Key issues that shaped the Nigerian markets this week

After a week of fluctuating market performance on the Nigerian Stock Exchange, investor interest seems to have returned, as the industrials index saw a marginal improvement. Babajide Solanke, an analyst at FSDH Merchant Bank, provided insight into the factors driving investor behavior this week. Solanke explained that the market experienced four days of decline followed by one day of gains, with investors capitalizing on capital gains, dividend income, and overall portfolio performance. He noted that certain sectors and specific stocks saw significant increases in value throughout the year, leading investors to reassess their portfolios and take profits. Despite the recent market fluctuations, Solanke highlighted that the overall market gain has been substantial this year, with average stock market gains ranging from 30% to 65% year-to-date. As the market heads into the fourth quarter of 2017, investors are preparing for potential gains and economic improvements. Looking ahead to the coming week, Solanke predicts a mixed performance with more gains expected as investors reposition and capitalize on market opportunities. The industrials sector, which saw a slight increase of 0.11%, was driven by key players like Dangote Cement, which reported positive financial results. Other sectors such as insurance, oil and gas, banking, and consumer goods experienced declines as investors took profits. Despite Dangote Sugar being among the losers, Solanke explained that companies like CCNN, a cement company in Northern Nigeria, posted strong earnings with a significant increase in profit. The real estate sector, particularly companies involved in civil engineering works, is also expected to benefit from the upcoming dry season, with major building projects underway. Solanke emphasized the importance of government capital expenditure in driving infrastructure projects and economic growth. Overall, the Nigerian market is poised for continued growth and stability, with investor confidence expected to remain positive in the short to medium term.