Capital market analysts expect mixed performance in the equities market, as investors react to the anticipated decisions from the Monetary Policy Committee (MPC), which will shape interest rate expectations and broader investment strategies.
Also, investor sentiment on the stock market reflects a mix of optimism and caution, shaped by the proposed 2025 budget of N47.90 trillion and anticipation of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting, where interest rate direction is a focal point.
Analysts Optimism
Looking ahead, analysts at Cowry Assets Management Limited said “we think the market is likely to trade in mixed directions as investors react to the anticipated decisions from the MPC, which will shape interest rate expectations and broader investment strategies.
“Additionally, as November trading winds down, the market could see positioning for December’s traditional window-dressing activities by fund managers. This presents opportunities for discerning investors to take strategic positions in fundamentally sound and resilient stocks.”
Cowry stated that “Meanwhile, we continue to recommend that investors focus on equities with strong fundamentals and robust growth prospects to navigate the prevailing macroeconomic uncertainties.”
This week, Afrinvest Limited anticipated the bourse to reverse the positive momentum, driven by profit taking activities and risk-off reaction to the expected hawkish tilt of the MPC.
Last Week’s Trading Activities
The Nigerian stock market maintained its bullish trend last week, with the NGX All-Share Index (ASI) edging up by 0.11 per cent week-on-week (WoW) to close at 97,829.02 points.
The market capitalisation gained N77 billion week-on-week to close at N59.292 trillion, primarily boosted by the addition of 3.12 billion ordinary shares of Haldane McCall to the main board of the exchange through a listing by introduction.
The week’s gains were broad-based across most indices except for the NGX Banking Index, which shed 2.57 per cent week-on-week. Conversely, the NGX Insurance Index led the sectoral performance with a 4.54 per cent week-on-week gain. NGX Consumer Goods Index followed with a weekly gain of 1.93 per cent, while NGX Industrial Goods and NGX Oil & Gas indices rose by 1.75 per cent and 0.18 per cent respectively for the week.
The market breadth for the week was positive as 52 equities appreciated in price, 33 equities depreciated in price, while 68 equities remained unchanged. Eunisell Interlinked led the gainers table by 60.72 per cent to close at N19.27, per share. Tantalizers followed with a gain of 57.33 per cent to close at N1.18, while John Holt went up by 42.49 per cent to close to N11.00, per share.
On the other side, MeCure Industries led the decliners table by 18.53 per cent to close at N10.55, per share. MUltiverse Mining and Exploration followed with a loss of 17.61 per cent to close at N6.55, while PZ Cussons Nigeria declined by 11.62 per cent to close at N22.05, per share.
Overall, a total turnover of 1.952 billion shares worth N35.864 billion in 48,553 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.482 billion shares valued at N38.875 billion that exchanged hands previous week in 44,795 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.041 billion shares valued at N16.207 billion traded in 21,099 deals; contributing 53.34 per cent and 45.19 per cent to the total equity turnover volume and value respectively. The Oil and Gas Industry followed with 273.407 million shares worth N6.717 billion in 5,489 deals, while the Services Industry traded a turnover of 141.184 million shares worth N779.166 million in 3,072 deals.
Trading in the top equities; Japaul Gold and Ventures, FBN Holdings and Access Holdings (measured by volume) accounted for 461.500 million shares worth N6.183 billion in 4,658 deals, contributing 23.64 per cent and 17.24 per cent to the total equity turnover volume and value respectively.
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