In the just concluded week, the Nigerian bourse closed in red territory as local stocks suffered more losses ahead of the upcoming general elections. The overall market performance measure, NSE ASI, closed lower at 29,830.70 points, having shed 2.64% w-o-w in line with our expectation.
Virtually all sector guages closed in the red save the NSE Industrial Index which buoyed by 1.00% to 1,194.35 points.
The NSE Banking Index, NSE Insurance Index, NSE Consumer Goods Index and NSE Oil/Gas Index fell by 0.91%, 7.00%, 3.56% and 6.28% to 383.50 points, 115.97 points, 704.73 points and 281.01 points respectively.
Meanwhile, total deals and Naira votes rose w-o-w by 30.55% and 67.28% to19,275 deals and N14.07 billion respectively while transaction volumes plunged by 23.19% to 1.27 billion shares – which was suggestive of investors taking advantage of the lower-priced stocks.
In the new week, we expect profit taking activity to outweigh the bargain hunting activity on largely undervalued stocks as the timeline for the Presidential election gets closer. Hence, the local bourse should close in red territory.