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
ambrose.o@investdataonline.com
Tel: 08028164085,
08032055467
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