Stocks up 0.56% as buy interest surges on attractive re-entry points

As many stocks approached attractive re-entry points, the buy-side interest at the Nigerian Exchange Limited (NGX) surged remarkably on Monday.

After recent underperformance at the Lagos Bourse, investors are now focusing on stocks with strong fundamentals particularly those that those with favourable corporate actions and strong earnings reports.

Last week, Nigeria’s stocks lost about N532billion as sustained sell pressure kept activities at the local bourse subdued.

At the close of trading on Monday, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation which started the week at 104,962.96 point and N65.819trillion respectively to 105,551.39 points and N66.188trillion.

Read also: NGX-ASI dips by 0.05% as market moderates loss

Livestock Feeds rallied the most, from N8.41 to N9.24, adding 83kobo or 9.87percent. Abbey Mortgage Bank share price also rose from N3.60 to N3.95, adding 35kobo or 9.72percent, while Sunu Assurances increased from N4.99 to N5.45, adding 46kobo or 9.22 percent.

In 13,314 deals, investors exchanged 440,519,513 shares worth N10.470billion. Zenith Bank, FCMB Group, UBA, Access Holdings and Fidelity Bank shares were actively traded.

In their expectation for this week, Futureview Research analysts said, “The market is poised for a positive trend, driven by renewed investor interest in undervalued stocks.”

“Favourable corporate actions and strong earnings reports are expected to boost sentiment and support market recovery,” they noted.

CardinalStone Research in their March 24 Model Equity Portfolio (MEP) said, “This week, attention will be on potential earnings releases and dividend announcements, particularly from banks, which could drive mixed reactions”.

“We would monitor proceedings to determine attractive entry and exit opportunities for these tickers. We would not hesitate to make mid-week changes to ensure our portfolio remains optimally positioned,” they further said.

Read also: Here’re NGX major laggards this year

“Looking forward, the equities market is expected to improve marginally as investors position for the FY-2024 earnings season and possible corporate action declarations. Nevertheless, given the elevated interest rate environment in the fixed-income market, we still expect bearish sentiments to linger in the background,” United Capital research said in their March 24 note.