A capital market analyst, Mr Ambrose Omordion, on Monday said that the Nigerian Stock Exchange (NSE) would be dominated by profit taking as investors await the 2017 budget implementation.
Omordion, the Chief Operating Officer, InvestData Ltd., told the News Agency of Nigeria in Lagos that the market would experience mixed performance due to profit taking.
He said that investors would likely embark on profit taking to take advantage of growth recorded by the market in the past few weeks, just as they await budget implementation and its implications to the market.
Omordion said that another factor that would affect market sentiments was the unstable price of oil at the international market, considering the fact that Nigeria remained a mono-product economy.
“The market is expected to be mixed this week as a result of continued profit taking and investors’ interpretation of the inflation rate that dropped significantly in May and what it portends for the market ahead of the Acting President brief on 2017 budget implementation,’’ he said.
Omordion, however, urged investors to position for value stocks with high value return potential.