The Nigerian Equities Market has dropped by a staggering 8.6% in five weeks following a relentless bear run that has rocked transactions.
The bourse, which has been recording a free-fall, dropped 2.42 per cent last week and has slumped by 8.6 per cent in five weeks. Specifically, the NSE ASI closed at 25,537.54, while market capitalisation stood at N8.791trillion last Friday.
Decline in the shares of high-capped stocks across consumer goods, cement, oil & gas and banking sectors was responsible for the huge loss suffered last week.
Analysts at Cordros Capital Limited said: “Having lost 8.6 per cent in five weeks, we expect some cherry-picking across the market, considering where stocks prices currently trade.”
That said, we reiterate that a sustainable recovery in equities will remain constrained by a subdued macro which has sent the local and foreign institutional investors (accounting for 80 per cent of total monthly trades) on sabbatical.”
The market has remained under pressure as domestic investors continued to seek safety in high yielding government treasuries while foreign institutional investor participation remains constrained by currency challenges and the weak macro indicators, Thisday reports.
