Sallah Holidays, hangover of Brexit may take toll on NSE this week – Experts

Some financial experts on Monday predicted that activities on the Nigerian Stock Exchange may remain on a downward trend this week due to the long public holidays and hangover of Brexit.
They told the News Agency of Nigeria in Lagos that profit-taking would also dominate trading activities during the week.
Dr. Uche Uwaleke, the Head of Banking and Finance Department of the Nasarawa State University, Keffi, told NAN that the Brexit hangover would further push the equities market into the bearish territory.
Uwaleke said foreign investors would continue to wait on the sidelines for the uncertainty created by Brexit to clear before investing in the market.
“I foresee the Brexit hangover further pushing the equities market into the bearish territory as foreign investors continue to wait on the sidelines for the uncertainty created by Brexit to clear,” Uwaleke said.
He stated that the stock market ended last week on a negative note due largely to profit-taking and the fact that the market was still reeling from the effect of Brexit.
Ambrose Omordion, the Chief Operating Officer of InvestData Limited, Lagos, said the market would likely slow down at the beginning of the week due to the Sallah holidays.
Omordion stated that some traders had developed “wait and see” to ascertain the direction of the expected second quarter earnings rolled in before taking any action.
He explained that the March year-ended earnings released so far were below market expectations.
He said: “Q2 earnings season that will kick off in July may further support the bull transition but this will depend on the strength of the figures released and market forces.
“Technically, markets still look healthy for recovery with the oscillating mood, but investors should target valued stocks to see them through in case market go the other way.”
NAN reports that a turnover of 1.47 billion shares worth N17.1 billion were exchanged by investors in 21,246 deals last week.
This is against 2.39 billion shares valued at N26.381billion traded in 28,072 deals in the preceding week.
The Financial Services sector led the activity chart in volume terms with 1.17 billion shares worth N10.24 billion traded in 12,697 deals.
The Conglomerates industry followed with 133.613 million shares worth N300.89 million transacted in 1,081 deals.
The third place was occupied by the Consumer Goods sector with a turnover of 110.75 million shares worth N4.9 billion exchanged in 3,495 deals.
The NSE All-Share index lost 1,344.26 or 4.39 per cent to close at 29,305.40 against 30,649.66 achieved in the preceding week due to huge price loses.
Similarly, the market capitalization, which opened at N10.527 trillion, shed N462 billion or 4.39 per cent to close at N10.1trillion.
Julius Berger recorded the highest gain in percentage terms to lead the gainers’ chart by 15.75 per cent or N6.93 to close at N50.93 per share.
Conoil followed with a gain of 15.68 per cent or N3.45 to close at N25.45, while Union Dicon Salt added 15.67 per cent or N2.35 to close at N17.35 per share.
On the hand, Smart Products topped the losers’ chart in percentage terms by 25.49 per cent or 26k to close at 76k per share.
Honey Well Flour followed with a loss of 22.60 per cent or 47k to close at N1.61, while Champion Breweries lost 14.86 per cent or 74k to close at N4.24 per share.
NAN.