Capital market analysts have said that profit taking activities will likely persist in the equities market this week.

According to them, this will be driven by the significant appreciation recorded in the prices of major stocks quoted on the NSE last week.

In their report for the week released on Monday, analysts from FSDH Merchant Bank Limited said even though the expected release of results would boost activities, there was likely to be profit taking this week.

They said, “In the coming weeks, the expectation of good end-year results and corporate actions will influence market activities, as investors position themselves for the earnings season. However, we still expect some levels of profit taking during the week, and we reiterate that there are still opportunities in the market with the anticipation of the release of the year-end results.

“The expected corporate actions on some select stocks such as Zenith Bank Plc, FBN Holdings Plc, Unilever Nigeria Plc, Ecobank Transnational Incorporated Plc, Lafarge WAPCO Plc, Okomu Oil Palm Plc and Access Bank Plc, among others.”

Meanwhile, at the close of trading on Monday, the NSE ASI depreciated marginally by 0.25 per cent to close at 33,811.08 points from the 33,895.08 points recorded on Friday.

Similarly, the market capitalisation of the listed equities fell by 0.25 per cent from N10.846tn on Friday to N10.819tn on Monday thus, bringing the year-to-date return of the market to 20.41 per cent.

Last week, the major indicators recorded an appreciation of 1.16 per cent.

According to analysts from FSCH, the decline in the indicators was as a result of the losses recorded in the share prices of major stocks such as Cadbury Nigeria Plc, Ashaka Cement Plc, Nigerian Breweries Plc, Oando Plc and Lafarge WAPCO Plc.

Honeywell Flour Mills Plc recorded the highest price appreciation of the day, rising by 4.98 per cent or 14 kobo to close at N2.95 per share.

Cutix Plc followed on the chart with a gain of 4.97 per cent or nine kobo to close at N1.90 per share, while Guinness Nigeria Plc gained 4.96 per cent or N13.70 to close at N290 per share.

Source: Punch (By Udeme Ekwere)