Custom Street closes week lower on consumer goods losses

Nigeria’s equities market failed to close higher in the trading week ended Friday July 9 as profit-taking in consumer goods shares could not help the market sustain the preceding week’s gains, thereby prompting concerns among equities buyers.

The record dip by 0.57 percent in the review trading week as well as value erosion of about N124 billion successfully put the equities market on its first weekly fall since the beginning of this month.

Though, the week’s negative close was anticipated amid record sessions of profit taking which outweighed those of cherry-picking activities.

All notable NGX sectoral indices closed the week in green except NGX Consumer Goods (-0.32percent). Other are: NGX Banking (+3.29percent), NGX Oil & Gas (+6.53 percent), NGX Industrial Goods (+0.19percent), NGX Insurance (+0.17percent), while NGX Pension closed positive (+1.57percent).

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The Nigerian Exchange (NGX) Limited All-Share Index (ASI) and Market Capitalisation which had opened the review trading week at 38,212.01 points and N19.919 trillion respectively stood lower at 37,994.19 points and N19.795trillion on Friday July 9. The negative return seen at the nation’s equities market this year increased to -5.65percent.

Despite the depressing outing on Custom Street, Lagos Nigeria, the focus now shifts to half year (H1) earnings of listed companies expected this month. Tier-1 lenders and other notable names across consumer goods, industrial, and oil & gas are likely going to declare interim dividend for their shareholders.

While the H1’21 earnings season fast approaches, market watchers expects a sort of bolster for the market as investors position ahead of interim dividend payments.

The first half of this year is expected to see peak results for most Nigerian companies as economic activities bounced back.