Some financial experts on Monday said that the current economic indices would sustain the Nigerian stock market’s bullish trend this week.
The experts made the assertion when they spoke, in Lagos.
Head of Banking and Finance Department, Nasarawa State University, Keffi, Dr. Uche Uwaleke, said that investors’ reaction to the half year financial results by some listed companies had been good.
Besides, Uwaleke said that the anticipation of the benchmark interest rate retention at 14 per cent by the Central Bank of Nigeria (CBN) on July 25 would aid the capital market’s growth.
Uwaleke added that lower inflation figure released by the National Bureau of Statistics (NBS) signaling weakening inflationary pressure would equally contribute to the bullish trend.
He also said that the improved liquidity in the foreign exchange market on the back of CBN’s importer-exporter’s window had continued to attract foreign investors.
Head of Research, SCM Capital Ltd., Lagos, Mr. Sewa Wusu, attributed the market’s sustained positive momentum to investors’ repositioning in anticipation of the declaration of interim dividends by major banks.
Wusu said that the market would likely sustain the current upward trend following investors’ expectation of impressive 2017 half year earnings by more quoted companies.
He said that the market might likely witness some slight profit-taking this week.
Wusu said that the overall economic outlook suggested that the market may still continue on the upbeat in the interim.
NAN reports that last week a total turnover of 3.63 billion shares worth N34.89 billion were traded by investors in 19,834 deals.
This is against a turnover of 1.27 billion shares valued at N13.99 billion exchanged by investors in 19,385 deals in the preceding week.
The Financial Services Industry led the week’s activity chart with an exchange of 3.39 billion shares valued at N28.71 billion traded in 11,237 deals.
The sector contributed 93.55 per cent and 82.30 per cent to the total equity turnover in volume and value respectively.
The Consumer Goods Industry came second with 79.47 million shares valued at N3.42 billion transacted in 3,101 deals.
The third place was occupied by Conglomerates sector with a turnover of 70.18 million shares worth N113.49 million in 872 deals.
The NSE All-Share Index and Market Capitalisation appreciated by 2.28 per cent each to close the week at 34,020.37 and N11.725 trillion respectively.
Skye Bank led the gainers’ chart for the week in percentage terms by 19.69 per cent or 12k to close at 73k per share.
Unilever followed with a gain of 16.12 per cent or N5.32 to close at N38.32, while Lafarge Africa increased by 15.38 per cent or N8 to close at N60 per share.
Conversely, Axa Mansard Insurance led the losers’ table in percentage terms by 8.97 per cent or 20k to close at N2.03 per share.
A.G. Leventis trailed with a loss of 7.69 per cent or 6k to close at 72k, while Nigerian Aviation Handling Company shed 6.02 per cent or 18k to close at N2.80 per share. (NAN)