Against the backdrop of the delayed approval of banks' audited results for the full financial year 2023 by the Central Bank of Nigeria (CBN), stock market investors are eagerly anticipating the outcome as the apex bank's Monetary Policy Committee (MPC) convenes today and tomorrow.

The results of the meeting, set to be announced tomorrow, are anticipated to impact investment choices across various market sectors, with particular emphasis on the financial sector.

Analysts have underscored that the delayed approval of banks' results is already impacting investors' sentiments and confidence in the sector, extending to the broader market.

They suggest that the Monetary Policy Committee (MPC) may have prioritized attracting foreign inflows to address foreign exchange (FX) challenges, potentially sacrificing the economy. This FX prioritization has yielded immediate benefits, as evidenced by the recent clearance of all FX backlogs by the Central Bank of Nigeria (CBN), leading to naira appreciation and a positive trajectory in the nation’s external reserves after months of decline.

In terms of market performance analysis, the Nigerian stock market saw a decline of 0.42% Week on Week (W/W). Notably, the Nigerian Exchange Limited (NGX) All Share Index (ASI), a key performance indicator, dropped to 104,647.37 points from 105,085.25 the previous week. Similarly, the NGX market capitalization, reflecting the total investment value on the Exchange, decreased to N59.168 trillion from N59.416 trillion the previous week.

During the week under review, losses in MTN Nigeria (down by 12.25% W/W), Dangote Sugar (down by 3.67% W/W), and Transcorp (down by 0.32% W/W) outweighed buy interests in First Bank Nigeria Holdings (up by 4.46% W/W), UBA (up by 11.11% W/W), and Access Corporation (up by 4.35% W/W), contributing to the market's negative performance.

As a result, the Year-to-Date (YtD) return on the index fell to 39.95%.

In their market outlook commentary, analysts at InvestData Consulting Limited stated: “We anticipate a mixed sentiment and ongoing profit-taking as market participants await the release of additional corporate earnings, including dividend possibilities ahead of the next MPC meeting. Investors are seizing opportunities presented by low valuations to adjust and rebalance their portfolios. Despite volatility and occasional pullbacks, these factors contribute to the market's upward potential. Consequently, investors should capitalize on price corrections, while also monitoring global and domestic trends and events.”