Nigerian equities market to remain cautious this week, says analysts
Capital market analysts have expressed that investor sentiment on the equities market section is expected to remain cautious in the near term.
They listed corporate earnings releases of the half year ended June 2026, developments in the foreign exchange market, FTSE latest reclassification update and macroeconomic policy signals as the major drivers.
Speaking on equities market outlook, a group of analysts at Imperial Asset Managers Limited said, investor sentiment is expected to remain driven by positioning ahead of upcoming corporate earnings releases, developments in the foreign exchange market, and macroeconomic policy signals.
“While bargain hunting has begun to emerge in selected fundamentally sound counters, investors are likely to remain selective given prevailing market uncertainties. We therefore maintain a disciplined investment approach, favouring fundamentally strong companies with resilient earnings prospects and sustainable dividend potential,” it stated.
Looking ahead, Cowry Assets Management Limited said that “the Nigerian equities market is expected to remain cautiously bearish as investors continue to lock in gains following the market’s strong year-to-date performance. Profit-taking is likely to persist, particularly in large-cap and recently appreciated stocks, while elevated interest rates and attractive fixed-income yields may continue to divert funds away from equities.
“Consequently, market performance in the coming week is expected to be driven by investors’ reaction to earnings expectations, macroeconomic developments, and sector-specific catalysts, with sentiment remaining broadly cautious.”
Also, Cordros Securities Limited noted that “we expect market sentiment to improve as investors selectively accumulate beaten-down stocks at attractive entry points, favouring fundamentally sound counters ahead of the H1, 2026 earnings season.
“Nonetheless, elevated yields on government instruments are expected to sustain competition for investor liquidity, with anticipated primary market activity remaining a headwind to equities.”
For last week, the Nigerian equities market closed on a bearish note as persistent sell-side pressure across major counters weighed on investor sentiment.
Consequently, the benchmark NGX All-Share Index (ASI) declined by 1.21 per cent week-on-week to close at 229,240.34 points, while market capitalization fell by N1.802 trillion to close the week at N147.103 trillion.
As a result, the market’s year-to-date return moderated to 47.31 per cent, reflecting cautious investor positioning amid sustained profit-taking.
