Stockbrokers on the trading floor of NSE
Analysts in the Nigerian capital market have predicted that the stock market may witness another bull run in the market as investors’ confidence become stronger, following the inauguration of the national assembly.
In their review of the capital market, analysts at Cowry Assets Limited stated that, “This week, we anticipate a dominance of the bulls as investors confidence grows on the heel of successful completion of the political transition programme with the inauguration of the National Assembly.”
Equities investors had last week responded positively to the successful inauguration of President Goodluck Jonathan by increasing their naira votes on stocks.
Fears that further hike in interest rates in a bid to curtail growing inflation following political spending has since varnished as bargain hunters take position on speculation of return of hedge fund managers.
Cowry assets also called on investors to take a long term approach in their investment plan pointing out sectors with gain opportunities.
According to Cowry Assets, “Investors should maintain a medium-to-long term view of the market and should watch out for opportunities in the Banking, Conglomerates, Food & Beverages and Petroleum sub-sectors.”
The equities market closed last week on a positive note compared with the previous week’s poor performance. The NSE benchmark All-Share Index (NSE ASI) gained 0.52 per cent to close at 25,963.50 points compared with the previous week’s appreciation of 0.15 per cent to close at 25,829.75 points. The year-to-date return of the ASI stood at 4.82 per cent.
Also, the NSE- 30 Index appreciated by 12.70 points or 1.10 per cent to close at 1,162.64. The previous week, the ASI and the NSE-30 Indices appreciated by 0.15 per cent and 0.74 per cent, respectively.
However, only two of the four sectoral indices appreciated during the week compared with one that so appreciated during the preceding week. While the NSE Insurance Index went up by 0.07 points or 0.05 per cent to close at 169.66, the NSE Oil & Gas Index grew by 3.71 points or 1.11 per cent to close at 335.73.
Conversely, the NSE Food & Beverage Index depreciated by 0.17 points or 0.02 per cent to close at 849.23 while the NSE Banking Index declined by 0.89 points or 0.22 per cent to close at 395.89.
Meanwhile, the Over-the Counter (OTC) bond market of the Nigerian Stock Exchange (NSE) has continued to suffer massive depreciation as bond holders take profits and move their funds to the money market.
Trading statistics made available to news men by the NSE showed that the OTC recorded a turnover of 103.3 million units worth N86.38 billion exchanged in 841 deals, in contrast to a total of 138.2 million units valued at N123.05 billion exchanged in 1092 deals during the previous week.
The most active bond (measured by turnover volume) was the 4.00 per cent FGN April 2015 (7th FGN Bond 2015 Series 2) with a traded volume of 35.48 million units valued at N26.31 billion in 312 deals.
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