Hello Bears!

[EIC]

Posted on behalf of E. O. Isang

HELLO BEARS!
Q2 IS BEGINNING AS EXPECTED


-- by E. O. Isang
I have been watching the key market indices especially the ASI and the Market Cap for some time now and I must say that most of the active investors (institutional investors particularly) have been making a killing. Marginal slumps in these indices (ASI actually went down at the rate of 0.001% daily last week and going) are pointers to the particularly bearish situation currently persisting in the market, in the wake of profit taking. Y’know, these investors do not really mean to create these bears, do they? However, this situation is bound to persist for a while, with the profit taking and private placements still ongoing.
However, these activities all point to something: Q1 is over- and all its rallies with it. Q2 has started. There are expectations though: I personally expect a few new entrants into the market to make their debut on the daily listing this quarter. I also expect a marked increase in the trading volume in certain sectors apart from the usual high-volume sectors like the Banking, Insurance and Petroleum (marketing). Watch out for unprecedented growth in the stock prices of various stocks such as those in the Conglomerates sector (Transcorp PLC and co.) and certain Second-Tier securities (Cutix PLC) (April fool’s day being the “new year’s day” for some quoted firms). A few IPO’s will also be in place this quarter (watch out for Unity Bank PLC’s IPO). Public Offers from –you guessed right- insurance firms will also continue.
“There is a time to buy and a time to sell” (Stock Market Main Corollary). The time to sell (for profit takers) is now.
For intending buyers, watch and be prepared… the bears are having a field day. Tell them “Hello”.
Achtung!!

This stock is set to climb!
This is the six-month performance data for Unity Bank PLC…

See attached graph culled from the NSE web page.

It is my belief that further jumps in the volume (M) and the imminent IPO will help to boost the share price (N) in the medium term.
Active investors are instructed to watch out keenly for sudden volume jumps……
(Caution! Events may unfold faster than they usually do in most Q2s.)