Stock market opens April in red as UACN tops laggards
Nigeria’s stock market declined by 0.11 percent, amounting to a loss of N72 billion on Wednesday, April 2, marking the first trading session after the two-day public holiday for the Eid-el-Fitr celebration.
UACN topped the list of the market’s biggest losers, with its share price falling from N35.50 to N31.95, a drop of N3.55 or 10 percent. It was followed by University Press, which saw its share price decline from N4.32 to N3.89, shedding 43 kobo or 9.95 percent.
Similarly, Sunu Assurances fell from N6.65 to N5.99, losing 66 kobo or 9.92 percent. Consolidated Hallmark Holdings was also among the major decliners, as its share price dropped from N3.58 to N3.23, a decrease of 35 kobo or 9.78 percent. Learn Africa also experienced a dip, slipping from N3.32 to N3, down by 32 kobo or 9.64 percent.
“Looking ahead, the equities market is expected to gather momentum as investors position themselves for the full-year (FY) 2024 earnings season and the possibility of corporate action announcements.
“However, given the current high interest rate environment in the fixed-income market, we expect some cautious sentiment to persist,” analysts at United Capital Research noted in their April 2 report.
By the close of trading on Wednesday, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and the equities market capitalisation, which had opened the week at 105,660.64 points and N66.257 trillion, respectively, had declined to 105,547.16 points and N66.185 trillion.
Fidelity Bank, Mutual Benefit, Nigerian Breweries, GTCO, and Zenith Bank were among the most actively traded stocks. Over 17,082 transactions, investors exchanged 431,222,166 shares worth N11.784 billion.
Analysts at Futureview Research expressed optimism about a positive market outlook for the week, pointing to “renewed investor interest in undervalued stocks” as a key factor. They also stated that favourable corporate actions and strong earnings reports “are likely to boost confidence and aid market recovery.
