As the equities market re-opens for business today, market analysts have predicted that proceedings on the floor of the Nigerian Stock Exchange (NSE) would continue to be bearish this week.
The Federal Government had declared Monday and Tuesday public holidays to mark Eid-el-Kabir celebrations. As a result, all NSE activities were closed for business.
But following resumption of transactions today, analysts said the downward trend experienced last week would continue unless there is a new development.
Speaking to Daily Sun, Senior Research analyst at Capital Bancorp Plc, Chiazor Victor, believes that investors’ sentiment this week will be weakened, considering the state of the economy.
“The market has been bearish for the most of 2019 and so the weak state of the economy has weakened investors’ sentiment towards the market. that is why it is being battered. Until there is a positive trigger, then it is likely that we may not see a turnaround. But no matter the projections we make, one thing is very certain, and it is oil, a major factor that would affect the market and we need to keep an eye on the prices. So there is a need to brace ourselves for tougher times at the capital market”, Victor said.
Chief Operating Officer, InvestData Ltd, Ambrose Omorodion, on the other hand, noted that the increase in insecurity in the country and weak earnings reports from quoted companies revealed weak economic fundamentals.
He said: “Investors should review their positions in line with their investment goals, the strength of the company numbers and act as events unfold in the global and domestic environment”.
Cordros Capital-a Lagos -based investment firm, said: “In the absence of a positive catalyst, we guide investors to trade cautiously in the short term. However, stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the long term”.
The equities extended their downward trajectory as the All Share Index (ASI) dipped by 1.2 per cent, week-on-week (w-o-w), to 27,306.81 points while market capitalisation closed Friday at N13.307 trillion. Save for Monday, ASI closed negative in all sessions. Thus, the MtD and YtD losses increased to -1.5 and -13.1 per cent, respectively.