Shares of Nigeria’s cement maker BUA Cement were majorly on the sell-side of the local Bourse on Monday, causing the market to open the new week in red.
The market decreased by 0.73 percent at the close of trading on Monday August 12, in line with analysts expectations of mixed performance this week.
The Debt Management Office (DMO) on behalf of the Federal Government of Nigeria has announced the August edition of the FGN Savings Bond (FGNSB) with an interest rate of 2-Year.
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FGN Savings Bond due August 21, 2026 (17.373 percent per annum); and 3-Year FGN Savings Bond due August 21, 2027 (18.373 percent per annum).
BUA Cement decreased most by N12.60 percent or 9.93 percent from N126.90 to N114.30 while Total Energies rallied most by N42.70 or 9.98 percent, from N427.70 to N470.40.
“Looking forward, the equities market is expected to show mixed performance as investors adopt opportunistic investment strategy. We foresee selective buying of fundamentally strong stocks continuing into the upcoming week,” according to United Capital research analysts.
Stocks like GTCO, Veritas Kapital, Access Holdings, Japaul Gold and UBA were actively traded.
“Market activity is anticipated to rise due to the ongoing banks’ recapitalisation efforts and anticipated corporate actions in the near term. Conversely, elevated interest rates in the fixed-income market are likely to exert negative pressure on the equities market as investors capitalise on higher fixed-income yields. Overall, fund managers and investors are advised to maintain an opportunistic approach to capitalise on prevailing market opportunities,” the Lagos-based United Capital analysts noted.
The Nigerian Exchange Limited (NGX) All-Share Index and equities market capitalisation decreased from preceding day’s highs of 98,592.12 points and N55.978 trillion respectively to 97.880.94 points and N55.574trillion. In 10,645 deals investors exchanged 498.27million shares worth N11.77billion.
The market’s year-to-date (YtD) return stood lower at 30.90 percent.
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“This week, we anticipate that the market will trade sideways, albeit, with a positive bias. This outlook is driven by the anticipation of further earnings releases, impending dividend payouts and the ongoing influence of corporate actions, which are likely to attract investors. Moreover, the currently attractive entry prices of tickers that have lost in prior weeks are expected to incentivise buying activities, supporting a modest upward momentum in the market,” according to Meristem analysts.
They also anticipate that some investors, particularly those with a short-term focus, “will likely capitalise profits on stocks that gained notably, leading to a potential pullback in those tickers.
“On a balance of factors, we expect the equities market to close in the positive zone this week,” Meristem analysts added.
