A capital market analyst, Mr. Ambrose Omordion has asked investors to make use of numbers released in the market to guide their investment decisions against the possibility of price volatility this week due to profit taking at the Nigerian Stock Exchange (NSE).
Ambrose who is the Chief Operating Officer, Invest Data Ltd, attributed the market 10.21 percent growth in the previous weeks to low valuation and high upside potentialities as many stocks were selling below their 2014 prices in spite of improved earnings and returns.
He maintained that the bullish sentiment was due to early positioning by all-classes of market players in low, medium and highly capitalized stocks ahead of the earnings season.
According to him, the market is likely to witness panic selling and re-positioning ahead of the earnings reporting season. He added that the NSE All-Share Index Year-to-Date return stood at 12.17 percent due to huge price rally.
Omordion, however, urged investors not to be sentimental in their investment decisions while re-positioning for the rest of the year.