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Nigeria Stock Exchange closes in red zone
The Nigeria Stock Exchange All Share Index continued its negative trend and ended for the day in the red for the third consecutive session. Ebi Fumudoh, CEO, TFS Securities joins CNBC Africa to review the trading day.
Wed, 07 Sep 2016 14:00:25 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The NSE ASI experienced volatility, closing in the red for the third consecutive session, with the market showing a slight recovery after significant declines.
- The downstream oil sector, including companies like Forte Oil and Total, faced challenges amid uncertainties surrounding petrol price hikes and general struggles in the oil and gas industry.
- Macroeconomic challenges, such as contractions in previous quarters and expectations for further contraction, have impacted investor sentiment, leading to a cautious approach to investment strategies.
The Nigeria Stock Exchange All Share Index (NSE ASI) has been experiencing volatility in recent trading sessions, with the market finally moving higher after a significant decline. Ebi Fumudoh, CEO at TFS Securities, provided insights and analysis on the trading day, highlighting the factors driving the market movements. Despite the slight recovery, the NSE ASI closed in the red for the third consecutive session.
The recent events and news have been factored into the market, as the ASI has been hovering around 27,000 levels for the last 60 days. Fumudoh pointed out that while there was a last-minute increase in the market, overall volatility remained. The downstream oil sector, including companies like Forte Oil and Total, has been drawing attention due to recent declines. However, Fumudoh noted that the oil and gas industry as a whole has been struggling, with uncertainties surrounding petrol price hikes contributing to the bearish trend.
The macroeconomic challenges facing Nigeria, including significant contractions in the first two quarters and expectations of further contraction in the third quarter, have impacted investor sentiment. Fumudoh explained that the market had seen a contraction from January to April, followed by a rebound which was later lost. Despite the current consolidation phase, there is anticipation for a potential breakout in the market.
In terms of sector recommendations, Fumudoh advised investors to focus on the fundamentals of the companies they invest in. While the consumer goods sector remained strong and the banking sector faced some challenges, certain stocks in the market, such as aggregate stocks benefiting from Forex fluctuations, offer opportunities for investors. Overall, Fumudoh suggested that investors adopt a cautious approach and evaluate sectors based on their fundamentals.
As the NSE ASI continues to navigate through volatile trading sessions, investors are advised to stay informed and monitor market developments closely to make informed investment decisions.
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