Bear reign persists on NGX

The bears are gradually erasing Nigeria’s equities market’s gains following Monday’s dip by 1.51percent or N421billion.

“We expect mostly bearish sentiments in the market, supported by the illiquidity of the financial system. We note that the current bear trend is approaching a turning point, as the first-quarter (Q1) 2023 earnings season draws nearer,” said Lagos-based United Capital research analysts.

This negative was driven majorly by profit taking in stocks like MTNN, Champion Breweries and Transcorp Hotels. Investors in MTNN lost N16 per share on Monday as the price dropped from N240 to N224, down by 6.67percent.

It was followed by that of Champion Breweries Plc which dipped from N4.93 to N4.44, after shedding 49kobo or 9.94percent, followed by Transcorp Hotels which dropped from N6.90 to N6.50, down by 40kobo or 5.80percent, and Africa Prudential which also dipped from N5.50 to N5.20, down by 30kobo or 5.45percent.

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At the close of trading session on Monday, the Nigerian Exchange Limited (NGX) All Share Index (ASI) and its equities market capitalisation decreased from to 51,893.94 points and N28.267trillion respectively to 51,120.94 points and N27.846trillion.

The market’s negative take-off this week has pushed its record positive return year-to-date (YtD) to new low of +0.25percent.

In 4,373 deals, investors exchanged 226,593,959 shares valued at N1.567billion. Transcorp, Fidelity Bank, Sterling Bank, Zenith Bank and UBA were top-5 traded stocks on Monday.

United Capital analysts said they anticipate the broad-based return of investors’ risk-on sentiments, “which is to be catalysed by declining yields in the fixed-income market. The current low prices and valuations will allow Buy-Side investors the opportunity to re-enter the market and take positions in fundamentally sound stocks, thus maximizing market returns”.