The equities market last week bounced back to gains following the positive half year, H1'24, results posted by Zenith Bank Plc and GTBank Plc which enhanced performance of the Banking Index.
Consequently, the bargain hunting following the gains in the shares of MTN, First Bank of Nigeria Holding, Oando, and Nestle, among others, lifted the market with the major market indicator, Nigerian Exchange, NGX, All Share Index, ASI, rising by 1.1% to close at 97.456.62 points from 96,433.53 points the previous week.
Similarly, the market capitalisation, which represents total value of the investments on the Exchange, rose by over N607 billion to close at N56.001 trillion from N55.394 trillion the previous week.
Meanwhile, the Month-to-Date, MtD and Year-to-Date, YtD, returns were -0.3% and 30.3% respectively.
Trading activity was mixed, with a 20.2% Week on Week, W/W increase in volume, while value dipped slightly by 0.5%. Sectoral performance was positive as the Banking Index gained 5.1%, Oil and Gas Index 2.0%, Insurance Index 1.6%, Consumer Goods Index 1.5%, and Industrial Goods Index 0.2%.
Reacting to market outlook analysts at Cordros Research stated: "We anticipate mixed sentiments in the near term with investors focusing on bank stocks based on recent corporate actions.
"However, we acknowledge the possibility of profit-taking activities on stocks that have experienced notable appreciation in recent weeks.
"In the medium term, we expect investors' sentiments to be shaped by developments in the macroeconomic landscape and the movement of yields in the fixed-income market."
Also on market outlook, analysts at InvestData Consulting Limited said: "We expect mixed sentiment to continue on profit taking and bargain hunting in the hope of an inflow of the half-year numbers from the other interim dividend paying stocks, as sector rotation continues in the market. Portfolio repositioning is however continuing, with investors taking advantage of pullbacks to buy into value.
"This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically."
