TUE, JANUARY 08 2019-theG&BJournal- Not even the positive economic data can shake its angry mood. It has now shrugged off all entreaties for the fifth consecutive section dropping 1.20% to 30,036.15 points, following a rout across large-cap Banking and Consumer Goods counters today (9 Jan.8 2019).
Nothing seems to be able to exorcise the demons, strategists can’t even stick their necks out anymore to project comeback soon given the depth of selloff so far.
The Month-to-Date loss increased to 4.44%. Heavy losses were evident across most sector indices – Banking (-3.57%), Insurance (-3.30%), Oil & Gas (-1.45%), and Consumer Goods (-0.47%). The prominent stocks include GUARANTY (-5.47%), NEM (-9.40%), OANDO (-7.49%), and FLOURMILL (-8.63%). Meanwhile, the Industrial index (+0.53%) closed positive following gains in WAPCO (+3.08%).
Market breadth remained negative, with 12 gainers and 28 losers, led by JOHNHOLT (+9.09%) and NEM (-9.40%) stocks, respectively. Total volume and value of trades fell by 2.8% and 20.1% to 216.25 million units and NGN2.67 billion, respectively, and exchanged in 4,508 deals.
‘’ We reiterate our negative outlook for the equities market in the medium term amidst political concerns ahead of the 2019 elections. However, positive macroeconomic fundamentals remain supportive of recovery in the long term,’’ says analysts at CORDROSS Capital.
Some analysts say their long term view is okay but the damage will be hard to forget over the short-to-medium-term.
“We expect a bear market rally to continue over the coming weeks, and over the coming months to quarters,” said one technical analyst who doesn’t see an immediate rebound given the heat the general election is generating. The election begins mid February 2019 and no one is betting on the selling pressure to ease sooner or work itself out.
But you bet, this is about the best time to jump into the market in part given that stocks have the potential to rise immediately after the elections on valuations alone.
The index has been tumbling; making stocks affordable and so for us at theG&BJournal this is the time to begin buying into the current weakness.
Meanwhile, The Stock Exchange is set to hold its 2018 Market Recap & Outlook for 2019 on Monday, January 14, 2019, at the Stock Exchange House, Marina, Lagos.
This annual event is a forum for the Chief Executive Officer of NSE, Mr. Oscar N. Onyema, OON, to brief the stockbroking community, analysts, media and other stakeholders, on the performance of the market in the preceding year and give prognosis for the market for the New Year, 2019.
With the significant progress made by the exchange in 2018 in areas of thought leadership, product development, regulation, sustainability, protection of investors fund amongst others, attendees will have the opportunity of learning more of the 2019 plans.
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