The current price levels of most stocks listed on the Nigerian Stock Exchange remain good for long term investors.

As equity dealers prepare for another session of remote trading this week, their bets will be in favour of fundamentally sound stocks that have continued to trade below their fair values.

Nigeria stocks had climbed by +1.41 percent in the trading week to Friday August 7 on renewed optimism that companies’ earnings will begin to improve as the nation’s economic activities pick up. The NSE ASI rose for five straight days, thanks to investors who showed interest in banking, oil & gas stocks.

Despite the capital appreciation recorded last week, market watchers still advice investors to trade cautiously in the short term due to market volatility.

“Our view continues to favour cautious trading as risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions. Thus, we continue to advise investors to seek trading opportunities in only fundamentally justified stocks”, Cordros Capital research analysts said.

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The record gain valued at about N180billion helped erase this year’s losses (-6.71percent). The value of listed stock on the Nigerian Stock Exchange (NSE) increased to N13.063trillion from week open low of N12.882 trillion, while the NSE All Share Index (ASI) increased to 25,041.89 points from 24,693.73 points at the beginning of the review trading week.

Trading sessions for last week were characterised by bargain hunting as investors reacted positively to a number of earnings results released by bellwether stocks, in addition to the stability seen recently in the crude oil market.

In the review trading week, NSE Banking Index increased most by +4.94 percent, followed by NSE Oil & Gas Index which increased by +4.81 percent.

Except NSE Insurance Index (-0.28percent), other sectoral indices closed the week in green –NSE Consumer Goods (+0.72percent), and NSE Industrial Goods (+0.10percent).

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By Iheanyi Nwachukwu • August 10, 2020

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.

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