In line with our expectation, the domestic equities market continued to rally as investors’ appetite for risky asset was sustained given the low-yield fixed-income environment and the positive 9 months corporate earnings releases.
Hence, the All share Index ballooned by 6.39% week-on- week to 30,530.69 points (the highest since May 21, 2019) as investors positioned to qualify for
interim dividends declared by companies such as AIRTEL, NESTLE and SEPLAT.
Notably, performance across sub-sector gauges tracked was bullish as all the indices tracked closed northwards; the NSE Consumer Goods Index led the gainers by 12.21% to 546.09 points, followed by the NSE Banking, NSE Industrial, NSE Oil/Gas and the NSE Insurance indices by 8.05%, 7.60%, 6.22% and 5.64% to 372.61 points, 372.61 points, 1,327.95 points, 215.33 points and 145.11 points respectively.
Meanwhile, market activity was upbeat as total deals, volume and Naira Votes climbed by 14.72%, 26.83% and 20.04% to 23,578deals, 1.90 billion shares and N23.61 billion respectively.
During the course of the week, Chemical and Allied Products PLC and Portland Paints and Products Nigeria PLC announced their impending merger; with CAP emerging as the resultant entity.
In the new week, we expect the positive performance of the local bourse to mellow as investors take profits amid recent strong gains.
Also, given the declining crude oil prices amid US election tension we advise investors to approach the equities market with caution.