7/31/2019 May & Baker Plc Dives Below 7yrs Low - 140512

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May & Baker Plc dives below 7yrs low as investors sell-off.Monday, May 14, 2012 / Proshare Research

Recently, May & Baker Plc plunged below its all time low ofN1.81kobo (recorded on15th December 2011) to record new low of N1.72kobo.

Due to increased volatility in the stock/market; the stock dipped further to close lower atN1.49kobo on Friday, 11th May 2012 indicating a -70.44% dip against its positionof N5.04kobo recorded on 11th May 2005 (7 years back).

A technical analysis of the stock performance reveals an unrelenting sell tendency andincreased price volatility towards the stocks despite the sustained optimism and steadybullish run witnessed in the market recently- a pointer to strong negative sentimentfrom both investors and the shareholders.

Providing more clarity, our market sentiment analysis for the week ended 11

th

May 2012reports the stock at the top of the losers chart for the week where it experienced

increased sell-off during the week whilst sustaining its prolonged depressed posture withnegative money flow index, indicating further the negative postures of investors.

This could indicate a possible erosion/weakness in investor/shareholder loyalty towards

the stock while the negative trend may continue as its bearish volume grows.

It is equally discernible that there was no signal of a fresh flow of cash into the stock asrevealed by technical indicators.

7/31/2019 May & Baker Plc Dives Below 7yrs Low - 140512

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Analysing the price movement further would reveal a prevailing bearish sentiment. The8.81% gain recorded for the year 2010 has been completely erased by a -52.62% lossrecorded in the year 2011. In the current year thus far, the stock has booked anothersignificant loss of -25.13%- revealing sustained negative sentiments towards the stock.

A comparison analysis of the price trend with the general market trend indicates amovement into the red zone with YTD loss of -25.13% while the key benchmark indices

shows a resilient posture with YTD performance of9.13% gain.

On a final note, the outlook suggests a depressed posture with continued ouflow offunds. We however do no doubt the possibility of a trend reversal the stock appears tohave bottomed-out and this could encourage a possible rally in the near term.

Taiwo OLOGBON-ORI is an analyst in Proshare

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