- Stocks Pare Losses in September
The Nigerian Stock Exchange (NSE) All-Share Index (ASI) pare losses in September following the surged in global oil prices ahead of US-Iran sanctions on November 4.
The stock market improved from 8.8 percent decline recorded in August to -5.9 percent in September as investors jumped in to take advantage of lower prices despite political uncertainty.
NSE ASI, which gauges the stock market, declined from 34,848.45 to 32,766.37 in the month of September.
However, analysts at Cordros Capital Limited maintain their bearish outlook for the stock market in the near term.
“Despite recent gains, we reiterate our negative outlook for the equities market in the short-to-medium term, amidst political concerns ahead of the 2019 elections, and absence of a positive market trigger. However, positive macroeconomic fundamentals remain supportive of recovery in the long term.”
The uncertainty surrounding the 2019 national election and rising interest rates in the developed economies may further hurt foreign direct investment into the NSE. Therefore, the central bank is likely to hike interest rates to sustain capital inflow and curb inflation rate in the final quarter of the year.