Ahead of Santa Claus and the year-end rally, analysts expect the Nigerian stock exchange to close positively this week.
Analysts from Afrinvest Limited said that âthis week of trading we expect the market to continue the positive performance of last week, thanks to bargain-priced purchases as investors continue to review their portfolios for the future. ‘next year “.
In the new week, analysts at Cowry Assets Management Limited expected the local stock market to be bullish ahead of the usual Santa Claus rally and stock trading.
Additionally, Cordros Securities Limited expects market performance to be dominated by bulls in the coming week, as early bird positioning on dividend-paying stocks ahead of dividend declarations. year 2021 is expected to prevail over profit-taking activities.
âNonetheless, we reiterate the need to position ourselves only in fundamentally sound stocks, as the weak macroeconomic environment remains a significant headwind for corporate earnings,â he said.
InvestData Consulting Limited COO Ambrose Omordion said: âWe expect low liquidity and changing investment decision to keep the trend in this direction ahead of Santa Claus week. as market participants digest the November consumer price index and events in the fixed income market after the Nigerian Exchange (NGX) index stock fell back to trade in the above its 50-day moving average on low sales volume in the face of asset rebalancing and seasonality likely to influence stock prices before the year-end window closes. “
He pointed out that âthe relatively low volume traded in the middle of the retracement creates new buying opportunities thanks to the third quarter (Q3) numbers. Moreover, the formation of the candlesticks and the volume traded during the session revealed that the institutional players were not yet buying. It’s also worth noting that in a distance market many players sit on the fence waiting for a breakout or down before jumping into any position. Although many stocks are trading within their buy ranges, a situation that should attract more funds to the stock market, given the dividend yield capable of serving as a hedge against inflation. “
Last week’s trading activity
The national stock market closed north amid renewed investor interest last week. Amid the bargain-hunting activity on the national stock exchange, the All-Share Index rose on a week-over-week (WoW) basis by 470.34 basis points or 1.12% to close at 42,353.31 points. Likewise, the market capitalization increased by 253 billion naira to close at 21,107 trillion naira.
In addition, most of the tracked sub-indices closed in green. The NGX Insurance, NGX Consumer Goods and NGX Industrial indices gained 0.04%, 0.63% and 0.38% to respectively close at 190.93 points, 550.41 points and 2,081.14 points. However, the NGX Banking and NGX Oil & Gas indices fell 1.82% and 0.57% to close at 395.38 points and 350.65 points respectively.
The market size for the week was positive, 32 stocks appreciated, 28 stocks depreciated, while 96 stocks remained unchanged. Meyer Plc topped the winning chart by 27.27% to close at 42 kobo, per share. ROYAL Exchange followed with a gain of 15.00% to close at 69kobos, while FTN Cocoa Processors rose 13.51% to nearly 42kobos, per share.
On the other side, Champion Breweries topped the chart of declines 13.65 percent to close at N 2.34 per share. UPDC followed with a loss of 10.17% to close at N 1.06, while e-Tranzact International fell 9.57% to close at N 1.89, per share.
Overall, a total turnover of 1.317 billion shares worth N15.330 billion naira in 18,292 transactions was traded last week by investors on the exchange floor, compared to a total of 2.630 billion shares worth 26.9 trillion naira that traded hands in the previous week. in 20,848 transactions.
The financial services industry (measured by volume) dominated the activity chart with 899.768 million shares valued at 7.325 billion naira traded in 9,326 transactions; contributing 68.32 percent and 47.78 percent respectively to the volume and value of total stock sales. The consumer goods industry followed with 209.502 million shares valued at 2.796 billion naira in 2,866 deals, while the conglomerate industry traded a turnover of 93.813 million shares in ‘worth 663.135 million naira in 485 transactions.
Negotiate the three main actions; FBN Holdings (FBNH), International Breweries and Access Bank (measured by volume) accounted for 469.879 million shares valued at N4.170 billion in 1,958 transactions, contributing 35.68% and 27.20% respectively to volume and the value of the total turnover of the shares.