• Sunday, May 19, 2024
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Stock market opens week on a bearish note

Market dips by 0.11% in one week

Nigeria’s stock market continued on a bearish note on Monday (- 0.19 percent) amid absence of positive catalysts in the equities space.

Market watchers said the impact of high yields in the fixed-income space continues to drive selloffs on the Bourse because investors are switching asset classes to less risky ones.

At the close of trading session, the Nigeria Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation depreciated from preceding trading day’s highs of 98,152.91 points and N55.51trillion respectively to 97,962.25 points and N55.40trillion.

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“We expect the bearish sentiments amongst investors to persist in the local equities market given the recent developments in the fixed-income market.

“The impact of the high yields in the fixed-income market will continue to drive sell-offs as investors switch their asset classes to less risky assets. However, we expect pockets of bargain-hunting activities across dividend-paying stocks, in anticipation of the corporates’ qualification and payment dates,” Lagos-based United Capital said on Monday.

The market’s year-to-date (YtD) return stood lower at 31.01percent.

“This week, we anticipate a continuation of the bearish trend in the equities market. The absence of positive catalysts within the equities space, coupled with the allure of competitive effective yields in the fixed income sector, is likely to serve as a negative catalyst, prompting profit-taking activities in the equities market,” said Futureview research analysts.