MARKET UPDATE FOR JUNE 29, 2017
The Nigeria stock market had a very
interesting session on Thursday as the recovery momentum gained more ground,
rising from the onset with a breakaway gap to the upside, adding to the first
trading day of the week rally. It moved above Wednesday’s high in a 3-wave rise
that saw a peak around closing hour of the trading session to close
higher. The index rallied from a
32,657.30 point at the open of the day’s trading to finish at 33,269.84,
breaking out again the psychological line of 33,000 level on a high volume that
signaled another markup by smart traders.
The trading volume index as at yesterday
stood at 0.88 on a buying position of 100%, while selling volume was 0% of the
total volume traded as the market breadth positive position widened on
increasing demand for equities. This also came at a time investors and traders are
balancing their trading account for the half year and repositioning for second-half
of the year, ahead of the expected earnings season.
The nation’s economic recovery effort is
waxing stronger still with the enhanced diversification into the agricultural
sector, a situation that continues to impact positively on export of agric
produces. Specifically, the Federal Government, on Thursday in Lagos,
flagged-off the nation’s maiden export of of 72 metric tons of Nigeria yam to
Europe and US tagged: Nigerian Yam Export Programmeat the Lillypond Container
Terminal in Lagos. The Federal Government urged Nigerians not to panic, as the
country has enough yams for local consumption, adding that the over 30% of yam
produced in the Nigeria is being targeted for the programme, especially when
neighbouring Ghana, which grows far less yam than Nigeria is targeting US$4bn
in exports from the produce. Nigeria, according to the Food and Agricultural
Organisation (FAO), accounts for 61% of yam produced in the world, which the
government’s seeks to make beneficial and profitable.
Stock markets around the world Thursday
were mixed as oil price rose to a two-week high following a dip in U.S output
as the Dollar nose-dived. Oil is bottoming out at this point at a time global
central bankers are stepping up, signaling to the world that emergency level
monetary policy will be coming to an end soon. Stocks are sliding lower, bond
yields and key commodities moving higher; rates are
rising and commodities price looking good, sending a message that the reflation
era that Draghi spoke about earlier this week is underway.
Meanwhile, the composite NSE All-Share
index gained 612.54 basis points to close at
33,269.84 after opening at 32,657.30 points, representing a 1.88% growth on
high volume traded that is higher when
compared to previous day’s transaction level. Similarly, market capitalisation
for the day was up by N211.82bn to close at N11.5tr, from an opening value of
N11.29tr, representing 1.88% gain in investor’s portfolio.
The upturn in banking stocks, NB and
Dangote Cement impacted positively on the All-Share index, raising its
year-to-date return to 23.80%. Also, growth in market capitalisation for the
same period stood at N2.26tr, representing a 24.04% gain above the year’s
opening value.
Market
breadth for the day remained positive as the number of advancers widened to
outweigh decliners in the ratio of 37:14 on high volume of trade to continue
the second days rally.
Market
activities in terms of volume and value were up by 13.72% and 45.49% respectively
to 439.23mshares from previous day’s 386.24mworth N4.81bnagainst the previous day
of N3.3bn.
Transactions
in the shares of UBA, ACCESS BANK, DIAMOND BANK, ZENITH BANK and TRANSCORP
topped the volume chart to close the day’s trade.
At
the end of trading, PZ topped the advancers’ table with its share price gaining
9.90% to close at N22.97each, on market forces ahead of its Q4 numbers. It was
followed by Diamond Bank, which closed 8.33% up to close at N1.30 per share, on
market forces.
On
the flipside, May & Baker led the decliners’ log, after dropping 4.88% to
close at N4.29 on profit taking, while Livestock followed with 4.76% to close
at N1.00 each on profit taking.
TODAY’S OUTLOOK
As
the market opens this morning, expect mixed performance due to end of the first
half of the year trading account balancing as traders and investors seek to
reposition for the second half of year in value stocks ahead Q2 earnings
season.
Investors
should not panic on the any pullback if they have taken position based on
strong numbers and future prospects of any stock.
Again,
we advise that investors allow numbers to guide their decisions to reposition
for the rest of the year’s trading activities, especially now that prices of
stocks are looking up ahead of the recovering 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 up
market or pullback sign up for investdata buy & sell signal setup by
calling
08032055467.
NSEASI
DAILY TIME FRAME
Attention! Attention!!
Attention!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Workshop on COMPREHENSIVE SHORT-TERM
TRADING STRATGIES FOR REST OF THE YEAR & BEYOND
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
ambroseconsultants@yahoo.com
TEL:01-4724645, 08028164085
Comments
Post a Comment