MARKET UPDATE FOR SEPTEMBER 25, 2017
AS VOLATILITY
CONTINUES, NIGERIA’S BOURSE TRENDS SIDE-WAYS, AMIDST WAIT FOR MPC MEETING
OUTCOME
The Nigeria stock market had a difficult session as it started
the last week of September, Monday, red. The index gapped lower on the
continued wait-and-see attitude of investors and traders for the outcome of the
two-day Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting
today, as medium and high cap stocks suffered price declines.
The market attempted to bounce back to resistance, but
the early rally attempt was stalled and rolled over sharply, with the index
really pushing back hard into midday when it attempted to reduce the loss
position. The market had broken out the downtrend line but on sideways movement,
awaiting positive news and end of the quarter/month rebalancing of fund
managers’ trading accounts to push prices up ahead of earnings season trading
by speculators.
As we have earlier said, smart money is using the ongoing correction
in the market to accumulate in some stocks with great potentials to reward
investors and sustained their share price, going forward. For instance, on Monday, 200,000 units and
300,000 units of Nestle Nigeria were crossed to foreign investors at N1,230 and
N1,250 respectively by domestic sellers. This suggests that these people are
still seeing value in the stock despite the seeming overpriced condition of the
company.
Traders and investors should take the opportunity of the
current lower-lows and higher-lows during this correction to reposition in
value stocks with strong potential to rally.
Volume index for the day stood at 0.45 and buying
position at 47%, and 53% selling volume of the day’s transaction which halted
previous day’s up market shows that players were awaiting the outcome of CBN’s
monetary policy meeting, despite expectations that the committee would vote to
retain all monetary policy instruments. This is also not unconnected with the
fact that, for now, oil continues to sell above $50 barrels per day, a
situation that has impacted the nation’s reserve positively put at $33bn by the
CBN. It is expected that other measures to boost confidence and attract more foreign
exchange inflows and sustain the economic recovery would be put in place to
support what the CBN is doing before now and what Nigerians are looking forward
to see from the fiscal authorities.
Meanwhile, the composite NSE All Share Index shed 130.08
basis points to close at 35,361.52 from the 35,488.81 points opening level which
represented a 0.36% decline, just as market capitalisation for the day dropped
by N44.48bn to close at N12.19tr, from the previous session’s N12.2tr,
representing 0.36% depreciation in investors’ portfolios.
Price depreciation in the share prices of Oando,
UBA, Access Bank, Lafarge Africa, Nestle, GTBank, NB, FBNH and Zenith Bank,
reduced the All-Share Index’s year-to-date return to 31.58%, just as market
capitalisation year-to-date gain stood at N2.41tr, representing 31.82% above
the year’s opening value.
Market breadth for the day was positive as the number
of advancers outnumbered decliners in the ratio of 19:17
on a very low volume traded that was lower than the previous day’s
level to halt the one day bull market.
Market activities in terms of volume and value were down
by 44.25% and 62.84% respectively with an exchange of 107.15m shares worth
N1.37bn, as against the previous day’s 192.2m units valued at N3.68bn recorded
in the previous session.
Transactions in the shares of Meyer, FCMB, Niger
Insurance, FBNH and Transcorp topped the volume chart, just as Fidson
Healthcare topped the advancers’ log with a 5.00% gain to close at N3.13 per
share on market forces and expected Q3 numbers, followed by Newrest
ASL with a 4.99% notch at N7.16 per share on market sentiment. On the
flipside, Jaiz Bank lost 4.29% to close at N0.67 on market forces,
followed by Skye Bank, which shed 3.64% to close at N0.53 per unit on market
forces.
TODAY’S OUTLOOK
The market continues to search for direction after the
recent breakout of the downtrend line. While confirming the recovery, the
market is still waiting for more positive news to leave the sideways movement,
especially if the feelers from the MPC meeting are positive. Volatility
in the market is expected to continue as trading opens this morning, amidst profit
taking, September quarter end, Q3 earnings season and year-end activities. We
expect the Nigerian government to review its 2017 budget implementation
strategy and put in place some fiscal measures that would help the monetary
authorities sustain the ongoing economic recovery as shown by the positive but
fragile GDP to further help to drive inflation numbers down faster than the
August level to make growth and development a reality.
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 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 organised 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 eTrade
platform on your phone and laptop.
4. The psychology of trading and investing and how it
will make you successful.
Registration
is free, register to participant by clicking on this link: http://investdataonline.com/oct-2nd-independence-seminar/
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
Comments
Post a Comment