Nigeria's equities market ends week lower

Nigeria's equities market ended the week slightly lower today after a period of mixed performances. The market saw Unilever reporting a significant increase in pre-tax profit, from 2 billion naira to 4 billion naira year-on-year. Ebi Fumudoh, CEO of TFS Securities, shared insights on the current market trends and potential factors influencing investor sentiment. The trading session today reflected a cautious approach from investors, with the market showing signs of uncertainty amidst ongoing economic challenges. The foreign exchange market, with the naira strengthening against the dollar, raised questions about the potential for foreign investor participation and market recovery. Despite the improved exchange rate, investors remain cautious, waiting to see if the current stability is sustainable or temporary. Fumudoh highlighted concerns about the market's dependence on money market instruments like treasury bills, which offer attractive returns of about 22%. This has drawn funds away from equities, impacting market momentum. The slow return of funds from money market instruments to equities indicates a conservative approach from investors, reflecting the need for sustained positive market indicators. The recent financial results of companies like Unilever and Lafarge indicate a positive turnaround in their performance. However, the impact on share prices has been limited due to prevailing market conditions. Fumudoh emphasized the importance of stability in the foreign exchange market and the oil and gas sector for a significant upward movement in share prices. Overall, the equities market is poised to reflect the positive developments in the economy, provided key sectors remain stable. Investor sentiment remains cautious, awaiting clearer signals of sustained recovery and growth in the market.