Nigeria equities see slight gain as week opens

In line with earlier expectations, Nigeria’s equities market opened this week trading on a slightly positive note (+0.03percent or N4billion) as investors on Monday, July 5 continued their bargain hunting activities on Custom Street, Lagos.

The market’s positive close was supported by gains in stocks like Cutix Plc which moved up most from N3 to N3.30, adding 30kobo or 10percent. NCR Plc rallied from N2.27 to N2.49, adding 22kobo or 9.69percent.

Stocks like Red Star Express Plc decreased most, from N3.67 to N3.31, losing 36kobo or 9.81percent, followed by ABC Transport Plc followed, after dipping from 37kobo to 34kobo, shedding 3kobo or 8.11percent.

This month, the stock market of Africa’s largest economy has risen by 0.83 percent. Investors are gradually positioning in value counters known for paying interim dividend as many companies half-year (H1) scorecards are expected on the Bourse this month.

Read also: Nigeria’s equity investors lost N1.3trn in H1’2021

“While we acknowledge that there is room for profit-taking activities on some stocks, we expect this to have a muted effect on the market direction in the week”, according to Meristem analysts.

Though, their counterparts at Vetiva had anticipated a mixed session to start off this week’s trading, “as investors continue to wait on the sidelines for half-year earnings results”.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation increased from day-open lows of 38,212.01 points and N19.919trillion to 38,220.01 points and N19.923trillion. The stock market’s negative return year-to-date (YtD) decreased to -5.09percent.

In 4,788 deals, investors exchanged 282,624,981 units valued at N1.868billion. Fidelity Bank, Wema Bank, Universal Insurance, FCMB Group, and Sovereign Trust Insurance were most traded equities on the NGX on Monday.