Capital market analysts have said the increase recorded in major market indicators of the Nigerian Stock Exchange for the most part of last week would be sustained this week.
The analysts said specifically that the momentum in the indices would likely be driven by expected increase in activities in the banking and financial sectors as well as the consumer goods sector.
The analysts hinged their prediction on the expected half-year results to be released by the financial and consumer goods companies this week.
At the close of trading activities on Friday, the NSE All-Share Index appreciated by 1.24 per cent to close at 37,382.49 points, up from 36,790.14 points at the beginning of the week.
Similarly, the market capitalisation of the First-Tier listed equities rose by 1.24 per cent from N11.651tn at the beginning of the week, to N11.839tn on Friday.
Reviewing this in their report for the week released on Friday, analysts from Meristem Securities Limited said that expectation of the half-year result would boost activities in the market.
They said, “The stock market started on Monday with a loss of 37 basis points. Gain, however, returned and was sustained for the remaining four trading days. This is indeed pleasant, considering the losses recorded in prior weeks. The ratio of stocks that gained to the ones that lost was 1.14 as 48 stocks appreciated, while 42 stocks lost week-on-week.
“We attribute investors’ demand for stocks to expectations of interesting second quarter 2013 numbers considering prices had dropped to attractive levels.”
On their part, analysts from Vetiva Capital Management Limited said activities would likely remain positive this week, going by the upward trend maintained at the close of trading activities last week.
They said, “The Nigerian equity market recorded improved volumes, accruing an average daily turnover of N3.8bn, a welcome 25 per cent increase from the previous week, though this was driven by the cross trade in United Bank for Africa shares where 492 million shares worth N4.1bn were traded.”