Aradel, other major advancers cause NGX positive start to new week

Nigeria’s equities market opened the new week on a positive note, rising by 0.14 percent on Monday.

Bargain hunting in stocks like newly listed Aradel Holdings, which had hit record low, caused the market to close in green. Aradel led other major advancers on the bourse after its share price increased from N485.30 to N533.80, adding N48.50 or 9.99percent.

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It was followed by Custodian Investment which increased from N11.60 to N12.60, up by N1 or 8.62 percent, and Eunisell Interlinked which rose from N8.20 to N9.02, adding 82kobo or 10percent.

“This week, we expect a mixed performance in the equities market, driven by selective positioning in fundamentally strong stocks with recent price pullbacks, while ongoing bank rights issues serve as a positive catalyst,” said investment research analysts at Lagos-based Futureview.

At the close of trading, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation rose from 97,236.19 point and N58.920 trillion respectively to 97,374.25 points and N59.003trillion.

In 9,902 deals, investors exchanged 297,829,975 shares worth N7.517billion. Sterling, UBA, Access Holdings, Flour Mills and FBN Holdings were most traded stocks.

John Holt also rallied from N4.81 to N5.29, adding 48kobo or 9.98percent. Meanwhile United Capital led the league of major decliners after its share price dropped from N17.90 to N16.15, losing N1.75 or 9.78percent.

Also ahead of Monday’s trading, Meristem research analysts said, “We anticipate the market to close on a positive note driven by increased bargain hunting activity, with a reduced sell bias as investors reposition on sound tickers now trading at attractive levels”.

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They also foresee renewed investors’ activity on Banking, Oil & Gas, and select Industrial Goods tickers, especially on stocks that witnessed price declines in the previous week.

“We do not rule out the possibility of profit-taking activities on tickers that have gained in recent weeks. With inflation expectations and a potential rate hike in mind, investors are likely to be cautious as they weigh other attractive investments. Overall, we project that the local bourse should end the week in the positive territory”, Meristem research analysts said in their November 11 note to investors.