Upbeat Sentiments Rule as Equities Investors Act on Policy Guidelines…

Date:

ASI Up 5.37% w/w.

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After closing the month of May positive for the fourth consecutive year to defy the “sell in May and come back in Octobe r”
mantra among stockbrokers, upbeat momentum ruled trading activities in the local bourse this week to kickstart the new
trading month on the back of market expectations for further policy guideline and direction from the new administration after the successful transition of power to President Bola Tinubu.

Consequently, the benchmark index advanced 5.37% w/w to.55,820.50 points after breaking out the strong resistance levels of 53,000 points and 55,800 points to trade above its 50-Day Simple Moving Average and 100DMA after the golden cross on the daily and weekly charts.

In the same vein, the market cap of listed equities inched further by 5.37% w/w to N30.39 trillion on the back of higher dividend payouts and relatively improved liquidity as fixed incomes yields were not stable in the face of heightening inflation which supported buying interests in the market and flow of funds into the equity space. Resultantly, investors saw profit of N1.55 trillion in 4 out of 5 sessions while the market year-to-date return
rose to 8.92%.

Also, the performance index across sectors was green and can be attributed to price appreciation after adjustment for dividend and position taking by insiders or majority shareholders. To this, the Oil & gas sector led the gains by +10.48% w/w and followed by Consumer goods sector (+8.52%) Industrial goods (+5.83%), while the Banking (+4.89%) and Insurance (+1.21%) also closed northward this week.

Meanwhile investors sentiment was upbeat in momentum as the level of trading activities th is week stayed positive with a
13.93% w/w increase in total weekly deals to 35,122. Also, the average traded volume this week trended in the positive
territory by 31.70% to 2.59 billion units while the average weekly value moved northward by 37.59% w/w to N46.64 billion.

At the end of the week, CONOIL (+48%), ETERNA (+32%) and MRS (+21%) were the leading gainers for the week while
NPFMCRFBK (-9%), CHAMPION (-7%) and WAPIC (-6%) led the laggards’ chart for the week.

In the next session, we expect a mixed trend of activity in the midst of profit taking and cautious trading as portfolio
reshuffling persists even as the market expects more policy guideline of the new government.

However, we continue to advise investors to target fundamentally sound companies and defensive stocks to protect their portfolios post-dividend adjustments. Any pullback at this point may add more strength to upside potentials

Babatunde Akinsola
Babatunde Akinsolahttps://naija247news.com
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

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