Monday, March 26, 2018 /12:00 PM / GTI Capital
Market Review for week ended March 26th, 2018
Trading activities on the floor of the Nigerian stock exchange closed in the red in the week under review to extend bearish haul to two consecutive weeks in a row. For the second time in the spate of two weeks, corporate earnings failed to resonate the market mood as investors recouped profit from earlier positions entered in January. 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 463.80 absolute points, representing a decline of 1.11% to close at 41,472.10 points. The year-to-date’s (Ytd) return now stands at 8.44%.
A turnover of 2.33 billion shares worth N28.93 billion in 25,530 deals were traded in the week by investors on the floor of the Exchange in contrast to a total of 2.44 billion shares valued at N36.67 billion that exchanged hands last week in 26,712 deals.
Trading in the three equities namely; Zenith International Bank Plc, Access Bank Plc and Fidelity Bank Plc measured by volume accounted for 664.39 million shares worth N10.66 billion in 6,429 deals, contributing 28.54% and 36.85% to the total equity’s volume and value respectively.
Thirty-three (33) equities appreciated in price during the week, higher than twenty-five (25) of the previous week. Forty-nine (49) equities depreciated in price, lower than sixty (60) equities of the previous week, while eighty-nine (89) equities remained unchanged higher than eighty-six (86) equities recorded in the preceding week
Outlook for the new week ending March 30th, 2018
We are in the last week of March and first quarter of 2018. Expectedly, there will be a significant rebalancing of portfolios by fund managers. This may likely lead to increased profit taking activity. We expect this to be a drag in the market space this week. Regardless of the above considerations, existing economic data and strong earnings’ reports could be a rallying point for the market this week. By and large, we expect a quiet close.
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.