Nigeria’s stock market fell into a correction mode, last week, despite starting strongly on increased buying interests amid a positive momentum, ahead of Accesscorp earnings expectation, the Monetary Policy Committee meeting, and end of the quarter window dressing by fund managers.
The MPC meeting was, however postponed on Friday evening. The audited half-year earnings report of Acccesscorp finally hit the market with impressive numbers, with the holding company growing top and bottom lines by more than 50%, following which the directors have offered an interim dividend of 30 kobo per share.
The selloffs in the shares of Dangote Cement and profit taking across the medium and low cap companies pulled the market down to trade below the T-line on the daily time frame, and above on a weekly chart to remain above the 67,000 psychological lines. With the market correcting, this is not the time for new positioning, because most of the stocks are signalling weakness, while few companies shares are holding, up which could easily break down if the broader market continues its correction.
The pullback could be over soon, or last for few weeks. As such, do not try guess when a new market rally will take hold. You are expected to be prepare for when that will occur. Keep your watchlist updated. As trading environment continued to change with all eyes on Q3 earnings reporting season that is around the corner:
NGXASI Weekly Chart(opening)
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