Last Week on the trading floor of the Nigerian Exchange, the Equities Market was unable to consolidate the gains of the previous week due to profit-taking activities by Investors leading to a marginal decline in the All-Share Index (NGX ASI) which dipped by 0.2% week-on-week (w/w), primarily driven by notable losses in TRANSCOHOT (-10.0%) and MTNN (-2.7%). Despite this, the month-to-date and year-to-date returns remain positive at +0.4% and +33.4%, respectively.
Although the trading week was shortened as a result of the public holidays, market activity levels improved significantly, with trading volume and value rising by 25.3% and 21.8% w/w, respectively.
Sectoral performance was mixed as the Consumer Goods (+0.3%), Oil & Gas (+0.2%), and Industrial Goods (+0.1%) indices posted gains, while the Insurance (-1.3%) index closed lower. Meanwhile, the Banking index remained flat.
Experts at Cordros Capital predict that the domestic bourse will exhibit an irregular trading pattern in the week ahead as the absence of significant positive catalysts in the Market is expected to sustain investors’ cautious stance, with sentiments likely to be influenced by developments in the macroeconomic landscape and corporate actions.
They advise investors on the need for caution and close monitoring of the broader economic indicators which could impact trading activities in the days ahead.
