Capital market analysts have said that the increase recorded in major market indicators on the Nigerian Stock Exchange for the greater part of last week would be sustained this week.
The analysts specifically said that the increased momentum in the indices would likely be driven by the banking and financial sectors
The analysts hinged their prediction on the expected full year results to be released by the banks and other financial companies in the next few weeks.
At the close of trading activities last Friday, the NSE All-Share Index appreciated by 2.33 per cent or 663.95 points to close at 29,202.01 points, up from 28,538.06 at the beginning of the week.
Similarly, the market capitalisation of the listed first-tier equities rose by 2.39 per cent, from N9.264 points recorded at the beginning of the week, to N9.340tn on Friday.
The NSE Banking 10 Index rose by 4.09 per cent or 14.74 basis points from 339.63 basis points last Monday, to close at 360 basis points, while the NSE Oil/Gas Index, which recorded the highest level of appreciation last week, rose by 6.13 per cent to close at 153.86 basis points
Reviewing this in their report for the week released on Monday, analysts from FSDH Securities Limited said that usually the release of full year results boosted increased activities in the market.
According to them, with the positive close of activities last year, it is likely that the major market indicators will continue to record significant improvement.
They said, “We expect the equities market to trade higher during the week. We believe that investors will take advantage of the current attractive valuation in the market for strategic positioning.
“Investors are advised to consider investment opportunities in the strategic stocks, as they have good fundamentals that can generate good returns in the medium to long- term.”
On their part, analysts from Partnership Investment Company Plc said that the equities market still held a lot of promise for wise and long-term investors.
They said, “The market rally continued despite closing on a negative note for two trading days of the week, as profit takers sought gains. Bargain activities have however outweighed profit taking. We expect this to continue in the coming week in anticipation of most banks year-end financial results.
“And so, we call on investors to maintain a medium to long-term investment strategy based on market fundamentals. Bargain hunting in the financial services, consumer goods and agriculture sectors should not preclude profit taking.”