The Nigerian equities market experienced sell-offs in three of the five weekly trading sessions, sending the market southward.
The All-Share Index (ASI) fell -1.16% to close the week at 95,973.45 points from 97,100.31 points the previous week. The market capitalisation closed at N55.13trn with 28.35% YTD.
The Sectoral Index showed a mixed outcome. The NGX-Oil and Gas Index gained (4.27%), the NGX-Insurance Index gained (1.59%) while the NGX-Consumer Goods Index fell by (3.33%), the NGX-Banking Index (-0.48%) and the NGX-Industrial Goods Index (-0.01%). The market sentiment strengthened to 2.9x from 1.9x recorded last week.
Given the recent GDP growth of 3.19%, driven primarily by the non-oil sector, particularly the banking and insurance sectors, most brokerage firms remain optimistic. They recommend a “Buy/Hold” strategy for banking and insurance stocks. However, they advise a more cautious approach for other sectors, such as industrial goods, oil and gas, consumer goods, and ICT, recommending a “Hold/Sell/Reduce” stance. For agricultural stocks, they suggest a “Sell” position. (see Table 1 below).
