Nigeria’s equities market failed to moderated its gains on Monday despite analysts expectations that investors will cautiously position ahead of the Monetary Policy Committee (MPC) decisions on Tuesday. The market defied activities of profit takers in early trading on the local Bourse to close higher by 0.18 percent.
“The equities market is expected to trade slightly positive, supported by investor interest in undervalued stocks and anticipated strong earnings releases.
“However, gains may be tempered by cautious positioning ahead of the MPC meeting and a scheduled T-bills auction, which could redirect liquidity from equities. Overall, the NGX-ASI is likely to post a modest uptick,” Futureview analysts said.
Shares of Access Holdings, Consolidated Hallmark Holdings, Chams, UBA, and Zenith Bank were actively traded as investors in 30,750 deals exchanged 706,038,882 shares valued at N21.559billion.
NCRled the gainers after rising from N6.60 to N7.26, up by 66kobo or 10 percent. It was followed by Cutix which increased from N3.70 to N4.07, adding 37kobo or 10percent.
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International Energy Insurance advanced as well from N2 to N2.20, adding 20kobo or 10 percent. Investors took profit majorly in Meyer and other penny stocks. Meyer share price decreased from N21 to N18.90, losing N2.10 or 10 percent.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation increased on Monday July 21 from preceding day’s 131,585.21 points and N83.241 trillion to 131,826.77 points and N83.393 trillion.
United Capital research analysts had also in their view for this week said, “the equities market might continue in its upward trend leading to a slight gain in the ASI”.
“This is hinged on investors positioning for Q2-earning season, favouring corporates with FX gains, cost control, clear growth trajectory, and those with potential for quality interim dividend payment.
“Similarly, while positive sentiment may persist, it is likely to be tempered by profit taking activities and NT-Bills market auction. We advise investors to cherry pick fundamentally sound stocks with potential for impressive half year performance and interim dividend payment,” they added.
