Emmanuel Ochayi
Nigeria’s equities market began the new week on a cautious note, decreasing by 0.08 per cent or N52 billion. This defied the expectations of many analysts who predicted a bullish start. The Nigerian Exchange Limited (NGX) All-Share Index (ASI) fell from 105,451.06 points to 105,367.25 points. Similarly, the market capitalisation dropped from N64.303 trillion to N64.251 trillion.
Stocks such as Northern Nigeria Flour Mills, Lasaco, Academy Press, ABC Transport, and RT Briscoe were major contributors to the decline.
Join our WhatsApp ChannelAnalysts’ Outlook on the Week
Futureview Research analysts noted in their recent report, “We expect the bullish momentum to persist this week, underpinned by sustained investor confidence in key sectors.” They emphasised that investor confidence remains strong, which could lead to further positive movements.
Meanwhile, United Capital research analysts offered a forward-looking perspective, stating, “We anticipate 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.” However, they also cautioned about lingering bearish sentiments due to the elevated interest rate environment in the fixed-income market.
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Active Trading and Major Stock Market Movements
On Monday, 14,259 deals saw the exchange of 505,798,202 shares valued at N8.126 billion. Notably, Tantalizer, Universal Insurance, AIICO, Chams, and GTCO were among the most actively traded stocks.
Several stocks experienced significant losses:
- Lasaco dropped from N3.60 to N3.24, losing 36 kobo or 10 per cent.
- Northern Nigeria Flour Mills decreased from N45.55 to N41, shedding N4.55 or 9.99 percent.
- Academy Press fell from N3.25 to N2.93, losing 32 kobo or 9.85 percent.
- ABC Transport declined from N1.23 to N1.11, shedding 12 kobo or 9.76 percent.
- RT Briscoe dipped from N2.57 to N2.32, losing 25 kobo or 9.73 percent.
Sector-Specific Expectations of Stock Market
Meristem research analysts highlighted the ongoing bargain hunting, stating, “This week, we anticipate sustained buying interests in the local bourse, fuelled by ongoing bargain hunting as investors seek value across different sectors.” They noted that subdued sell-offs are likely as most investors remain focused on securing positions.
Vetiva research analysts provided further insights, predicting that the banking and consumer goods sectors will steer market direction. They added, “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.” They also mentioned that the insurance sector might experience another round of volatility.
Broader Economic Indicators
Analysts are also keeping a close watch on macroeconomic developments. As Meristem analysts pointed out, “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.”
Vetiva research analysts echoed this sentiment, predicting a volatile trading week across all sectors, with macroeconomic factors playing a crucial role in shaping investor sentiments.
