Local Equities Market Nosedives by 2.69% on Sustained Profit Taking…

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In the just concluded week, the domestic equities market moderated amid sustained bearish activity.

Hence, the main market index, NSE ASI, declined to 28,067.09 points having fell by 2.69% w-o-w.

Investors continued to book profit
despite the generally positive unaudited full year 2019 results released by corporates.

Of the five sub-sector gauges, four closed in red territory: the NSE Banking, NSE Oil/Gas, NSE Consumer Goods and NSE Industrial declined by 1.51%, 3.05%, 2.23% and 4.07% to close at 368.14 points, 243.89 points, 546.10 points and 1,180.26 points respectively.

However, NSE Insurance rose by 0.23% to close at 132.31 points as the share price of LAWUNION rose by 58.57% to N1.11.

Meanwhile, market activity was weak as total transaction volumes and Naira votes decreased by 4.31% and 21.37% to 1.48 billion shares and N20.29 billion respectively.

On Thursday additional 2.26 billion ordinary shares of Abbey Mortgage Bank’s placement to VFD Group Plc at N1.05k were listed on the Daily Official List of the Nigerian Stock Exchange.

In the new week, we expect the local equities market to close slightly lower amid the rebound in T-bills stop rates which was partly induced by the increase in CRR by 500 bps to 27.50%.

Nevertheless, we advise investors to take advantage of the low prices to buy stocks with high dividend yields even at cheaper amounts.

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