January 29, 2018 /1:45 PM / GTI Capital
Market Review for week ended January 26th, 2018
The week came along with strong volatility and created buying opportunities as witnessed on Friday, leading to a positive close of 0.56%. Week-on-week (WoW), the All-Share Index (ASI) shed a total of 1,319.07 absolute points, representing a decline of 2.93% to close at 43,773.76 points. This lead to a dip in the year-to date’s (Ytd) returns at 14.46%.
A total turnover of 7.16 billion shares worth N42.55 billion in 39,037 deals were traded in the period by investors on the floor of the Exchange in contrast to a total of 5.01 billion shares valued at N45.82 billion that exchanged hands in the previous week in 44,569 deals.
Trading in the three equities, namely; Transcorp Plc, FCMB Plc and Skye Bank Plc (measured by volume) accounted for 4.79 billion shares worth N11.34 billion in 5,216 deals, contributing 66.86% and 26.66% to the total equity turnover volume and value respectively. Thirty (30) equities appreciated in price during the period, lower than forty (40) recorded in the previous week. Forty-four (44) equities depreciated in price, higher than thirty-two (32) of the previous week, while ninety-eight (98) equities remained unchanged lower than one hundred (100) equities recorded in the preceding week.
Outlook for the new week ending February 2nd, 2018
As such, we expect to see some element of profit taking amidst repositioning activity towards full year 2017 earnings season expected to kick off in earnest next week. The market is also expected to be impacted by existing positive economic data which has continued to resonate investors’ confidence (especially, foreign investors).
At this point, we strongly advise investors to take a keen interest on firms’ fundamentals before taking investment position on such firms. We equally advise on taking a medium-long term view of the market.