- Stocks: Buying Sentiment’ll Prevail This Week, Analysts Say
Analysts in the Nigerian capital market have said more investors will be considering the buying option this week given the positive market sentiments in recent times.
They are also anticipating a positive close at this week’s open on Tuesday given the positive fundamentals clouding a good number of stocks.
“With many bellwethers remaining on the bid cart at the close of the market on Friday, buying momentum remains strong on the exchange and we foresee another green close for the All-Share Index at week open,” the analysts at Vetiva Capital Management Limited said in its weekly report.
The Nigerian bourse rose 210 basis points on Friday to close the week 338 basis points up. The gain on Friday also saw the ASI cross the 29,000 points. The gains were driven by a four-session bull run on the Exchange after profit-taking activities at week open.
“We attribute the positive outing in the week to investors taking positions on stocks with good fundamentals despite the relatively high prices of some stocks. We believe this mood is driven by increased investor confidence in the equities market in hopes of an economic recovery in the near term,” analysts at Meristem Securities Limited said.
They explained that the positive gain recorded on agric stocks last week, was due to the positive sentiments witnessed on the sector’s major players, saying that, “We expect a repetition of the current trend in the week to come.”
The analysts also attributed the banking sector performance last week to positive sentiments on the sector’s large cap stocks.
For consumer goods and industrial sector stocks, the Meristem analysts expect a continuation of the positive sentiments witnessed last week.
Commenting on oil and gas stocks, they said, “We attribute the negative outing last week to sell pressures on some tickers that had rallied to high levels. We anticipate a positive closure this week.”
However, the fixed income market was mostly mixed at week open as pressured system liquidity weighed on trading. At market close on Tuesday, the Monetary Policy Committee of the Central Bank of Nigeria announced its decision to hold all monetary policy levers at previous levels. This was largely in line with market expectation.
