Operators foresee profit booking, improved buying interest on NSE

 

Some capital market operators on Monday expressed optimism that the Nigerian bourse would witness mixed performance to be occasioned by profit booking and improved buying interest.

They spoke with the News Agency of Nigeria (NAN) in Lagos on stock market expectations in the new week.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said that some investors would embark on profit booking to take advantage of gains of the previous week.

Omordion expressed optimism that there would be an improved buying interest on the back of declining yields in the fixed income and rate drop in the money market.

He said that local fund managers would likely extend their positions in undervalued equities with strong fundamentals.

“All eyes are on the domestic economy as macroeconomic indicators look seemingly positive ahead of policy statements and economic reforms,” Omordion said.

He noted that funds were flowing toward equity assets ahead of the last Monetary Policy Committee (MPC) for 2019.

According to him, discerning investors should take advantage of the current low stocks valuation to position for medium to long term.

Omordion stated that the market was selling at a discount considering the current price of equities.

Mr Matthew Chineke, a stockbroker, said that there would be an improvement in the stock market with the Central Bank of Nigeria (CBN) latest restrictions on treasury bills investment.

Chineke said that the restriction of the Open Market Operations to the banks and foreign portfolio investors, thereby shutting out other local market players, would boost liquidity in the stock market.

He explained that the recent decision was part of the series of measures by the apex bank to redirect liquidity to the real sector, boost economic activities, create employment and drive growth.

Chineke said that with the policy there would be an improvement in the equities market due to redirection of funds into the market.

He said that shrewd investors were taking advantage of the policy to increase their investment in the stock market.(NAN)

Buhari meets Bayelsa Gov-elect, Lyon at Aso Rock

President Muhammadu Buhari on Monday met behind closed doors with Bayelsa Governor-elect, Mr David Lyon, at the Presidential Villa, Abuja.

The News Agency of Nigeria (NAN) reports that the governor-elect was accompanied on the visit by National Chairman of the APC, Adams Oshiohmole, Gov. Atiku Bagudu of Kebbi state, Gov. Badaru Abubakar Jigawa as well as Minister of State, Petroleum Resources, Mr Timipre Sylva.

NAN reports that Lyon, the All Progressives Congress (APC) governorship candidate in the Nov. 16 election in Bayelsa was declared winner after polling 352,552 votes.

Lyon defeated his closest rival, Duoye Diri of the Peoples Democratic Party (PDP), who scored 143,172 votes.(NAN)