NGX-ASI records mild dip as investors retain short-term outlook

Nigeria’s stock market decreased further on Thursday, but on a mild rate of 0.01 percent or N6billion, as investors sold mostly banking, consumer goods and oil & gas stocks.

This week, the market has decreased by 0.04 percent, while this month it has dipped by 1.10 percent. The market’s return year-to-date (YtD) decreased to +30.36percent.

Market analysts noted that the market has fallen into negative territory this week, as investors retain short-term outlook on the market.

Meanwhile, they expect cherry picking action to dictate market sentiment in coming sessions, as investors become increasingly risk-averse.

At the close of trading, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation decreased further from preceding day’s highs of 97,487.14 points and N56.019 trillion to 97,477.19 points and N56.013 trillion.

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At the beginning of this week’s trading, analysts at Meristem Research said they expect the NGX-ASI to close in the negative territory this week.

According to them “there appears to be a lack of significant market catalysts that could spur strong buying interest from investors. As a result, we foresee muted trading volumes and limited upside momentum in equity prices during the week. In our view, investors are likely to be cautious as they await more attractive opportunities or key developments in the market”.

“Moreover, while some investors may position themselves ahead of the nine months 2024 earnings releases, the results are expected to align with the trends seen in half year 2024, offering few surprises. As such, investor reactions to any unexpected results are likely to be limited,” they further noted.

Fidelity Bank, UBA, Zenith Bank, Lasaco and Access Holdings were most traded stocks on Thursday as investors in 7,091 deals exchanged 277,745,152 shares worth N4.65billion.

Major laggards on the Nigerian Exchange Limited are stocks like Sunu Assurances, Livestock Feeds and Fidson Healthcare.

Livestock Feeds dropped from a high of N3.44 to N3.10, losing 34kobo or 9.88 percent. Sunu Assurances decreased from preceding day’s high of N1.75 to N1.58, losing 17 kobo or 9.71 percent, while Fidson Healthcare dropped from N15.45 to N13.95, losing N1.50 or 9.71 percent.