Financial analysts have said that the equities market will record a mixed bag of buy and sell pressure this week, even as investors lose N197.9 billion in the ensuing bearish market.
They stated that apart from first quarter 2019 (Q1'19) earnings reports, the market lacks additional information that would catalyse a sustained bullish sentiment.
According to analysts at United Capital Plc, a Lagos-based investment banking firm, though the market is clearly mis-priced on both a fundamental and technical perspective, a near-term recovery in equities would only be spurred by a catalyst. They listed the catalysts to include MTN's expected listing in H1'19, as well as favourable oil price trends, saying that the market would remain choppy pending the materialisation of the events.
They, however, said that inflow of first-quarter earnings releases would continue to guide sentiments in the market.
Also, analysts at Afrinvest Securities, said: "We view the market as lacking drivers for a sustained bullish run and so expect the market to continue to trade sideways, with profit-taking and bargain-hunting activities dominating an equal amount of trading session over the short term."
Meanwhile, following the activity of profit takers the Nigerian Stock Exchange, NSE, All Share Index, ASI, closed in the red, declining by 1.8 percent to close at 29,212.0 points, while market capitalisation declined by N197.9 billion or 1.8 percent to N10.98 trillion.
Performance across sectors was also bearish as three of the five sectors closed in the negative. The industrial goods sector declined the most by three percent, followed by the banking and consumer goods sectors, which fell by 1.3 percent and 0.3 percent respectively.
On the flip side, the insurance and oil & gas sectors advanced by 1.3 percent and 0.02 percent respectively.