In the first week of post-lockdown trading, Investors raked N534 billion as market sentiments surged on the backdrop of the low prices of equities as well as the inflows of budget facilities from the International Monetary Fund, IMF.
To this end, the Nigerian Stock Exchange, NSE, market capitalization representing the total value of companies quoted on the exchange, surged on Friday by 4.5 percent to close at N12.531 trillion from N11.997 trillion previous week.
As a result, the NSE All Share Index, ASI, rose by 4.4 percent week-on-week, to close at 24,045.40 points from 3,021.01 points.
Reviewed analysis of trading in the week also showed that the Year to Date, YtD, loss moderated to -10.4 percent. Sectoral performances were positive, as gains from bellwether stocks spurred all sector indices. The Consumer Goods index rising 8.5 percent, led the gains, followed by the Banking (+4.0 percent), Oil & Gas (+2.8 percent ), Insurance (+2.8 percent ), and Industrial Goods (+2.2 percent ) indices.
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Analysts at Cordos Capital, a Lagos based investment firm while reacting to the market performance, stated: “We highlight cheap assets prices, gradual lockdown easing, and inflows of budget facilities from the IMF, as the key drivers of risk assets accumulation over the week.
”In our opinion, risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions. Thus, we continue to advise investors to trade cautiously and seek trading opportunities in only fundamentally justified stocks.”
Also commenting, analysts at Vetiva Capital Management Limited said: “With the gradual easing of the lockdown imposed by the Federal Government, we anticipate a gradual improvement in economic activities and as such expect a number of fundamentally sound stocks to continue to enjoy positive patronage in the near time.”
Commenting as well, analyst at InvestData, Ambrose Omordion said: ” The upsurge we are experiencing in the market is as a result of gradual easing of lockdown. We are just 5 days to lockdown ease and several investors have been increasing their position in undervalued stocks and we hope it continues this week”.
