By Nkiruka Nnorom
Investment analysts have indicated that the equities market may likely close in the negative this week following positioning by investors ahead of release of the nine month and third quarter (Q3’21)financial statements.
They posited that bargain hunters will move in to take profit from gains recorded in the previous week.
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Gains in Tier-1 banks drove the market higher last week as investors flocked into Tier-1 banks ahead of the Q3’21 earning releases.
Consequently, the market capitalisation of all listed equities and the All Share Index (ASI) advanced by 1.62 percent and 1.6 percent to close at N21.296 trillion and 40,868.36 points. As a result, the Month-to-Date (MTD) and Year-to-Date (YTD) return increased to +1.6 percent and +1.5 percent, respectively.
Bargain hunting in large-cap stocks including FBN Holdings (+21.7%), Airtel Africa Plc (+6.3%), and Zenith Bank Plc (+4.5%), drove the weekly gain.
Analysis of sectors performance showed that the banking (+4.5%), oil and gas (+0.2%) and industrial goods sectors (+0.1%) posted gains, while the insurances (-1.5%) and consumer goods sectors (-0.5%) declined.
Commenting, analysts at Cordros Capital said: “We do not expect the bulls to repeat the flawless victory that pervaded the local bourse this week as the bears are likely to book profit across most counters.”