Analysts have advised investors to take advantage of the present decline in equities to increase their holdings.
The analysts said most stocks in the equities section of the Nigerian Stock Exchange were selling at prices below their 2013 year-high.
They added that this might be a good time for investors to stake more funds in the market.
According to the analysts, the downturn recorded in the market in the last few weeks is not expected to drag any further, adding that it was, therefore, wise for investors to buy more at this time.
Activities in the capital market had been on a decline since the middle of last month as major indicators began to shed significant weight, following the bullish run, which occurred a few weeks before.
In their report for the week ended March 15, 2013, analysts from Meristem Nigeria Limited said the sentiment of investors in the market remained high despite the marginal losses recorded in the last few weeks.
They said, “One thing is certain; investors remain optimistic and anxiously waiting for the 2012 corporate earnings results. Prices of most stocks are currently below their 2013 year high – this is an indication of entry signal at the moment. We expect the positive sentiments to remain in the near term as no potential macro or fiscal threat exists.
“While we do not see any near term threats justifying this sharp decline, we advise against panic selling as banking stocks remain toasts of the market, especially from the expected 2012 dividend yields perspective.”
At the end of last week, the NSE’s All-Share Index rose by 0.31 per cent to close at 32.950.08 points, up from 32,849.11 recorded at the beginning of the week.
Similarly, the market capitalisation of the listed equities gained N32bn or 0.31 per cent to close at N10.544tn, up from N10.511tn recorded the preceding week.
Also, the NSE 30 Index appreciated by 0.36 per cent from 1,572.76 points to close at 1,578.47 points.
A total 2.550 billion shares worth N21.694bn were exchanged by investors last week in 29,335 deals, compared to 1.928 billion shares valued at N20.9bn exchanged the preceding week in 28,832 deals.
Total Nigeria Plc recorded the highest price appreciation of the week, rising by 8.7 per cent or N12.89 to close at N161 per share.