In line with earlier expectation, trading on the Nigeria Exchange (NGX) Limited closed the week to Friday June, 11 on a positive note amid sessions of bargain hunting and profit taking.
While some investors bought attractive stocks that previously traded at record lows, others chose to take profit on earlier gains, thereby helping to water-down the review week’s gains.
At the end, the week saw three days of positive closes as against two days of negatives.
Cumulatively, investors booked approximately N224billion gain in equities, while the market’s performance indicator rose by 1.11percent in one week –which helped to reduce the record negative return seen this year to -2.76percent. Month-to-date (MtD), Nigeria’s stock market has decreased by 1.71percent.
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The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation which had opened the review week at 38,726.10 points and N20.185 trillion respectively, stood higher at 39,157.29 points and N20.409trillion on Friday.
Except NGX Insurance Index (-4.12percent), all sectoral indices closed the review week in green – NGX Banking (+0.89 percent), NGX Consumer Goods (+1.06percent), NGX Industrial (+2.37percent), NGX Oil & Gas (+1.37percent), and NGX Pension (+1.14percent).
Analysts at Lagos-based Financial Derivatives Company (FDC) in a recent note said uptick in the fixed income (FI) space continues to weigh on stock market performance. This, they noted is in addition to reduced participation by institutional investors in the equities market and sustained investor preference for risk free securities.
Top on the analysts “buy” list for June are stocks like: Access Bank, Zenith Bank, MTN N, Dangote Cement, Flour Mills, and GSK.
“Choppy performance expected to persist. Attractive yields in the fixed income market will continue to drive investor sentiment. Economic policies expected to reflect in share price performance.
“Possible days of gains to be driven by: increased economic and business activities- to drive investment; decline in inflation rate- to boost investors’ confidence, and institutional investors- will be forced to rebalance asset mix”, FDC analysts said in their recent outlook for June.
