Photo by Mark Finn on Unsplash
The domestic equity market recorded its biggest gains since May this week, as it closed positive in all the five trading sessions, Brandnewsday confirmed.
The impressive performance which began on Monday with a 0.01% (₦93bn) gain in Market Capitalization value was fueled by Tuesday’s decision of the Central Bank of Nigeria (CBN) monetary policy committee to cut MPR by 100bps to 11.5% and Asymmetric corridor to +100/-700bps of MPR from +200/-500.
This development which points to expected further easing of yields in the fixed income space, the potential reduction in interest expense burden of deposit money banks (DMBs) and the potential easing of cost of funds for corporates was to the delight of portfolio and retail investors, as it strengthened the upside potential of several blue-chips stocks.
Consequently, the All-Share Index and the Market Capitalization value both appreciated week-on-week by 2.92% to 25,319.34 points and ₦13.75 trillion respectively, from 25,527.57 points and 13.36 trillion last week.
All the five major sectors closed positive this week, led by the Consumer goods sector with a gain of +5.99% w/w, Banking +3.59% w/w, Industrial +2.44% w/w, Oil & Gas +1.16% w/w, and Insurance sector +1.08% w/w.
NB emerged best performing stock this week with a week-on-week gain of 25.12%, while AIICO shed -20.00 % w/w to emerge the top loser.
READ: Nigerian Equity Market In H2-2020: On A Slow Path To Total Recovery?
Overall, a total turnover of 1.57 billion shares worth ₦20.56 billion in 18,396 deals was traded this week by investors on the floor of the Nigerian exchange in contrast to a total 1.13 billion shares valued at ₦12.69 billion that exchanged hands last week in 17,109 deals.
A total of Thirty-five (35) equities appreciated at price during the week, higher than Thirty-two (32) equities in the previous week. Twenty-eight (28) equities depreciated in price, lower than Thirty-one (31) equities in the previous week, while one hundred (100) equities remained unchanged, the same as in the previous week.
Market Outlook: Week ending 2nd October 2020
We expect the CBN accommodative policy-induced-rally witnessed this week to wane in the coming week, amid profit-taking by some active investors. Nevertheless, we see the overall market performance index closing positive as market valuation remains attractive for medium and long term investors.
Apple Inc is set to present a slimmer iPhone 17 Air model, marking a potential…
A six-year-old girl, Ella, fatally shot a 28-year-old American police officer last month after witnessing…
The Lagos State Internal Revenue Service (LIRS) reminds all individual taxpayers, including self-employed individuals, those…
Stanbic IBTC Bank, a prominent financial institution in Nigeria, has partnered with Autochek, an innovative…
The headline figure derived from the survey is the Stanbic IBTC PMI® - Purchasing Managers’…
Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings and a leading financial service solutions…
This website uses cookies.