Equities market opens holiday-shortened week with N2bn gain

Nigeria’s equities market opened this holiday-shortened week with a slight gain of about N2billion. Stocks like Eterna Plc, University Press Plc, Cutix Plc, Regency Alliance and Learn Africa contributed to the record close in the green zone on Monday July 19.

The stock market closes for two days (Tuesday and Wednesday) as Muslim faithful and Nigerians mark this year’s Eid-el-Kabir celebration. In the three-day trading week, the market is expected to be largely influenced by half-year (H1) corporate earnings release as investors position in fundamentally sound counters ahead of more H1 earnings releases.

Except for NGX banking index (-0.37percent), all other key sectoral indices of the Nigerian Exchange Limited (NGX) closed in green –NGX consumer goods index (+.010percent), NGX industrial index (+0.01percent), NGX Insurance (+1.18percent), NGX Oil & Gas (+0.29percent) and NGX Pension (+0.05percent).

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Eterna Plc share price increased most from N6.50 to N7.15, gaining 65kobo or 10percent; it was followed by that of University Press Plc which increased from N1.41 to N1.55, adding 14kobo or 9.93percent, while Cutix Plc increased from N3.63 to N3.99, after adding 36kobo or 9.92percent.

The Nigerian Exchange Limited All-Share Index (ASI) and Market Capitalisation which opened the new week at 37,947.18 points and N19.771trillion respectively increased slightly to 37,952.65 points and N19.773trillion. The NGX ASI increased slightly by 0.01 percent at the close of trading session.

The record negative returns from Nigeria’s equities market seen year-to-date (YtD) stood at -5.76percent on Monday July 19.

Meristem research analysts still expect the bearish sentiment in the market to linger this week, which will drive the Index to a negative close.

“The equities market has remained entrenched in the negative region for two consecutive weeks signaling dampened investors’ sentiment despite low stock prices.

“While we acknowledge some bargain hunting activities on account of corporate disclosures and earnings releases for half-year (H1) 2021, we expect this to have a muted effect on stocks direction this week as investors’ sentiment remains largely bearish”, Meristem research analysts said in their July 19 note to investors.

Jaiz Bank Plc, Sterling Bank Plc, Wema Bank Plc, Sovereign Trust Plc and Universal Insurance were most traded stocks Monday on the NGX. In 3,610 deals, investors exchanged 462,808,980 units valued at N1.199billion.