Nigeria’s bourse to see more positive trading sessions in new week
With the improvement seen in the crude oil market, Nigeria’s stock market will in this new week remain on a positive path.
Brent crude rebounded 8.3percent last week, to settle at $43.15 a barrel at its most recent trading session.
While investors adopted more cautious approach to stocks trading, the market last Friday September 18 halted its three consecutive sessions of negative returns.
Unless there is any external shocks capable of depressing investors’ sentiment, the equities market will strengthen its gains due to compelling valuations.
More investors will continue to look for alpha-yielding opportunities in stocks amid negative real returns in the fixed income market. Nigeria’s inflation rate rose to 13.22percent in August 2020, highest recorded since March 2018 (13.24percent).
Banking, Oil and Gas stocks will see increased bargains. Nigeria’s stock market last week recorded mixed trading sentiment following barging hunting activities in two sessions and profit taking in others.
NSE Oil and Gas Index (-1.03percent) dipped most in the review week, followed by NSE Banking Index (-0.67percent).
On the bargain side, NSE Industrial Index gained most (+0.50percent), followed by NSE Consumer Goods Index (+0.13percent), and NSE Insurance Index (+0.01percent).
The market’s benchmark performance indicator –Nigerian Stock Exchange (NSE) All-Share Index (ASI) – depreciated by 0.08percent to close the week ended Friday September 18 at 25,572.57 points, from 25,591.95 points at the beginning of the review week.
The market’s negative return year-to-date (ytd) stood at -4.73percent. Meanwhile, the NSE ASI has increased by 0.97percent this month.
The market however gained N13billion, as value of listed stocks increased to N13.364trillion from N13.351 trillion.