Thursday, August 5, 2021

    NSE ASI Gains 12.97% amid Sustained Bullish Momentum…

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    Godwin Okafor
    Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

    In the just concluded week, the equities market printed a significant weekly gain amid sustained appetite for risky asset, driven by the ridiculously low-yield environment, increased liquidity in the financial system and the positive news on COVID-19 vaccine produced by Pfizer during the week.

    The bullish momentum was so strong on Thursday that it triggered, for the first time since 2016, the NSE positive circuit breaker even as investors’ appetite for bellwether stocks strengthened.

    Consequently, the All share index ballooned by 12.97% week-on-week to close at 35,037.46

    Notably, sectoral performance for the week was generally positive as all of the sub-indices tracked closed in green; the NSE Banking, NSE Insurance, NSE Consumer Goods, NSE Oil/Gas and the NSE Industrial indices gained 14.37%, 7.67%, 11.35%, 5.34% and 16.97% to 435.40 points, 154.18 points, 611.54 points, 225.07 points and 1,597.86 points respectively.

    Meanwhile, market activity was upbeat as total deals, volume and value expanded by 87.16%, 118.18% and 159.47% to 47,140 deals, 4.50 billion shares and N58.73 billion respectively.

    In the new week, Debt Management Office will issue bonds worth N30 billion, viz: 12.50% FGN APR 2035 (15- Yr re-opening) worth N40 billion and 9.80% FGN JUL 2045 (25-Yr re-opening) worth N40 billion respectively.

    We expect the bonds stop rates to moderate further amid relatively low volume of bonds issuance.

     In the new week, we expect the NSE ASI to trade sideways as investors stay on the side lines in search of a better support level for re-entry given the recent price rally in the market and the possibility of profit taking. 

    Hence, we advise investors to trade cautiously as market finds its balance between the bears and the bulls.

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