Stock market opens week on a negative note

Nigeria’s equities market opened the new week on negative note (–0.07percent) as investors sold mostly stocks of Transcorp, Caverton Offshore Support, Neimeth and Coronation Insurance.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation decreased from preceding trading day’s 98,201.49 points and N55.605trillion to 98,132.15 points and N55.716trillion. In 9,942 deals, investors exchanged 370,646,118 shares worth N8.111billion.

“Looking forward, the equities market is expected to show mixed performance as investors adopt opportunistic investment strategies. We foresee selective buying of fundamentally strong stocks continuing into the upcoming week. Market activity is anticipated to rise due to ongoing banks’ recapitalisation efforts, second quarter (Q2) filings, and anticipated corporate actions in the near term.

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“Conversely, elevated interest rates in the fixed income market are likely to exert a negative influence on equities as investors capitalise on higher fixed income yields. Overall, fund managers and investors are advised to maintain an opportunistic approach to capitalise on prevailing market opportunities,” United Capital analysts said.

Shares of UBA, FBN Holdings, Access Holdings, Universal Insurance and GTCO were actively traded. Caverton decreased from N1.50 to N1.35, down by 15kobo or 10percent. Also, Coronation Insurance decreased from 86kobo to 78kobo, down by 8kobo or 9.30percent. Transcorp decreased from N11.90 to N10.85, down by N1.05 or 8.82percent, while Neimeth decreased from N1.96 to N1.81, losing 15kobo or 7.65percent.

“We expect the market to maintain a bearish this tone this week, driven by recent announcements that are likely to heighten short-term uncertainty. While upcoming corporate earnings have the potential to bolster investor confidence, two factors could counterbalance this optimism.

“Firstly, the attractive yields in the fixed income market may divert fund flow. Secondly, the growing uncertainty surrounding the proposed windfall tax on banks could cast a shadow over the sector, dampening sentiment and potentially offsetting the positive impact of strong earnings. Nonetheless, we expect the equities market to close negatively by the week’s end,” said Meristem research analysts said.

TAGGED:bdothernews Nigeria's equities market

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ByIheanyi Nwachukwu

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Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.