NSE Sustains Bullish Trend for Second Month
The Nigerian equity market sustained its bullish trend for the second successive months in August-2020 as unattractive yield environment coupled with buoyant liquidity in the financial system as well as some positive H1-2020 earnings publication spurred locals demand for equity.
The Nigerian Stock Exchange All Share Index (NSE-ASI) was up by 2.5% m/m to close at 25,327.1 points and year to date loss moderated to -5.6%.
United Capital said sectoral analysis showed that four out of five sectors indices under its coverage closed the month in the green territory.
Specifically, the Oil & Gas sector led the gainers camp with +12.2% month on month, followed by the Insurance which grew +7.6%.
The Consumer Goods segment also rose +6.1% month on month while, Banking expanded +4.7% as sector indices strengthened.
On the other flip side, United Capital stated that the Industrial Goods sector was month sole loser, down -1.9% month on month in August.
In terms of corporate action that occurred during the month, analysts said they saw earnings announcement from some of coverage companies and the performance was mixed with some few impressive numbers from the likes of BUACEMENT, DANGSUGAR, PRESCO, OKOMUOIL, FCMB, FBNH, and FLOURMILL with better than expected revenues and profit after tax (PAT) growth in the first half of 020.
“In September, we expect the equity market to continue the path to recovery after bottoming in March-2020”, analysts at United Capital projected.
Analysts explained that this should be supported by the yet to be published H1-2020 earnings from key Banking names due to regulatory approval.
This also include a resilient financial performance and the likelihood of maintaining previous year’s interim dividend payment are key factors to watch.
Furthermore, analysts said the Q2- 2020 GDP report which showed that despite the 6.1% contraction in the economy, the financial institutions sector recorded +28.4% (+24.0% in Q1-20) growth during the period, also reinforces this outlook
The Nigerian equity market sustained its bullish trend for the second successive months in August-2020 as unattractive yield environment coupled with buoyant liquidity in the financial system as well as some positive H1-2020 earnings publication spurred locals demand for equity.
The Nigerian Stock Exchange All Share Index (NSE-ASI) was up by 2.5% m/m to close at 25,327.1 points and year to date loss moderated to -5.6%.
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United Capital said sectoral analysis showed that four out of five sectors indices under its coverage closed the month in the green territory.
Specifically, the Oil & Gas sector led the gainers camp with +12.2% month on month, followed by the Insurance which grew +7.6%.
The Consumer Goods segment also rose +6.1% month on month while, Banking expanded +4.7% as sector indices strengthened.
On the other flip side, United Capital stated that the Industrial Goods sector was month sole loser, down -1.9% month on month in August.
In terms of corporate action that occurred during the month, analysts said they saw earnings announcement from some of coverage companies and the performance was mixed with some few impressive numbers from the likes of BUACEMENT, DANGSUGAR, PRESCO, OKOMUOIL, FCMB, FBNH, and FLOURMILL with better than expected revenues and profit after tax (PAT) growth in the first half of 020.
“In September, we expect the equity market to continue the path to recovery after bottoming in March-2020”, analysts at United Capital projected.
Analysts explained that this should be supported by the yet to be published H1-2020 earnings from key Banking names due to regulatory approval.
This also include a resilient financial performance and the likelihood of maintaining previous year’s interim dividend payment are key factors to watch.
Furthermore, analysts said the Q2- 2020 GDP report which showed that despite the 6.1% contraction in the economy, the financial institutions sector recorded +28.4% (+24.0% in Q1-20) growth during the period, also reinforces this outlook
NSE Sustains Bullish Trend for Second Month
