By Peter Egwuatu

Stock market volatility continued with the benchmark Nigerian Exchange Limited, NGX, All-Share Index, ASI, closed higher, gaining a modest 11 bases points, bps, Week-on-Week, WoW, at 66,464.57 points last Friday from 66,362.14 points the previous week.

This is as investors look forward to policy statements from the fiscal and monetary authorities as the new ministers and apex bank leadership settle down to roll out new economic plans, or agenda to put the economy on a growth path.

More companies continue to announce their second quarter 2023, Q2’23, financial results while the third quarter 2023, Q3’23, are already being expected to start pouring in any moment from next week for early filers. 

Analysts are of the opinion that amidst concerns over macroeconomic headwinds in the country Q3’23 earnings reports are expected to remain mixed due to the ongoing fiscal reforms by government, at a time of lingering foreign exchange challenges, with the Naira already crossing the N1,000/US Dollar threshold.

The analysts say that owing to the cautious environment pervading the nation’s equity market, it is important that investors invest wisely ahead of events and factors that will shape the market in the final quarter of this year. 

Analysis of the market showed that investors gained N179 billion as market capitalisation closed last Friday at N36.510 trillion from N36.331 trillion the previous week. Consequently, the Year-to-Date, YtD, growth rose to 29.89%.

Further details revealed that the weekly market breadth stood at 1.11x, signifying 40 advancing stocks in comparison to 36 declining ones.

On market outlook, analysts at Investdata Consulting said: “We expect mixed sentiment to continue on bargain hunting and portfolio repositioning ahead of Q3 corporate earnings reports in the face of sector rotation, with all eyes are on the reconvening of monetary policy meeting by Central Bank of Nigeria, CBN.

”However, pullbacks are creating ‘buy’ opportunities amidst the economic reforms of the government, just as more policy pronouncements and economic managers hit the ground running, a situation expected to offer investment direction eventually.”

Analysts at Comercio Partners simply said: “We expect a calm start to the week.”