In the just concluded week, the domestic equities market further moved in negative direction amid
sustained bearish pressure. Specifically, the main market index, NSE ASI, moderated to 26.526.35 points, having lost 0.04% w-o-w. Of the five
sector-gauges, we saw the Oil & Gas and NSE Industrial sector gauges close in the red zone;
they decreased by 0.68% and 0.49% to 232.46 points and 1,051.59 points respectively.
However, NSE Banking Index, NSE Insurance and NSE Consumer Goods indices closed in the green
zone as they increased by 0.78%, 1.04% and 1.31% to 355.42 points, 120.44 points and 555.68 points respectively. Elsewhere, market activity was upbeat as total transaction volumes and Naira votes increased by 32.24% and 5.99% to 1.38 billion shares and N15.50 billion respectively; however total deals fell by 2.98% to 14,528 deals.
In the new week, against the backdrop of boost in financial system liquidity, we expect FGN bond prices to rise (with corresponding decline in yields) amid expected buy pressure at the OTC market.
In the new week, we expect the local equities market to rebound as rates in the fixed income space, especially T- bills, have moved towards lower single digit which would be less attractive to investors.