In the just concluded week, the domestic equities market closed positively amid renewed bargain hunting activity. Specifically, the NSE ASI rose by 0.67% week-on-week to 25,182.67 points.
Amid the renewed bullish activity, most subsector gauges closed in the green zone. The NSE Industrial index, NSE Insurance index, and the NSE Banking index increased by 2.24%, 3.69% and 0.46% to 1,193.02 points, 135.76 points and 300.00 points respectively.
However, the NSE Oil/Gas index and the NSE Consumer Goods index moderated by 2.62% and 0.20% to 219.31 points and 425.20 points respectively.
Meanwhile, market activity was weak as total deals, transaction volumes and Naira votes tanked by 28.77%, 26.12% and 58.70% to 16,320 deals, 1.09 billion shares and N9.73 billion respectively.
In the new week, we expect the domestic equities market to close positively amid positive developments in the external sector. Hence, we advise our clients to buy stocks with strong fundamentals and good dividend yields. Also, we expect to buy an interest in the healthcare sector as the industry is set to benefit from government interventions amid COVID-19 pandemic.
Cowry Asset Research