The volatility in the stock market persists, with the Nigerian Exchange Limited (NGX) All-Share Index (ASI) recording a modest 11 basis points (bps) increase, closing at 66,464.57 points last Friday, up from 66,362.14 points the previous week. This ongoing volatility is attributed to investors’ anticipation of policy announcements from fiscal and monetary authorities, as newly appointed ministers and central bank leaders prepare to unveil new economic plans to stimulate growth.
Several companies have started announcing their second-quarter 2023 (Q2’23) financial results, while third-quarter 2023 (Q3’23) reports are expected to roll in next week for early filers. Analysts predict that Q3’23 earnings reports may show mixed results due to ongoing fiscal reforms amid macroeconomic challenges. The Naira’s exchange rate crossing the N1,000/US Dollar threshold is a particular concern.
Given the cautious environment in the nation’s equity market, analysts emphasize the importance of prudent investing, taking into account upcoming events and factors that will influence the market in the final quarter of the year.
Market analysis reveals that investors gained N179 billion, leading to a market capitalization of N36.510 trillion last Friday, compared to N36.331 trillion the previous week. Consequently, the Year-to-Date (YtD) growth reached 29.89%.
The weekly market breadth showed 1.11x, indicating 40 advancing stocks compared to 36 declining ones.
Looking ahead, Investdata Consulting analysts anticipate mixed sentiment driven by bargain hunting and portfolio repositioning in anticipation of Q3 corporate earnings reports. They also highlight the central bank’s upcoming monetary policy meeting as a key event to watch.
Meanwhile, Comercio Partners analysts anticipate a calm start to the week in the stock market.