Some financial experts on Monday said that the planned unveiling of the Federal Government’s economic blueprint, if well-articulated, could rejuvenate economic activities.
They told newsmen yesterday in Lagos that a well-articulated economic blueprint could boost investors’ confidence in the nation’s bourse.
Dr Uche Uwaleke, Head of Banking and Finance Department, Nasarawa State University, Keffi, said that the economy needed a trigger that would boost investor confidence and economic activities.
Uwaleke said that a trigger in the economy would sustain bullish investor sentiment on the Nigerian Stock Exchange (NSE).
He noted that the stock market gains recorded by the market in the preceding week were due to low price valuations.
“The overall positive performance was largely driven by price gains in some large capitsalised stocks such as Mobil, FO, GTB and Dangote Cement,” Uwaleke said.
He, however, said that there was no trigger yet in the economy for a sustained bullish investor sentiment in the coming days.
Uwaleke said that the trend would not be maintained as trading performance this week would likely to be a mixture of bargain hunting and profit taking.
Also speaking, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd, attributed the growth by the market to low price attraction and investors’ reactions to the outcome of November OPEC meeting.
Omordion said that the trend would not continue, noting that the market would experience mixed performance due to weak liquidity.
He said that the OPEC agreement that triggered activities in the market last week would take off in 2017.
Omordion said that investors would likely embark on sell pressure to prepare for the forthcoming Yuletide activities.
Recall that the NSE All-Share Index last week appreciated by 407.44 points or 1.61 per cent to close at 25,740.83 compared with 25,333.39 achieved in the preceding week.
Also, the market capitalisation which opened the week at N8.721 trillion inched N132 billion to close at N8.855 trillion due to price appreciation.
An analysis of the week’s price movement chart indicated that Mobil Oil led the gainers table in percentage terms, growing by 55.11 per cent or N115.16 to close at N324.13 per share.
Port Land Paints and Products followed with a gain of 31.16 per cent or N10.43 to close at N1.81 per share.
Wema Bank appreciated by 9.62 per cent or 5k to close at 57k per share.
Conversely, Neimeth International Pharmaceuticals topped the losers’ chart in percentage terms, dropping by 12 per cent or 9k to close at 66k per share.
Unity Bank trailed with a loss of 10.17 per cent or 6k to close at 53k, while Honey Well Flour Mills decreased by 10.09 per cent or 11k to close at 98k per share.
Meanwhile, a turnover of 2.48 billion shares worth N9.99 billion were exchanged by investors in 12,059 deals last week, against 639.44 million shares valued at N6.455 billion traded in 11,799 deals in the preceding week.
The Financial Services industry led the week’s activity chart with 2.37 billion shares worth N5.31 billion traded in 6,590 deals.