MARKET UPDATE FOR SEPTEMBER 11, 2017



Nigeria’s stock market started the week weak as revealed by poor technical that consolidated the previous day downtrend. The pre-market open was full of mixed expectations from participants at INVESTDATA seminar held in Abuja over the weekend where investors were taught how to protect their portfolio and profit from market correction as the government is yet to make any form of economic reform policy pronouncement or action that will give support to the recovery economy as statistics figure from the NBS indicated that the nation is out recession, which investors and ordinary man on the street are expecting to see action that will propel growth, knowing that the seeming growth in Q2 was driven by CBN intervention and sustainability is shaking as the fiscal authorities had gone to sleep leaving the whole system in the state of confusion that is gradually building confidence problem again in the market and the economy as 2017 budget implementation style is poor and no impact on the system.   The index opened with slight gap up in the morning, then pulled back, in midday to the session lows, but couldn’t make new lows on the index. The loss suffered by high cap stocks backed up the rest of the day consolidation to close lower on a low volume traded as investors are still looking to see actions and moves by the economic managers that guaranty sustainable growth going forward

The selling pressure  continue  as revealed by the volume index of 0.39, with a buying position of 11% while selling volume was 89% of the day’s total transaction to support the down market.
Meanwhile, the All Share Index shed 292.30 basis points on Monday to close at 35,664.94 point, up from the 35,953.44 points opening level which represented 0.81%  decline on a lower volume traded, when compared to previous session. Similarly, market capitalisation for the day dropped by N100.75 billion to close at N12.29 trillion, from N12.42 trillion in the previous session, representing a 0.81% value loss to continue the two day bear transition.

Downturn in the share price of  Dangote Cement, Nestle, Flourmills, Guinness, Okomu Oil, Presco, Guaranty Trust Bank and Double 11 Plc that impacted negatively to reduce the ASI’s year-to-date returns to 32.71%, just as market capitalisationgain stood at N3.05 trillion within the period, representing a 32.94% rise above the year’s opening value.

Market breadth for the day continue it negative  position as the number of decliners outnumbered advancers in the ratio of 24:20 on a  low volume of trades to sustain a two-day down market.
Market activities in terms of volume and value were down by 24.73% and 29.51% respectively to 114.77 million shares, as against previous day’s 152.47 million units valued at N2.17 billion from the N3.08 billion recorded in the previous session.
Transaction in the shares of Zenith Bank, Access Bank, UACN Property, Diamond Bank and C & I Leasing topped the volume chart.

At the close of the day’s trading session, Newrest ASL topped the advancers’ log, gaining 4.87.%, closing at N6.25 per share, on market forces ahead of Q3 numbers. It was followed by Trancorp with a 4.76% notch at N1.32per share, on positive market sentiments and expectation of reform in power sector to further boost its numbers in the coming months of the year.
On the flipside, Okomu Oil lost 4.92% to close at N59.90 on a profit taking, followed by McNicholes that shed 4.55% to close at N1.26 per unit on market forces. 

TODAY’S OUTLOOK
Technically, the week opened weak, on a high volatility that is  likely to continue as market opens this morning amidst standing on the sideline attitude of investors, profit booking and repositioning in hope that the positive macro-economic indices will drive optimism in equity investments ahead of Q3 earnings season and year end, while we expect the Nigerian government to review its 2017 budget implementation strategy and put in place some fiscal measures that will help the monetary authorities to sustain the ongoing economic recovery as shown by the positive but fragile GDP, to make growth and development a reality.

However, investors need not panic if they take position based on strong numbers and future prospects of any stock as smart investors are using this correction to accumulate and increase their positions in some stocks.
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 down amidst improving economic and market 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.

Meanwhile, 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 is available and it 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.

Ambrose Omordion
CRO | Investdata Consulting Ltd
ambrose.o@investdataonline.com
Tel: 08028164085, 08032055467

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