In the just concluded week, the Nigerian equities market sustained its downward trend amid sustained sell-offs, despite the readiness of the giant telecommunication company, MTN, to list on the Nigerian Stock Exchange.
The overall market performance measure, NSE ASI, further closed southwards at 28,847.81 points, having lost 125 basis points w-o-w.
Amid sustained profit taking, all of the five indices closed in negative territory: NSE Banking, NSE Insurance, NSE Consumer Goods, NSE Oil/Gas and NSE Industrial indices fell by 2.77%, 1.74%, 0.23%, 5.29% and 0.36% to 370.27 points, 118.63 points, 669.53 points, 264.90 points and 1,096.75 points respectively.
Meanwhile, market activities was a mixed bag as total deals and transaction volumes increased by 14.61% and 0.44% to 20,733 deals and 1.48 billion shares respectively; however, Naira votes moderated by 29.82% to N10.88, despite the higher number of trading sessions (5 days against 4 days) week-on-week. In the new week, we expect the local equities market to close marginally in green territory amid announcement of the re-appointment of the CBN Governor by President Buhari and the readiness signalled by MTN to list on the local bourse, given the registration of its 20 billion shares with Security and Exchange Commission. Hence, we feel investors would take advantage of the low share prices to maximize their returns.