Weekly market breadth positive at 1.43x
- Despite the sell-offs in the middle of the week, the NSEASI+0.67% closed in the green, with 40 gainers and 28 losers.
- Total market capitalisation settled at NGN14.10 trillion at the close of trades this week.
- JAPAULOIL+40.91%, rallied on, topping the weekly gainers’ chart.
- The NSE oil and gas index, NSEOILG5+3.84% closed bullish, outperforming other sectors.
- Gains in this space were bolstered by the WtD price increments on stocks like SEPLAT+6.16% and MOBIL+4.99%.
- The consumer goods sector closed underwater, after shedding 85 basis points in the week.
- The gains recorded on NESTLE+3.09%, NASCON+6.92% and HONYFLOUR+8.26% were offset by the losses on other large and medium cap stocks, including NB-5.98%.
- Positive sentiments were witnessed in the banking space, causing the NSEBNK10 index to advance by 26 basis points week on week.
Bullish sentiments were brought to a halt in anticipation of a second rate hike by the US Fed.
However, the bulls outstripped the bears, lifting the NSEASI up by 67 basis points week on week.
We attribute the positive close to stronger buying pressures on some big cap stocks in the oil and gas and financial services space.
Economic Update: Inflation
Data released by the National Bureau of Statistics shows that Nigeria’s inflation rate moderated to 11.61% in May, 2018.
The decline was largely due to base effect, given the high inflation rate recorded in May 2017.
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