The Nigerian equity market continued its bearish run on Monday, losing N289bn due to sell-offs.
The All-Share Index declined by 0.49 per cent as the year-to-date return went down to 39.27 per cent and market capitalisation lowered to N58.88tn.
20 equities appreciated, led Ellah Lakes, Morison Industries Plc and SUNU Assurance, with 10 per cent, 9.93 per cent and 9.48 per cent gains, respectively.
Dangote Sugar (-10.00 per cent), International Energy Insurance (-10.00 per cent) and Jaiz Bank (-9.92 per cent) led 27 other losers.
The volume and value drivers of the day’s market trend were led by stocks of the National Infrastructure Development Fund, Jaiz Bank and MTN Nigeria.
Investors traded 306,821,620 stocks valued at N11.38bn in 9,343 deals.
Meristem research analysts, in their stock recommendation update on Monday, said, “This week, we anticipate subdued performance in the equities market. This stems from the anticipated rate hike by the MPC, which is likely to influence higher rates at the T-Bills auction scheduled for Wednesday. Consequently, investors may go in search of higher yields in the fixed-income market, potentially constraining liquidity in the local bourse space.
“Additionally, we anticipate profit-taking activities on stocks that have already experienced considerable gains. Nonetheless, investors may opt to retain their equity holdings if rates do not meet anticipated levels, resulting in minimal outflows to the fixed income market.”
SOURCE: PUNCHNG
