Equities market resumes week on a slightly positive note

Nigeria’s stock market opened the new trading week on a slightly positive note (+0.07percent).

After last week’s profit taking activities, the market’s slightly positive close on Monday August 18 came in line with some analysts expectation that banking stocks will resume rally following proposed interim dividends. They also expect insurance stocks to moderate rally due to activities of profit takers.

“A calm equity market is expected in August. Some banks have sent dividend payment proposals to the CBN. Their stocks may appreciate when results are results. There may be profit taking in the insurance stocks,” United Capital research analysts said in their monthly economic and financial insights for August.

The market’s return year-to-date (YtD) increased to 40.61 percent. This month it has risen by 3.47 percent

At the close of trading on Monday, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation increased from preceding trading day’s lows of 144,628.2 points and N91.501trillion to 144,722.47 points and N91.561trillion.

AIICO Insurance joined the league of market’s major advancers after its share price increased from N3.80 to N4.18, adding 38kobo or 10percent. Likewise, UPDC moved up from N6.50 to N7.15, up by 65kobo or 10percent. Cornerstone Insurance was also up from N6.91 to N7.60, adding 69kobo or 9.99 percent, while Deap Capital share price rose from N1.61 to N1.77, adding 16 kobo or 9.94 percent. In 38,160 deals, investors in the market on Monday traded 1,146,660,725 shares valued at N16.173billion.

“Market sentiment remains cautious, with investors gradually positioning for long-term value plays, suggesting only a mild recovery in the near term,” Futureview analysts said in their August 18 stock recommendation.