In Nigeria’s stock market today, most investment analysts are still positive in their expectations, while some others do not foresee any sudden change in the present situation as equities return routes in excess of minus 10%.
As analysts varied views further ignite the stage for mixed feelings among stock investors, a combination of other factors staring at equity buyers’ face also triggers more caution plays on Customs Street.
The positives include current attractive prices of value stocks (good for bargain hunters seeking reentry); and investors optimism which could be supported by improved half-year (H1) results by listed companies.
The negatives include the perceived inertia on the side of foreign investors who not increasing their stake in Nigerian investible instruments (particularly equities) as economic outlook dims due to oil price decline as well as loss of confidence in the naira exchange rate against the greenback.
The situation is even worse-off as a result of shrinking wallets of most investors due to delay or non-payment of workers’ salaries.
Though last week, the NSE All-Share Index (ASI) and equities market capitalisation appreciated by 0.14% and 0.27% to close on Friday at 31,091.69 points and N10.657 trillion respectively; the ratio of gainers to losers at the Exchange further provides clarity concerning investors mood at the stock market.
In the week ended July 24, 2015, twenty-eight (28) equities appreciated in price, higher than thirteen (13) equities in the preceding week; while forty-four (44) equities depreciated in price, lower than fifty-seven (57) equities in the preceding week. One hundred and eighteen (118) equities prices remained unchanged, lower than one hundred and twenty (120) equities recorded in the preceding week.
In a contrary view, research analysts at Lagos-based Cowry Asset Management Limited said “We expect to see mixture of bargain hunting and profit taking activities”, saying that in line with their expectations, …Read More
Source:: Business Day