• Tuesday, September 26, 2023
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Stock market opens week on negative note

Stock market

Nigeria stock market opened this week on a negative note driven by investors’ decisions to sell stocks like Seplat Petroleum Development Company Plc, Berger Paints Plc, and United Bank for Africa Plc, among others.

At the sound of closing gong on the Nigerian Stock Exchange (NSE) on Monday January 28, the All-Share Index (ASI) which opened at 31,426.63 points declined by 0.26percent to 31,344.24 points. The stock market’s year-to-date (ytd) return stood further negative at 0.27 percent.

Investors lost about N31billion as evidenced in the value of listed equities which decreased from N11.719 trillion to N11.688 trillion at the close of trading. In 4,150 deals, stock dealers exchanged 222,687,900 units valued at N1.843billion. Fidelity Bank Plc, UBA Plc, Diamond Bank Plc, Transcorp Plc and FCMB Group were actively traded stocks on the 9th floor of the Exchange.

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“We believe appetite for value stocks will remain upbeat in the near term. Nonetheless, we expect to see profit taking activities during the week.  We recommend that investors take position in cheap assets with sound fundamentals in order to take advantage”, research analysts at Lagos-based Afrinvest said in their January 28 note.

The share price of Seplat Petroleum Company Plc which opened for trade on Monday at N540 lost N20 to close at N520, representing a decline of 3.70percent. It was followed by that of Berger Paints Plc which lost 75kobo or 9.68percent, from N7.75 to N7.

In addition, United Bank for Africa Plc dipped from N7.7 to N7.35, losing 35kobo or 4.55percent. Dangote Flourmills Plc lost 30kobo or 4.62percent, from N6.5 to N6.2; while GlaxoSmithKline Consumer Nigeria Plc lost 25kobo, from N12 to N11.75, losing 2.08percent.

“This week, we expect the outcome of the US Fed meeting holding on Wednesday, as well as reactions to political events that have recently materialised, to guide market performance”, said United Capital research analysts in their January 28 investment views.

Unfortunately, gains recorded in some stocks were not large enough to reverse the trend. Investors raised bets in Total Nigeria Plc making its share price to increase from N214.5 to N223.3, up by N8.8 or 4.10percent.

Beta Glass Nigeria Plc increased from N55 to N55.65, adding 65kobo or 1.18percent. Zenith Bank Plc increased from N23 to N23.45, adding 45kobo or 1.96percent; Oando Plc gained 25kobo, from N4.85 to N5.1, up by 5.15percent; while NPF Microfinance Bank Plc gained 14kobo, from N1.46 to N1.6, adding 9.59percent.