In line with most market watchers expectations, the stock market of Africa’s largest economy opened this week on a negative note, dipping by 0.40percent at the close of trading on Monday April 12.
The record close in the red zone on Custom Street was driven by sell pressure in consumer goods stocks (sectoral index decreased mostly by -1.03percent), amid improved bargains in major banking counters which impacted positively on the sector’s index (+0.16percent).
Last week, the market closed on a negative note. Investors had lost about N26billion amid a mix of bargain hunting and bearish sentiment that characterised the market.
“This week, we expect further selloffs in the equities market as we expect rates at the long end of the curve to tick higher at the CBN’s NTB Primary Market Auction on Wednesday”, said United Capital research analysts.
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The NSE All-Share Index decreased from week open high of 38,866.39 points to 38,712.55 points. The market’s year to date (Ytd) negative return increased to -3.87percent.
Meristem research analysts had said in their April 12 note to investors that “The sentiment in the market remains largely bearish,” adding that “the announcement of dividends and the release of corporate results did little to trigger positive sentiment in the market last week.”
“In the absence of any positive macroeconomic news or corporate action, we expect the market to tread a similar path, considering the fact that the dividend yields offered by most companies are not as attractive compared to the rates obtainable in the fixed income market. On this note, we expect the sell-offs to dominate the market activities this week”, the analysts noted.
