Capital market analysts have predicted that this week, the uptick in fixed income rate may further drive sell-offs in the stock market.
In the new week, analysts at Cowry Asset Management Limited expects the domestic equities market to trade southwards as yields become attractive in the fixed income space. “The pullbacks offer bargain hunters and income investors another opportunity to reposition in high dividend yields and undervalued stocks, while looking out for quarterly numbers that would support recovery. This is based on the fact that the rising fixed income yields may not be enough to scare all investors away from the equity market.
He added that the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the new year. Market breadth for the week was negative as 18 equities appreciated in price, 47 equities depreciated in price, while 97 equities remained unchanged. FTN Cocoa Processors led the gainers table by 16.28 per cent to close at 50 kobo, per share. Morison Industries followed with a gain of 9.30 per cent to close at 94 kobo, while Royal Exchange went up by 8.33 per cent to close to 39 kobo, per share.
The Financial Services Industry, measured by volume led the activity chart with 853.125 million shares valued at N6.754 billion traded in 11,127 deals;