

CAPITAL market operators have said that low prices of value stocks will increase the likelihood of bargain hunting in the stock market this week. This is even as investors recorded N31billion gains following a week of mixed trading. The market had extended its bearish trend at the beginning of the week with the All Share Index, ASI, falling by one percent on Monday.

However, on Tuesday and Wednesday, the ASI appreciated considerably due to bargain hunting in Dangote Cement Plc, International Breweries Plc and FBN Holdings Plc. The floor of Stock exchange Nonetheless, profit taking activities resumed on Thursday with the ASI sliding but the week was rounded off on a positive note with the benchmark index recording another gain, resulting in 0.21 percent increase for the week.

Making projections for the week, analysts at Cordros Capital said: “Still-strengthening macroeconomic fundamentals and declining fixed income yields continue to strengthen our medium-to-long term outlook for Nigerian risky assets, while relatively lower prices of value stocks buoy likelihood of bargain-hunting in the short term.”

Also Afrinvest Securities Limited, said: “Despite subsisting weak sentiment, we maintain our near term positive outlook on the market. Hence, in the coming week, we expect market performance to be driven by increased bargain hunting as already witnessed this week.

According to analysts at Meristem Securities, investors are expected to take position on some counters that shed significantly last week. Meanwhile, investors gained N31 billion last week after the market capitalisation of listed equities rose to N14.784 trillion from N14.753 trillion the previous week, representing 0.21 percent increase.

Similarly, the ASI advanced by 0.21 percent to close at 40,928.70 points from 40,841.14 points. Sector performance was largely bearish as only two of the five sectors closed in the green.

The oil and gas sector led the gainers chart, rising by 3.8 percent buoyed by buy interest in Seplat Petroleum Development Company Plc, which rose by five percent during the week The industrial goods sector, followed, appreciating by 1.3 percent on the back of two percent and 0.7 percent increase in Dangote Cement Plc and Lafarge Africa respectively.

On the flipside, the banking and insurance sectors were pulled down 2.2 percent and 0.8 percent respectively as a result of losses in United Bank of Africa, UBA’s shares, which fell by 10.5 percent and Zenith Bank Plc, which also nose-dived by 4.4 percent, while Aiico Insurance also fell by 4.4 percent.

Similarly, the consumer goods sector plunged by 0.7 percent following sell offs in Unilever Nigeria Plc, which depreciated by 13 per cent.


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