Nigerian Stock Exchange: Profit-Taking Takes Toll On NGX Turnover

After several weeks of a sustained rally, sell-offs and profit taking across major sectors dragged the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and market capitalisation by 0.06 per cent to close last week at 42,014.50 and N21.926 trillion.

Similarly, all other indices finished lower except NGX Main Board, NGX Insurance, NGX MERI Growth, NGX Lotus II and NGX Industrial Goods indices which appreciated by 0.32 per cent, 0.99 per cent, 0.09 per cent, 0.15 per cent and 0.88 per cent respectively, while the NGX ASeM Index closed flat.

Last week, the local bourse could not consolidate the gains recorded in the prior week as investors took advantage of the gains recorded over the past month in booking profit on bellwether stocks.

However, analysts argued that the possibility of a rebound is high, considering the improved performance recorded by a good number of the listed firms in their third quarter (Q3) scorecards.

The Chief Research Officer of Investdata Consulting Limited, Ambrose Omordion affirmed that the level of improvement in earnings, coupled with the interim corporate actions, and liquidity in the equity space will determine the extent of the market rally when it rebounds from the current pullback.

He also identified activities in the global market such as inflation and oil prices, which are currently around $84 per barrel as factors that would determine the extent of a market rebound this week.