Taiwo Adekeye, FMVA

Research Analyst

When market declines or corrects, it gives investors opportunities to take position for profit making and it is also expedient to note that It is Liquidity that triggers a bullish momentum in every exchanges. The market has been recuperating despite a 600basis point hike in interest making local investors and FPI’s to seek alternative investment.  The Money flow reading of 90 indicate that a lot of funds are in the market & local investors are losing interest in the alternative investment as stop rates are declining in every auction. Investors are confident about the local market and that is why they have committed their hard earned money into the equities space. Currently as I speak, there is no fixed income instrument that can ever give you a positive real return except the stock market. The market has broken the 21-days moving average, retested it and it is currently in the northward direction. Relative strength index of 60 indicates a sign of strength in an uptrend direction and a reversal is not imminent. A lot of stocks has declined by over 30% and and this is creating an opportunity for discerning investors to take good position for a bull.

Banking stocks like  FBN Holdings, AccessCorp, United Bank for Africa, GTCO, Zenith Bank has declined from their all-time high by over 48%, 37%, 34%, 19% and 26% respectively!

This is an opportunity to make informed  decision today for a prosperous  tomorrow.