E-Tranzact, others cause NGX negative start to new week

In line with analysts expectation of mixed sentiment trailing the market, Nigeria’s equities market decreased by 0.24 percent on Monday, as stocks like E-Tranzact International and other major decliners drove the movement into the red zone.

Ahead of trading on Monday, Futureview Research analysts expected a mixed performance in the equities market “with profit-taking and inflation data in focus”. “However, strong Q1 earnings and interest in undervalued stocks should support investor sentiment and drive opportunities,” they said.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation decreased from preceding day’s close of 108,733.4 points and N68.339 trillion respectively to 108,261.47 point and N68.042 trillion. In 16,664 deals, investors exchanged 414,573,877 shares worth N10.716billion. Tantalizers, VFD Group, Access Holdings, Zenith and AIICO were mostly traded stocks.

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E-Tranzact decreased most from N6 to N5.40, losing 60kobo or 10percent. Another major laggard, John Holt dropped from N5.80 to N5.25, losing 55kobo or 9.48percent. Union Dicon also dropped from N8.45 to N7.65, losing 80kobo or 9.47 percent, while C & I leasing decreased from N4.21 to N3.86, losing 35kobo or 8.31percent.

“Looking forward, the equities market might be mixed as investors await MPC’s decision on Monday and Tuesday next week. Similarly, the elevated interest rate environment would continue to dampen the equities market. Additionally, retail investors’ profit booking activity will result in selloffs and might impede the upward movement of stock prices.

“Conversely, opportunistic traders will continue to trade, taking advantage of every opportunity that emerges in the market. The continued release of Q1-2025 results will have investors cherry pick corporates with solid results, whilst those with weak performance might see selloffs. However, some investors might take position in stocks that are projected to rebound within the year.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. 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). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.