By Nkiruka Nnorom

WITH the absence of new information, especially in relation to earnings reports, to drive activity in the equities market, analysts have said that the intensity of sell-off will increase this week and over the remaining part of the year.

This was after investors lost N139 billion, while the key market indicator – the All share Index (ASI) slipped to ts lowest point this year, at 31,678.70 points and the year-to-date (YtD) return fell to -17.17 percent.

The market had opened on a positive note at the beginning of the trading session last Monday with the ASI going up by 0.51 percent owing to interest in consumer goods stocks. However, the gains were wiped off on Wednesday when the market resumed after the public holiday on Tuesday. Consequently, the ASI shed 0.78 percent following losses across major industrial goods and banking stocks.

The floor of Stock exchange

Investors’ sentiment turned positive again on Thursday as ASI recorded a mild gain of 0.05 percent. Strong bears presence manifested on Friday, with depreciation of 0.96 percent in the ASI to 31,678.70 points. This resulted in 1.18 percent decline during the week.

Similarly, the market capitalisation of all listed equities fell by N139 billion to close at N11.565 trillion from N11.704 trillion in the previous week, reflecting 1.18 percent decline.

Vetiva Capital in its weekly report projected another negative trading session as investor apathy continues to weigh on market activity.

According to Charles Fakrogha, stockbroker and Chief Relationship Officer at Foresight Securities, there would be no marked improvement in market activities owing to the absence of a positive trigger.

“I dont see the market improving as there will be no increase in market information; I see a lot of sell pressure and I expect the market to close negative at the end of the year,” he said

In their projection, analysts at Cordros Capital said: “We expect the negative performance for the equities market to persist, amidst growing political concerns ahead 2019 elections, and absence of a positive market trigger.”

Breakdown of sectorial activities last week showed that the consumer goods, insurance and oil & gas sectors recorded upward movements rising by 1.08 percent, 1.38 percent and 0.25 percent respectively. The banking and industrial goods sectors, however, recorded declines of 0.75 percent and 5.28 percent respectively.