By Chioma Obinagwam
Equities listed on the Nigerian Exchange (NGX) may not sustain the upward trend it closed at the weekend says analysts at Afrinvest Research.
Confiance News gathered from its weekly update for the week ended November 12, 2021.
The analysts at the research arm of Afrinvest, a financial advisory firm situated in Nigeria, said it could be unconnected with dearth of positive developments in the bourse.
“We expect the equities market to trade sideways due to the absence of positive triggers,” it disclosed.
Confiance News recalls that despite recording losses on three of the five trading sessions, the NGX All-Share index closed the week 3.0 percent higher at 43,253.01 points.
Although analysts at Cordros Research appear to have a somewhat divergent view, it pointed to the impact of the bond auction by Nigeria’s Debt Management Office (DMO) in the current week as a major determiner of investors behaviour and market direction in the week under review.
Excerpts from its weekly economic and market report reads in part: “we expect investors to trade cautiously whilst taking positions in stocks with attractive dividend yields ahead of 2021FY dividend declarations. In addition, we believe the outcome of the bond auction scheduled to hold during the week will also shape market sentiments. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.”
Cordros Research is the research arm of Cordros Capital, a leading financial services group in African markets.
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