In the just concluded week, the domestic equities market closed in red amid renewed selloffs as investors took profit on stocks such as GLAXOSMITH, GUARANTY, UBA, ZENITHBANK, DANGCEM, WAPCO and UACN.
The NSE ASI tanked by 1.98% week-on-week to 24,336.12 points. Given the renewed bearish sentiment, all of the sub-sector gauges closed negatively.
Most affected was the NSE Banking index which plummeted by 7.52% to 267.55 points followed by the NSE Industrial index, the NSE Insurance Index, NSE Oil/Gas index and the NSE Consumer Goods index which moderated by 6.43%, 2.21%, 1.18% and 0.47% respectively to 1,118.11 points, 126.61 points, 196.21 points and 430.83 points respectively.
Meanwhile, market activity was upbeat as total deals, transaction volumes and Naira votes increased by 11.32%, 30.09% and 7.22% to 20,058 deals, 0.96 billion shares and N9.18 billion respectively.
In the new week, we expect the NSE ASI to close lower as investors stay on the sidelines to digest the anticipated H1 2020 financial reports. Nevertheless, we urge our clients to continue to take advantage of the temporal downward trend in the equities market as they bargain hunt stocks with strong fundamentals and good dividend yields.