Equity market, oil price surge as lockdown eases

Local Bourse Begins Week Higher Amid Election Atmosphere
Local Bourse Begins Week Higher Amid Election Atmosphere

Investors in the Nigerian equity market sustained last week positive sentiment as the
investors’ wealth rose by ₦533 billion following the expectation of lockdown easing will trigger the economy, following the 5 weeks lockdown of Lagos and Ogun state, including the FCT.

Consequently, the NSE-ASI and NSE-Market Capitalization value grew by 4.45% w/w to close for this week at 24,045.40 absolute points and ₦12.53 trillion respectively as against 23,021.01 absolute points and ₦12.00 trillion last Thursday. This is nominal term translates to a week-on-week gain of ₦533.86 billion in Market Capitalization value.

All of the five major sectors closed positive on a week-on-week basis, led by Consumer Goods (+8.45%), Banking (+3.99%), Oil & Gas (+2.83%), Insurance (+2.76%) and Industrial (+2.20%) ARDOVA emerged top gainers this week; appreciating by 32.47% w/w, while LINKAGE shed 16.98 % w/w to emerge the top loser.

Overall, a total turnover of 1.66 billion shares worth ₦18.20 billion in 28,791 deals was traded this week by investors on the floor of the Nigerian exchange in contrast to a total 1.01 billion shares valued at ₦9.89 billion that exchanged hands last week in 17,023 deals. A total of Thirty-nine (39) equities appreciated at price during the week, higher than twenty-eight (28) equities in the previous week.

Twenty-two (22) equities depreciated in price, lower than twenty(20) equities in the previous week, while One hundred and two (102) equities remained unchanged, lower than one hundred and fifteen(115) equities recorded in the preceding week.

Market Outlook: Week ending May 15, 2020

After nine consecutive trading sessions of gaining streak, we expect some investors to exit
their position in the early days of next week as seen on Friday. However, we believe the low price of many fundamentally viable stocks will continue to attract long term investors.