8th May, 2020

Bullish run halted at the domestic bourse as profit taking in MTNN (-667bps), GUARANTY (-244bps) and BUACEMENT (-124bps) among others depressed the ASI by 127bps to close the week lower at 24,045.40 points. Similarly, activity level slowed as total volume and value traded declined significantly by 51.67% and 58.31% respectively, though trades in GUARANTY, FBNH and MTNN dominated market turnover. However, with four of the five trading sessions this week ending in the green, the WTD performance closed positive at +4.45% while the YTD return moderated to -10.42% from the -14.24% recorded last week. In addition, the bullish performance recorded during the week filtered across sectors, with all of the five major sub-sectors closing the week higher while the Consumer goods sector (+8.45% WoW) emerged as the best performing sector for the week.         

What will shape the market tomorrow? 

With the gains recorded in most counters this week, we envisage profit taking at the beginning of next week before we see a stable market by mid-week. Prices of most fundamentally sound stocks remain good for investors to take position for a medium to long term tenure. However, liquidity level will continue to play a major role in the direction of the market in the short term.     

Reporting for EasyKobo on Friday , 08 May 2020 in Lagos, Nigeria

Source: Vetiva Capital Management Limited