On Monday, the Nigerian stock market saw its first weekly fall, costing investors roughly N464 billion. Stocks like NASCON and Dangote Sugar Refinery that had risen as a result of their merger plans continued to be purchased by investors.
As investors traded 520,133,186 shares worth N8.334 billion in 9,914 transactions on the Nigerian Bourse, the stock market fell 1.24 percent at the close of trading on Monday.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equity market capitalization declined from 68,143.34 points and N37.295 trillion, respectively, to 67,296.18 points and N36.831 trillion, respectively, on the previous trading day.
Dangote Sugar Refinery decreased from N64.15 to N57.75, losing 10%, while NASCON decreased from N58 to N52.20, losing 10%. Etranzact likewise declined, dropping from N10 to N9, losing 10%, while Learn Africa decreased from N3.65 to N3.29, losing 9.9% of its day-open value.
Year-to-date (YTD) returns for the market were lower, at +31.31 percent.
According to United Capital analysts in Lagos, "We foresee investors' sentiment tilting more toward listed corporates with strong and pending corporate actions."
Investors will seek out listed Tier 1 banks that haven't yet published their half-year (H1) 2023 financials, according to those close to them. Overall, we anticipate that some investors will continue to lean toward the money market in an effort to benefit from the high-interest rate.
"This will manifest as isolated bearish sentiments. Fund managers and risk-taking investors might still choose stocks with solid fundamentals and higher dividend yields, nevertheless.
In a September 11 report, Futureview research analysts stated that they "expect bullish sentiment trading as banks announce high PAT in H1 results." We advise investors to put their money into high-quality stocks with solid fundamentals.
Meristem analysts also stated in a recent note that they believe the good momentum in the Nigerian stock market would continue this week as investors continue to look for deals.
Furthermore, we assert that recent efforts by the current administration to establish bilateral trade ties with foreign entities may have encouraged investors to take long positions on tickers listed on the local stock exchange.
Additionally, additional earnings reports and dividend announcements from the tier-1 banks are anticipated to stimulate investment in the banking sector this week.
The Meristem analysts added, "The lukewarm system liquidity ahead of this week's Bonds and T-bills auction is anticipated to result in a flow of funds out of the equity market and a halt in new money intake. We also observe that prices are trading above levels that are fundamentally justified, which may occasionally encourage profit-taking. In the end, we anticipate that the Nigerian stock market will close this week.
Post a Comment