Monday, March 19, 2018 /3:20 PM / GTI Capital
Market Review for week ended March 19th, 2018
The Nigerian equity market in the week under review closed in the south and in the process halted prior two weeks bullish run. The market has found itself in the bear dominated territory despite the positive corporate earnings that were reported in the week. Corporate earnings appeared to have been priced into the market bearing in mind the earlier price upward rally at the beginning of the year. Note that activity was mixed with strong intra-day’s volatility all through the week.
Week-on-week (w/w), the All-Share Index (ASI) shed a total of 1,231.97 absolute points, representing a decline of 2.58% to close at 41,935.90 points. The year-to-date’s (Ytd) return now stands at 9.66%.
A turnover of 2.44 billion shares worth N36.67 billion in 26,712 deals were traded in the week by investors on the floor of the Exchange in contrast to a total of 3.08 billion shares valued at N39.99 billion that exchanged hands in the previous week in 23,086 deals.
Trading in the three equities namely; FBN Holdings Plc, Zenith International Bank Plc and Fidelity Bank Plc measured by volume accounted for 1.08 billion shares worth N17.85 billion in 7,074 deals, contributing 44.34% and 48.69% to the total equity’s volume and value respectively.
Twenty-five (25) equities appreciated in price during the week, lower than forty-five (45) of the previous week. Sixty (60) equities depreciated in price, higher than forty (40) equities of the previous week, while eighty-six (86) equities remained unchanged lower than eighty-seven (87) equities recorded in the preceding week.
Outlook for the new week ending March 23rd, 2018
We expect improved activities in the market space this week as more corporate earnings are released. This will be ably supported by the existing positive economic data. We equally expect reprising of the market considering that we have witnessed extended oversold of main indicators as a results of recent market correction and significant profit taking. By and large, we expect a positive close this week.
In the meantime, we strongly advise investors to take a keen interest on firms’ fundamentals before taking an investment position on such firms. We equally advise on taking a medium-long term view of the market.