Business

Market correction to continue in the new week – analyst

Published

8 years ago

February 19, 2018

By Chioma Obinagwam

As trading on the floor of the Nigerian Stock Exchange (NSE) begins on Monday, analysts at Foresight Securities Limited- a stockbroking firm, are projecting a downward trend predicated on stock market correction.

Charles Fakrogha, an analyst at the firm said:” The rally we saw in the last three days is not strong enough to be sustained. Starting from today, we except another correction. The market is likely to come down today again. I’m sure of that.”

“Pending when results from companies begin to filter through the market, depending on how good they are, you can see another rally again; maybe from Wednesday but as at today, I’m very sure we’re going to experience a little correction in the market today,” he added.

A stock market correction is when the market falls 10 per cent from its 52-week high. It has shorter duration than a bear market or a recession but can be a precursor to either.

Fakrogha, also the Chief Relationship Officer at the firm, had predicted in the preceding week that there would be a downtown in the early trading days of the week with a slight recovery towards the end of the week.

True to his forecast, the twin measurement indicators of the NSE- NSE All-Share index and the Market Capitalisation recorded decline in the first two trading days of the week, with a slight recovery in the remaining days, the daily market statistics of the Exchange affirmed.

Recall that the gains in the last three trading days was not strong enough to conceal the loss recorded in the entire week.

Moreover, the weekly report of the preceding week(week ended February 16, 2018) showed that the twin measurement indicators shed 1.13 per cent each.