The nation’s stock market remained bearish last week leading to a decline of 0.15 per cent in the Nigerian Exchange Limited All-Share Index to close at 38,808.01, while market capitalisation ended at N20.310 trillion.
The market had similarly dipped the previous week. However, unlike two weeks ago when the volume and value of trading also decline, investors staked more funds last week.
A total of 1.263 billion shares worth N10.75bn were traded in 19,975 deals last week, up from 887.037 million shares valued at N9.19bn that exchanged in 17,837 deals the preceding week.
After the earning season and as the second quarter began recently, investors are said to be realigning their portfolio with eyes on yield movements in the fixed income (FI) market.
Also, the nation’s subsisting stagflation environment remains a potent threat to investment returns in the financial market.
However, analysts at Cordros Securities said: “With the Q1-2021 earnings season on the horizon, we believe investors will be looking for clues on how corporate earnings will evolve in 2021, given the expected improvement in macroeconomic conditions.
“However, we expect the lull in the market to persist as investors remain perturbed by the rising yields in the FI market. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”