by OLUSHOLA BELLO, Lagos
Activities on the Nigerian Stock Exchange (NSE) remained on a bullish trend, last week as equities gained N659 billion. With exception of Tuesday, the Nigerian equity market traded on bullish momentum all through the week under review. As such, the bullish run has been pushed into the third week in a row.
Week-on-week, the All Share Index (ASI) gained 1,905.05 absolute points, representing a growth of 6.07 per cent to close at 33,276.68 points. Similarly, the market capitalisation gained N659 billion, to close at N11.504 trillion.
Analysts at Cordros Capital said, “Last week’s gain was well diversified across the sectors, the oil and gas stocks, perhaps on the news that the force majeure on the Forcados oil export terminal has been lifted rallied the most. Banking stocks on the other hand outperformed on report by Fitch Ratings acknowledging that liquidity pressures have eased for now, for its rated banks.
“Interestingly, both the local and foreign institutional investors are active drivers of the recent rally, and we understand the FPIs encouraged by the improved ease of access to the dollars are keen on their usually preferred consumer goods names, with a few banks, cement, and oil gas companies also on the card.”
They also noted that, “It would appear this week’s circular by the CBN, permitting the Authorized Dealers in the forex market, the I and E window specifically to henceforth sell their excess FCY trading positions among themselves without seeking prior approval, contributed immensely to this week’s equities rally.”
Outlook For This Week
For the week, analysts at Cordros Capital said, “Fundamentally, we note that only a few stocks have much upside from current price level, suggesting that a correction is imminent. That said, with the ongoing rally’s major life battery which is developments in the forex market remaining charged, we think equities will have strong wings to fly.