By Modupe Gbadeyanka
The positive vibe brought into the nation’s stock market more than a week ago was halted last Friday when MTN Nigeria and Dangote Cement, the two market drivers, suffered losses at the market.
However, at the close of business last week, the local bourse still finished 6.96 percent higher week-on-week.
As investors prepare for this new week, analysts are of mixed views that the Nigerian Stock Exchange (NSE) will see a bit of bargain hunting and profit taking.
According to analysts at Cowry Asset, “In the new week, we expect the local equities market to close marginally in red territory as the strong demand for the shares of the telecoms giant has softened.
“Nevertheless, we expect investors to continue to take advantage of the general low share prices in the market, especially in the banking sector, in order to maximize their returns.”
Also sharing their opinion on the subject matter are those at Afrinvest, who said, “Following a bullish performance this (last) week, we expect sell pressures next (this) week as investors look to take profit on stocks that have recorded strong gains.”
On the side of United Capital Research analysts, “Given the recent bullish run in the market, we expect some profit taking decision to clog trading sentiments this week.
“However, we do not rule out the possibility of intermittent gain in the market as investors hunt for attractively priced stocks on the exchange.”
For analysts at Morgan Capital, “Investors sentiment, although closed uptrend (on Friday), but it was mostly negative in the week due to gains in the two heavyweight stocks. Thus, we expected the market to resume uptrend next (this) week as investors buy the dip.”
In the views of analysts at Business Post, “We expect investors to continue to mop up some fundamentally sound stocks presently trading at very low prices.
“We still expect to see MTN Nigeria and Dangote Cement controlling the direction of the market this four-day trading week.
“We also foresee investors reacting to the news of a probe by the Economic and Financial Crimes Commission (EFCC) into the listing of MTN Nigeria on the stock exchange nearly two weeks ago.
“Also, investors will be looking forward to the inauguration of President Muhammadu Buhari on Wednesday for a second term in office.
“They will be expecting to hear how the President intends to pilot affairs of the nation in the next four years when he takes oath of office that day, which would be a public holiday and the market would be closed.”
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