BUA Cement drives NGX negative start to new week despite analysts’ bullish bias

By Joy Baba-Yesufu

Despite analysts’ expectation that Nigeria’s equities market will continue its upward trajectory this week, record dip in stocks like BUA Cement, Lasaco, Japaul Gold and other major laggards on the Bourse caused the market to open this new week on a negative note (-0.74percent).
The cement maker’s share prices lost N11 or 10 percent, from N110 to N99, placing it as the most laggard at the close of trading on Monday. It was followed by Lasaco which decreased by 28kobo or 9.79percent, from N2.86 to N2.58, and Japaul Gold which decreased from N2.44 to N2.28, losing 16kobo or 6.56percent.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation decreased from preceding day’s highs of 99,448.91 points and N60.260trillion respectively to 98,708.9 points and N59.812trillion.
“Looking forward, the equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks. However, given the sentiment that rates might have peaked in the fixed income and money markets and investors locking in on current rates, we expect some bearish undertone to persist in the equities market,” according to United Capital research analysts in their October 28 investment views.
They are of the view that bulls “will remain incentivised to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market. Fund managers and businesses may begin to entertain mid-long-term (≥6 months) investment objectives, cherry-picking only sound equities with strong fundamentals and ongoing corporate actions. This strategy will maximise market opportunities, thereby optimising portfolio returns.”
In 9,417 deals, investors exchanged 353,182,995 shares worth N4.552billion. Chams, UBA, Access Holdings, MCNichols and Japaul Gold were actively traded stocks.