The Nigerian equities market on Monday sustained last week’s positive sentiment as the NGXASI appreciated by 0.14%, closing at 97,373.94 points and thereby boosting investors’ wealth in form of market capitalization by N83.47 billion
Data from the Nigerian Exchange Group, the supervisory group for the local bourse’s activities, indicated that the day’s growth was buffered by the sustained bullish run on ARADEL (+.9.99%) amidst the hawkish investors that were optimistic as to the issuers near-term outlook, particularly considering the dilutive impact of the expanded its float.
According to the trading indices, despite the modest gain by investors, the broad market sentiment was negative as defined by a 0.90x rate of the advancer’s decliners’ ratio, complemented by Up/Down (UD) ratio of 0.30x, which underscored the weak volume traded on price advancers versus its losing counterpart.
As expected, the bonus shares will have a dovish pull on the share price of UCAP, after shedding 9.78% DTD even as the outlook on this stock looks dim.
This is particularly an issue for investors as concerns around the Issuers capacity to sustain interim and final dividends for an expanding base of shareholders when juxtaposed with the growth rate of its net profit, at least in the near term.
On sectoral performance during the day’s trading, the data from the NGX showed that Banking, Consumer goods and Industrial goods indexes took the worse hit, losing 0.81%, 0.10%, and 0.03% respectively.
