Nigeria’s equities market on Monday defied most analysts’ expectations of bearish start to the new week, thanks to investors who bought shares of Nigerian Exchange Group (NGX Group), Union Bank, FCMB Group and other top advancers.

Amid improved bargain, NGX Group gained most on the Bourse after its price moved from preceding day low of N17 to N18, up by N1 or 5.88percent. It was followed by Union Bank which increased from N5.75 to N6.20, up by 45kobo or 7.83percent; and FCMB Group which rallied from N3.24 to N3.50, gaining 26kobo or 8.02percent.

At the close of trading on Monday, September 26, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation appreciated by 0.39 percent or N88billion, from the preceding trading day’s lows of 49,026.62 points and N26.444trillion respectively to 49,218.35 points and N26.532trillion. Also, the market’s positive return year-to-date (YtD) increased to +15.22 percent.

Read also: Stock market sheds N13bn as negative sentiment persists

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“We expect the bearish sentiment in the equities market to persist this week, due to investors’ preference for fixed income investments. The forthcoming Treasury bills Primary Market Auction as well as the outcome of the Monetary Policy Committee meeting this week are also likely to suppress buying activities in the equities market.

“While coupon payment of circa N131billion is expected to increase system liquidity this week, the scheduled T-bills auction might leave the effect on equities muted,” said Meristem research analysts.

Also in their latest commentary, United Capital research analysts said, “We expect bearish sentiment to dominate the market as we project a rate hike, in line with rising inflationary pressures and global monetary hawkish tone, by the MPC in its September meeting. Accordingly, this will result in an increasing rate in the fixed income market, thus making the equities market unattractive.”

Courteville, FCMB Group, Zenith Bank, Transcorp and UBA were top-5 traded stocks on the Nigerian Exchange Limited.

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By Iheanyi Nwachukwu • September 26, 2022

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.

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