Nigeria equities market ends week negative

The Nigeria equities market has had a challenging week, with the NSEO index closing down approximately a quarter of a percent at just over 55,500 points. The market has experienced declines every day this week, as investors show a preference for the fixed income markets amidst concerns about the currency and the overall economic environment. Baba Ibrahim, Managing Director of Main Street Bank Securities, provided insights on the state of the market and offered guidance to investors during a recent interview on CNBC Africa. Ibrahim acknowledged the tough week that had ended and highlighted key data points to watch out for in the upcoming week, such as the GDP numbers and the MPC meeting. He expressed caution about the possibility of a quick market recovery, attributing it to the upcoming holiday season where consumer spending might provide a boost. Despite the current volatility in the market, Ibrahim advised investors to hold onto their investments as he foresees a potential turnaround as early as February next year. Additionally, he pointed out several stocks trading below their expected value, particularly in the banking sector, which he believes have strong fundamentals and growth potential despite current challenges such as non-performing loans. Ibrahim also discussed the optimism among stockbrokers regarding the proposed national economic recovery plan, emphasizing the importance of having a clear blueprint for economic growth and development. He viewed the plan as a crucial step towards speeding up the economic recovery in Nigeria. Overall, while the equities market in Nigeria faces uncertainties and challenges, there is cautious optimism among market participants regarding a potential turnaround in the coming months.