Investors heading to the Nigerian Bourse this morning are advised to trade cautiously this week and seek trading opportunities in only fundamentally justified stocks.
Risks to market rally persist due to a combination of the increasing number of Covid-19 cases in Nigeria and weak economic conditions.
Nigeria’s stock market had closed the trading week ended June 5 on a negative note after Friday’s trading session ended in red.
Last week, investors began taking profit on previous gains amid the gradual easing of Covid-19 induced lockdown.
Already, the nearly two months lockdown raises companies risk of reporting muted earnings in second-quarter (Q2) to June 30.
In line with analysts expectation, the NSE ASI could not be saved last week from a negative close, after profit taking in a number of mid/large cap stocks put a halt to sessions of bargains.
The NSE ASI decreased by 1 percent to 25,016.30 points, while the value of listed stocks decreased to N13.049trillion.
Profit taking in large cap stocks like Dangote Cement Plc, BUA Cement Plc, Nigerian Breweries Plc, Cadbury Nigeria Plc and Guinness Nigeria Plc had helped fuel the southward journey.
While other analysts foresee continuation of record profit taking activities this week, those at FBNQuest expect the stock market “to find stability”.
Investors in the market had booked N118billion loss last week. Its Year-to-Date (YtD) negative returns increased to -6.80percent.
The market recorded total turnover of 1.469 billion shares worth N23.553 billion in 22,911 deals, in contrast to a total of 1.255 billion shares valued at N13.501 billion that exchanged hands preceding week in 20,554 deals.
The Financial Services industry (measured by volume) led the activity chart with 861.775 million shares valued at N8.545 billion traded in 11,647 deals; thus contributing 58.66percent and 36.28percent to the total equity turnover volume and value respectively.
The Consumer Goods industry followed with 184.644 million shares worth N5.880 billion in 3,953 deals and the Services industry, with a turnover of 119.238 million shares worth N270.084 million in 1,043 deals.
Trading in the Top Three Equities namely FBN Holdings Plc, Guaranty Trust Bank Plc and Zenith Bank Plc. (measured by volume) accounted for 456.576 million shares worth N6.940 billion in 5,921 deals, contributing 31.08percent and 29.47percent to the total equity turnover volume and value respectively.
All other indices finished lower with the exception of NSE AFR Div Yield and NSE Consumer Goods Indices which appreciated by 1.20percent and 0.26percent respectively while NSE ASeM closed flat.
Twenty-six (26) equities appreciated in price during the review week, lower than thirty-four (34) equities in the preceding week. Thirty-nine (39) equities depreciated in price, higher than twenty-one (21) equities in the preceding week, while ninety-eight (98) equities remained unchanged, lower than one hundred and eight (108) equities recorded in the preceding week
