MARKET UPDATE FOR AUGUST 3, 2017
NSEASI WEEKLY TIME FRAME MOVEMENT
The equity market on Thursday had
another mixed session, as it extended its gaining momentum to consolidate a
three-day rally on high transaction volume.
The session started out with the
indicators moving slightly downward and thereafter the index had a strong surge
back by afternoon to cross another 1000 point threshold to 37,135.23 basis
points. The gain came on the back the rebound in some equity prices to their
three-year new highs on the strength of improvements in their recently released
Q2 numbers that surpassed market and analysts’ estimates.
Interim dividend expectations in banking
stocks that are yet to release their half year scorecards have kept
transactions in these stocks high, with investors and traders positioning ahead
of announcement of their numbers. The statement interest is fueled by the fact
that all of the banks with history of interim dividend payment have sent their
Q2 audited accounts for approval by the Central Bank of Nigeria (CBN) before
they are presented to the investing community through the Nigerian Stock
Exchange (NSE).
Meanwhile, in a bid to further boost the
import and export window of the FX market,
the CBN has introduced screen display of exchange rates to attract more
green back, while the phone trading is still in use. This is to further
compliment the apex bank's effort at exchange rate convergence in the nation to
a single exchange rate. Already, the gap between the black market and official exchange
rate is close.
Meanwhile, investors and analysts are
expecting government to fashion complimentary fiscal policy
measures that will quicken
economic recovery and further attract foreign exchange inflows in the form of
direct or portfolio investments.
Thursday’s volume traded index was 1.05;
with buying position of 100% and selling volume, 0% of total transaction that
revealed more buying pressure which support the lingering up market. This is
especially as portfolio rebalancing continues based on companies improving
fundamentals as shown in their earnings reports so far in this current
financial year.
Meanwhile, the composite NSE All-Share Index gained 230.17 basis points to close at
37,135.23bp, breakout the psychological line of 37,000 after opening at
36,905.06 points. This represented a 0.62% growth on a higher volume traded when
compared to the previous sessions, even as market capitalisation rose by N79.33bn to close at N12.8tr, from the
opening value of N12.72tr that
represented a 0.62%
appreciation in investors trading
positions.
The upturn in the share prices of medium and high cap stocks impacted
the All-Share index year-to-date returns to 38.18%. Also, market capitalisation
over the same period improved by N3.52tr, representing a 38.58% growth on the
year’s opening value.
Market breadth for day still remained positive as the number of
advancers outnumbered decliners in the
ratio of 25:17 on a high volume of trades to extend the three-day bull rally.
Trading activities in terms of volume and value were up by 64.18% and 25%
respectively at 412.12m shares worth N4.72bn, from the previous day’s 251.01m
units, valued at N3.78bn.
Transactions in the shares of Livestock Feeds, Access Bank,Guaranty
Trust Bank, Transcorp and Zenith Bank topped the volume chart during the session.
At the end of trading activities also, Dangote Sugar topped the
advancers’ table, gaining 9.80% to close at N14.00 each on impressive Q2
numbers and the 50 kobo interim dividend. It was followed by C & I Leasing with
a 9.09% gain to close at N0.98 per share, on market forces.
On the flipside, Cutix led the decliners’ table after dropping 5.00%
to close at N2.09 per share on market forces and profit taking, followed by NPF
Microfinance that lost 4.76% at N1.20 per unit also on profit taking.
TODAY’S OUTLOOK
As trading opens this morning,
expect profit taking by traders being the last trading day of the
week as the mixed reaction to the Q2 numbers released
recently continues.
However, investors need not panic if any pullback occurs now due to
profit booking, after taking position based on strong numbers and future
prospects of any stock.
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.
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.
MR.
OMORDION AMBROSE
CHIEF
RESEARCH OFFICER
INVESTDATA
CONSULTING LIMITED
Tel:
08028164085, 08032055467
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