The Nigerian Equities market recorded a third week of declines as the All Share Index pared by 1.34%. Consequently, the YtD return was dragged further, settling at +5.83%. The market breadth settled at 0.36x, with twenty-one (21) gainers and fifty-eight (58) losers at the end of the week.
Once again, selling pressure prevailed in the market, making it the third consecutive week in the negative region. The release of positive inflation figures and the passage of the 2018 appropriation bill failed to lift investor confidence in the market last week. The month of May has been largely bearish as selloffs have been the order of the day through the month. The MtD return of the market has thus slipped into the negative region at -1.83%. Several counters have fallen to year low points, with their YtD returns slipping into the negative region.
Although there was no initial reaction to the senate passing the budget and the release of positive inflation figures for the month of April, we believe these positive macroeconomic signals will strengthen investor confidence in the market.
Given the selloffs recorded in the market so far in the month, we expect to see a turnaround in the market. We expect bargain hunting activities to persist in the coming days, driving the market to a positive close this week.