Analysts call for caution as equities continue downward movement
AS a fresh week rolls in, analysts in the capital market have called on investors to tread cautiously even as the market continues to tumble.
The equities market, which has recorded four straight weeks of continuous sell-off despite projections of rebound at various times this month, again ended last week in red.
Investors who have continued to count their losses, booked N356 billion losses at the end of the week, thereby bringing the total losses in the month of May to N687 billion.
Meanwhile Ikeja Hotels Plc emerged investors’ toast rising by 44.94 percent after the Nigerian Stock Exchange, NSE, lifted the year and half suspension on the company following the Board crises it was engulfed in last year.
In their predictions on the outlook for the market this week, analysts at Cordros Capital stated that persisting sell-offs and continued sessions of sideways trading suggest a need for cautious trading, but emphasised that still-strengthening macroeconomic fundamentals remained supportive of potential gains for patient funds.
In their opinion, analysts at Cowry Asset Management, said: “we expect the local bourse to close flat as investors take advantage of the low prices of some fundamentally sound stocks.”
However, Meristem Securities in its report stated that the banking, consumer goods and the industrial goods sectors would likely bounce off the bearish sentiment, while the oil and gas and insurance sectors would remain in the red zone.
Analysis of activities last week showed that the All Share Index, ASI, posted a significant decline of 2.84 percent to 39,323.62 points from 40,472.45 points, while the market capitalsation closed lower at N14.244 trillion from N14.600 trillion last week.