EQUITIES MAY REBOUND THIS WEEK —OPERATORS
After enduring weeks of bearish run, the equities market may revert to the positive region this week owing to the expected release of ministerial list by the government this week, stock dealers have predicted. The Senate President, Senator Ahmed Lawan, had, last week announced that the President Muhammadu Buhari may submit the ministerial list to the upper chamber, but that never happened.
However, the operators opined that the market may experience a relief from the protracted bearish run with the second quarter 2019 (Q2’19) earning season fast approaching. Analysts at Vetiva Securities, said: “As the Q2 earnings season begins to come into focus though we do not foresee any positive surprise on major counters we believe there might be respite for the market from the losses recorded in recent sessions and foresee a more mixed trading pattern.”
In their equities review, analysts at Cowry Asset Management projected a positive close following anticipation by investors of the announcements of the ministerial appointees and release of half year (H1) financial results by quoted companies. Buhari on new cabinet: I’ll never appoint ‘strangers’ again(Opens in a new browser tab) They said: “In the new week, we expect domestic shares to rise as investors anticipate the announcements of the President’s ministerial appointees as well as H1 corporate results.”
However, analysts at Codros Capital expressed cautious optimism, saying that the outlook for equities in the short to medium term remained conservative, amidst the absence of any catalyst to drive positive market returns. Meanwhile, breakdown of transactions at the Nigerian Stock Exchange, NSE, last week showed that the market remained weak despite the listing of another telecommunication giant, Airtel Africa Plc, early in the week.
The All Share Index, ASI, consequently, depreciated by 2.4 percent to close at 28,566.79 points from t 29,270.95 in the previous week. Analysts at Vetiva Securities posited that investors were still fixated on country-specific macro issues, which remain unencouraging. Analyzing by sectors, the consumer goods bore the brunt of the losses, declining by 9.5 percent occasioned by 7.8 percent losses in Nestle Nigeria Plc.
The oil and gas sector followed, falling by 3.1 percent, while the insurance and industrial goods sectors were down 2.4 percent and two percent respectively. The banking sector emerged the loner gainer during the week, rising by 0.8 percent on account of 2.6 percent increase in the shares of Guaranty Trust Bank Plc