• Monday, December 04, 2023
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GSK, Oando, Chams, others drive market higher by 0.40%

Market opens week on a positive note

Nigeria’s equities market opened the new week on a positive note, rising by 0.40 percent on Monday November 6.

Stock investors gained N155billion at the close of trading, driven majorly by GSK, Oando, Chams, Thomas Wyatt, and Japaul Gold.

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GSK went up most, from N12.40 to N13.60, after adding N1.20 or 9.68percent, followed by Oando which rose from N8.80 to N9.65, adding 85kobo or 9.66percent.

Also, Thomas Wyatt went up from N3.70 to N4.07, adding 37kobo or 10percent. Chams rose from N2.02 to N2.22, adding 20kobo or 9.90percent, while Japaul Gold was up from N1.27 to N1.39, after adding 12kobo or 9.45percent.

The stock market’s year-to-date (YtD) return increased to 37.52percent.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation increased from preceding trading day’s lows of 70,196.77 points and N38.557trillion respectively to 70,479.62 points and N38.712trillion on Monday November 6.

“We project that the prevailing positive sentiment will influence the direction of the market this week. This is supported by recent developments, including increased market activity level and turnover, strengthening of the Naira, and the measures taken by the Central Bank of Nigeria (CBN) to address FX backlog issues,” said analysts at Lagos-based Meristem.

They however did not rule out the prospects of profit-taking activities and a potential rotation of funds to this week’s T-bills auction (influenced by the uptick in fixed income yields).

“Overall, we expect that the NGXASI will close in the green zone this week,” the analysts noted.

At the close of trading, investors in 6,837 deals exchanged 391,013,619 shares valued at N7.705billion.

UBA, FBN Holdings, Japaul Gold, Fidelity Bank and Access Corporation were most traded stocks on Monday.

“This week, investors’ sentiments towards the Nigerian equities market would be mixed. We expect buy-interest to be driven by stocks with good performance in the third-quarter (Q3) 2023 earnings season,” said United Capital research analysts.

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“However, we anticipate pockets of profit-booking activity in the week. Also, as monetary authorities shift towards orthodox methods of monetary policy, the expected rise in the yield environment will likely draw investors to the safer fixed-income instruments,” United Capital research analysts further said in their November 6 note.

The Dangote Cement Plc Series 10 & 11 Commercial Paper offer of up to N50 billion under its N300billion Commercial Paper (CP) issuance programme is scheduled to close on Tuesday November 7, 2023.