New Telegraph

Weekly Wrap-Up: Investors To Trade Cautiously Ahead Of MPC Meeting

Bearish sentiments persisted in the local bourse for another week as profit-taking activities intensified. Despite a rebound on the penultimate trading day driven by renewed interest in AIRTELAFRI (+9.0%), the gains were not enough to offset the losses witnessed in SEPLAT (-10.0%), TRANSCOHOT (-9.7%) and UBA (-9.3%).

Thus, the ASI recorded a 0.1 percent w/w decline to close at 98,125.73 points. Consequently, the Month-to-Date and Year-to-Date returns settled at -0.1 per cent and +31.2 per cent.

Trading activity in the week was weak, as the total trading volume and value decreased by 24.5 percent w/w, and 15.8 percent w/w, respectively.

Sectoral performance reflected the overall market sentiment, with declines in the Oil and Gas (-6.5%), Banking (-5.3%), Insurance (-4.0%) and Consumer Good (-1.3%) indices.

The industrial Goods index remained unchanged. The local bourse closed on a negative note on Friday, due to selling interest in the Insurance sector, and Utility sectors. Consequently, the NGX All Share Index dipped by -0.03% and settled at 98,125.73 points.

Market breadth index was negative as there were have 15 gainers and 24 losers. Friday’s gainers were led by PZ PLC (+9.92%), while the top loser was TRANSCOHOT PLC(- 9.72%). Other top gainers include JBERGER PLC(+9.53%) while other bottom losers include: NEM PLC(-9.63%).

In terms of activity levels, total volume decreased by 52 per cent to 139 million units worth N9.41 billion. The local bourse depreciated due to selling pressure in the Insurance sector, and Services sectors.

Cordros Securities in its analysis said: “In the week ahead, we believe investors will focus on the outcome of the MPC meeting scheduled for next week to gain further clarity on yield movements in the fixed income market. “Consequently, we anticipate cautious trading from domestic investors in the short term.”

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