As the currency crises lingers, the bullish sentiments which began on the equities market of the Nigerian Exchange in the previous week has fallen.
The is happening on the backdrop of the prolonged cash crunch emanating from the decision of the Central Bank of Nigeria, CBN, to change the some Naira notes.
Market operators indicated that the bullish run expected on the backdrop of corporate earnings announcements may be diminished as the currency crisis lingers.
Meanwhile, market analysis showed that the loss recorded on the final trading day, Friday was 1.3% which was sufficient to wipe out the cumulative gains of 0.4% as of Thursday.
Consequently, the NGX All-Share Index shed 1.0% Week on Week, W/W, to close at 5.0% Year to Date, YtD.
Looking at activity levels, trading volume, and value decreased by 20.1% W/W and 22.3% W/W, respectively.
Across sectors, the Insurance Index appreciated by 1.2%, Oil and Gas Index also appreciated by 0.9%, Consumer Goods Index went up by 0.7% and Industrial Goods Index gained 0.1% while the Banking Index declined by 1.3%.
In the week ahead, investors will be caught between two opposing forces ranging from uncertainties ahead of the nation’s presidential election and the release of 2022 full year corporate earnings with accompanying dividend declarations.
