In the just concluded week, the Lagos bourse rebounded strongly to close in green territory as investors responded to the crude oil prices appreciation at the international market.
Hence, the domestic bourse rocketed by 5.59% week- on-week, resulting in jump of the NSE ASI to 25,204.75 points. Amid the bullish run, all of the sub-sector gauges closed in positive zone.
Particularly, the NSE Industrial index rose by 15.45% to 1,168.75 points, followed by the NSE Banking index which increased by 7.24% to 302.77 points.
Similarly, the NSE Oil/Gas index,
NSE Insurance index and NSE Consumer Goods index rose by 4.89%, 2.02% and 0.89% to 229.09 points, 127.06 points and 415.23 points respectively.
Elsewhere, market activity was upbeat as investors were eager to put in more fund. Total deals, transaction volumes and Naira votes ballooned by 25.54%, 84.40% and 91.56% to 26.251 deals, 1.71 billion shares and N18.72 billion respectively.
In the new week, we expect OTC bond prices to appreciate (and yields to moderate) against the backdrop of expected boost in financial system.
In the new week, the bullish run in the equities market would largely be based on the sustained rally in the price of crude. Nevertheless, we expect our clients to take advantage of the rally to book profit.
We strongly advise cautious trades at this period, as reversal of the rise in crude oil price could trigger bearish equities market trend.