The upward retracement in yields in the fixed income market has continued to dampen investors’ interest inequities as the bearish performance in the Nigerian Stock Exchange extended to a third consecutive week.
The Chief Research Officer of Investdata Consulting Limited, Ambrose Omordion, said: “While chart watchers and market participants await a trigger to drive the anticipated reversal of trend, these pullbacks are creating buy opportunities ahead of earnings expectation. “However, we do not rule out the possibility of continued profit-taking activities due to growing concerns about yield elevation in the FI market. As a result, we think the local bourse will likely exhibit a zig-zag pattern. Notwithstanding, we advise investors to take positions in only in blue-chips as the unimpressive macro story remains a significant headwind for corporate earnings.
The ASI dropped by 77.32 absolute points, representing a drop of 0.19 per cent to close at 40,494.35 points while market capitalisation depreciated by N41 billion to close at N21.184 trillion.