In the just concluded week, the Lagos bourse closed southwards amid sustained sell-offs in line with our expectations; albeit we saw strong interest in banking stocks. Specifically, the NSE ASI moderated by 0.12% week-on-week to 24,306.36 points.
Amid sustained bearish sentiment, most of the sub-sector gauges closed negatively, save NSE Banking index which rose by 5.85% to close at 283.19 points.
The NSE Consumer Goods Index, NSE Industrial Index, NSE Insurance Index and the NSE Oil/Gas index fell by 3.96%, 2.13%, 0.73% and 0.67% respectively to 413.75 points, 1,094.31 points, 125.69 points and 194.89 points respectively.
Meanwhile, market activity was upbeat as Naira votes increased strongly by 46.54% to N13.45 billion despite the total deals and transaction volumes which dropped by 6.89% and 6.27% to 18,676 deals and 0.90 billion shares respectively.
In the new week, we expect the Lagos bourse to close in green as investors are likely to take advantage of some fundamentally sound stocks trading well below their intrinsic value. Nevertheless, we advise our clients to trade cautiously amid anticipated H1 2020 financial reports which we feel will show mixed performance.
COWRY RESEARCH
