Mixed Sentiments Ahead as Investors Take a Bet on MPC Outcome….

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Trading activities this week ended in the green for the key performance index which inched up 1.19% week on week to 44,492.73 points due to renewed investors’ sentiment and positive buying interest in some value stocks that had suffered losses in recent time.

Also, the upbeat momentum pushed the market capitalization by over N285.4 billion to N24.23 trillion as we saw strength returned to some of the blue chip and growth stocks on the exchange through the week.

After a mixed week for the exchange with
two bullish sessions out of the five sessions,
we saw gains from price appreciation in
Insurance, banking and consumer goods
tickers such as MANSARD (+16%), UBN
(+13%), GTCO (+11%), NB (+10%) and
UNILEVER (+10%) respectively.

Across the sectorial gauges under under our coverage, the sectorial performance was largely mixed in the week with 3 out of 5 sectors closing
the week in the bullish region.

Thus, for the NGX Banking Index (+0.4.22%), it emerged top of the gainers’ list for the week and trailed by NGX Insurance (+0.93%) and Consumer goods index (+0.91%) week on week.

On the other hand, sell -offs in the NGX Oil & gas (-1.34%) and NGX Industrial Goods (-0.37%) week on week dragged the performance of the sectors southward.

Elsewhere, the level of trading activities in the week was weak as the total traded volume deteriorated further by 36.9% w/w to 694.4 million units.

Also, the total weekly traded value lost by 33.3% week on week to N7.82 billion and then the total deals traded for the week took a free fall by 1.78% week on week to 15,418 deals from a total of 15,697 deals last week.

Going into the new week, we expect the market to trade with mixed sentiments as the digestion of the current inflation numbers put investors in position for next move in the market as they await judgment from the MPC meeting next week.

Though, we expect a 25bps rate hike in a bid to quell elevating inflationary pressure. However, we continue to advise investors to trade on companies’ stocks with sound fundamentals and a positive outlook amid the macro-dynamics which remains a headwind.

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