• Friday, December 01, 2023
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Stock market rises by 0.90% as week opens

Market gains N185bn as investors hunt for consumer goods, banking stocks

Nigeria’s equities market rose by 0.90 percent or N324billion on Monday as investors hunt for bargain in some low priced but value stocks.

Dangote Sugar Refinery led the league of gainers after rising from N47.50 to N52.25, up by N4.75 or 10percent. It was followed by Transcorp which increased from N5.80 to N6.38, after adding 58kobo or 10percent and Thomas Wyatt which rose from N1.70 to N1.87, adding 17kobo or 10percent.

Also, investors interest in SFS Real Estate Investment Trust pushed its price from a low of N83.80 to N92.15, adding N8.35 or 9.96 percent.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation increased from preceding trading day’s lows of 65,558.91 points and N35.881 trillion respectively to 66,151.38 points and N36.205trillion.

Read also: Stock market rises by 1.29% in week ended August 25

In their view, Lagos-based United Capital analysts said, “We project mixed sentiments toward listed equities, with some investors’ continuing their cherry-picking activities around fundamentally sound stocks with strong potentials in terms of recently disclosed corporate actions.

“Other investors will continue to tilt more toward the money market to take advantage of the elevation of yields (particularly risk averse investors), which we term to be temporal pending the expected inflow”.

In 7,193 deals, investors exchanged 311,116,701 shares valued at N3.915billion. Access Corporation, Transcorp, Dangote Sugar Refinery, CHI and Omatek were top-five traded stocks. The market’s positive return year-to-date (YtD) increased to 29.07 percent.

Meristem research analysts in their August 28 note said, “We expect the positive sentiment in the Nigerian equities market to continue this week as we anticipate bargain hunting activities by investors on tickers that present attractive entry points.

Read also: Foreign inflow into Nigerian stocks falls to pre-reform levels

“In addition, we expect the positive second quarter (Q2) 2023 GDP result to spur investors’ interest in the equities market, especially on sectors that expanded and contributed positively to the overall output growth”.

“Specifically, we highlight the financial services, telecommunications, and agriculture as some of the sectors that witnessed growth during the period.

“However, we do not rule out the likelihood of profit taking activities on tickers that have appreciated in recent weeks. On a balance of factors, we expect the overriding sentiment in the local bourse to remain positive this week,” they added.