Anticipation of improved corporate performance triggered bargain-hunting on the equities sector of the Nigerian Stock Exchange (NSE) last week, as activities recovered from the two-week slowdown, pushing the All-Share Index (ASI) by 6.39 per cent to close the week at 30,530.69, a level last seen in June 2019.
Similarly, all other indices finished higher with the exception of the NSE ASeM Index that closed flat.
The sustained bull trend was despite the almost six per cent slide in oil prices at the international market as a result of the resurgence of Coronavirus (COVID-19) cases, with another round of lockdown underway in many countries.
Analysts linked the performance to a relative return of peace after weeks of the #EndSARS protests across the country.
They also expressed optimism that the monetary authorities would sustain those policies initiated to spur activities in the stock market.
Analysts at Codros Capital Limited said: “Despite the improvement in readings in October, the sub-50 reading implies the sector is yet to return to pre-pandemic levels.
Vetiva Dealings and Brokerage said: “Following the latest results of the PMA in the FI market, where yields for short-term dated instruments printed below 1.00 per cent, fund/portfolio managers continued to channel funds into the equities market, leading to a number of fundamentally-sound stocks closing the week deep in the green, while also improving trading turnover in the market.
“We expect no deviation from this bullish pattern in the coming week, as most bellwethers remain below their expected intrinsic value, though the possibility of profit-taking cannot be overruled.”
Despite the one-day public holiday declared by the government to commemorate the Eid-el-Maulud celebrations, a turnover of 1.909 billion shares worth N23.610 billion changed hands in 23,578 deals by investors on the floor of the exchange. This is in contrast to a total of 1.505 billion units valued at N19.668 billion that was exchanged in 20,552 deals during the preceding week.
The consumer goods industry followed with 131.788 million shares worth N2.613 billion in 4,112 deals.
The third place was the industrial goods with a turnover of 83.526 million shares worth N3.573 billion in 1,818 deals.
Trading in the top three equities, namely FBN Holding Plc, Zenith Bank Plc, and Access Bank Plc (measured by volume) accounted for 576.514 million shares worth N6.791 billion in 4,652 deals, contributing 30.19 per cent to the total equity turnover.
Also, a total of 262,849 units of ETF valued at N2.160 billion were traded this week in 52 deals compared with a total of 284,105 units valued at N2.090 billion transacted last week in 44 deals.
