Equities Investors Gain N107bn as NGX Starts Week On a High

Samuel Mobolaji

The Nigerian stock market commenced the week on a positive trajectory, recording a significant appreciation as equities investors gained N107 billion on Monday.

The market’s All-Share Index (ASI) climbed by 186.16 points, translating to a 0.19 per cent increase, which saw it close at 97,706.70 points. As a result, the market capitalisation rose to N56.146 trillion, reflecting the strong performance in key sectors.

The upward movement was largely driven by gains in medium- and large-capitalised stocks, including industry leaders such as Dangote Sugar Refinery, Oando, Fidelity Bank, MTN Nigeria Communications (MTNN), and United Bank for Africa (UBA). These blue-chip companies played a pivotal role in propelling the market forward at the start of the week.

Analysts at United Capital Plc have offered a cautious outlook for the market, predicting that mixed sentiments will persist in the near term. The rising inflation, exacerbated by the heightened exchange rate environment, led the Monetary Policy Committee (MPC) to increase interest rates by 50 basis points.

United Capital noted that this rate hike is expected to impact investor behavior, with equity-focused fund managers adopting a more measured approach to trading. These investors are likely to focus on companies with strong fundamentals and those expected to maintain profitability in their full-year 2024 financial results.

In addition, companies with pending corporate actions are anticipated to outperform, presenting potential trading opportunities. United Capital also advised that fund managers and traders may consider increasing their cash positions to better navigate market volatilities.

Market sentiment remained positive overall, with 28 stocks recording gains compared to 24 stocks that experienced losses. Fidelity Bank led the gainers, with a 10 per cent increase to close at N14.30 per share. ABC Transport and Livestock Feeds followed closely, each gaining 9.76 per cent to close at N1.35 and N3.60 per share, respectively. Regency Alliance Insurance also saw an 8.70 per cent rise to close at 60 kobo, while Ellah Lakes appreciated by 8.44 per cent, closing at N4.88 per share.

On the other hand, SCOA Nigeria topped the list of losers, declining by 10 per cent to close at N1.71 per share. Berger Paints Nigeria saw a drop of 9.95 per cent to close at N19.00 per share, while Tripple Gee and Company fell by 9.64 per cent, closing at N2.25 per share. Guinea Insurance and Thomas Wyatt Nigeria also experienced declines, losing 8.33 per cent and 7.58 per cent, respectively, closing at 44 kobo and N2.83 per share.

The total volume of stocks traded surged by a remarkable 308.08 per cent, with 315.69 million units exchanged in 5,847 deals, amounting to a total value of N4.03 billion. Tantalizer topped the trading activity chart, with a massive 1 billion shares traded, valued at N450.634 million. UBA followed with 38.119 million shares worth N1.062 billion, while Access Holdings saw 23.358 million shares traded, valued at N459.727 million.

Other notable trades included Caverton Offshore Support Group, which traded 21.633 million shares worth N56.605 million, and Guaranty Trust Holding Company (GTCO), which traded 16.030 million shares, valued at N776.411 million.

As the week progresses, investors are expected to maintain a cautious approach, focusing on stocks with solid fundamentals and upcoming corporate actions, while keeping an eye on potential opportunities in the evolving Nigerian stock market.