Mixed market sentiment to trail equities market this week



AS the third quarter earnings season approaches, financial analysts have predicted a mixed market sentiment this week, even as the equities market ended bullish.

Accordingly, analysts at Vetiva Capital Management Limited, stated: “We expect increased activity on the Nigerian bourse in the coming week and foresee a mixed trading pattern through the week, albeit with a bullish bias.”

Commenting on the stock watch the analysts said: “After staying flat for eight consecutive sessions, MANSARD Insurance has rallied in the last sessions – up 26 percent to close at ¦ 2.51. The stock currently trades close to its year high of ¦ 2.62 and it has returned 50 per cent Year-to-Date, YtD.”


Meanwhile, analysis of transactions last week showed that despite the bearish performance on Tuesday and Wednesday, sustained bullish performance Thursday and Friday stretched Week-on-Week, WoW, gains to 145 bases points (bps). Specifically, NSE All-Share Index and Market Capitalization appreciated by 1.45 per cent to close the week under review at 36,848.17 and N12.684 trillion respectively.

A total turnover of 1.555 billion shares worth N13.504 billion in 18,409 deals were traded   last   week by investors on the floor of the Exchange in contrast to a total of 1.493 billion shares valued at N15.107 billion that exchanged hands last week in 14,549 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.365 billion shares valued at N6.507 billion traded in 10,880 deals; thus contributing 87.76 per cent and 48.19 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 70.496 million shares worth N5.637 billion in 3,398 deals.

The third place was occupied by Conglomerates Industry with a turnover of 58.779 million shares worth N141.929 million in 706 deals. Trading in the Top Three Equities namely – Diamond Bank Plc, Zenith International Bank Plc and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 985.762 million shares worth N2.841 billion in 3,401 deals, contributing 63.39 per cent and 21.04 per cent to the total equity turnover volume and value respectively.