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NSE ASI drops by -0.05% to open the week negative - Edoman - 05-07-2019
Business and Economy
NSEASI drops by -0.05% to open the week negative
![[Image: NSE-1.jpg]](http://nigerianpilot.com/wp-content/uploads/2019/05/NSE-1.jpg)
Nigerian Stock Exchange closed on a negative note on Monday as NSEASI depreciated by 0.05% to close at 29,196.87 points as against 0.04% appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at -7.11%.
Market breadth closed flat as NEM led 14 Gainers as against 14 Losers topped by UAC-PROP at the end of yesterday’s session- an unimproved performance when compared with previous outlook.
Market turnover closes negative as volume moved down by 23.93% as against 27.44% uptick recorded in the previous session. Japaul Oil, UBA and Courtville were the most active to boost market turnover. UBA and Zenith Bank topped market value list.
Ikeja Hotel leads the list of active stocks that recorded impressive volume spike at the end of yesterday’s session.
Trading activities on the NSE in the past week were mixed, extending the bear run for the second consecutive week. This could not be changed by marginal gains in the last two trading sessions of the period under review.
In the four-day trading week owing to the public holiday declared to mark the international labour day, overall sentiments, as measured by market breadth showed a slight improvement over that of the previous week. Volume traded was higher, ushering in what may be another dicey month of May that may defy the saying: sell in May and come in October.
This has been defied thrice in the last five years with the month ending positive twice in the three years of a down market in 2014, 2015 and 2016. It was up again in 2017 but negative in 2018, given the factors that militated against the market, particularly uncertainties associated with the pre-election year, among other factors.
Now the elections are over, but the dust generated by it was still so thick and beclouded the benchmark indicators of the bourse in April and although the month of May started positively with two sessions of mild gains. Like happens every four years and in the month of May, Nigerians are looking forward to another inauguration day, as incumbent President Muhammadu Buhari will be sworn in and announce a new cabinet. This month also, before then, the National Bureau of Statistics (NBS) will publish critical economic data such as the April inflation and Q1 GDP report, while the Federal Government, hopefully, unveils its economic reform agenda.
This will mostly focus on boosting productivity and job creation, using the delayed 2019 budget passed by the National Assembly only recently as a catalyst.
Given that the economic realities have not changed, just like the policy implementation style, the Nigerian equity market is looking for positive surprises to trigger a rebound. Oil price has relatively remained stable, the nation’s external reserve is looking up and attracting foreign inflows now that our benchmark Nigerian Stock Exchange (NSE) All-Share index is forming a double bottom, which supports upward reversal.