Sell-offs May Slowdown As Lower Prices Attract New Positioning
Market Update for July 3, 2018 It was another horrible and volatile session on the Nigerian Stock Exchange Tuesday as the market gapped down on cautious trading with the March full-year results released so far failed to impact the market as a result of mixed performance recorded, especially given the modest revenue growth by consumer goods makers. The consumer goods are often well patronized by Nigerians, depending on their disposable income, thereby providing a good gauge of the health status of the nation’s manufacturing sector. It thereby confirms the prevailing narrative suggestive of a slowdown in the Federal Government’s economic recovery efforts as signaled by the Q1 GDP data, a situation that may likely worsen in the Q2 when the data is published by the National Bureau of Statistics (NBS). This situation has further been reflected in the marginal increase in the recently released June PMI data. Consequently, the possibility of most corporate earnings beating expecta...