In line with our expectation, the domestic equities market sustained its bullish performance for the fifth consecutive week.
Sentiment was broadly positive during the week as the index rose in three out of the five trading sessions.
This was despite the civil unrest and curfew witnessed during the week, particularly in the economic hub of the
Consequently, the NSE ASI notched
higher by 0.13% to close at 28,697.06 points.
However, performance across sub-sector gauges was mostly negative as four out of five indices tracked closed in red; the NSE Banking, NSE Insurance, NSE Oil/Gas and NSE Industrial indices moderated by 1.42%, 0.59%, 0.69% and 0.06% to 344.86 points, 137.36 points, 202.73 points and 1234.16 points respectively.
However, the NSE Consumer Goods index rose by 2.86% to 486.68 points amid mixed 9 months financial performance of Chemical & Allied Products, Guinness Nigeria and Unilever Nigeria.
Meanwhile, market activity was weak as total deals, volume and Naira Votes fell by 10.03%, 22.98% and 14.40% to 20,552 deals, 1.50 billion shares and N19.66 billion respectively.
In the new week, we expect local OTC bond prices to appreciate (and yields to moderate), as prices in the secondary market continues to track those at the primary market.
We also expect increased demand for Eurobonds as yields trade in line with similar maturities with local bonds.
In the new week, we expect the local equities market to sustain positive performance as investors further position in stocks with good fundamentals and good dividend yields amid the 9 months earnings season.