MARKET UPDATE FOR AUGUST 17, 2017
Nigeria’s equity market had a fairly
narrow trading session on Thursday to continue its volatility, opening the day’s session
down in the morning hours, before rising after the index tested support below
the psychological line of 36,000, following which it bounced, and then
meandered most of the day back and forth into the afternoon session, holding
support. In all of this, the index was not able to get through resistance, even
as it made a great new afternoon intraday high, to reverse the three day
pullback on Dangote Cement’s value gain to close the day. This was backed
up in the last ten minutes to put a support for the session, closing the session
with the index 214.20 points in positive territory. After recording a high of
36,364.81 and low of 35,871.31 in the course of the day’s trading.
A notable situation during the session
was that selling pressure resulting from profit booking is beginning to subside
as revealed by the volume traded index of 0.68; while buying position stood at
90% and selling volume, 10% of total transaction which supported the up market,
depending on sentiments on Friday to continue previous day’s reversal.
Also, the recent price correction in first
tier banks have started to attract buying positions as mark down date draws
near, considering the impressive numbers which show that there is an element of
correction in the recent rally.
Efforts of the Central Bank of Nigeria
(CBN) to support the current economic recovery, especially the sustained
intervention in the foreign exchange segment of the inter-bank market that has
significantly impacted positively on the economy. The intervention in the power
and aviation sectorsbegins to yieldresults, with the Nigeria’s power generation
rose above 6000 megawatts recently.
Meanwhile, the benchmark NSEAll-Share Index notched
214.20 basis points to close at 36,316.58, compared to the 36,102.38 points opening
level, representing a 0.59% growth on a low volume traded,even while being marginally
higher when compared to the previous sessions. Similarly, market capitalisation
was up by N73.85bn to close at N12.52tr, from an opening value of N12.4tr, representing
0.59% value gain in investors’ portfolio after three days of losses.
Thursday’s upturn in the share prices of Dangote Cement, Flourmills,
Zenith Bank, Total Nigeria, National Salt, Dangote Sugar, FBNH and Fidson
Healthcare boosted the ASI's year-to-date returns to 35.13%, just as market
capitalisationnotched N3.27trwithin the period, representing 35.37% above the
year’s opening value.
Market breadth for the day remained negative with the number of
decliners outweighing advancers in the ratio of 28:15 on a lowvolume of trades
to halt the three-day down market.
Trading activities in terms of volume and value were up marginally by
0.16% and 7.66% respectively at 225.14m shares, worth N5.48bn, as against previous
day’s 224.77m units, valued at N5.09bn.
Also, transactions in the shares of Custodian Allied Insurance, Zenith
Bank, Guaranty Trust Bank, FBNH and FCMB topped the volume chart during the
session.
At the close of trading activities for the day, Fidson Healthcare topped
the advancers’ log, gaining 5.00% to close at N3.15 each on market forces;
followed by sub-sector peer- May & Baker with a 4.98% gain at N2.95 per share,
on expectations.
On the flipside, Eterna lost 6.01% to close at N3.44 per share on
profit taking; ahead of Double One’s (Mobil Oil) 5% drop, closing at N225.06per
unit on profit taking and weak earnings report.
Note: Today (Friday) is the last date to qualify for Zenith Bank and
Custodian Allied Insurance interim dividend of 25 kobo and 10 Kobo
respectively.
TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue
amidst profit taking and repositioning in some stocks on the strength of Q2
numbers, especially with the impressive numbers emanating from the nation’s
first tier banks which are giving insights into what should be expected at the
end of the year if the much desired economic recovery becomes a reality despite
the slow and unclear implementation of the 2017 budget by the government. Evenso, the July inflation figures and
Nigeria’s second quarter GDP data are being awaited from the Nigeria's National
Bureau of Statistics (NBS).
However, investors need not panic 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. By
investing and trading knowledgeable
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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