The Nigerian equities market closed last week on a positive note with renewed interest in the banking sector, which culminated to lift the Banking Index by 5.14% Week on Week, WoW.
UBA gained 14.71% WoW leading the bunch of gainers. It was followed by Zenith Bank rising by 7.92%.
In a similar fashion, the Consumer Goods Index up 2.35% WoW, Insurance Index 1.79% and Oil & Gas Index 0.97% respectively. However, the Industrial Goods Index shed 3.67% WoW following selloffs in BUA Cement which declined by 9.99% WoW.
Specifically, the Nigerian Exchange Limited , NGX All Share Index, NGX-ASI and market capitalisation appreciated by 0.87% WoW to settle at 98,592.12 points and N55.9 trillion, respectively.
Accordingly, the Month-to-Date, MtD and Year to Date, YtD return rose to 0.9% and 31.85% respectively.
Analysts observed that market players are still digesting recent corporate earnings and developments in the fixed income market while inflation continues to hit new highs.
They further stated that the positive return of the market last week happened in the midst of the global stock markets rebounding after overreactions to the fear of a recession and geopolitical tensions across the globe.
They added that the buying interests across the major sectors of the market have supported the uptrend that pushed the ASI higher “The market continues to trade within the value area, creating entry opportunities for discerning investors and smart traders, even as transaction volume patterns and support levels signal the ‘buy zone’ ahead of July consumer price index and banks interim dividend announcement” analysts added
Commenting on market outlook, analysts at InvestData Consulting stated: “We expect continue trend and mixed sentiment on increased volatility, profit taking and sector rotation amidst oversold region. Portfolios repositioning is however continuing, as investors take advantage of pullbacks to buy into value.
This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”