Local Equities Market Remains Bearish As Benchmark Index Contracts by 3.04%…

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In the just concluded week, bearish sentiment dominated the market amid investors’ apathy to the equities market following the hike in yield in the fixed income space.

We saw investors try to re-jig their portfolios to take positions in the primary market auction; hence, the equities market contracted as much as 1.96% on Wednesday.

Consequently, the All-Share Index plunged by 3.04% week-on-week to 40,439.85 points.

A breakdown across sub-sector gauges tracked indicated that all the sub-gauges tracked closed southwards; the NSE Banking sub-sector led the laggards as its index fell by 8.76% to 378.10 points.

Similarly, the NSE Insurance, NSE Consumer Goods, NSE Oil/Gas and NSE Industrial indices moderated by 6.46%, 0.93%, 1.03% and 5.70% to 216.20 points, 588.40 points, 251.30 points, and 1,922.02 points respectively.

Meanwhile, market activity was weak as total deals, volume and value of stocks traded declined by 11.25%, 2.76% and 20.28% to 27,832 deals, 2.68 billion shares and N23.66 billion respectively.

In the new week, we expect the local equities market to rebound as investors seek for bargains in the market given the lower re-entry prices for stocks with good fundamentals and dividend history ahead of the audited full year 2020 financial results and the announcements of their dividend payment.