Panic Wanes, Hope Rises, As Nigeria’s Equity Market Await Full-Year, Q3 Financials
Market Update for February 7 At the end of midweek’s trading session, Nigeria’s stock market had a volatile, but mixed session to close south in continuation of its three consecutive days of correction, a signal that reversal is imminent, after the benchmark index gapped in the upside at the early trading hours to intraday highs of 43,921.17 and lows of 43,534.71 points. The market’s mid-morning rally resulted from bargain hunters trying to take advantage of low prices to position. Price depreciation recorded by Dangote Cement and Nigerian Breweries, the NSE’s two biggest stocks by market capitalization by the afternoon session finally pushed the market downward on low volume and negative breadth. With the ongoing market shakeout gradually coming to end ahead of the earnings reporting season, investors should focus on companies with juicy profit margins and strong balance sheets that will rebound powerfully after their dislocation from this correction wave. The sell down has ...