MARKET UPDATE FOR SEPTEMBER 20, 2017
NIGERIAN MARKET
REBOUNDS, BUT REMAINS WEAK, VOLATILE AS INVESTORS WATCH FOR DIRECTION
As envisaged, the Nigeria stock market
index on Wednesday closed higher, despite the mixed session and technical, halting
three trading sessions of bear-run as volatility continued.
In the morning hours, the composite
index had a little bit of up movement, but came down as market went into the
midday and rallied back by afternoon powerfully to touch the intraday high of
35,207.89 thereby breaking out the psychological line of 35,000 again from the
day low of 34,729.78 on a volume below the trading average. It was a very significant
rise that took the index above the recent resistant level of 35,005.57, which
was a very sharp retracement.
Just as we mentioned in our update for
Wednesday, the reduction in the losing magnitude of the market will usher in
rebound with volume traded gradually looking, even if it came down on Thursday.
The market breadth tightened in a ratio that is almost
at equilibrium to that support, from where it either crosses to positive
territory or continues in negative direction. But as the market approaches the
last trading week of Q3 to usher in the earnings season month and the last quarter of the year, it is expected
that speculators will return to the market to trade the earnings season which
is likely to reverse the current low volume being traded in the up direction to
confirm this rebound and support market recovery.
The strong buying pressure on Wednesday
was positive if sustain as revealed by the volume index of 0.56, with buying
position of 100%, and 0% selling volume of the day’s transaction to usher in up
market.
Meanwhile, the All Share Index gained 361.07 basis points to close at
35,207.89 from the 34,846.82 points opening level which represented a 1.04%
growth, just as market capitalisation for the day went up by N124.47bn to close
at N12.14tr, from the previous session’s value of N12.01tr, representing a
1.04% value gain to reduce the loss position in investor portfolios.
The upturn in the share prices of high cap stocks amongst which are:
NB, Total Nigeria, Dangote Cement, Dangote Sugar, Oando, 7-Up, Access Bank,
Guaranty Trust Bank, FBNH and Zenith Bank, which impacted positively to boost
the All-Share Index’s year-to-date returns to 31.01%, just as market
capitalisation year-to-date gains stood at N2.89tr, representing 31.25% above
the year’s opening value.
Market breadth for the day was marginally negative as the number of
decliners outpaced advancers in the
ratio of 20:19 on a low volume traded that
was lower than the previous day’s level to halt market losing streak.
Market activities in terms of volume and value were down by 21.36% and
59.92% respectively to 137.35m shares, as against the previous day’s 174.66m units
and N1.13bn from the N2.83bn recorded in the previous session.
Transactions in the shares of Meyer, Access Bank, Transcorp, FCMB and
Fidelity Bank topped the volume chart.
At the end of the day’s trading session, May & Baker topped the
advancers’ table with a 4.92% gain to close at N2.77 per share on market forces
and expectation of Q3, followed by Continental Reinsurance with a 4.90% notch
at N1.50 per share on Q3 earnings expectation and expected wind of merger in
the insurance industry.
On the flipside, NPF Micro Finance lost 5.17% to close at N1.10 on
market forces, followed by National Salt, which shed 5.00% to close at N12.35
per unit on profit taking.
TODAY’S OUTLOOK
Technically, the market is still weak, despite the rebound yesterday
until a breakout of the downtrend line, which confirms recovery. The volatility in the market is expected to
continue as trading opens this morning, amidst profit taking and repositioning
ahead of September month end, 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 further help to drive inflation numbers down
faster than the August level to make growth and development a reality.
Investdata believes the time has come for the Federal Government to
stop telling Nigerians and Foreign investors’ stories that seem different from
reality on ground and work towards improving the living conditions of the
Nigerian peoples by putting the infrastructure that will enhance economic
development. It is time to work the talk, and begin to stimulate the economy,
despite the delay so far.
However, investors need not panic if they take position based on
strong numbers and future prospects of any stock. One thing that is clear in
the current market situation is that smart investors are using the ongoing correction
to accumulate and enhance 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
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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
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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 eTrade platform on your phone and laptop.
4. The psychology of trading and
investing and how it will make you successful.
Registration is free
There will be sales of stock trading and investing materials for further
understanding 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 08028164085, 08034053018 and 08111811223
Ambrose Omordion
CRO | Investdata Consulting Ltd
ambrose.o@investdataonline.com
Tel:
08028164085, 08032055467
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