After a mixed trading session last week, market analysts at the Nigerian capital market have still come to say that investors at the NGX should expect a bearish run, which will involve more portfolio selling as the market seeks catalyst and policy direction from economic managers to push positive sentiment.
Last week, it was a loss at almost all ends; even a green run was less compared to previous weeks ruled by the Santa Claus era. Big conglomerates, as did market capitalisation and trading indexes such as the NGX ASI, witnessed their stocks drop.
Optimism From Market Analysts
Ambrose Omordion, the Chief Operating Officer of InvestData Consulting Limited, said,- We expect mixed sentiment to continue as players digest the latest GDP data and outcomes of the Debt Management Office (DMO) and Central Bank of Nigeria (CBN) 's recent auctions (CBN) in the face of expected audited corporate earnings and ongoing portfolio rebalancing.
- This is amidst the volatility and upcoming policy meeting, while pullback at this point will add more strength to the upside potential. As such, investors should take advantage of price correction. Also, looking at the trends and events across the globe and domestically.
- We anticipate the bearish sentiment to continue as the market seeks economic managers' catalysts and policy direction to trigger the positive sentiment.
- However, as we anticipate more corporate releases for the final quarter of 2023, investors will begin to rebalance their portfolio in their search for alpha amidst the rising fixed-income yields and outcome of the monetary policy meeting. Meanwhile, we continue to advise investors to take positions in stocks with sound fundamentals.
Read more: https://www.investingport.com/market-analysts-expects-a-bearish-run-this-week-in-the-ngx/