• Thursday, May 30, 2024
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Access, Oando, others cause market’s negative start to new week

Stock market sustains rally by 0.44%

Nigeria’s equities market opened this week on a negative note as investors sold stocks like Access Corporation, Oando and Caverton Offshore Support Group.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation depreciated by 0.66percent or N242billion on Monday to close at 66,882.64 points and N36.605trillion as against preceding day’s 67,324.59 points and N36.847trillion respectively.

“This week, we expect mixed investors’ sentiments in the equities market. First, we expect the positive sentiments towards Tier-1 banks to continue, given their strong performance in H1-2023.

“Similarly, investors may continue to take positions in fundamentally sound stocks. However, we note that some investors may book profits off stocks that have recorded impressive price appreciations,” according to Lagos-based United Capital analysts.

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Looking at the top laggards list on Monday, Caverton dropped from N1.52 to N1.37, losing 15kobo or 9.87percent. Access Corporation dropped from N17.25 to N15.55, shedding N1.70kobo or 9.86percent.

Oando was down from N11.85 to N10.70, shedding N1.15 or 9.70percent. The Initiates was also down from N1.14 to N1.03, losing 11kobo or 9.65percent, while RT Briscoe dipped from 42kobo to 38kobo, losing 4kobo or 9.52percent.

“This week, we anticipate a rebound in the sentiment witnessed in the last two weeks. One key reason for our optimism is the recent selloffs on some tickers which have taken them to relatively low prices, presenting bargain hunting opportunities for investors,” said Meristem research analysts in their September 25 note.

“In addition, we believe that the forthcoming markdown of tickers for interim dividends this week could attract investors to take long position on selected stocks. Furthermore, dividend payments scheduled for this week should increase liquidity in the market, thus, spurring investors to reposition.

“However, we do not rule out the possibility of profit-taking activities on tickers that have gained in the previous weeks. Considering all the factors in play, we maintain a positive outlook for the Nigerian equities market this week and expect the NGXASI to record week-on-week gain,” Meristem analysts further noted.

Access Corporation, UBA, Unity Bank, Universal Insurance and Transcorp were actively traded stocks as investors in 7,707 deals exchanged 408,194,667 shares valued at N5.442billion.