MONDAYBUSINESS ECONOMIC INSIGHT Investors sentiment positive in first trading week at NSE

The local bourse witnessed overall bullish activities in the first trading week of the year 2018, resulting in the week-on-week (w-o-w) and Year-to-date (YTD) rise of the twin market performance measures, NSE ASI and market capitalisation by 1.78% each to close at 38,923.26 and N13.85 respectively.

Similarly, all sectored gauges closed in the green territory as investors’ sentiments stayed positive at the start of the New Year: NSE Banking index, NSE Insurance index, NSE Consumer Goods Index, NSE Oil/Gas Index and NSE Industrial Index strengthened by points trillion 632bps, 466bps, 147bps, 95bps and 349bps to close at 505.51points, 145.87points, 990.47points , 333.84points and 2044.53points respectively.

Elsewhere, transacted volumes and Naira votes increased w-o-w by 84.52% and 48.89% to 2.42billion shares and N18.8billion respectively.

Financial at Cowry Assets Management have said they anticipate mild profit taking activities for this week.

Also In the week under review, FGN bond prices traded at the over-the-counter (OTC) segment appreciated for all the maturities as the bulls dominated the market.

This week, we expect increases in the bond prices at the OTC market on the back of expected ease in financial system liquidity.

In the forex market, the Naira gained ground against the U.S. dollar at the parallel (‘black’) market segment weekon-week (w-o-w) by 0.27% to N363/USD. However, local currency depreciated at the Investors & Exporters Forex Window (I&E FXW) by 0.27% to N361.31/USD, despite the increased foreign exchange reserve by USD227million to USD 38.3billion in the week.

Although, the Naira closed steady against the U.S. dollar at both the Bureau De Change and the interbank foreign exchange market segments at N360/USD and N330/ USD respectively.