A capital market analyst, Mr Ambrose Omordion, on Monday said that the Nigerian Stock Exchange (NSE) would be dominated by profit taking as investors await the 2017 budget implementation.
Omordion, the Chief Operating Officer, InvestData Ltd., told the News Agency of Nigeria (NAN) in Lagos that the market would experience mixed performance due to profit taking.
He said that investors would likely embark on profit taking to take advantage of growth recorded by the market in the past few weeks, just as they await budget implementation and its implications to the market.
Omordion said that another factor that would affect market sentiments was the unstable price of oil at the international market, considering the fact that Nigeria remained a mono-product economy.
“The market is expected to be mixed this week as a result of continued profit taking and investors’ interpretation of the inflation rate that dropped significantly in May and what it portends for the market ahead of the Acting President brief on 2017 budget implementation,’’ he said.
Omordion, however, urged investors to position for value stocks with high value return potential.
NAN reports that a total turnover of 2.74 billion shares worth N32.04 billion were exchanged by investors in 32,217 deals last week, against a total of 3.10 billion shares valued at N29.18 billion exchanged in 33,677deals in the previous week.
The Financial Services Industry led the week’s activity chart with 2.19 billion shares worth N21.79 billion, traded in 18,832 deals.
The sector contributed 79.98 per cent and 68.01 per cent to the total equity turnover volume and value respectively.
The Conglomerates sector followed with 287.95 million shares valued at N621.77 million, transacted in 2,031deals.
The third place was occupied by Consumer Goods Industry with a turnover of 114.83 million shares worth N5.37 billion in 5,040 deals.
The NSE All-Share Index and market capitalisation appreciated by 533.88 points or 1.60 per cent to close at 33,810.56, against the 33,276.68 achieved in the previous week.
Also, the market capitalisation which opened at N11.504 trillion inched N188 billion or 1.63 per cent to close at N11.692 trillion.
May &Baker led the gainers’ table in percentage terms, growing by 60.56 per cent or N1.72 kobo to N4.56 per cent.
It was trailed by Skye Bank with a gain of 41.51 per cent or 22k to close at 75k and Cement Company of Northern Nigeria appreciated by 33.69 per cent or N2.33 to close at N8.85 per share.
Conversely, International Breweries topped the losers’ chart in percentage terms, dropping by 19.77 per cent or N6.18 to close at N26.05 per share.
Forte Oil trailed with a loss of 13.57 per cent or N8.72 to close at N55.58, while Learn Africa was down by 12.63 per cent or 12k, to close at 83k per share. (NAN)
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