Equities market up 0.02% as mixed sentiment persists

Nigeria’s equities market opened the week on a slightly positive note (+0.02 percent or N10 billion) as a mixed sentiment continues to trail stocks.

Futureview research analysts who anticipate a mixed performance this week linked it to their expectation that investors will shift their focus to the treasury bills auction “while actively seeking value in undervalued stocks”.

Stocks like Caverton, Coronation Insurance, SCOA and UPDC helped move the market higher on Monday. Caverton rose from N2.20 to N2.42, adding 22kobo or 10 percent.

Wapic increased from N2.22 to N2.44, adding 22kobo or 9.91 percent. SCOA increased from N2.48 to N2.72, adding 24kobo or 9.68 percent. UPDC increased from N1.68 to N1.84, rising by 16kobo or 9.52percent.

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“This week, we expect mixed sentiments in the market for risk-asset classes, as the expected primary market auction will look to divert a considerable amount of investors interest.

“Investors are advised to trade cautiously this week, with a strict focus on equities with strong fundamentals and pending/potential corporate actions,” United Capital research analysts said.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation rose from 102,353.68 points and N62.851trillion respectively to 102,370.36 points and N62.861 trillion.

Stocks like Wema Bank, Universal Insurance, AIICO, Oando and Zenith Bank were actively traded as investors in 13,891 deals exchanged 1,326,041,719 shares worth N17.666billion.

“We expect the market to close on a positive note, supported by increased bargain hunting as investors take advantage of sound stocks now trading at attractive levels following the sell-offs seen in the

previous week. We also expect investors to continue positioning on fundamentally sound stocks, which could boost market activity,” said Meristem research analysts.

“While the upcoming treasury bills auction may influence market activity, we do not anticipate a significant negative impact on equities. Additionally, we do not rule out the possibility of profit-taking activities on tickers that have gained in recent weeks. Overall, we project a positive performance for the local bourse by the end of the week,” they further said.