As the first quarter frenzy subsides, the stock market is expected to shift into a more cautious mode.
Analysts predict cautious optimism for Nigeria’s stock market in the second quarter after a strong Q1, marked by bank stock declines and rising interest rates. The market saw a YTD return dip to 31.4% from 39.8%, driven by higher rates and concerns over banking recapitalization. The banking index slipped to a YTD loss of 13.7%. The CBN’s policy stance and plans for bank recapitalization weigh on investor sentiment, leading to a “wait and see” approach.
Challenges persist in May due to the CBN’s hawkish stance, with higher fixed income yields making equities less attractive. However, bargain hunting opportunities may emerge amidst the bearish trend, particularly in the banking sector. Consumer goods firms face FX losses amid naira devaluation, impacting their financial performance. Overall, cautious optimism prevails, but the market may remain bearish unless new liquidity enters.
Share News with us via WhatsApp:08163658925 or Email: naijaeyes1@gmail.com
Join Our Social Media Channels:
WhatsApp: NaijaEyes
Facebook: NaijaEyes
Twitter: NaijaEyes
Instagram: NaijaEyes
TikTok: NaijaEyes
