Stock market opens week on a slightly negative note

Nigeria’s equities market opened the new week on a slightly negative note (-0.01percent) as investors sold consumer goods stocks despite bargain hunting in banking, oil & gas and insurance stocks.

“We expect to see a mixed trading at the start of this week, as we see limited drivers on the horizon to trigger aggressive buy-side action from investors. Investors are likely to retain a risk-off stance towards the market, given where fixed income yields currently stand while banking sector continues to dominate market activity,” according to research analysts at Lagos-based Vetiva.

The Nigerian Exchange Limited (NGX) All Share Index (ASI) and Market Capitalisation decreased from preceding day’s close of 100,022.03 points and N56.580trillion respectively to 100,006.79 points and N56.572trillion. In 9,635 deals, investors exchanged 689,982,579 shares worth N7.165billion. The market’s return year-to-date (YtD) printed at 33.75 percent. This month, the market has decreased by 0.05 percent.

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“This week, we anticipate mixed sentiment in the local bourse, characterised by occasional swings in investors’ appetite during the week, however, with a bullish tilt. In our opinion, the market is likely to experience increased bargain-hunting activities this week as investors seek to capitalise on undervalued stocks with strong fundamental potential. Additionally, we anticipate a rebound in certain tickers that experienced price declines last week.

“Furthermore, we expect the announcement of capital raising plans by banks to positively impact the market. Meanwhile, we do not rule out the possibility of continued profit-taking activities on tickers that have realised substantial gains.

“Overall, we expect the equities market to close the week in the green zone, howbeit marginally,” according to Meristem research analysts in their recent note.