Reversal Imminent As Profit Taking Moderates, Portfolio Rebalancing Continues
Market Update for January 25 Nigeria’s stock market on Thursday continued suffered its back-to-back loss for the fourth trading sessions on a very high intraday volatility to reflect the lingering profit booking amid repositioning by smart money and reshuffling of portfolios by investors in preparation for the Q3 and full-year earnings reporting season that is just by the corner. The mixed sentiments at the close of trading indicates a gradual easing of selling pressure as expected dividend paying stocks with strong fundamentals experience reversal after attaining their new support levels, a sign that the current market decline is coming to an end. This is however with a caveat that the expected 2017 full-year earnings reports beat market expectations, given that the huge robust investors’ outlook has already been factored into equity prices before now. Furthermore, the ongoing market correction is already revealing buying opportunities as the fundamental strength of these co...