In line with our expectations, sentiment in the equities market remained positive amid strong bargain hunting activities – the domestic bourse index gained 4.92% on Tuesday, October 6, 2020 as investors took position in stocks with good fundamentals.
Despite the market rallying only two days out of five trading sessions, the NSE ASI gained 5.31% week-on-week to close at 28,415.31.
Similarly, performance across tracked sub-sector gauges closed in positive territory: the NSE Banking index led, having gained 7.83% to 340.01 points, followed by the NSE Industrial, NSE Consumer Goods, NSE Oil/Gas and the NSE Insurance indices which rose by 2.72%, 2.02%, 2.01% and 1.96% to 1,231.85 points, 464.46 points, 199.36 points and 139.12 points respectively.
Meanwhile, market activity was upbeat as total deals, volume and Naira Votes ballooned by 107.28%, 135.54% and 128.68% to 35,099 deals, 3.13 billion shares and N128.68 billion respectively.
In the new week, we expect the NSE ASI to close northward as investors further position in stocks with good fundamentals and good dividend yields as corporates get ready to release their 9 months financial results.
However, we advise investors to trade cautiously.