|
Getting your Trinity Audio player ready...
|
The Nigerian stock market records lean trade volumes this week as most fund managers move to rebalance their portfolio of assets in this fourth-quarter (Q4).
Already, most market analysts expect a broadly sideways trading pattern this week, occasioned by relatively weak sentiments in the market as bullish triggers remain scarce.
Following mixed performances across key sectors in the past week, the Nigerian bourse traded sideways with the NSE ASI hovering around the flatline for most part of the review week.
The Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 0.31% to close last week at 28,335.40 points from 28,247.07 points; while the equities market capitalization rose from a relatively lows of N9.703trillion to N9.733 trillion.
Read also:https://businessday.ng/personal-finance/article/when-people-take-advantage-of-good-deeds-by-ceos/
All other Indices finished higher during the review week, with the exception of the NSE Banking, NSE Lotus, NSE Industrial Goods and the NSE Pension Indices that depreciated by 2.26%, 0.23%, 0.84% and 0.59% respectively while the NSE ASeM Index closed flat.
Cashcraft Securities Limited; Rencap Securities (Nig) Limited; and Cordros Capital Limited were the top stockbroking firms in terms of volume of deals in the review week to September 30, 2016 according to the NSE broker performance report; while Stanbic IBTC Stockbrokers Limited led others in terms of value of deals.
Not a few market watchers expected a bearish start to trading this week in the absence of any catalyst to drive the Nigerian bourse currently. “The mixed sentiments in the equity market may continue this week”, said research analysts at Dunn Loren Merrifield.
Nigeria’s weakening macros have prompted investors high risk sentiment around naira asset classes. Though, with their eyes on the pace of economic reforms and developments in the FX market, most analysts are still positive in their outlook for Q4’16.
“This week, we expect broadly sideways trading patterns likely to be more tilted towards tactical asset allocation as investors continue to await positive triggers especially from the macro side. Going into Q4, we anticipate investors will remain cautious, with an eye on the pace of economic reforms and developments in the FX market.
“That said, FY-16 dividend play towards the end of the quarter will likely drive demand,” according to Kayode Tinuoye-led team of research analysts at Lagos-based United Capital plc.
Nigeria’s Debt Management Office (DMO) plans to raise N105 billion ($345 million) in local-currency denominated bonds at an auction next week (October 12).
The debt office said it will raise N35 billion each from debt maturing in 2021, 2026 and 2036, using the Dutch auction system. All the bonds are reopenings of previously issued debt.
Africa’s largest economy last week announced plans to raise between N250 billion and N340 billion in local currency-denominated bonds in the fourth quarter of this year.
Iheanyi Nwachukwu
