… Analyst predicts gloomy outlook as uptick in fixed market persists
Although the price of many blue-chip firms have fallen below fair value and are currently trading at a very low price compared to their fundamentals, investors are showing apathy towards the stocks. A review of sectoral indices during the month indicated that the NGX Industrial Index suffered the highest decline in August, dropping by 13.8 per cent to 1,777.14 basis points from 2,062.30 basis points it opened for trading. Oil & Gas Index index depreciated by 4.3 per cent to 532.15 basis points from 556.28 basis points it opened for trading in August.
“Also, foreign investors avoided the Nigerian stock market due to the upcoming general elections, weak local currency and insecurity in the country.” “Nevertheless, our medium-long term outlook for the Nigerian equities market remains positive. This provides an opportunity for investors that want to take advantage of cheap stocks in the market at the moment.”