In line with our expectations, the Lagos bourse closed positively amid renewed bargain hunting activity, even as investors took advantage of some undervalued stocks.
Specifically, the NSE ASI rose marginally by 0.01% week-on-week to 24,828.96 points.
Despite the renewed bullish sentiment, most of the sub-sector gauges closed in negative territory: the NSE Oil/Gas index, NSE Industrial Index, NSE Insurance Index and the NSE Banking index moderated by 4.84%, 2.03%, 1.57% and 0.52% to 198.55 points, 1,194.99 points, 129.47 points and 289.31 points respectively.
On the positive side, share prices of companies in consumer goods sub-sector recovered from early losses in the week as its index closed flat at 432.87 points.
Meanwhile, market activity was weak as total deals, transaction volumes and Naira votes plunged by 11.64%, 28.96% and 14.90% to 17, 244 deals, 0.74 billion shares and N8.56 billion respectively.
In the new week, we expect the NSE ASI to close higher as investors continue to take advantage of the relatively low prices. Hence, we advise our clients to buy stocks with strong fundamentals and good dividend yields.
Cowry Asset Research