In line with our expectation, the local equities market closed southwards on renewed profit taking activity.
Hence, the domestic bourse
tanked by 1.41% week-on-week, resulting in
moderation of the NSE ASI to 22,599.38 points.
Of the five sub-sectore indices, three closed in red territory: NSE Banking index, NSE Consumer Goods and NSE Oil/Gas index declined by 5.24%, 2.64% and 1.68% respectively to 261.54 points, 376.46 points and 205.63 points respectively.
However, the NSE Insurance index
and NSE Industrial index rose by 1.17% and
0.71% respectively to 120.35 points and 1,017.37 points respectively.
Elsewhere, market activity was a mixed bag as total deals and transaction volumes moderated by 1.86% and 20.06% to 20,591 deals and 1.20 billion shares respectively.
However, Naira votes rose by 8.42% to N13.98 billion.
In the new week, we expect OTC bond prices to appreciate (and yields to moderate) against the backdrop of expected boost in financial system.
In the new week, we expect the local equities market to trade sideways as investors trade cautiously while digesting the Q1 2020 financial results released thus far.
Hence, we advise our clients to trade cautiously, paying attention to our suggested entry and exit prices as contained in our “Cowry Recommended Stocks” special report.