Emmanuel Ochayi
Nigeria’s equity market experienced a 0.79% rise on Monday, with several stocks pushing the market higher. Beta Glass, Access Holdings, and Skyway Aviation Handling Company were among the leading gainers, helping the Nigerian Exchange Limited (NGX) All-Share Index (ASI) rise from 103,598.3 points to 104,418.94 points.
“Beta Glass recorded the highest increase, jumping from N59.10 to N65.00,” said a trader at the NGX. “That’s a 9.98% increase in just one trading session.”
Join our WhatsApp ChannelAccess Holdings also saw a notable rise, climbing from N25.30 to N27.80, an increase of N2.50 or 9.88%.
Another key performer, Skyway Aviation Handling Company, rose from N33.15 to N36.40, gaining N3.25 or 9.80%. Chellaram and RT Briscoe also recorded gains, with Chellaram rising by 9.83% and RT Briscoe by 9.92%.
Analysts Share Mixed Outlook on Equity Market
Market analysts expressed cautious optimism for the week ahead. Speaking on the market’s performance, United Capital Research analysts said:
“The equities market is likely to maintain its positive momentum as investors continue to position themselves ahead of the FY-2025 earnings season and corporate action declarations.
“However, with the high-interest rate environment in the fixed-income market, bearish sentiments may still persist in the background.”
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Futureview Research analysts also commented on the market’s outlook, predicting a mixed performance. “Investors are expected to shift their focus to the FGN Bond auction while also seeking value in undervalued stocks,” they said.
Trading Volume and Key Stocks
The trading session saw a high volume of activity, with 518,275,743 shares worth N13.299 billion exchanged in 17,196 deals. Access Holdings, FCMB Group, Sterling, Zenith Bank, and UBA were some of the most actively traded stocks.
One trader remarked, “The volume of trading reflects strong interest in the equity market, especially in stocks with solid fundamentals. This trend is likely to continue as the earnings season progresses.”
Profit-Taking May Impact Gains
Despite the positive market movement, analysts also highlighted the potential for profit-taking. Meristem Research analysts noted:
“We acknowledge the possibility of profit-taking as investors capitalise on recent gains. Stocks that have appreciated in the past week could experience some sell-offs.
“Nonetheless, we expect the NGXASI to close in the green zone as investors continue to position in stocks with strong fundamentals. The earnings season and the anticipation of dividend declarations should keep buying interest strong.”
The Nigerian equities market has gained 1.45% so far this year, with the total market capitalisation increasing from N63.645 trillion to N64.440 trillion.
Broader Market Implications
Analysts believe that the current trends in the equity market indicate increased investor confidence, particularly as corporate earnings reports begin to roll in.
“The overall sentiment remains positive, especially for stocks with strong fundamentals and attractive valuations,” a financial expert concluded.
With the week’s trading sessions still underway, the equity market remains a focal point for investors navigating the current economic landscape.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
