Equities Bearish Run On Weaker Earnings Expectation
Performance of the Nigerian equities stayed bearish as investors snubbed equities on weaker earnings expectation. In summary, the NSE-ASI shed 462.52 absolute points or 1.79 per cent to close at 25,340.02 points, last week. Similarly, the market capitalization depreciated by N122 billion to close at N8.770 trillion.
According to analysts at Cordros Capital, following the previous and last week’s under performance, the index has now declined for two weeks in a row, the first this year.
They said, “Sentiment is expectedly low, as investors continue to play safe in risk free assets. Although there have been snippets of activities in selected sectors such as banking, consumer goods and cement, the impact is less visible on the overall market given investor preference for only a few companies within the aforementioned sectors.”
For the week, the majority of the indices declined, with the Consumer Goods index posting the largest loss of 5.72 per cent, owing to selloffs in Nestle, Guinness and Nigerian Breweries. The Industrial Goods and Oil and Gas indices also came under pressure with a decline of 2.58 per cent and 0.91 per cent, following respective declines in Dangote Cement and Forte Oil.
Conversely, the Banking (+0.44% w/w) and Insurance (+0.90% w/w) indices appreciated by 0.44 per cent and 0.90 per cent, boosted by demand for Guaranty Trust Bank, Access Bank, Aiico Insurance and Mansard Insurance respectively.
