NSE opens week in red

The Nigerian equities market opened the week in the red, with some key players in the banking sector dragging down the market. Analyst Muktar Mohammed from Assar Investments shared his insights on the market's performance amid the current challenges. The market's infrastructure allows stock workers to trade from their offices, but the looming possibility of a total lockdown could severely impact trading activities. While stock workers are currently operating from their offices, any potential restrictions on movement could pose a threat to market operations. The recent announcement by the president exempting some sectors, including the financial sector through the Central Bank of Nigeria, offers a glimmer of hope for market continuity. However, the Securities and Exchange Commission may need to intervene to ensure the stock market also receives approval for operations during the lockdown. In comparison to South Africa's resilient market, the Nigerian Stock Exchange is facing a downward trend, leading to expectations of a lower market finish regardless of positive news. Amid such uncertain times, holding cash may seem like a safer option. Mohammed emphasized the importance of patience and long-term investment strategies in the current volatile market. With the global economy in turmoil and Nigeria facing its own challenges, investors need to adopt a long-term approach and weather the storm. The absence of positive market response to the presidential address echoes the uncertainty surrounding the market. While other countries witnessed market boosts following their leaders' speeches, the situation in Nigeria remains bleak due to the imminent lockdown in Lagos, the country's economic hub.