Relieve as Nigerian stock market gains N1.52trn
The equities market section of the Nigerian Exchange Limited (NGX) rebounded strongly on Monday after several consecutive sessions of losses, as renewed buying interest lifted investor sentiment across the bourse.
On that note, the market capitalization of listed stocks gained N1.52 trillion or one per cent to close at N152.85 trillion from N151.33 trillion it closed for trading last week.
Profit taking had dominated the equities market section llast week, leading to N5.64 trillion drop in market capitalization of all listed companies on losses in Dangote Cement Plc (3.6 per cent drop), among others.
Consequently, the NGX All-Share Index (ASI) gained 2,261.84 basis points or 0..9 per cent, rising from 235,941.27 basis points to 238,203.11 basis points.
Capital market analysts said the attractive risk-adjusted returns on T-bills are diverting flows from stocks, keeping sentiment weak on the Nigerian Exchange (NGX).
Cordros Securities Limited noted that “this week, we expect elevated Treasury bill yields to remain a key headwind for the equities market, as attractive risk-adjusted returns continue to divert investor flows from risk assets.”
Cowry Assets Management Limited stated that “looking ahead, the Nigerian equities market is expected to remain cautious in the near term as profit-taking activities and weak investor sentiment continue to weigh on performance. However, selective bargain hunting in fundamentally sound stocks may provide support, while investors monitor key macroeconomic indicators and corporate earnings for market direction.”
Meanwhile, profit taking dominated the domestic stock market last week, with the All-Share Index closing lower in all five trading sessions as investors locked in gains across select large cap names.
