Investors Take Profit Following Two Weeks of Consecutive Gains…


In the just concluded week, the domestic
equities market returned to red zone as
investors took profit.

Hence, the NSE ASI mellowed w-o-w by 0.06% to close at 42,014.50 points

Notably, sell-off was most seen on ETERNAL, UNILEVER, COURTVILLE,
NGXGROUP and CUTIX shares as their
respective prices plummeted by 15%, 14%,
11%, 11% and 10% w-o-w.

Similarly, sector- gauges mirrored the bearish sentiment as three (out of five indexes tracked) closed in red

The NSE Banking, NSE Oil/Gas and the NSE Consumer Goods indices nosedived by 1.73%, 1.63% and 0.74% to close at 403.27 points, 384.54 points and 565.30 points respectively.

However, the NSE Insurance and the NSE Industrial indexes rose by 0.99% and 0.88% to close at 181.70 points and 2,196.62 points respectively.

Meanwhile, market activity was weak as deals, volume and the value of stocks traded decreased by 9.88%, 51.63% and 65.64% to 23,987 deals, 1.43 billion units and N12.37 billion respectively

In the new week, Cowry Research expects the local bourse index to close northwards as investors respond positively to the proposed sale of 575 million units of MTN shares to institutional and retail investors.

Also, we feel investors will also position in those companies that have printed higher profitability and are likely to pay good dividends in FY 2021.