- Stock Market Resumes Bearish Trend, Drops N31b
Following four consecutive days of gains, the Nigerian Stock Exchange market open the week lower as investors lock in capital gains ahead of the National Elections.
The All Share Index, which gauges the performance of the Nigerian Stock Exchange, declined by 0.26 percent to close at 31,344.24 points, down from 31,426.63 points it closes on Friday.
The total market value of all listed equities dropped from N11.719 trillion to N11.688 trillion, pushing the year-to-date return to -0.27 per cent.
A total of 30 stocks closed in the red, while 10 stocks emerged gainers.
Growing uncertainty and weak business confidence ahead of the national elections continued to dictate market direction in the near term. Investment inflows, business activities and economic productivity remained weak despite the Central Bank of Nigeria’s efforts at stimulating growth and sustaining productivity.
“Our outlook for equities in the near-to-medium term remains conservative, in the absence of a near term positive catalyst and amidst brewing political concerns,” Cordros Capital stated in a post-trading note to investors.
“In line with our expectation, we experienced some profit taking in today (Monday)’s trading session. While we maintain a bearish outlook in the near term, we do not rule out the possibility of bargain hunting in fundamentally sound stocks,” Afrinvest Securities stated.
