Experts foresee profit taking on NSE ahead of July inflation data

NAN-HE-2
Market
By Chinyere Joel-Nwokeoma
Lagos, Aug. 15, 2017 (NAN) Some capital market operators have expressed optimism that stock market activities would experience mixed performance due to profit taking and July inflation figure expectations.
They told the News Agency of Nigeria (NAN) on Monday in Lagos, that the market this week would likely be buoyed with profit taking, with investors taking advantage of gains recorded in recent time.
Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that analysts were anticipating profit taking on the strength of second quarter numbers released in the market so far.
Kurfi said that July inflation figure that would be released by the National Bureau of Statistics (NBS) this week was another factor that would likely affect the market.
He, however, said that the market would sustain its positive growth because of strong fundamentals and positive economic outlook.
Also speaking, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said that there would be portfolio reshuffling ahead of the release of inflation data for July and second quarter Gross Domestic Product (GDP) figure.
Omordion said that investors should position in stages valued stocks with high upside potential, noting that most stocks on the exchange were still undervalued.
He said that investors should make use of company fundamental data and chart pattern, while investing in the market to maximise growth.
Omordion attributed the market growth to post earnings reporting season that rekindled investor confidence, thereby leading to strong liquidity and high demand of equities.
NAN reports that a total turnover of 1.52 billion shares worth N28.87 billion were exchanged by investors in 23,053 deals last week.
This was in contrast with a turnover of 2.52 billion shares valued at N114.12 billion transacted in 23,546 deals in the previous week.
The Financial Services Industry led the week’s activity chart with 1.18 billion shares worth N14.45 billion traded in 11,520 deals.
The sector contributed 77.63 per cent and 50.04 per cent to the total equity turnover volume and value respectively during the week under review.
The Consumer Goods Industry followed with 183.85 million shares worth N12.51 billion transacted in 5,807 deals.
The third place was occupied by Conglomerates Industry with a turnover of 53.76 million shares valued at N126.67 million in 819 deals.
NAN reports that the NSE All-Share Index which opened for the week at 37,425.15 rose by 774.45 points or 2.07 per cent to close at 38,198.60.
Similarly, the market capitalisation inched N267 billion or 2.07 per cent to close at N13.166 trillion.
An analysis of the week’s price movement table showed that Guinness led the gainers’ table in percentage terms improving by 27.08 per cent or N19.50 to close at N91.50 per share.
NAHCO came second with a growth of 20.27 per cent or 60k to close at N3.56, while Dangote Flour inched 18.37 per cent or 99k to close at N6.38 per share.
Nestle rose by 17.69 per cent or N181.58 to close at N1, 208 and Jaiz Bank increased by 13.51 per cent or 10k to close at 84k per share.
Conversely, Nem Insurance led the losers’ chart in percentage terms, dropping by 18.52 per cent or 25k to close at N1.10 per share.
Morison Industries lost 13.27 per cent or 15k to close at 98k, while Dangote Sugar dipped by 12.54 per cent or N1.87 to close at N13.04 per share.
Caverton decreased by 12.50 per cent or 15k to close at N1.05 and Continental Reinsurance shed 12.23 per cent or 17k to close at N1.22 per share. (NAN)
JNC/ENN/EEE
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Edited by Edwin Nwachukwu/Ese E. Ekama