The Nigerian Exchange is expected to remain volatile and uncertain for some time, as its benchmark All-Share index extends its downtrend, meaning investors will witness a bout of daily trade and weekly swings, punctuated sustained by a mix of fear or greed among investors. Traders can, however, take advantage of the swings in both directions, just as investors use the price adjustment for dividends, or pullbacks to buy great companies at fair prices.
Market players are fond of saying that investors shouldn’t look to catch a falling knife. However, once a stock has suffered a big drop, fears of further decline tend to leave investors on the sidelines. This can make them miss out on the early part of a rally of extreme lows, which may be a big part of a total bull rally. That means it’s often ideal to buy when there’s still some lingering fear.
Right now some first-tier banks are yet to release their numbers. However, it’s been a few weeks since the official deadline of release date for audited December year end account expired. The full-year financials of Accesscorp, FBN Holdings, Fidelity Bank and SterlingNG are still being expected in the market, and it’ is clear that banks are likely to post better Q earnings despite the cash crunch that nearly led to economic collapse within the period as we have noticed in the scorecards of the few among them that have hit the exchange. As such, you may need to watch the price actions and charts below carefully:
NGXASI Weekly Chart (Opening chart)