Market defies analysts expectations of bearish start to new week
Nigeria’s equities market on Monday defied most analysts expectations of bearish start to the new week, thanks to investors who bought shares of Nigerian exchange group (NGX group), Union Bank, FCMB group and other top advancers.
amid improved bargain, NGX group gained most on the Bourse after its price moved from preceding day low of N17 to N18, up by N1 or 5.88percent. it was followed by Union Bank which increased from N5.75 to N6.20, up by 45kobo or 7.83percent; and FCMB group which rallied from N3.24 to N3.50, gaining 26kobo or 8.02percent.
at the close of trading on Monday september 26, the Nigerian exchange Limited (NGX) all-share index (asi) and Market Capitalisation appreciated by 0.39 percent or N88billion,
from preceding trading day’s lows of 49,026.62 points and N26.444trillion respectively to
49,218.35 points and N26.532trillion. also, the market’s positive return year-to-date (YTD) increased to +15.22 percent.
“We expect the bearish sentiment in the equities market to persist this week, due to investors’ preference for fixed income investments. The forthcoming Treasury bills Primary Market auction as well as the outcome of the Monetary Policy Committee meeting this week are also likely to suppress buying activities in the equities market. “While coupon payment of circa N131billion is expected to increase system liquidity this week, the scheduled Tbills auction might leave the effect on equities muted,” said Meristem research analysts.
also in their latest commentary, United Capital research analysts said, “We expect bearish sentiment to dominate the market as we project a rate hike, in line with rising inflationary pressures and global monetary hawkish tone, by the MPC in its september meeting. accordingly, this will result in an increasing rate in the fixed income market, thus making the equities market unattractive.”
Courteville, FCMB group, Zenith Bank, Transcorp and UBA were top-5 traded stocks on the Nigerian exchange Limited.