Just a week after the long-awaited inauguration of the Federal Ministers, local stocks reversed last week’s gains as the initial euphoria over the formation of the Federal Cabinet waned.
Hence, overall market performance measure, NSE ASI, fell by 0.99% w-o-w to 27,525.81 points.
Also, three of the five sectored gauges closed in the red: NSE Banking Index, NSE Consumer Goods Index and NSE Oil/Gas Index declined by 3.46%, 0.63%, and 10.76% to 331.18 points, 526.11 points and 198.41 points respectively.
However, NSE Insurance Index and NSE Industrial Index increased by 1.15% and 0.34% to 106.85 points and 1,091.19 points respectively.
Meanwhile, market activity was weak as total deals, transaction volumes and Naira votes plunged by 12.71%, 69.82% and 33.08% to 16,043 deals, 0.71 billion shares and N13.19 billion respectively.
In the new week, we expect the domestic bourse to close in red territory as sentiment continues to weaken.
Hence, we expect value investors to pitch their tent with companies that have grown their profit after tax, paid dividends over time, are trading below equity price per share and have strong cash flows, in order to optimize their returns.