Profit taking drags indices down by N156 billion
Yesterday, the All-share index plunged by 434.34 points or 0.9 per cent from 43,963.40 recorded on Wednesday to 43,529.06. Also, market capitalisation fell by N156 billion from N15.759 trillion to N15.603 trillion.
Investors exchanged 500 million shares worth N6.6 billion in 6,002 deals, down from 536 million units valued at N5.2 billion that changed hands in 7,370 deals on Wednesday.
Analysts predict that profit taking may start slowing down, while volatility continues due to portfolio reshuffling and repositioning for the expected quarterly and full year reports that are underway.
Specifically, the Chief Research Officer of Investdata Consulting, Ambrose Omodion said: “We expect profit taking to start slowing down, while volatility continues due to portfolio reshuffling and repositioning for the expected quarterly and full year reports that are underway, just as the energy behind money flow index remains weak.
“However, we would like to reiterate that investors should go for equities with intrinsic value, especially during this season that dividend payment is approaching.
“We advise investors to allow numbers guide their decisions while repositioning for the rest of the year’s trading activities, es pecially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
“It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases. Know the cycles in order to manage your trading and investing risk.”
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