• Wednesday, February 28, 2024
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Stocks lose N37bn as week opens

Mixed sentiments trial stocks despite positive start to new week

Nigeria’s equities market opened this new week on a negative note as investors sold insurance, banking and industrial stocks amid mild bargain in consumer goods stocks.

The market decreased by 0.14 percent or N37billion at the close of trading on Monday September 12, pushing this year’s positive return lower to +16.18percent.

“We expect market activity to remain quiet, as investors would stay on the side lines following the continued hike in NT bills stop rates,” said United Capital research analysts in their recent investment views.

Month-to-date (MtD) the market has decreased by 0.42percent despite starting off on a positive note. The equities market’s All-Share Index (ASI) and capitalisation decreased from preceding day’s 49,695.12 points and N26.804trillion to 49,625.71 points and N26.767trillion.

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GTCO, Sterling Bank, Zenith Bank, Fidelity Bank and Chams were top-5 traded stocks as investors in 3,377 deals exchanged 86,594,417 shares valued at N1.170billion.

Also in their views, Meristem research analysts said: “We expect the negative sentiment in the equities market to persist this week. This is hinged on the attractiveness of the fixed income market given increase in stop rates across the various instruments, representing safer havens for investors.”

“The upcoming treasury bills primary market auction for the week also fuels our negative outlook for the market this week. However, we do not rule out the possibility of bargain-hunting activities on tickers whose prices are currently at low levels with decent upside potential. Also, corporate actions on heavy weight tickers might spur buying activities. Overall, we expect the overriding sentiment in the market to be bearish leading the market to a negative close,” Meristem research analysts further stated.