Nigerian Stock Exchange (NSE) listed Stocks have broken below the 50 day moving average trend line a bearish indication that may signal more selloff in the weeks ahead.
Equities are down 10.22 percent year to date and are struggling to get bids in the absence of a catalyst to propel them higher.
Second Quarter earnings season for NSE listed firms is right around the corner, but analysts don’t expect much good news from there to propel the market higher.
The coronavirus pandemic and related economic slowdown from lockdowns enacted to fight the virus likely led to a contraction in economic output in the second quarter, which will begin to show up in the results of companies due any moment from now.
The combination of negative earnings announcements and bearish technical means there is a good chance stocks go much lower from here.
The Nigerian Stock Exchange (NSE) all share index gained 0.30 percent to close at 24,097.48 points in Tuesday’s trading.
Market breadth index was slightly negative with 18 losers against 17 gainers.