Mid-Week: Market optimism declines as price correction looms

Market price volatility gained momentum amid increased speculative trading on the Nigerian bourse as market seesawed considerably, following the significant decline in the market optimism as reflected in the low bargain posture paraded so far in the week.

Mid-week analysis revealed low bargain trend while profiteering seems to be dictating market trend as sell pressure keeps market breadth in negative divergent trend. Meanwhile, the price correction seemed to have subtly set in as All Share Index lost uptrend momentum, retracing from overbought range as revealed by RSI- an indication of decline in market optimism as noted above.

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250712 NSE ASI dips by -0.17%; ZENITHBANK declares N42.4bn PAT IN Q2 ‘12

The bears continued to dominate trading activities for the second consecutive session as sell pressure slightly outweigh bargain hunting amid improved market turnover while banks continue to release impressive Q2 ’12 results to the market with ZENITHBANK and IBTC being the latest of such banks.

Nevertheless, the key benchmark indices maintained downtrend as sentiments remained negative, taking hits majorly from Medium CAP stocks which was particularly driven by OANDO while Small CAP stocks also contributed to the outlook recorded today due to continuous selling activities witnessed in Agriculture, Consumer Goods, Financial Services, Healthcare and Oil & Gas sectors.

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