Equity market sustains bullish momentum in October

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

The Nigerian equity market sustained its bullish momentum in the month Oct-2020, buoyed by the depressed yield environment, buoyant system liquidity and better than expected Q3-2020 earnings publication. Specifically, the NSE-ASI surged +13.8% m/m, crossing the 30,000pt threshold to 30,530.7 points while YTD returns settled at +13.7%.

Equity market sustains bullish momentum in October
Equity market sustains bullish momentum in October – www.brandspurng.com

Worthy of note, investors gained almost N2.0tn during the month as equity market capitalization closed at c. N16.0tn. The sectoral analysis showed that all five sectors indices under our coverage closed the month in the green territory. The Consumer Goods sector (+20.3%) advanced the most, followed by Banking (+20.0%), Industrial Goods (+11.2%), Oil & Gas (+10.3%) and Insurance (+4.5%) sector indices.

Also, according to the corporate earnings released during the period, most of the corporates beat the consensus market expectations, to further fuel the rally. Elsewhere, MTN Nigeria announced the appointment of Karl Toriola as the Chief Executive Officer (CEO) while The Boards of Directors of Chemical and Allied Products PLC (“CAP”) and Portland Paints and Products Nigeria PLC (“Portland Paints”) announced their plan to merge both companies during the period.

This month, with sustained low yield environment and a rather expansionary monetary policy stance, the stock market will remain attractive for investors seeking high return. However, we do not rule out intermittent profit-taking by participants during the month. In all, we continue to see a further uptick in the share prices of the tier one banks, food processors, Agro-allied companies, cement makers and the Telcos.

Read Also:  What Nigerian Banks Need to Learn From Kenya Mpesa
- Advertisement -

We advise investors to take cautious positions in the brewers diversified consumer goods companies and tier-2 banks as they remain highly speculative.

United Capital Plc Research
- Advertisement -
Equity market sustains bullish momentum in October - Brand SpurEquity market sustains bullish momentum in October - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Read Also:  How did the Nigerian equity market become the second-best performing equity market in the world?

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Equity market sustains bullish momentum in October - Brand SpurEquity market sustains bullish momentum in October - Brand Spur

Latest News

Ibadan-Born Billionaire, Harry Akande is dead

Harry Ayoade Akande has died at the age of 77. He died on Saturday morning of an undisclosed ‘brief...

NSE ASI Revs by 0.72% on Insurance, Oil/Gas Stocks

In line with our expectations, investors in the equities market remained bullish, especially on insurance and oil & gas stocks. Hence, the All-Share Index...

Red Hat Releases 2021 Global Tech Outlook Survey

For the fifth consecutive year, Red Hat has released its annual Global Tech Outlook. This survey of IT leaders covers the top IT challenges and funding...

Net Inflow Worth N281.10 billion via OMO Create Liquidity Ease.

In the just concluded week, CBN refinanced only N60 billion of the N341.10 billion treasury bills which matured via the Open Market Operation (OMO)....

Naira Gains against the USD at BDC, Black Markets amid New Forex Policy…

In the just concluded week, Naira gained against the USD at the Bureau De Change (BDC) and parallel (“black”) markets by 4.12% and 4.04%...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Equity market sustains bullish momentum in October - Brand SpurEquity market sustains bullish momentum in October - Brand Spur