NSE top gainers & losers for the week: GT Bank, MTN Nigeria, Dangote Cement

Nigeria’s equities market closed negative last week as the All-Share Index shed 1.3 per cent week-on-week. Ifedayo Olowoporoku, Analyst at Vetiva, joined CNBC Africa to discuss the market performance. The market saw a bearish sentiment continuing for several weeks, reflecting a lack of positive catalysts to drive momentum. Despite a brief respite with a mild bargain hunting session, the overall sentiment remains bearish. The volumes and value traded also decreased last week, indicating lower activity levels and investor participation. One of the key topics of discussion was the potential listing of Etisalat Nigeria, which could provide a boost to the market similar to the MTN listing. However, the broader market may not necessarily benefit from this rally, as other sectors like banking, consumer goods, and industrial goods have remained subdued. The telecom sector, on the other hand, is gaining relevance on the Nigerian Stock Exchange, hinting at potential growth opportunities. Major sectors such as oil and gas and industrial goods have faced significant declines in the second quarter, with stocks like Dangote Cement experiencing pressure. Consumer goods have also faced challenges, leading to a widespread negative sentiment across the market. As half-year earnings reports are on the horizon, expectations for positive surprises are tempered by the overall market outlook. The operating environment, including inflation and oil prices, remains a point of concern. While inflation is expected to tick upwards slightly, the implementation of minimum wage increases may not have an immediate impact. Oil prices, driven by tensions in the Gulf region, have seen volatility, with Brent prices hovering around $60 per barrel. These short-term fluctuations may not have a lasting impact on the Nigerian market, which is more influenced by production, demand, and supply factors. Overall, the Nigerian equities market faces challenges in finding a sustainable catalyst for growth amid a bearish sentiment. While individual sectors like telecoms show promise, the broader market remains subdued. Investors are cautious as they await half-year earnings reports and monitor external factors like inflation and oil prices for potential market impact.