Emmanuel OchayiEquities Climb Slightly as Investors Eye Bond Results
The Nigerian stock market experienced a modest gain on Monday, with the All-Share Index (ASI) rising by 0.02% as investors turned their attention to the Federal Government of Nigeria (FGN) bond auction.
The market saw equities value increase by ₦15 billion, signalling cautious optimism.
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The Debt Management Office (DMO) offered ₦120 billion in reopened 2029 and 2031 bonds at the November 2024 auction. Market analysts widely expected strong demand for these bonds, influencing investor decisions in equities and other financial instruments.
“Investors are redirecting their focus to the bond auction,” said Futureview Research analysts. “This shift is likely to maintain a mixed market performance this week.”
Top Gainers in the Stock Market
Several stocks recorded notable gains on Monday. Leading the list of advancers were:
- Beta Glass: Increased from ₦45.35 to ₦49.85, adding ₦4.50 (9.92%).
- Lafarge Africa: Climbed from ₦42 to ₦46, gaining ₦4 (9.52%).
- Eunisell Interlinked: Rose from ₦11.99 to ₦13.18, adding ₦1.19 (9.92%).
- John Holt: Advanced from ₦7.72 to ₦8.49, up by 77 kobo (9.97%).
“Investors are actively cherry-picking undervalued stocks,” noted United Capital research analysts in their latest market outlook.
READ ALSO: Nigeria’s Stock Market Sees Mixed Performance, Investors Weigh Fixed Income, Equity Gains
Trading Activity Snapshot
At the close of trading on Monday, the Nigerian Exchange Limited (NGX) reported:
- ASI: Increased from 97,722.28 points to 97,747.27 points.
- Market Capitalisation: Rose slightly from ₦59.215 trillion to ₦59.230 trillion.
- Volume Traded: 413.35 million shares in 9,004 deals, valued at ₦5.336 billion.
Actively traded stocks included Japaul Gold, Consolidated Hallmark, Access Holdings, UBA, and United Capital.
Market Outlook and Expert Opinions
Analysts predict a mix of bullish and cautious trends in the coming days.
“Despite the high-interest rates in fixed income markets, the equities market will likely see sustained buy interest as investors hunt for bargains,” said United Capital analysts. “However, we expect some bearish undertones as fixed income-biased investors take advantage of attractive yields.”
CardinalStone Research echoed similar sentiments, highlighting opportunities for mid-week adjustments.
“This week, we will closely monitor attractive entry points and provide updates to optimise portfolio positions,” the firm stated in its November 18 note.
Upcoming Events to Influence the Stock Market
The upcoming Monetary Policy Committee (MPC) meeting may introduce cautious trading activity.
“We expect some profit-taking activities, especially for stocks with significant recent gains,” said Meristem analysts. “However, improving liquidity conditions could limit outflows from the equities market.”
The market remains poised for a potential bullish close to the week, supported by improving liquidity and appealing stock prices.
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.
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