Lagos -A financial expert, Mr Ambrose Omordion, on Monday predicted that profit-taking may halt the gains occasioned by the new forex policy on the Nigerian Stock Exchange (NSE) this week.
Omordion, Chief Operating Officer, InvestData Consulting Ltd., Lagos told the News Agency of Nigeria (NAN) in Lagos that the halt would come from second quarter earnings by investors.
According to him, investors were already positioned for the March year end account and second quarter earning seasons.
He said that the short term profit-taking might change the capital market momentum and direction.
Omordion reiterated that the new flexible foreign exchange policy was good for the capital market because it would be driven by market forces.
“This is because it will boost liquidity at the exchange and give importers access to forex.
“But the only problem with the policy is that the banks that will meet CBN guidelines will determine the success of the scheme,” he said.
NAN reports that the All-Share Index last week increased by 2,014.65 points or 7.40 per cent to close at 29,247.27 against 27,232.62 posted last week due to price gains.
Also, the market capitalisation rose by N692 billion or 7.40 per cent to close the week at N10.045 trillion compared with N9.353 trillion.
Champion Breweries led the gainers’ table in percentage terms by 27.31 per cent or 74k to close at N3.45 per share.
FBN Holdings followed with a gain of 15.83 per cent or 60k to close at N4.39, while Guaranty Trust Bank increased by 14.46 per cent or N2.73 to close at N21.61 per share.
On the other hand, Fortis Microfinance Bank topped the losers’ chart in percentage terms by 49.90 per cent, or N2.57 to close at N2.58 per share.
GlaxosmithKline trailed with a loss of 21.91 per cent or N3.99 kobo to close at N14.22, while Mcnichols dropped by 12.14 per cent or 17k to close at N1.23 per share.
Meanwhile, a turnover of 2.16 billion shares worth N20.39 billion were transacted by investors in 24,369 deals last week.
This is against the 959.92 million shares valued at N7.87 billion exchanged in 17,561 deals in the preceding week.
The Financial Services industry led the week’s activity chart with 1.94 billion shares worth N12.39 billion traded in 16,023 deals.
The sector contributed 89.85 per cent and 60.77 per cent to the total equity turnover volume and value respectively.
The Consumer Goods sector followed with 77.42 million shares valued at N4.75 billion achieved in 3,489 deals.
The third place was occupied by the Conglomerates industry with a turnover of 74.44 million shares worth N412.72 million in 1,018 deals. (NAN)
