Capital market analysts in Nigeria say the prevailing market situation in the country will likely continue this week given available data.
They said although the first monthly bond auction of 2016 was going to take place this week, not much changes were expected in the overall market performance.
Analyst at Vetiva Capital Management Limied, in the company’s report for the whole of last week, said, “Whilst we note the opportunity for bargain hunting across select large capitalisations, we think macroeconomic concerns will continue to weigh on market sentiment in the coming week even as oil prices touched 12-year lows.”
With the first monthly bond auction of 2016 scheduled for this week, the firm said it expected the bond market to open the week tepid as market participants look forward to the auction for market guidance.
“However, we foresee possible cherry-picking in the treasury bills space as the healthy system liquidity continues to support demand across select maturities,” it added.
The Nigerian Stock Exhange continued on the downward slope last week as intense selling pressure steered the heavyweight industrial goods, consumer goods and financial services sectors to 16 per cent, nine per cent and 17 per cent respective declines.
Selling showed no respite through the week as 12-year low oil prices and a global risk-off sentiment pushed stock prices lower all through the week; the NSE All-Share Index lost 13 per cent week-on-week to put the index at negative 17.8 per cent year-to-date in its worst start to the year since the 2009 financial crisis, according to Vetiva.
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