• Thursday, February 22, 2024
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Here are analysts views on equities market this week

Mixed sentiments trial stocks despite positive start to new week

Though Nigeria’s equities market took a positive path at the beginning of this week’s trading, “be cautious” is still the advice from market analysts to investors in that space.

In the review trading week to April 20, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation depreciated by 1.08percent to close at 51,355.74 points and N27.963 trillion respectively.

“We anticipate a cautious week of trading in the equities space, as investors digest the latest earnings releases,” said analysts at Lagos-based Vetiva research.

Also taking a look at the market, United Capital research analysts said, “we expect bullish sentiments to resurface, as investors look to take advantage of fundamentally sound stocks with low pricings, with first quarter (Q1) 2023 earnings season already underway. However, we see room for pockets of profit-taking activities”.

Week-on-week (WoW) all other indices finished lower with the exception of NGX Main Board, NGX Pension, NGX Insurance, NGX AFR Div. Yield, NGX MERI Growth and NGX Consumer Goods which appreciated by 0.73percent, 1.44percent, 1.41percent, 0.80percent, 4.37percent and 0.17percent respectively while the NGX ASeM, NGX Growth and NGX Sovereign Bond indices closed flat.

Thirty-five equities appreciated in price during the review holiday-shortened week higher than 18 equities in the preceding tradingweek. Thirty-one equities depreciated in price lower than 39 in the preceding week, while 90 equities remained unchanged, lower than 99 equities recorded in the preceding week.

Read also: Value stocks seen shielding investors from inflation risks

Meristem research analysts said, “Although, the equities market closed down last week, a closer
analysis indicates a positive momentum owing to increased market turnover and market breadth.”

“Thus, we expect the momentum to continue this week. Also, we opine that many tickers are at attractive prices relative to our valuation. Moreso, several stocks are marked down for
dividends, availing opportunities for bargain hunting.

“However, we do not rule out the possibility of profit taking activities on tickers that have gained appreciably in the past
weeks. Overall, we expect the All-Share Index to record week-on-week gains this week,” Meristem analysts added.