IKEJAHOTEL: Profit-taking begins after +111.18% gain in 9days


Wednesday, October 15, 2014 5:14 PM / Research


Today, IKEJAHOTEL recorded a -5.00% loss to halt the 9days uninterrupted gaining streak, following a significant decline in bargain appetite as both investors and shareholders displayed profit-taking tendency towards the stock with a corresponding surge in bearish volume by 1881.59%.

The trading pattern revealed an increased chance for short term price correction while the volume analysis further suggests active pessimistic trading from overbought region.

The stock had recently recorded price appreciation of +111.18% in 9days to hit above 2years high at N3.05kobo on October 14th 2014, following a short term price correction trend experienced between September 22nd and September 26th.

The stock had consistently defied the general bearish sentiments in the market to move from N0.77 to N3.21kobo between August 29th 2014 and October 14th- an indication of strong renewed bargain interest and loyalty from investors and shareholders, driven by (un)known improved fundamentals. Although, the price of Transcorp Hotel IPO at N10.00kobo could not be isolated from this rally as the stock may want to retain sub-sector leader.

However, technical indicator further revealed a active decline in bargain posture with corresponding steep fall in price momentum while the stock closed bullish in both short term and mid-long term period, suggesting the bulls are still in full control.

Nevertheless price analysis revealed impressive performance outlook as the stock posted +306.67% and +435.09% as its 3months and 6months returns respectively while its 52weeks and YTD performance stood at +323.61% and +291.03% gain respectively.

Conclusively, sub-sector/peer analysis further revealed the stock lead the top performing stocks in the last one year, which further suggests that the sentiments within the sub-sector remained positive towards IKEJAHOTEL

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