As the nation’s stock market rebounded on Tuesday after two straight days of losses, equity analysts have said the market sentiment is expected to weaken in subsequent trading sessions.
There was no trading on the floor of the Nigerian Stock Exchange on Wednesday as the Federal Government declared a public holiday in commemoration of the 2019 presidential inauguration.
Investors gained N490bn in value on Tuesday as market capitalisation of equities listed on the NSE rose to N13.789tn from N13.299tn on Monday, while the All Share Index increased to 30,307 basis points from 30,194.71.
Analysts at Afrinvest Securities Limited noted that the domestic equities market halted its two-day bearish run on Tuesday on the back of price appreciation in Dangote Cement Plc (five per cent), Zenith Bank Plc (9.1 per cent) and Guaranty Trust Bank Plc (5.4 per cent).
They said activity level strengthened as volume and value traded surged by 137.1 per cent and 321.6 per cent to 344.3 million units and N7.3bn respectively.
“While we anticipate investors to take position in fundamentally sound stocks at cheap prices, we expect market sentiment to weaken in subsequent trading sessions.”
Analysts at Cordros Capital Limited said, “Our outlook for equities in the short to medium term remains conservative, amidst absence of a positive catalyst. However, stable macroeconomic fundamentals remain supportive of recovery in the long term.”
After a six-day rally, the market fell on Friday and declined further on Monday, with investors losing N565bn as the market capitalisation dipped to N13.30tn.
Thirty stocks, led by Ecobank Transnational Incorporated, recorded price appreciation on Tuesday, while six suffered losses.