By Modupe Gbadeyanka
For the first time in about two months, the Nigerian Stock Exchange (NSE) recorded a week-on-week growth at the close of business last Friday following the gains recorded on Thursday and Friday during the three-day trading week.
Investors had taken advantage of the low prices of stocks at the market following huge selloffs in the past weeks.
However, as market resumes for another trading week today, analysts differ in their outlook for the equities market.
For those at Cowry Asset, they believe the bears will resurface this week as a result of selloffs by foreign portfolio investors.
“We expect the local bourse to close flat in red territory as sell-offs by foreign portfolio investors and the attractive fixed income investment amid increasing yields continue to weigh on the market prices.
“Thus, we opine that investors should hunt for companies with potentially high dividend yields and have recorded increased earnings as at H1 2018,” analysts at Cowry Asset said.
But for analysts at Cordros Research, “Our outlook for equities in the near to medium term remain conservative, in the absence of a near term one-off positive catalyst; and more so, amidst brewing political concerns.
“However, stable macroeconomic fundamentals remain supportive of recovery in the long term.”
However, analysts at Business Post believe the market will trade mixed this week with a slight gain at the end of the week.
