The stocks of Diamond Bank, FCMB, Skye Bank and Unity Bank lead the way on the best-performing stocks of 2018 so far.
The stocks maintained three-weeks high on the Nigeria Stock Exchange (NSE).
Diamond Bank was up by 1.89 points, gaining 26 percent in the first week, 34.39percent or 2.54 points in the second-week and closed the third week with 40.55 percent or 3.57 points, making it the overall best performing stock as at Friday, January 19, 2018, as compiled by BusinessDay.
FCMB followed in the same trend gaining 1.9 points, a 28.38 percent increase in the first week of the New Year, further up by 33.68 percent in the following week and closing the third week with 3.49 points increase.
Skye Bank was the third top gainer in the period under review. It consecutively had a bullish record of 0.61 points in the first week, 0.84 points and 1.29 points increase in the second and third week respectively.
Unity Bank also had a share of the bullish market, as it was up by 0.62 points, 0.82 points and 1.22 points in the first, second and third week respectively.
The All Share Index appreciated by 0.54 percent to hit 45,092.83bpts, pushing Year-To-Date returns at +17.91 percent while market capitalization also settled at N16.15trillion.
Friday 19th marked the end of 3rd week in the year, although a significant negative divergence was observed at the end of 3rd wee as market breadth closed weaker with 21 Gainers against 29 Losers- indicating a negative divergence.
“Recording New High is one of the basic requirements in a bullish market and so far we can say the major index and other indices have met this requirement. However, we are of the opinion that market needs a correction, but we can’t force it to come, though the strong negative divergence seen on Friday appeared very instructive despite the NSE-ASI moving above the 45,000 psychology mark. At this juncture, the market is ripened for major correction. And if this fails to occur- we might just be playing with bubbles,” as stated by MarketSmith, London.
Meanwhile, Nigerian stocks fell 2.7 pct to a one-week low on Tuesday 23 January 2018, after the central bank called off an interest rate meeting scheduled for Jan. 22-23 because a backlog of appointments to the Monetary Policy Committee (MPC) meant it would not be quorate.
Traders had hinged this year’s rally on hopes of a stable currency and lower interest rates driving corporate earnings
Analysts are of the opinion the stalemate could damage investor confidence in the economy which is already fragile and risk derailing reforms badly needed to boost growth.