RETURNS on equity will continue to determine which stocks are bought by the investing public. With Liquidity as a major problem now and the take-off of the Asset Management Company of Nigeria (Amcon) being delayed, prices will continue to remain low. “But it is also good for investors who employ technical analysis; they still make profit out of the down trend  of the market,” says Mr. Fred Ogazi of Markon Limited.

THE market, last week, did a quick correctional measure after the lull due mainly from the profit- taking of the previous two weeks. After that correction, it adjusted to moving upwards again.
This upswing will continue into the weeks ahead as corporate results outside the banking sector continue to impress the investing public.

THE market last week took a quick correctional steps after the lull due mainly from the profit-taking of the previous two weeks. After that correction, it adjusted to moving upwards again. This upswing will continue into the weeks ahead as corporate results outside the banking sector continue to impress the investing public.

PENULTIMATE week, the capital market was characterised by decline in the prices of shares. The trend was attributed to profit-taking and adjustment of share prices for dividends and bonuses. Many had, therefore, projected that the trend would continue last week. Surprisingly though, the market started an upward climb again.

Profit taking and adjustment of share prices in line with the dividend paid saw the price of shares rolling down last week. The trend will continue this week as more investors continue to take profit. There is nothing alarming in the whole situation. Rather, it is a normal occurrence as the market has to correct itself after such measures. With dividend and bonus largesse being declared, not a few investors took advantage of the rally and dumped  on those who could not do so quickly.

THE first quarter of 2010 has been wonderfully bullish to the surprise of even the most abrasive critic. In the corresponding period of 2009 when we stuck our necks out and stood firm to the fact that the market would bounce back sooner than envisaged, pessimists were calling for our heads; asking what things we saw that gave such confidence.

THE market is sure to continue its upward movement this week. All the factors that have helped its upward climb are still there: good earnings per share, good dividend payout, bonuses and strong fundamentals. Factors from outside the market include tighter regulations and enforcement, better investor education programmes and reduced cost of transaction.

THE market will, all things being equal, continue its upward movement this week as liquidity and confidence keep the market afloat. That the market will remain positive, will depend on the factor of dividend payment. Information went out early on the stocks that are very likely to pay dividend and investors cashed in heavily on the information  and  put in good money leading to the rise in the All   Share Index (ASI) as well as the market capitalisation.