Equities market closes negatively by 0.08%
Nigeria’s equities market decreased by 0.08 percent or N52 billion on Monday, defying most analysts’ expectation of a bullish start to this new week.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation decreased from preceding day’s 105,451.06 points and N64.303 trillion respectively to 105,367.25 points and N64.251 trillion.
Stocks like Northern Nigeria Flour Mills, Lasaco, Academy Press, ABC Transport and RT Briscoe were major draggers on Monday.
“We expect the bullish momentum to persist this week, underpinned by sustained investor confidence in key sectors,” according to Futureview Research analysts in their recent note.
In 14,259 deals, investors exchanged 505,798,202 shares worth N8.126billion. Tantalizer, Universal Insurance, AIICO, Chams and GTCO were actively traded stocks.
Looking forward, United Capital research analysts expect the equities market to maintain its positive momentum “as investors continue to position themselves ahead of the FY-2024 earnings season and possible corporate action declarations.”
“Nevertheless, given the elevated interest rate environment in the fixed-income market, we still expect bearish sentiments to linger in the background,” the analysts said in their January 13 note.
At the close of trading on Monday, the share price of Lasaco dropped from N3.60 to N3.24, losing 36kobo or 10 percent. Northern Nigeria Flour Mills decreased from N45.55 to N41, shedding N4.55 or 9.99 percent.
Academy Press dropped from N3.25 to N2.93, losing 32kobo or 9.85 percent. ABC Transport was also down from N1.23 to N1.11, shedding 12kobo or 9.76 percent, while RT Briscoe dipped from N2.57 to N2.32, losing 25kobo or 9.73 percent.
Also, in their January 13 weekly stock recommendation, Meristem research analysts said, “This week, we anticipate sustained buying interests in the local bourse, fueled by ongoing bargain hunting as investors seek value across different sectors.”
“Subdued sell-offs are expected, as most investors are still focused on securing positions and are unlikely to consider significant profit-taking.
“Furthermore, with expectations of inflation moderating, which is likely to lead to a more expansionary monetary policy stance, we anticipate that investors will begin to factor this in and start positioning themselves accordingly.
“Overall, we expect the local bourse to sustain its positive momentum, barring any events that could shift investors’ sentiments,” the Meristem research analysts further said.
“Following another trading week of bullish momentum, we anticipate investors to maintain their positioning ahead of full-year earnings releases, with corporate actions likely serving as a key market driver.
“Banking and consumer goods sectors are expected to steer market direction, while the insurance space may experience another round of volatility.
“Additionally, investors will keep a close eye on developments in the macroeconomic space for further cues. Overall, we foresee a volatile trading week across all sectors,” according to Lagos-based Vetiva research analysts ahead of trading on Monday
