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Equities Expected To Fall Further As Investors Take Profits

By on January 22, 2013

The All Share index which shed 0.34% in yesterday’s trading is expected to continue to slide over the course of the week due to the activities of profit takers.

The ASI which gained about 10% year-to-date by the end of last week, has witnessed a prolonged bullish streak which analysts suspect will cease temporarily as speculators lock in profits.

Analysts from Meristem Securities said in a note, “We remain positive for the week as investors’ sentiments appear upbeat in expectation of impressive 2012 full-year results and corporate actions. However, we anticipate slight profit taking for the week as some investors may sell off on stocks that have rallied significantly.

“Thus, we expect the market return to be much less in the week, though bullish trading will remain dominant.”

Analysts from FSDH Securities, said, “The Equities market has performed impressively since the start of the year recording a return of 10.14 per cent year till date.

“We expect some profit taking during the week as investors seek to meet other financial obligations. However, we believe investors will continue to take advantage of the intrinsic value of companies in the equities market for strategic positioning purposes in preparation for the remainder of the year.”