Stock Market to Remain Bearish on Political Uncertainty, Declining Oil Prices
The Nigerian stock market is anticipated
to remain rooted in the red territory this week, some financial
analysts have predicted.
Last week, as a result of sell offs, the
Nigerian Stock Exchange (NSE) All–Share Index (ASI) finished 2.54
percent lower at 30,874.17 points, with the market capitalisation
reducing by N293.69 billion to settle at N11.272 trillion.
The local bourse pointed south in four
of the five trading sessions last week, with the only gain, a 0.86
percent growth, recorded on Friday.
sentiment weakened in the week with 23 stocks advancing stocks and 39
declining equities, while Continental Reinsurance emerged as the best
performing stock after 33.3 percent week–on–week rise, with Diamond Bank
closing as the worst performing stock after a w–o–w loss of 31.6
As investors prepare for this trading
week, analysts at Lagos–based Cowry Asset said, “We expect the NSE ASI
to close in red territory as bearish activity lingers amid higher
interest rate environment, both home and abroad, and declining global
crude oil prices.
are expected to continue scrapping the market for short term gains as
valuations and dividend yields remain attractive.”
Re–echoing this sentiment are analysts
at Afrinvest, who opined that, “We expect to see some bargain hunting in
early trades [this] week.
“However, we do not expect this to be
sustained all through the week as the overall bearish sentiment, stoked
by political uncertainty, is expected to weigh on market performance.
Thus, we maintain our bearish outlook over the near–term.”
For analysts at Business Post, “The effect of foreign portfolio investors exiting the market will continue to weigh on the local bourse.
“We do not see the benchmark index
closing green, though we expect some institutional investors to use the
opportunity of the low valuation of stocks at the moment to re–enter the
Source: Business Post, December 3, 2018