NGSE Indicators Slowdown Again, As Wait For Positive Economic News Continues
Market Update for March 18 Monday’s trading on the Nigerian Stock Exchange (NSE) remained volatile and negative to start the week with slight decline, extending three consecutive days of losses on a low traded volume and mixed sentiments. The continued downtrend in the midst of good company fundamentals and low valuation can be linked to liquidity problem in the equity segment of the capital market, even as legal battle is set to begin following the outcome of the February 23 Presidential election by the main opposition Peoples Democratic Party (PDP). Despite the seeming inflow as revealed through the investors and exporters window, foreign investor’s interest has remained tilted towards high interest yield fixed income instruments, including sovereign bonds. We believe this sustained interest can be linked to several factors, particularly the fact that global monetary authorities have signaled policy direction towards a dovish stance in 2019. This has seen yields in developed m...