The performance of the Nigerian Equity Market was bearish last week with the index (NSE ASI) down by 2.84% WTD to close at an index level of 39,323.62 and market capitalization of N14.24 trillion.
The sectoral performance was negative as bearish sentiments were witnessed in all sectors. The Banking sector recorded the highest loss amongst NSE indices with the NSE Banking index down by 4.38% WTD, owing to significant price depreciation in FCMB (- 15.38%). and DIAMONDBNK (-11.61%).
The market activities were characterised by profit taking during all trading sessions last week. This is due to reduced investor confidence owing to upcoming general elections, potential increase in US Fed rate and increasing yield in advanced economies.
In the global space, there are mixed reactions in the stock markets as US markets climbed up while Asian markets fell during the week as Trump cancelled the June 12 summit with Kim Jon Un of North Korea. We expect Energy stocks to fall further on a backdrop of potential increase in oil output from OPEC and non-OPEC members.