Equities market to rebound on bargain hunting

By Chioma Obinagwam
The Nigerian Stock Exchange (NSE) is expected to recover from the two days of losses witnessed in the previous week, Analysts at Afrinvest (West Africa) disclosed.
A bargain hunter is someone who is looking for goods that are value for money, usually because they are on sale at a lower price than normal.
“The Afrinvest weekly sentiment indicator declined to 2.4 points from 3.4 points recorded in the preceding week, largely due to weaker market breadth which fell to 0.8x (33 stocks advanced compared to 42 decliners) from 1.7x in the previous week,” Afrinvest indicated in its weekly stock recommendation report released on Tuesday.
“Following two days of successive losses in the market, we expect a rebound this week as investors seek for bargain hunting opportunities,” it added.
The NSE All-Share index and Market Capitalisation (two major measurement indicators of the NSE)  had shed 0.61 per cent each in the two last trading days of the previous week, closing at 38,928.02 basis point(bps) and N14.10 trillion respectively.
Recall that although the market witnessed loss in last two trading sessions of the preceding week, it was not enough to offset the gains in the first two trading days(Monday and Tuesday) of the week as the market recorded a 0.67 per cent.
As trading session continues today(Tuesday), investors are patiently looking at the pendulum to know which direction it will swing at the close of Tuesday’s trading session.
Afrinvest (West Africa) Limited is a wealth advisory firm involved in investment banking, securities trading, asset management and investment research with a focus on West Africa.