What to expect market tomorrow?   


Aug 24 (Lagos) - The ASI held on to its positive performance today, advancing marginally by 3 bps to close the first trading session of the week at 25,229.12 points. The ASI recorded its fifth consecutive session of capital appreciation, riding on the back gains in UNILEVER (+753bps), GUARANTY (+40bps) and ZENITHBANK (+30bps) among others. 


Similarly, activity level for the day saw a boost, with total volume and value traded rising significantly by 58.38% and 34.56% respectively, while trades in ZENITHBANK , PRESCO and GUARANTY accounted for over 70.00% of total turnover. However, market breadth for the day closed flat as 15 gainers and decliners emerged. 


Undeterred by the stiff macro-economic environment, as well as worsening macro-economic indicators (evidenced by the negative GDP growth rate and rising inflation rate among others), stocks in the domestic market continued to witness positive patronage, due to cheap valuations. However, with the ASI now trading in the over-bought region of the 14 days RSI, the possibility of a trend reversal cannot be overruled, hence, a cautious trading strategy is advised in the short term.


Stocks to Watch


UNILEVER again closed among the top gainers for the day, increasing 753bps above its opening price to close at  N 15.00. Since touching its 3 month low price of N 11.05 on the 3rd of August 2020, the counter has witnessed a renewed interest, rising over 35.00% thereafter, while reducing its YTD loss to -27.54%. 


In spite of the gains recorded in two of the Tier 1 Banking stocks; GUARANTY (+40bps) and ZENITHBANK (+30bps), the Banking sector could not reverse Friday's negative close, as declines in FIDELITYBK (-167bps) and UBA (-152bps) closed the sector south.   





reporting for easykobo.com on Monday, Aug 24 2020 from Lagos, Nigeria

Source - analysts at Vetiva Capital Management Ltd in Victoria Island. All opinions, forecast, views and comments expressed in above article are those of analysts at Vetiva Capital Management Ltd.



Copyright @ 2010-2019 Easykobo.com by Naija infotech & solar energy ltd. All rights reserved