Profit Taking May Resume, Amidst Month-End Portfolio Balancing, Volatility, Influx Of Q3 Numbers
Market Update for Week Ended January 26 and Outlook for Jan 29-Feb 2 Nigeria’s equity market during the past week closed lower for the first time this year after three straight weeks of up market when it ranked as the world’s best performing bourse, but witnessed a pullback as a result of massive profit taking activities which led to a back-to-back loss for four trading sessions. The week also witnessed a very high intraday volatility to create buying opportunities that supported reversal that halted the free fall of stock prices within the period under consideration on Friday. The relatively lower prices resulting from the latest market corrections ahead of the earnings reporting season attracted repositioning by smart money, amid reshuffling of portfolios by investors in expectation of Q3 March accounts and full-year earnings reports for December year-end accounts that are around the corner. This led to the renewed “BUY” market on Friday as a result of price adjusting downwa...