MARKET UPDATE FOR SEPTEMBER 18, 2017
Nigeria’s Weak Market Struggle To Recover, As Speculators Await MPC Hints
The nation’s stock market index had an interesting but mixed session on Monday to start the week as it finally breakdown the psychological line of 35,000 to remain under the rising channel and downtrend line on a low volume traded.
The day started out with a little move up, then pulled back and consolidated until midday, before the afternoon rollover took them down sharply with the benchmark index falling to 34,873.07 after touching an intraday high of 35,105.67 and low of 34,744.96 points, then rallied back in the last hour, before taking back about 95% of the losses. Still, it was a mixed session. As the NSE Banking and NSE Insurance closed in the green while others moved in the same direction as the NSEASI.
As the market waits for the outcome of the Monetary Policy Committee (MPC) meeting today to provide direction as to what other monetary policy initiatives would help sustain the ongoing Central Bank of Nigeria (CBN) intervention in the FX market as part of efforts to stabilize the exchange rate and continue supporting the fragile economic recovery. The decision of the meeting will also pave way for readmission of Nigeria into Morgan Stanley Emerging market Index in November. Since the market is equally expecting the fiscal authorities to do the needful with actions to implement the 2017 budget to ensure it makes impact on the whole system in the few remaining months of the year, while boosting the ongoing economic recovery efforts.
With selling pressure in the market reducing as revealed by the volume index of 0.65, a buying position of 36%, and 64% selling volume of the day’s transaction to sustain the down market.
Meanwhile, the All Share Index shed 132.50 basis points to close at 34,873.07 from the 35,005.57 points opening level which represented a 0.38% decline, just as market capitalisation for the day was down by N46.48bn to close at N12.02tr, from N12.07tr in the previous session, representing a 0.38% value loss to continue the bear transition.
The downturn in the share prices of consumer goods and petroleum stocks impacted negatively to reduce the All-Share Index’s year-to-date returns to 29.76%, just as rise in market capitalisation YTD stood at N2.77tr, representing a 30.01% above the year’s opening value.
Market breadth for the day remained negative as the number of decliners outpaced advancers in the ratio of 18:14 on a low volume traded but higher than the previous day to continue the correction mood in a weak market.
Market activities in terms of volume and value were mixed with volume rising marginally by 1.62% to 162.74m shares, as against the previous day’s 160.12m units, while value was down by 47.95% to N1.54bn from the N2.96bn recorded in the previous session.
Transactions in the shares of Access Bank, Meyer, Fidelity Bank, FBNH and FCMB topped the volume chart.
At the close of the day’s trading session, Newrest ASL topped the advancers’ log with a 4.92% gain to close at N6.82 per share on market forces and earnings expectation; followed by Cadbury with a 4.66% notch at N11.00 per share on market forces.
On the flipside, Neimeth Pharmaceuticals lost 8.57% to close at N0.64 on profit taking, followed by Seplat Petroleum Development Company, which shed 5% to close at N456.76 per unit on profit taking and market sentiment.
The day started out with a little move up, then pulled back and consolidated until midday, before the afternoon rollover took them down sharply with the benchmark index falling to 34,873.07 after touching an intraday high of 35,105.67 and low of 34,744.96 points, then rallied back in the last hour, before taking back about 95% of the losses. Still, it was a mixed session. As the NSE Banking and NSE Insurance closed in the green while others moved in the same direction as the NSEASI.
As the market waits for the outcome of the Monetary Policy Committee (MPC) meeting today to provide direction as to what other monetary policy initiatives would help sustain the ongoing Central Bank of Nigeria (CBN) intervention in the FX market as part of efforts to stabilize the exchange rate and continue supporting the fragile economic recovery. The decision of the meeting will also pave way for readmission of Nigeria into Morgan Stanley Emerging market Index in November. Since the market is equally expecting the fiscal authorities to do the needful with actions to implement the 2017 budget to ensure it makes impact on the whole system in the few remaining months of the year, while boosting the ongoing economic recovery efforts.
With selling pressure in the market reducing as revealed by the volume index of 0.65, a buying position of 36%, and 64% selling volume of the day’s transaction to sustain the down market.
Meanwhile, the All Share Index shed 132.50 basis points to close at 34,873.07 from the 35,005.57 points opening level which represented a 0.38% decline, just as market capitalisation for the day was down by N46.48bn to close at N12.02tr, from N12.07tr in the previous session, representing a 0.38% value loss to continue the bear transition.
The downturn in the share prices of consumer goods and petroleum stocks impacted negatively to reduce the All-Share Index’s year-to-date returns to 29.76%, just as rise in market capitalisation YTD stood at N2.77tr, representing a 30.01% above the year’s opening value.
Market breadth for the day remained negative as the number of decliners outpaced advancers in the ratio of 18:14 on a low volume traded but higher than the previous day to continue the correction mood in a weak market.
Market activities in terms of volume and value were mixed with volume rising marginally by 1.62% to 162.74m shares, as against the previous day’s 160.12m units, while value was down by 47.95% to N1.54bn from the N2.96bn recorded in the previous session.
Transactions in the shares of Access Bank, Meyer, Fidelity Bank, FBNH and FCMB topped the volume chart.
At the close of the day’s trading session, Newrest ASL topped the advancers’ log with a 4.92% gain to close at N6.82 per share on market forces and earnings expectation; followed by Cadbury with a 4.66% notch at N11.00 per share on market forces.
On the flipside, Neimeth Pharmaceuticals lost 8.57% to close at N0.64 on profit taking, followed by Seplat Petroleum Development Company, which shed 5% to close at N456.76 per unit on profit taking and market sentiment.
TODAY’S OUTLOOK
Technically, the market is weak and struggling to recover on a high volatility that is likely to continue this morning as trading opens, but still waiting for positive news and return of speculators to the market to breakout the downtrend line, amidst profit booking and repositioning in hope that the positive macro-economic indices. These will drive optimism in equity investments ahead of MPC meeting outcome, Q3 earnings season and year-end. 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 sustain the ongoing economic recovery as shown by the positive but fragile GDP and August inflation rate 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, Plan to attend the Independent Day Free Investment Education Summit jointly organized by Apt Securities & Funds Ltd/Investdata Consulting Ltd, because real independent is financial freedom.
Theme: PROFITABLE STOCK MARKET TRADING STRATEGIES FOR FINANCIAL INDEPENDENCE AND FREEDOM
Have you traded the stock market before and failed? It is a known fact that about 90% of people who trade without knowledge and understanding of the dynamics will end up losing 90% of their capital most of the time.
You don’t have to be one of them.
Therefore, when you attend this Independent Day Free Investment Education Summit this seminar and learn how to trade such that you could be one of the lucky 10%, who manage to consistently play the market profitable by themselves through our online portal from your phone and laptop anywhere in the world.
Consistency is the key to equity trading and investing successfully.
At Apt securities and investdata we have been teaching investors simple and proven strategies which when implemented makes you a successful trader and investor in any market conduction, especially when it comes to equipping them well enough to know how to protect their portfolios and profit from market correction in a recovering economy and market.
We have also, over time, focused attention on attuning the mindset of investors and traders to managing risk, while eliminating emotions when trading so as to avoid irrational investment decisions.
Attend the Independent Day Free Investment Education Summit and our team of expert and time-tested resource persons will show you how you too can successfully and confidently trade and invest in stocks profitably on your own from your phone, laptop and/or desktop computer.
The workshop holds on:
DATE: October 2. 2017
TIME: 10am – 2.00pm
VENUE: Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.
What you will learn at this the Independent Day free workshop:
1. The fundamentals of stock trading and investing
2. Trading and investing strategies that will help you manage your risk, protect your capital and profit from market correction.
3. How to trade on your own online, using the APT e-Trade platform on your phone and laptop.
4. The psychology of trading and investing and how it will make you successful.
Technically, the market is weak and struggling to recover on a high volatility that is likely to continue this morning as trading opens, but still waiting for positive news and return of speculators to the market to breakout the downtrend line, amidst profit booking and repositioning in hope that the positive macro-economic indices. These will drive optimism in equity investments ahead of MPC meeting outcome, Q3 earnings season and year-end. 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 sustain the ongoing economic recovery as shown by the positive but fragile GDP and August inflation rate 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, Plan to attend the Independent Day Free Investment Education Summit jointly organized by Apt Securities & Funds Ltd/Investdata Consulting Ltd, because real independent is financial freedom.
Theme: PROFITABLE STOCK MARKET TRADING STRATEGIES FOR FINANCIAL INDEPENDENCE AND FREEDOM
Have you traded the stock market before and failed? It is a known fact that about 90% of people who trade without knowledge and understanding of the dynamics will end up losing 90% of their capital most of the time.
You don’t have to be one of them.
Therefore, when you attend this Independent Day Free Investment Education Summit this seminar and learn how to trade such that you could be one of the lucky 10%, who manage to consistently play the market profitable by themselves through our online portal from your phone and laptop anywhere in the world.
Consistency is the key to equity trading and investing successfully.
At Apt securities and investdata we have been teaching investors simple and proven strategies which when implemented makes you a successful trader and investor in any market conduction, especially when it comes to equipping them well enough to know how to protect their portfolios and profit from market correction in a recovering economy and market.
We have also, over time, focused attention on attuning the mindset of investors and traders to managing risk, while eliminating emotions when trading so as to avoid irrational investment decisions.
Attend the Independent Day Free Investment Education Summit and our team of expert and time-tested resource persons will show you how you too can successfully and confidently trade and invest in stocks profitably on your own from your phone, laptop and/or desktop computer.
The workshop holds on:
DATE: October 2. 2017
TIME: 10am – 2.00pm
VENUE: Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.
What you will learn at this the Independent Day free workshop:
1. The fundamentals of stock trading and investing
2. Trading and investing strategies that will help you manage your risk, protect your capital and profit from market correction.
3. How to trade on your own online, using the APT e-Trade platform on your phone and laptop.
4. The psychology of trading and investing and how it will make you successful.
Registration fee is just N1500 that is refundable at the venue after the workshop, Payment should be made into: Zenith Bank; Account Name: InvestData Consulting Limited; Account Number: 1013033032
There will be sales of stock trading and investing materials at the end of the workshop, Fundamental and Technical Analysis materials, including home study packs you can play and viewed on your phone, laptop and television set. All at 20% discount for attending. You need to prepare yourself and profit from the market and the recovery economy to truly achieve your financial independence and freedom.
For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223
There will be sales of stock trading and investing materials at the end of the workshop, Fundamental and Technical Analysis materials, including home study packs you can play and viewed on your phone, laptop and television set. All at 20% discount for attending. You need to prepare yourself and profit from the market and the recovery economy to truly achieve your financial independence and freedom.
For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
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