Mr Ambrose Omordion, a capital market analyst, on Monday predicted that the Nigerian Stock Exchange (NSE) would likely experience price volatility this week due to profit taking.
Omordion, the Chief Operating Officer, InvestData Ltd, expressed this view in an interview with the News Agency of Nigeria (NAN) in Lagos.
According to him, the market is likely to witness panic selling and re-positioning ahead of the earnings reporting season.
He said that investors would embark on profit taking to take advantage of 10.21 per cent growth recorded by the market last week.
The market analyst said that the nation’s December inflation figure, expected to be released within the week by the National Bureau of Statistics (NBS), would also determine the market trend.
Omordion, however, urged investors not to be sentimental in their investment decisions while re-positioning for the rest of the year.
He said that investors should make use of numbers released in the market to guide their investment decisions.
The analyst attributed the market 10.21 per cent growth last week to low valuation and “high upside potentialities as many stocks were selling below their 2014 prices in spite of improved earnings and returns.”
He said that the bullish sentiment was due to early positioning by all-classes of market players in low, medium and highly capitalised stocks ahead of the earnings season.
Omordion said that the NSE All-Share Index Year-to-Date return stood at 12.17 per cent due to huge price rally.
NAN reports that a total turnover of 5.02 billion shares worth N68.97 billion were traded by investors in 41,542 deals last week.
This was in contrast to 2.42 billion shares valued at N18.81 billion exchanged in 20,874 deals in the preceding week.
The Financial Services Industry (measured by volume) led the activity chart with 3.42 billion shares worth N31.65 billion traded in 24,375 deals.
The sector contributed 68.06 per cent and 45.89 per cent to the total equity turnover volume and value, respectively during the period.
The Conglomerates followed with 894.36 million shares worth N2.18 billion in 3,032 deals.
The third place was occupied by Consumer Goods Industry with turnover of 380.49 million shares valued at N26.24 billion in 7,408 deals.
NAN also reports that the index rose by 3,975.64 points or 10.21 per cent last week to close at 42,898.90, against 39,923.26 posted in the preceding week.
Similarly, the market capitalisation, which opened at N13.851 trillion, inched by N1.52 trillion to close at N15.368 trillion.
Honeywell Flour Mills led the price gainers’ table in percentage terms, growing by 39.68 per cent or N1 to close at N3.50 per share.
Skye Bank followed with a gain of 37.70 per cent or 23k to close at 84k, while Champion Breweries grew by 36.57 per cent or 79k to close at N2.95 per share.
On the other hand, DN Meyer topped the price losers’ table in percentage terms, declining by 2.86 per cent or 9k to close at 61k per share.
GlaxosmithKline Consumer trailed with a loss of 2.71 per cent or 60k to close at N21.50, while Dangote Sugar Refinery dropped by 2.65 per cent or 58k to close at 21.27 per share. (NAN)
