Positive sentiments swept through the local bourse this week as investors re-entered the market, bringing about a resurgence in trading activities. Despite initial profit-taking activities targeting banking stocks, the market remained firmly in the green territory, propelled by robust bargain hunting in key stocks such as BUAFOODS (+20.8%), AIRTELAFRI (+10.0%), and GEREGU (+33.3%).
Consequently, the All-Share Index saw a commendable 3.8% week-on-week advancement, leading to Month-to-Date (MTD) and Year-to-Date (YTD) returns increasing to +4.5% and +41.4%, respectively.
Despite a decline in trading volume and value by 36.8% and 23.8% week-on-week, the positive momentum in specific sectors contributed to the overall market performance. Notable sectoral advances included the Consumer Goods index, which saw an 11.0% increase, followed by the Oil and Gas index with a 5.2% rise, and the Insurance index gaining 2.7%.
On the flip side, the Banking index experienced a 1.3% decline, and the Industrial Goods index saw a 1.8% dip. Looking ahead to the coming week, market sentiments are expected to be influenced by the movements in yields within the fixed income market.
Additionally, with the earnings season approaching, the release of further corporate earnings reports and potential dividend declarations could act as catalysts for another surge in positive sentiment.
Investors are anticipated to closely monitor these developments, providing support for increased buying activities on the bourse. The positive trajectory in the market reflects a renewed confidence among investors, underscoring the potential for sustained gains in the
