Nigeria’s equities market returned to the positive region on Tuesday, rising by 0.65 percent or N426billion as more investors bought stocks like Eterna, Ikeja Hotel, Honeywell Flour Mills, Ellah Lakes, and Academy Press.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation increased from preceding day’s lows of 105,891.33 points and N66.069 trillion to 106,574.98 points and N66.495 trillion. The market’s year-to-date (YtD) return increased to 3.54 percent.
Meristem research analysts in their recent Macros and Market Insight said, “For February, we foresee a sustained positive bias amid occasional volatility. In our view, expected corporate earnings releases will spur market activity during the month as investors seek to capitalise on tickers with positive earnings performance and position for dividend payments. As such, we anticipate continued rotation into high-performing sectors.
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“However, investors may – in varying magnitudes – react to movements in macroeconomic indicators, particularly inflation and Monetary policy committee decisions during the month, which could potentially dampen or spur sentiment towards equity assets. Overall, we expect a generally bullish outlook for the Nigerian equities market”.
“As we anticipate corporate earnings releases to influence equities market activity in February, our investment strategy is to take position on dividend-paying tickers, particularly those poised to deliver attractive dividend yields. Also, we consider tickers with sufficient upside potential in favourable sectors,” Meristem analysts said.
Eterna Plc stock price increased most, from N40.30 to N44.30, up N4 or 9.93 percent. Ikeja Hotel also increased from N12.35 to N13.50, adding N1.15 or 9.31 percent. Also, Honeywell Flourmills rose from N10.47 to N11.51, adding N1.04 or 9.93 percent.
Stocks like Access Holdings, Transcorp, Veritas Kapital Assurance, AIICO and Zenith were actively traded as investors in 15,561 deals exchanged 478,607,440 shares worth N11.762billion. Ellah Lakes also rose from N3.30 to N3.63, adding 33kobo or 10percent.
Iheanyi Nwachukwu, is a creative content writer with over 18 years journalism experience writing on banking, finance and capital markets. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA).
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