The Nigerian stock market extended its bearish run for the fourth consecutive week last week, as losses in BUACEMENT (-10.0%), TRANSCORP (-7.8%) and GTCO (-4.6%) drove the All-Share Index (ASI) lower by 0.9% w/w to 104,962.96 points. As a result, the month-to-date and year-to-date returns moderated to -2.7% and +2.0%, respectively.

Trading activity mirrored the broader market sentiment, as both volume and value fell by 12.1% w/w and 25.3% w/w, respectively. Similarly, sectoral performance was predominantly negative, with the Industrial Goods (-3.4%), Insurance (-2.9%), Banking (-2.6%), and Oil & Gas (-1.1%) indices recording losses, while the Consumer Goods (+0.1%) index posted a modest gain.

With many of the audited earnings reports coming in this week (going by post-listing rules), the market may change direction this week – from bearish to bullish – depending on the performance of the companies as captured in their audited financial reports. If the performance of the companies is good, investors are likely to move into the market with renewed interest, and this will shift market indices northwards. Beyond good performance of the companies, investors will become more bullish if the companies declare mouth-watering dividends.