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Analysts project profit taking equities market this week

As investors gain N1.5trn in 5 days

Stories by Peter Egwuatu

FINANCIAL Analysts have predicted that the equities will be characterised with profit taking from investors this week as the six-day impressive rally in the Nigerian Stock Exchange, NSE was halted Friday last week.

The uptrend in market performance from the prior week was sustained last week as the NSE All Share Index (ASI) closed in the positive on all trading sessions save for Friday. Thus, the NSE All Share Index gained 10.2 per cent Week on Week, W-o-W to settle at 42,898.90 points while Year to Date, YtD return expanded to 12.2 per cent. Consequently, investors gained a total of N1.5trillion in value as market capitalization closed at N15.4 trillion.

The floor of Stock exchange

Reacting to the performance of the market, analysts at a Lagos based firm, Afrinvest Research stated: As the benchmark index halted a six-day bullish streak today, (Friday) we envisage some profit taking in early trades this week. Nevertheless, we maintain our near term positive outlook on market performance.”

In its review, analysts at Meristem Securities, a Lagos based firm stated “While we expect some profit taking in the week ahead, we do not rule out the possibility of bandwagon effect driving the market to a positive close.”

Analysts at FSDH Group Research, said:   “The market recorded a broad sell-off of equities (predominantly in the banking sector) on Friday owing to profit taking, leaving a number of stocks on offer at the lower limit. There will likely be a pullback in market performance in coming sessions, as we expect profit taking to continue.”

Meanwhile, Honeywell Flour Mills Plc outperformed other stocks, as it advanced by 39.68 percent, to close at N3.52 per share. Trailing behind was   Skye Bank Plc gaining 37.70 percent,   Champion Breweries garnered 36.57 percent,   Sterling Bank Plc gained 35.46 percent and Diamond Bank was  up by 34.39 percent. Conversely, MEYER   Plc shed 12.86  percent of its value, to emerge as the worst performing stock. Glaxosmithkline followed dropping by 2.71 percent. Dangote Sugar dropped by 2.65 percent, UAC-Property shed 2.28 percent and Flourmills Nigeria declined by 1.66 percent.

Notable gains were recorded in the banking and industrial goods space, as the sectors recorded no losers in the week.   A total turnover of 5.021 billion shares worth N68.974 billion in 41,542 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 2.417 billion shares valued at N18.813 billion that exchanged hands penultimate week in 20,874 deals.

The Financial Services Industry (measured by volume) led the activity chart with 3.417 billion shares valued at N31.649 billion traded in 24,375 deals; thus contributing 68.06 percent   and 45.89 percent   to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 894.357 million shares worth N2.180 billion in 3,032 deals. The third place was occupied by Consumer Goods Industry with a turnover of 380.493 million shares worth N26.243 billion in 7,408 deals.


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