Brokers expect profit taking to moderate capital market activities

Gbenga Obisesan, a Stockbroker and Managing Director, Topmost Securities Ltd., on Thursday, said that profit taking would moderate capital market activities in December and January, 2015.

Obisesan said in Lagos that the price of equities would fluctuate because of renewed profit taking by investors.

“The tempo of the market may still slowdown until February 2015 due to Christmas, end of year expenditure and payment of school fees.

“But after this period, the renewed profit taking will gradually moderate and stabilise the equity prices for better market activities in 2015,” he said.

Obisesan also expressed optimism that the market would close higher in 2014 than what obtained in 2013.

Chineyeme Anyanwu, another stockbroker with Dependable Securities Ltd., said that stabilisation of other relevant sectors of the economy would go a long way to moderate and boost capital market activities.

Anyanwu said that the activities of the banking and oil sectors would to a great extent affect the performance of the capital market.

“The persistent fall in the oil prices and value of the naira have invariably contributed to the continuous decline of equities prices being experienced in the capital market.

“I believed that if the banking and oil sectors could be improved and stabilised, the capital market will also pick up,” he said.

Mr Charles Fakrogha, the Chief Executive Officer, Foresight Securities and Investment Ltd., urged investors to take advantage of the low prices to increase their stakes in the market.

Fakrogha noted that the period remained the ideal season for viable investors to use and increase their stocks.

“By the outlook of capital market presently, investors should not panic.

“They should be more conscious of their investment pattern, develop good management governance and be more vibrant in participating in the market,” he said.

(NAN)