In line with our expectation, the equities market remained bullish for the sixth consecutive week as investors’ sentiment for insurance, consumer goods and industrial stocks remained strong.
Hence, the NSE ASI index climbed further by 0.35% week on week to close at 25,309.37 points.
Amid sustained bargain hunting activity, the NSE Insurance, NSE Consumer Goods and the NSE Industrial indices rose by 2.80%, 1.12% and 0.64% to close at 132.41 points, 426.99 points and 1,119.31 points respectively.
However, the NSE Banking index fell by 0.23% to 293.97 points while the NSE Oil/Gas index closed flat at 187.36 points.
On the side line of trading activities, Guinness Nigeria Plc released its FY June 2020 financial results, recording 20.63% y-o-y decline in revenue and loss after tax of N12.58 billion from profit after tax of N5.48 billion amid higher operating and financing costs.
Meanwhile, market activity mellowed as total deals and Naira votes moderated by 0.13% and 27.22% to 16,625 deals and N7.37 billion respectively. However, transaction volumes rose by 12.52% to 1.07 billion shares.
In the new week, we expect the local bourse index to close higher as investors take advantage of the low share prices of stocks with good fundamentals, especially the Tier-1 banks that are likely to pay interim dividends.