Nigerian stock market sustains positive run

The Nigerian equities market has continued its positive run for the second consecutive week, with the benchmark index rising by 0.3%. Analyst Muqatar Mohammed from ASAR Investments shed light on the current market dynamics, indicating that investors are strategically taking positions in undervalued equities, particularly in the banking and oil and gas sectors. The recent OPEC deal and oil price increases have also contributed to the market's upward trend. Mohammed expressed optimism about the market's resilience, attributing the December performance to investors closing their books for the year and looking ahead to opportunities in the new year. He projected a potential slowdown in January due to profit-taking activities but anticipated an upside in February and March, driven by expected company results and dividends. When asked about the standout stocks of 2016, Mohammed highlighted Mobil and some banking stocks that experienced significant price surges unexpectedly. He underscored the importance of fundamental factors in driving market sentiment and noted that investors are currently capitalizing on undervalued equities in comparison to other financial instruments. Despite the speculative nature of the market, Mohammed remained cautiously optimistic about sustained growth, emphasizing the importance of results that are yet to be released in influencing market trends. He urged investors to engage in rational analysis and comparative evaluations to make informed decisions. The Nigerian stock market has seen a remarkable turnaround from previous losses, with three consecutive weeks of gains signaling a positive outlook for the future. As the year draws to a close, investors are cautiously optimistic about the potential for continued growth and profitability in the Nigerian equity market.