Bears seen unwilling to relinquish position on Nigerian Bourse

Only in the month of May 2013, domestic investors controlled 51.32 percent of equity trading leaving 48.68 percent for foreign investors.

A negative close on Wednesday affirms earlier belief that investors’ sentiment on the Nigerian Stock Exchange (NSE) is still weak.

With the disappointing reports on rising inflation and unemployment rates, many analysts expect Nigeria’s equities market to remain weak in the short term as more investors adopt a cautious trading strategy.

“Our view is that overall investor sentiment continues to be weak amid the improvements in bond yields”, according to analysts at Coronation research. The analysts noted that in the meantime they intend to further their sales of bank and industrial stocks to take the notional cash position from 25percent to close to 30percent of the portfolio.

The stock market of Africa’s largest economy has successfully erased earlier gains in the face of increasing economic uncertainties. Recall that the market closed bearish last week with some sell-off. Year-to-date (Ytd) return is in negative of 3.89percent, while only this month it has recorded negative return of 2.75percent.

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By Iheanyi Nwachukwu • March 18, 2021

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.