Emmanuel OchayiNigeria’s equity market saw a marginal uptick on Monday, with gains of 0.05% amounting to N29 billion, as investors kept a keen watch on the ongoing Monetary Policy Committee (MPC) meeting.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) rose from 98,125.73 points to 98,176.58 points, accompanied by an increase in market capitalization from N55.507 trillion to N55.536 trillion.
Join our WhatsApp ChannelInvestor interest centered notably on Berger Paints and other top gainers, driving the market’s modest climb. Berger Paints’ share price surged from N12.35 to N13.55, marking a notable increase of N1.20 or 9.72%.
“We anticipate the market to maintain subdued trading activity this week, lacking strong positive triggers to sway market direction. The bearish sentiment, reflected in last week’s market breadth falling below 1.00x to 0.52x, continues to influence investor sentiment,” noted analysts from Meristem.
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Further influencing market sentiment is the expectation of a sustained hawkish stance from the ongoing MPC meeting, potentially dampening appetite for equity assets.
The market’s positive closure also bolstered the year-to-date return to 31.30%. Trading activity on Monday saw 405,661,682 shares exchanged in 8,439 deals worth N6.688 billion. Active trading was observed in shares of Access Holdings, Transcorp, Zenith Bank, Nigerian Breweries, and Jaiz Bank.
“The upcoming Treasury bills auction may lead to funds outflow, with tepid inflows into equities, given the appeal of fixed-income yields. However, we anticipate selective interest from investors in fundamentally strong stocks with attractive entry points,” added Meristem analysts.
“As we await the MPC meeting outcome, cautious trading is expected among equity investors. It’s advisable for investors to focus on fundamentally sound stocks,” advised Futureview Research.
The week ahead remains pivotal for equity market participants, balancing anticipation of monetary policy decisions with ongoing trading dynamics. As global and local economic factors continue to evolve, the equities landscape in Nigeria reflects cautious optimism amid prevailing market conditions.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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