The quality of half-year (H1) results to be released this week by companies at the Nigeria Stock Exchange will continue to determine the level of activities on buy/sell side of the bourse.
Signs of further opening of economic activities, particularly in the nation’s commercial capital as cases of Covid-19 recoveries increase might make it easier for stocks to gain further momentum in this new month.
The Nigerian Stock Exchange (NSE) All Share Index (ASI) and Market Capitalisation appreciated by 1.09 percent to close last week at 24,693.73 points and N12.882 trillion respectively.
In the holidays shortened trading week, all other indices finished higher with the exception of NSE ASeM, NSE Consumer Goods and NSE Oil/Gas Indices which depreciated by 0.06percent, 0.44 percent and 6.51 percent respectively.
Lagos-based Vetiva research analysts noted that upon resumption from the Eid-el-Kabir (Sallah) holiday today (Monday) they expect the market to continue to react to some of the earnings results that will be posted by other bellwether stocks in the coming days.
The analysts had attributed the positive week on week (WoW) performance to the significant movement recorded in the Industrial goods sector last Monday due to the better than expected earning results posted by some companies in the sector.
“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”, said Cordros Capital research analysts.
They continue to advise investors to seek trading opportunities in only fundamentally justified stocks,
In the last trading week, 24 equities appreciated in price, lower than 28 equities in the preceding week.
Twenty-eight (28) equities depreciated in price, higher than 25 equities in the preceding week, while 111 equities remained unchanged, higher than 110 equities recorded in the preceding trading week.