Nigeria’s equities market took off this new week on a positive note, thereby defying most analysts’ expectations that previous bearish mood in the market will continue amid declining macroeconomic indicators.
Stocks like NAHCO, Northern Nigeria Flour Mills and UACN topped the league of advancers that spurred the market’s northwards close. Investors gained about N535billion as the market rose by 1.45percent at the close of trading session on Monday October 30.
Northern Nigeria Flour Mills increased most, from N16.50 to N18.15, adding N1.65 or 10percent. It was followed by Chellaram which rose from N3.48 to N3.82, adding 34kobo or 9.77percent. UACN went up, from N13.10 to N14.35, adding N1.25 or 9.54percent. NAHCO was also up, from N23.80 to N26.05, rallying by N2.25 or 9.45percent. The Initiates Plc (TIP) moved from N1.06 to N1.16, up by 10kobo or 9.43percent.
“For this week, we project that the underlying bearish mood in the market should persist owing to the dwindling macroeconomic indicators which has continued to dampen investors’ sentiment, coupled with the recent MCSI downgrade of Nigeria’s index from Frontier market to Standalone market.
“While we foresee increased activity in the market as companies release their nine months (9M) 2023 earnings results, we assert that investors’ reaction will remain mixed, hinged on the varying performance across sectors. Overall, we expect that the NGXASI will close in the red zone this week,” said Meristem Research analysts in their October 30 note.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation which opened the week at 67,136.58 points and N36.885 trillion respectively moved to 68,111.71 points and N37.420trillion. The market has risen this year by 32.90 percent.
In 7,656 deals, investors exchanged 430,393,434 shares valued at N8.257billion. Universal Insurance, UBA, Custodian Investment, Transcorp and Zenith Bank were actively traded stocks.
“We expect mixed investors’ sentiments in the equities market to persist as corporates continue to release earnings,” Lagos-based United Capital research analysts said in their recent note to investors.