Local Bourse Index Rebounds by 0.58% on DANGCEM Shares…

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In line with our expectations, the domestic equities market rebounded amid renewed bargain hunting activity. Specifically, the NSE ASI climbed by 0.58% week-on-week to 24,427.73 points.

However, the rise in the general index eclipsed the negative performance of most sub-sector gauges as only the NSE Industrial index rose, by 0.60% to close at 1,106.55 points amid positive financial results posted by Dangote Cement Plc (DANGCEM).

The NSE Oil/Gas index, NSE Insurance index, NSE Banking index and the NSE Consumer Goods index declined by 4.67%, 0.80%, 0.62% and 0.38% respectively to close at 182.20 points, 122.34 points, 270.41 points and 404.25 points respectively.

Meanwhile, market activity was upbeat as transaction volumes and Naira votes rose by 32.97% and 94.11% to 1.35 billion shares and N14.43 billion respectively.

However, total deals fell by 7.58% to 16,719 deals. Dangote Cement Plc published its H1 2020 financials which showed yearon-year increases in gross earnings and profit after tax by 1.95% and 5.79% respectively.

In the new week, we expect investors to rejig their portfolios by buying shares of companies that post positive
results and have sound fundamentals.

Nevertheless, we advise our clients to trade cautiously as we anticipate mixed H1 2020 corporate earnings performance.

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