Local Shares Moderate by 1.78% amid Sustained Profit Taking…
In the just concluded week, the Nigerian equities market sustained its downward trajectory amid sustained profit taking activities even as speculative demand for shares of DANGFLOUR on the back of acquisition moves by Olam Nigeria Limited subsided.
The overall market performance measure, NSE ASI, closed southwards at 29,212.00 points, having lost 178 basis points w-o-w.
Amid sustained bearish activities, three of the five indices closed in negative territory: NSE Banking, NSE Consumer Goods and NSE Industrial indices moderated by 1.31%, 0.29% and 4.16% to 380.81 points, 671.05 points and 1,100.74 points respectively; however, NSE Insurance and NSE Oil/Gas indices rose by 1.30% and 0.02% to 120.73 points and 279.70 points respectively.
Meanwhile, market activities remained upbeat as total deals, transaction volumes and Naira votes increased by 17.95%, 2.65% and 2.72% to 18,090 deals, 1.47 billion shares and N15.49 billion respectively; suggestive that investors continued to take advantage of the lower share prices in line with our expectation.
In the new week, we expect domestic equities market to close marginally in green territory.
Hence, we feel investors would take advantage of the low share prices to “buy the dip”.