Bearish sentiment prevails in the Nigerian equities market

The Nigerian equities market has been experiencing a bearish trend in recent times, but there seems to be a glimmer of hope on the horizon. Baba Ibrahim, the Managing Director of Main Street Securities, recently joined CNBC Africa from the Nigerian Stock Exchange to shed light on the current market situation. Ibrahim noted that there has been a shift in sentiment in the market, with certain stocks, particularly in the consumer goods sector, experiencing renewed interest from investors. He highlighted the performance of companies like Cadbury and Unilever, which have seen fluctuations in their stock prices but are now showing signs of a rebound. Ibrahim pointed out that the consumer goods sector, in particular, has been garnering attention as investors view the current valuations as attractive re-entry points. One of the key themes discussed in the interview was the potential for a fundamental shift in market sentiment going forward. Ibrahim suggested that investors are reassessing their portfolios and seeking opportunities for better performance as 2019 approaches. He mentioned that some investors are looking to reallocate their investments, possibly selling off underperforming stocks to reinvest in others that show promise. Additionally, Ibrahim highlighted the impact of foreign investor participation in the market, noting that while foreign investors are important, it is essential to prioritize the development of a strong local investor base. When asked about preferred stocks at the moment, Ibrahim emphasized the banking sector, citing stocks with strong fundamentals and high dividend yields as attractive options. He specifically mentioned United Bank for Africa (UBA) as having the highest yields in terms of dividend payouts, making it a favorable choice for investors looking for reliable returns. In conclusion, the Nigerian equities market appears to be on the cusp of a potential turnaround as sentiment shifts and investors reevaluate their portfolios. With certain sectors showing signs of recovery and renewed interest from investors, there is optimism for a positive trajectory in the market. As 2018 draws to a close, all eyes will be on how the market performs leading into the new year.