MARKET UPDATE FOR AUGUST 14, 2017
Nigeria’s stock market kicked off the
week with continuation of its volatility by gapping up in the early hours of Monday’s
trading session to touch another high of 38.241.67 before yielding to selling
pressure in the afternoon, following which the benchmark All-Share Index dropped
to 37,949.49 on profit booking by traders to close the day lower on high volume
of trade, which brought the indicator below the psychological line of 38,000. It
therefore formed a new resistant level around the 38,241.67 point.
Any likely breakout of this level will
usher in another rally. However, it would depend on market sentiments or,release
of more positive economic news, going by the fact that Monday’s selling
pressure was high as revealed by the volume traded index of 0.97; with buying
position of 1% and selling volume of 99% of total transaction, this supports
the down market.
While Monday’s cash out of gains from the
recent bull rally across all classes of stocks on the exchange, losses suffered
by medium and high cap equities impacted negatively on the benchmark index as
portfolio reshuffling and rebalancing continued in the absence of any bad news
in the market to set investors on panic mode.
Meanwhile, the international markets Monday
recovered from last week panic that sent many stock exchanges down, even as
they continued cautious trading.
Back home, at the close of trading the composite NSEASI shed 247.64 basis
points to close at 37,950.96, after opening at 38,198.60 points, representing a
0.65% decline on high volume traded when compared to the previous sessions. Similarly,
market capitalisation was down by N85.36bn to close at N13.08tr, from the
opening value of N13.17tr, representing 0.65% value loss in investors’
portfolio.
The downturn in the share price of Total Nigeria, Flour Mills,Oando,
UBA, Dangote Cement, Dangote sugar, Guinness Nigeria, National Salt, Zenith
Bank and Guaranty Trust Bank reduced the ASI's year-to-date returns to 41.21%. Market
capitalisationimproved by N3.92tr, representing a 41.63% growth on the year’s
opening value.
Market breadth for day was negative as the decliners outweighed
advancers in the ratio of 27:18 on high volume of trades to reverse last Friday
gain. Trading activities in terms of volume and value dropped by 10.61% and
32.96% respectively at 316.12m shares, worth N4.22bn, from the previous day’s
353.65m units, valued at N6.3bn.
Transactions in the shares of Access Bank, Guaranty Trust Bank, FBNH,
Fidelity Bank and Zenith Bank topped the volume chart during the session.
At the end of trading activities for the day, Fidson Healthcare topped
the advancers’ table, gaining 4.67% to close at N3.13 each on market forces,
sector influence and improving company fundamentals. AG Leventies followed with
a 4.35% gain to close at N0.72 per share, on market forces.
On the flipside, C & I Leasing fell the most after dropping 9.26%
to close at N0.98 per share on profiting taking; ahead of Med-view Airline that
lost 5.00%, closing at N1.52 per unit on market forces.
TODAY’S OUTLOOK
As trading activities opens this morning, expect volatility to
continue amidst profit taking and portfolio reshuffling on the strength of Q2
numbers, even as July inflation figures are expected today ahead of Nigeria’s second
quarter GDP data.
However, investors need not panic of yesterday pullback due to profit
booking if they take position based on strong numbers and future prospects of
any stock. Since there is no bad news in the market.
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.
It is time to use your technical tools to take decision by knowing the
support and resistant level to reposition or exit any position.
Be reminded once more that industry potential, market timing are 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. Market is in phases know it in order to manage your trading and
investing risk. For stocks that should
be on your shopping list to buy in this oscillating market or pullbacks sign up
to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
Get your home study pack today and
ride with the current recovery on Nigeria’s stock market and economy.
The workshop video can be viewed on
your phone, laptop and television set. The home study pack costs N20,000
including DHL delivery at your door step.
Payment should be made into Investdata Consulting Ltd, Zenith Bank
1013033032. Afterwards, kindly send payment details to 08032055467 or
08111811223.
MR.
OMORDION AMBROSE
CHIEF
RESEARCH OFFICER
INVESTDATA
CONSULTING LIMITED
Tel:
08028164085, 08032055467
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