In the just concluded trading week, the equities market was dominated with bearish sentiment, hence reversing last week’s gain despite the influx of relatively positive audited FY 2020 financial results.
Weak reactions trailed the stock market as rates and yields further rise in the fixed income space – 364-day bill hit 8%.
Consequently, the benchmark index contracted by 0.76% to close at 38,916.74 points. Sectorial performance was weak as three out of the five indices tracked closed in red; the NSE Banking, NSE Oil/Gas and the NSE Industrial indices fell by 1.54%, 0.25% and 2.09% to close at 356.30 points, 266.47 points and 1,887.88 points respectively.
On the positive side, the NSE Insurance and the NSE Consumer Goods indices rose by 2.82% and 1.83% to close at 204.93 points and 549.87 points respectively.
Meanwhile, trading activity cool down as total deals, volume and value of stocks traded fell by 13.07%, 5.55% and 10.66% to 17,400 deals, 1.52 billion units and N19.03 billion respectively
the new week, we expect the domestic equities market to further trade sideways as investors move their funds to the money market as 364-day bills becomes more attractive at 8% and present trading opportunities.
Hence, we expect investors bargain hunt for stocks with good fundamentals.