Equities market sustains sliding profile amid unstable economic outlook

By Helen Oji

 Negative macroeconomic indices and unstable economic outlook depressed transactions on the equities sector of the Nigerian Stock Exchange (NSE), as the All-Share Index depreciated by 0.08 per cent to close the week at 25,572.57.

All other indices finished lower with the exception of NSE Main Board, NSE Pension, NSE Insurance, NSE Meri Growth, NSE Consumer Goods, NSE Lotus II and NSE Industrial Goods Index, which appreciated by 0.13 per cent, 0.06 per cent, 0.01 per cent, 0.17 per cent, 0.13 per cent, 0.19 per cent, and 0.50 per cent, respectively, while NSE ASeM Index closed flat.

At the end of trading last week, the market sustained a sliding profile for three consecutive trading days.

Analysts predicted that the mixed performance is likely to persist, as September progresses in the midst of profit-booking, mismatch of economic policies, and negative macroeconomic indices.

The Chief Research Officer, Investdata Consulting, Ambrose Omordion, said: “Capital waves in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation, negative Q2 GDP of 6.1 per cent, and unstable economic outlook for the rest of 2020.

“This is just as the government and its economic managers are going back and forth with mismatched policies and implementation. Since rising hyperinflation in the country would remain unchanged in the near future due to the economic reform policies emanating from the government and its policy makers, investors should be mindful of the on-going correction.”