NSE: Analysts forecast continued downward trend

0
521
By Chioma Obinagwam
As trading commences on Monday, 12 February 2018 on the Nigerian Stock Exchange (NSE), investors and dealing members are anxious of the position at which the (equities) market pendulum will swing.
Having recorded losses in the previous weeks, market players are hoping that there would be a break in the lull witnessed in the market in the recent weeks.
The market had recorded consistent losses in two consecutive weeks, evident in the figures recorded by the twin measurement indicators- the NSE All-Share index and the Market Capitalisation.
According to the weekly report for the previous week ended February 9, 2018 released by the NSE, the twin indicators deprecated by 3.39 per cent each.
Moreover, the penultimate week ended February 2, 2018 followed the same pattern as the NSE All-Share index declined by 1.98 per cent whereas the Market Capitalisation dropped by 2.09 per cent.
Amidst these declines, analysts at Foresight Securities Limited are of the view that the market would decline further in the early part of the trading week with slight revamp towards the later part of the week.
Charles Fakrogha, an analyst and stockbroker at Foresight Securities noted that the recent downturn in the market is as a result of the play out of market dynamics, which is peculiar to every market.
Market dynamics are pricing signals that are created as a result of changing supply and demand levels in a given market.
He said: “The market dynamics will play out again . we will see a continuation of the trend and a slight pull back and rally towards the end of the week.”
It is also worthy to note that the market has also enjoyed a continued increase in its indicators before the lull.
While we await the transaction report of Monday, February 12, 2018, decerning investors are advised to take their position in the market, particularly, with regards to stocks with strong fundamentals.

Leave a comment

NO COMMENTS

LEAVE A REPLY