Emmanuel OchayiInvestors in Nigeria’s stock market gained about N83 billion on Monday, as the market’s key performance indicators closed higher by 0.13 percent.
The increase came as investors renewed interest in undervalued stocks, taking advantage of their strong fundamentals as the full-year earnings season gathers momentum.
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Several stocks contributed to the market’s positive start to the week. Among the biggest gainers were Beta Glass, Presco, Okomu Oil Palm, and Northern Nigeria Flour Mills (NNFM).
Beta Glass moved from N71.50 to N78.65, adding N7.15 or 10 percent. Presco increased from N585 to N643.50, gaining N58.50 or 10 percent.
Okomu Oil Palm also saw a significant rise, moving from N488.40 to N537.20, an increase of N48.80 or 9.99 percent. NNFM gained N6.05 or 9.98 percent, rising from N60.60 to N66.65.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) increased from 104,496.12 points to 104,630.3 points, while market capitalization rose from N64.708 trillion to N64.791 trillion.
Analysts Expect Market to Stay Strong
Financial experts believe the stock market will maintain its positive trend as investors continue to seek opportunities in strong, undervalued stocks.
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Meristem research analysts commented, “We expect the market to close on a positive note, supported by increased bargain hunting as investors take advantage of fundamentally strong stocks now trading at attractive levels.”
They also noted that the upcoming treasury bills auction might affect market sentiment but not significantly.
“Although the upcoming treasury bills auction may influence sentiment, we do not foresee a significant negative impact on equities as investor appetite for stocks remains strong,” they said.
However, analysts also warned that some investors might take profits from stocks that have gained in recent weeks.
“We acknowledge the potential for profit-taking on tickers that have recorded gains in recent weeks, which could introduce some volatility. Overall, we expect the local bourse to end the week in the green zone,” the analysts added.
Stock Market Sees Active Trading
The trading session on Monday saw increased activity, with several banking stocks among the most actively traded.
Investors exchanged 510,569,320 shares worth N13.253 billion in 14,611 deals. Some of the most traded stocks included FBN Holdings, Zenith Bank, Universal Insurance, UBA, and Fidelity Bank.
As the market continues its upward trend, investors are keeping a close eye on strong-performing stocks while considering opportunities for profit-taking.
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.
