Capital market analysts have said that there would likely be profit taking activities in the equities segment of the market this week.

Their prediction followed the consistent upward movement recorded on the Nigerian Stock Exchange in the past few weeks.

According to them, with a year-to-date performance of over 15 per cent this year, activities in the market have reached a point, where a lot of investors who fled the market, have been returning to the market.

The analysts, however, added that the positive response of investors to the equities market in the last few weeks indicated that such profit taking activities would not last for a long time.

In their weekly money and capital report on Tuesday, analysts at FSDH Securities Limited, said that some investors might likely take advantage of some of the low prices of shares in the market to make some gains.

They said, “We expect the equities market to record some level of profit taking during the week. On the  overall, however, positive investors sentiment would lead to the market closing on a positive note, to end the week.

“We maintain our view that the equities market still has long term upside potential.”

Within last week, for instance, the major market indices were on an upward trend, with the market capitalisation of the listed equities rising by N153bn or 2.04 per cent to close at N7.643tn on Tuesday, from N7.490tn recorded a week ago.

Similarly, the NSE All-Share Index was up by 480.94 basis points or 2.04 per cent, from 23,531.63 points last Tuesday, to 24,012.57 points. The NSE-30 Index also gained 23.32 basis points or 2.1 per cent in the same period.

Speaking on Monday, the President, Chartered Institute of Stockbrokers, Mr. Ariyo Olushekun, said that the Nigerian capital market was already on the path of recovery.

He, therefore, advised retail investors, who had left the market, to return and take advantage of the opportunities present in the market. He added that the market was expected to grow, even further by the end of the year.

He noted that a lot of foreign investors were already taking positions in the equities market, ahead of the expected rise in the market.

He said, “We are pleased to note that recovery has already commenced in our market, and we are sure that this recovery would be sustained. Already, you would notice that we are having a 14 to 15 per cent year-to-date return in the market.

“All indications point to the fact that we are going to see even more growth in the months ahead, and we can see this from the way that foreign portfolio investors have been playing in the market in the last two years and taking advantage of the undervalued prices of major companies.”

Source: Punch/Udeme Ekwere