Nigeria’s equities market started the new week on a negative note, thereby defying analysts’ expectation of sustained rally this week.
The stock market decreased by 0.40percent (N239billion) at the close of trading on Monday March 18, no thanks to MTNN investors who took profit following its recent rally. Gains in stocks like NGX Group couldn’t push the market to positive close.
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MTNN decreased most on Monday, from day-open high of N267.80 to N247.50, losing N20.30 or 7.58percent, while NGX Group rallied most, from N22 to N24.10, up by N2.10 or 9.55percent.
MC Nichols followed on the laggards list, dropping from N1.29 to N1.17, down by 12kobo or 9.30percent, while UPDC dipped from N1.52 to N1.40, also losing 12kobo or 7.89percent.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation decreased from 105,085.25 points and N59.416trillion respectively to 104,663.34 points and N59.177trillion.
“We expect the positive momentum in the Nigerian equities market to continue this week. This expectation is premised on the upbeat mood in the local bourse as investors seek capital gains and attractive dividend yield opportunities across fundamentally sound tickers (especially on banking stocks),” according to Meristem analysts in their March 18 note.
They expect a muted impact from fixed income activities this week, adding that “however, a potential rate hike from the Monetary Policy Committee (MPC) in its meeting next week poses a threat to the positive outlook of the equities market. “Notwithstanding, we expect the NGXASI to close in the green zone this week”.
UBA, GTCO, Transcorp, Zenith Bank, and FBN Holdings were actively traded stocks on Monday as investors in 9,077 deals exchanged 287,445,691 shares worth N10.800billion.
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“Despite the tilt towards the fixed income space last week, as volumes in the equity market dropped, the banking sector had an impressive week, returning 12.84percent week-to-date (WtD), while the ASI gained 3.71percent.
“This can be attributed to investors taking positions ahead of earnings and anticipated corporate disclosure. While rates are expected to remain slightly elevated, we still expect long-term investors to continue to take advantage of some of the decent entry levels in the equity market this week,” said Vetiva Research analysts in their March 18 note.
