Following the sell pressure that had pervaded the Nigerian stock market, analysts at Cowry Asset Management Limited have said that the market might witness bullish trend, as investors might likely take position on some stocks this week.
The experts, who made the forecast in their weekly financial market review and outlook, said they expect resumed bargain hunting activities, as speculators are likely to swoop on undervalued stocks.
They explained that the Nigerian bourse had witnessed third successive bearish weeks, which resulted in the drop of overall market performance measure, NSE ASI, by 115 bps to 26,981.60 points.
Also, according to them, market capitalisation dropped by 0.93 per cent to N9.29 tril-lion. NSE Premium Index also declined by 130 bps to 1,678.41 points.
Total deals transacted volumes and Naira votes increased by 36.65 per cent, 40.96 per cent and 29.52 per cent to 15,944 deals, 0.87 billion shares and N8.02 billion respectively.
“Most sectored gauges closed in the red – NSE Banking Index, NSE Consumer Goods Index and NSE Oil/Gas Index shed 3.22 per cent, 0.27 per cent and 3.99 per cent to 260.83 points, 727 points and 311.11 per cent respectively.
However, NSE Industrial Index and NSE Insurance Index decreased by 2.98 per cent and 1.29 per cent to 1,780.05 points and 129.21 points respectively,” they said.
According to them, last week, FGN bonds traded at the OTC segment depreciated for most maturities amid profit taking activities. This was despite boost in financial system liquidity.
“The 20-year, 10.00 per cent FGN July 2030 paper, the 10- year, 16.39 per cent FGN JAN 2022 debt and the 7-year, 16.00 per cent FGN JUN 2019 bond depreciated by N0.28, N0.36 and N0.02 respectively; their corresponding yields rose to 15.29 per cent (from 15.20 per cent), 14.92 per-cent cent (from 14.83 per cent) and 14.57 per cent (from 14.57 per cent) respectively.
“However, the 5-year, 15.10 per cent FGN APR 2017 paper appreciated by N0.22; its corresponding yield fell to 18.77 per cent (from 17.14 per cent).Elsewhere, FGN Eurobonds traded on the London Stock Exchange depreciated for most of the maturities on bargain hunting.
The 10-year, 6.75 per cent JAN 28, 2021 bond and the 10-year, 6.38 per cent JUL 12, 2023 bond depreciated by USD0.06 (yield rose to 6.70 per cent from 6.65 per cent) and N0.50 (yield increased to 6.95 per cent from 6.84 per cent).
However, the 5-year, 5.13 per cent JUL 12, 2018 bond appreciated by USD0.10 (yield fell to 4.33 per cent from 4.26 per cent