Nigerian equities are losing momentum, with market breadth indicating weakness as most sectors ended lower. Structural inefficiencies, particularly regarding the port system, hamper trade and inflate costs, impacting listed companies dependent on goods distribution. Although headline inflation eased to 21.88% in July, supporting potential for softer monetary policy, market conditions remain cautious. Private sector activity shows improvement with a PMI rise to 54.0, which may help to limit corrections and support the market despite ongoing challenges.
Nigerian equities are experiencing declining momentum, as evidenced by nine sectors showing negative performance, while only six sectors advanced, indicating a cautious market atmosphere.
Structural challenges in Nigeria, particularly regarding port systems, continue to undermine trade flows, leading to congestion and inflated logistics costs that directly affect listed companies.
Headline inflation dropped to 21.88% in July, reflecting a trend that may influence market expectations toward a more lenient monetary policy, potentially supporting overall market activity.
Improvements in private sector activity, indicated by a PMI of 54.0 in July, may provide market support and mitigate potential corrections amid broader economic challenges.
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