Nigerian stocks ended the previous week cumulatively on a bullish note.
The Nigerian All-Share Index and Market Capitalization appreciated by 2.63% to close the week at 41,176.14 and N21.530 trillion respectively.
Sixty (60) equities appreciated at price during the week, higher than fifty (50) equities in the previous week. Nineteen (19) equities depreciated in price, lower than twenty- one (21) equities in the previous week, while eighty-two (82) equities remained unchanged, lower than ninety (90) recorded in the previous week.
The uptrend was driven by price appreciation in medium capitalized stocks among which are; Japaul Gold & Ventures, Mutual Benefits, AXAMansard, Royal Exchange, Champion Breweries, all printing weekly gains of more than 30% amid strengthening fears that reveal the COVID-19 crisis seems to be getting out of hand in Nigeria’s key international markets including Western Europe and the United States.
READ: Nigerian Stocks start-up 2021 on gains from GTBank, WAPCO, Zenith Bank
What they are saying
Michael Nwakalor, a Macroeconomist at CardinalStone Research, in a note seen by Nairametrics, gave key vital insights on what might be in play at Nigerian Stock Market in the coming days.
- “This week, we expect market players to continue to position for imminent dividend announcements with the release of full-year results in view. The continued dovish stance by the MPC in their first meeting of the year may also provide a tailwind for equities in the later sessions of the week.”
On the foreign scene, global stocks pared early losses on Monday as data confirmed the second world’s biggest economy China had impressive factory output report helping to offset recent disappointing news seen in America, showing a plunge in retail sales.
READ: Dangote Cement, Lafarge drag Industrial Index up by 2.84% to close the second week in green
In addition, Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, spoke on macros that will be very key for stock traders and investors in the coming week.
- “We open the week to a noisy route-step beat of US national guards ring-fencing Capitol Hill. It’s hardly a festive backdrop to set the stage for a risk rebound into earnings season, especially with the latest unsavoury macro developments hanging like a dark cloud over markets.
- “Still, US stocks remain close to all-time high levels. The fiscal and monetary policy mix remains exceptionally supportive and dips at this stage are getting consumed. The Fed will continue to be highly accommodating even if they taper in QE in 2021 as they are unlikely to hike Fed Funds until 2022 or beyond.
- “The big questions remain as to what factors will take us higher over the short term in the face of the viral variants forcing politicians to lock down parts of the economy.”
READ: Stock traders await Nigeria’s big banks’ earnings
Bottom line
With the COVID-19 pandemic under control in China, factories and export-oriented companies have been operating much better than most other countries, allowing China to meet global demand. The ongoing lockdown measures in play in Europe and the US are likely to continue to spur demand for Chinese goods in the coming months.