8 out of 10 most valuable stocks record negative return
The stock market has remained bullish, thanks to an improve sentiments despite a weak macroeconomic fundamental, outlook.
For the month of May, 8 out of 10 most valuable stocks records negative return.
The rally in the stock exchange has moderated year to date loss, and many stocks have moved to positive side.
According to chart reading, eight out of 10 blue chip stocks closed the month of May in red in terms of year to date return.
However, companies in telecommunication were positive, with MTN Nigeria Plc leading the pack with 10.45% year to date return.
Airtel Africa was however flat.
Telecommunication operators are riding strongly on the wave of coronavirus pandemic to boost earnings.
Telcos, according to consensus analysts, are the toast of investors except for the fact that they are pricey stocks.
However, on month to date performance basis, all the bellwether stocks were green due to improve sentiments.
This is coming just as government is gradually easing economic lockdown, and companies are resuming to work.
Due to poor economic indicators, the cement industry weaker than expected performance still kept Dangote Cement Plc in loss zone.
Among the top 10 companies with large capitalisation, only DANGCEM has negative week to date return at 7.33%.
Nigerian Breweries, Stanbic IBTC and Guaranty led the pack on top gainers among the blue chips with monthly return of 39.45%, 25.61% and 20% respectively.
Going forward, the stock market is expected to sustain bullish run in the week as economy is expected to be open, still gradual though.
While there is no economic fundamental to support the market improved sentiments, analysts have stated excess liquidity in the economy remains a driving factor.
In the week, MarketForces expects investors to start taking position, though some high profit taking activities are not impossible.
8 out of 10 most valuable stocks records negative return