Equities market sees slight gain as week opens

Amid election jitters and perceived political risk, Nigeria’s equities market opened this week in green, rising slightly by 0.07percent or N19billion. At the close of trading session on Monday February 13, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and its Market Capitalisation increased from preceding day’s 54,327.30 points and N29.591trillion respectively to 54,364.67 points and N29.610trillion.

“We expect the depressed interest rate environment to continue to favour the equities market in line with our expectations for first-quarter (Q1) 2023,” according to United Capital research analysts. They noted that profit-taking activities seen last week serve as a caution to market participants “as the bears may fully resume.”

Conoil led the advancers league after its share price increased from N32.05 to N35.25, adding N3.20 or 9.98percent. It was followed by MRS which rallied from N21.25 to N23, adding N1.75 or 8.24percent and GSK which advanced from N6.40 to N6.80, adding 40kobo or 6.25percent. Also, Champion Breweries Plc share price moved up remarkably, from day-open low of N4.50 to N4.78, up by 28kobo or 6.22percent.

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In 3,553 deals, investors exchanged 140,840,677 shares valued at N3.158billion. UBA, GTCO, Access Corporation, Zenith Bank and Chams were top-5 traded stocks on the Exchange.

“We highlight declining activity levels in the market, signifying that the positive sentiment witnessed since the start of the year is gradually waning. Therefore, we expect increased selloffs in the equities market this week. First, investors may look to take profit on stocks that have appreciated significantly in the prior weeks.

“Also, we consider the election jitters and perceived political risk as contributory factors. Nonetheless, we do not rule out the possibility of investors taking position ahead of corporate earnings releases. Overall, we expect the market to close in the negative region this week,” said Meristem research analysts.

“The market is expected to have a mixed performance this week, with profit-taking and large-cap stocks dictating market trends,” said Lagos-based Vetiva research analysts.