MARKET UPDATE FOR JULY 13, 2017
It was definitely a better and stronger market on Thursday
as the indicators gapped at the opening of trading session, sustaining the
tempo till end of the day to close higher on increased volume of trade. The
improvement was noticeable among all the sectoral indexes as they recorded gains
except for the NSE Consumer Goods that was down marginally by 0.01%. Price
appreciation of high cap stocks at the early hours of the day trading triggered
a very strong rally that ran into late morning and consolidated to widen the
positive market breadth. The index had formed a double top which is a resistant
at 33,257.19 the same level with June 29, position of 33,269.84 that is likely
to break out if the trending momentum continues, having once more crossed the
psychological line of 33,000 yesterday.
This morning, the market may breakout as it opens but being
the last trading day of the week profit takers might be cashing out but due to the market entering the peak of its earnings
reporting season next week and inflation figure for June is expected today, a
situation that may hold the uptrend.
Meanwhile,
the composite NSE All-Share Index gained 265.28 basis points on Thursday
to close at 33,246.91 after opening at 32,981.63 points, representing a 0.80%
growth on a stronger volume traded that was higher than previous day’s trades.
Similarly, market capitalisation was up by N91.2bn to close at N11.46tr from an
opening value of N11.37tr, representing a 0.80% value gain in investors’
portfolios.
The
upturn in the shares of medium and high cap stocks positivelyinfluenced the
All-Share index, further boostingits year-to-date return to 23.71%. Also,
market capitalisation over the same period improved by N2.21tr, representing a
23.92% gain above the year’s opening value.
Market
breadth for the day was positive as the number of advancers outnumbered decliners
in the ratio of 33:19 on a high volume of trade to continue the six-day up
market.
Market
activities in terms of volume and value were up by 6.65% and 37.95%
respectively to 288.86m shares from the previous day’s 270.86m and N3.82bn,
as against the previous day’s N2.77bn.
Transactions
in the shares of UBA, GURANTY TRUST BANK, NIGER INSURANCE, ZENITH BANK and
ACCESS BANK topped the volume chart to close the day’s trade.
At
the end of the day trading, the top performance in price advancers table was
Mobil Nigeria which gained 9.49% to close at N259.00 each on the interplay of market
forces, followed by Forte Oil with a 7.00% gain to close at N53.50 per share, on
expectation of its Q2 numbers.
On
the flipside, Champion Brewery led the decliners’ table after dropping 7.00% to
close at N2.39 on market forces. It was
followed by First Alum 5.00% to close at N0.57 on market forces.
TODAY’S
OUTLOOK
As
the market opens this morning, expect mixed performance with more companies
expected to release their Q2 numbers in continuation of the earnings reporting
season, just as the inflation figure for June 2017. Investors should not panic
on the pullbacks if they have taken position based on strong numbers and future
prospects of any stock, but fix their gaze on the actual numbers and bail out
when expectations are not met, thereby cutting their loss.
Again,
we advise that investors allow numbers to guide their decisions while
repositioning for the rest of the year’s trading activities, especially now
that prices of stocks are looking up ahead of the improving economic
fundamentals, if the numbers will support the price reversal or
continuation.
It
is time to use your technical tools to take decision by knowing the support and
resistant level to reposition or exit any position.
Once
more, at the risk of repeating oneself, we must reiterate that industry
potential is very important when picking a stock, because there are factors
that are sector-specific and would naturally impact positively or negatively on
companies operating within such an industry, especially now that the economy is
recovering. For stocks that should be on your shopping list to buy in this
oscillating market or pullbacks. Sign up for investdata buy & sell
signal setup by calling 08032055467.
Attention!
Attention!! Attention!!!!!!
COMPREHENSIVE
SHORT-TERM TRADING STRATGIES FOR REST OF THE YEAR & BEYOND workshop
comes up tomorrow.
Sub
Topics:
1.
The Toolbox of Successful Traders & Technical Analysts- Mr Meshach Ukpoma,
FX Analyst/Trader
2.
Outlook and Implications of the 2017 Budget & Petroleum Industry Governance
Bill (PIGB) on Nigeria’s Stock Market and Economy- AbiolaRasaq, Group Head
Investor Relations, UBA
3.
A Strategic Outlook; The Fusion of Fundamental & Technical Analysis-
Ambrose Omordion, Chief Research Officer Investdata Consulting Ltd
4.
Understanding Market Timing to Manage Risk, Using Technical Analysis - Mr.
Abdul-Rasheed Momoh, Head, Capital Markets, TRW Stockbrokers Limited
The
workshop holds on:
DATE:
15 July 2017
TIME:
9.00am
VENUE:
Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant,
CBD, Alausa, Ikeja. Lagos.
The
fee is N20, 000 per participant. Payment made a week before the date of the
event attracts 10% discount. Companies sending more than two representatives
would enjoy a 15% discount. Payment should be made into: Zenith Bank;
Account Name: InvestData Consulting Limited; Account Number: 1013033032.
For
more enquiries about the programme, please call 08032055467, 08179547605, and
08111811223
MR.
OMORDION AMBROSE
CHIEF
RESEARCH OFFICER
INVESTDATA
CONSULTING LIMITED
Phone
08028164085, 08032055467
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