Nigeria's equities market kick off Q4 in red

Nigeria's equities market kicked off the fourth quarter on a negative note as investors continue trading with caution amid uncertainties surrounding economic policies. The market saw a slow start to the quarter, following a decline of about 4% in the previous quarter. Andrew Tsaku, a Financial Markets Analyst at Kapital Care Trust & Securities, joined CNBC Africa to review the trading day and offer insights for the rest of the year. Tsaku expressed concerns about the cautious sentiment among investors, noting that several variables are not serving as catalysts for market growth. He highlighted the upcoming third-quarter results' declarations by companies as a potential driving force for market positivity. However, Tsaku emphasized that investors are likely to remain on the sidelines and adopt a cautious approach until clearer economic policies emerge. The market's performance in the third quarter, where it was down 4%, indicates the impact of such caution. Tsaku suggested that the market might trade sideways, with some stocks registering gains while others experience losses, resulting in overall stagnant performance. Despite attractive equity prices, investors are hesitant due to economic uncertainties and the comparatively stable returns offered by the fixed income market. Tsaku predicted that unless significant policy changes occur, the market is unlikely to deviate significantly from current levels in the coming quarter. When asked about his top picks for the quarter, Tsaku expressed optimism about banking stocks, industrial stocks, and select consumer names. He believed that these sectors could outperform expectations, potentially driving the market towards a positive close for the year, provided there are no unexpected shocks. Tsaku concluded by reinforcing the importance of monitoring earnings reports as they are released, indicating their potential impact on market movements. Overall, the market outlook for Nigeria's equities remains cautious as uncertainty looms over economic policies and investors tread carefully into the final quarter of the year.