The Nigerian stock market experienced a bearish trend last week, with sell pressures on major stocks such as OANDO (-13.1%) and FIRSTHOLDCO (-7.6%) contributing to a slight decline in the All-Share Index by 0.1% week-on-week (w/w), closing at 105,511.89 points. As a result, the year-to-date return moderated to +2.5%, signaling a slight pullback in market momentum.
The subdued market activity this week can be attributed to the holiday-shortened trading sessions, which led to significant declines in both volume and value of trades. Trading volume plummeted by 84.4% w/w, while trading value dropped by 92.8% w/w.
Sector performance was largely negative, with the Insurance (-4.1%), Oil & Gas (-1.2%), Consumer Goods (-0.9%), and Industrial Goods (-0.2%) indices closing lower. However, the Banking sector saw a modest gain of +0.2%, providing a glimmer of hope amidst the broader market weakness.
Looking ahead, Experts at Cordross Capital say trading next week is expected to remain cautious, with the absence of major positive catalysts as recent dividend declarations and anticipated earnings from key banking stocks, such as ACCESSCORP and FIRSTHOLDCO, could spark bargain hunting and potentially offer some support to the market.
