• Thursday, February 29, 2024
businessday logo


Julius Berger, Oando, others cause market’s positive start to new week

Stocks take major breather in early trading on Wednesday

Nigeria’s equities market started a new trading week on a positive note, though rising slightly by N9billion or 0.03percent as investors increased bargains in stocks like Julius Berger, Oando, NCR, Transcorp, and Ikeja Hotel.

Stocks like Transcorp, Access Corporation, FBN Holdings, UBA and Royal Exchange were actively traded on the Nigerian Exchange Limited (NGX).

The stock market’s benchmark performance indicators – the All-Share Index (ASI) and its equities market capitalisation rose from preceding day’s 52,214.62 points and N28.431trillion respectively to 52,231.29 points and N28.440trillion. In 6,033 deals, investors exchanged 626,389,579 shares valued at N5.599billion.

“We recommend a cautious approach toward the Nigerian equities market. We expect bullish sentiments to linger, with plenty room for profit taking. Technically, stocks that are overbought in the equities market often tend to retrace to a support. For equity vested managers/investors, switching to defensive stocks with high dividend performance will be a choice strategy.

Read also: FX market opens with naira trading at N745 to dollar

“Our expectation for an upward reversal of the yield curve remains a strong downside for the equities market in the short-term. Also, political risks will remain a high, encouraging risk-off sentiments,” said analysts at Lagos-based United Capital.

Julius Berger led the league of advancers after its share price increased from N28.50 to N31, up by N2.50 or 8.77percent. Oando also moved from N5.55 to N6.10, up by 55kobo or 9.91percent, while Transcorp rose from N2.59 to N2.84, adding 25kobo or 9.65percent.

“This week, we expect market sentiment to remain broadly positive, as investors take position on stocks with attractive valuation. Furthermore, recent mark-downs (specifically on stocks in the financial services industry) present buying opportunity for investors who seek price appreciation.

“Thus, barring profit taking on any bellwether stocks, we expect the predominant sentiment in the market to be positive,” according to Meristem analysts in their May 15 note to investors.