MARKET UPDATE FOR SEPTEMBER 26, 2017
POST-MPC: NIGERIAN BOURSE CONTINUES SEARCH FOR
DIRECTION, AS INVESTORS, DIGEST ECONOMIC REALITIES
Trading activities on the Nigeria stock Exchange
(NSE) on Tuesday had a mixed and volatile session as traders and investors
waited anxiously for the outcome of the 115th Monetary Policy committee
(MPC). It however turned out that like was widely expected, an absolute
majority of the committee’s members voted to retain all rates for the seventh
consecutive time. There was also a promise of flexibility in ensuring that
stimulus packages that will continue to drive economic growth and sustain the ongoing
recovery, are put in place in expectation that fiscal authorities hasten the
faithful implementation of the 2017 budget. This, it is hoped, will support the
Economic Recovery & Growth Plan (ERGP) and aid national output as PMI
remains positive and at above the 50 points threshold to indicate early
expansion to further confirm the nation’s exit, even if marginally from
recession, with 2017 Q2 GDP growth of 0.55%.
During Tuesday’s trading, the benchmark
All-Share Index started with a little gap up in the morning, making the session
look pretty positive. But it failed at resistance after hitting intraday high
of 35,420.53 from an opening level of 35,358.53, after which it climbed down
very briskly to a low of 34,876.87 thereby breaking down the psychological line
of 35,000 again. It thereafter filled the gap, and then rallied back, but could
not get back to the highs. At the end of the day, a three-wave corrective
sell-off brought the index down on a very high volume to close mixed on the
session.
Continental Reinsurance recorded 100%
sell volume as investors traded 190.51m shares, with highly capitalized stocks
like Dangote cement and Nigerian Breweries suffering loss to drag the market
down. Market volume index for the day stood at 1.26 and buying position at 14%,
and 86% selling volume of the day’s transaction to continue previous day’s down
market as selling pressure exceeds buying pressure.
Meanwhile, the composite NSE ASI shed 407.46
basis points to close at 34,951.27 from the 35,361.52 points opening level
which represented a 1.15% decline, just as market capitalisation for the day caved
in by N140.46bn to close at N12.05tr, from the previous session’s N12.19tr representing
1.15% value loss in investors’ portfolios.
The downturn recorded in the share price
of medium and high cap stocks impacted negatively to reduce the All-Share Index’s year-to-date
return to 30.05%, just as market capitalisation year-to-date gain stood at
N2.22 trillion, representing 30.65% above the year’s opening value.
Market breadth for the day turn negative as the
number of decliners outpaced advancers in the ratio of 19:16 on
a very high volume traded that was higher than the previous day’s
level to extend the two day bear market.
Market activities in terms of volume and value
were up by 366.92% and 164.85% respectively with an exchange of 500.3m shares
worth N3.62bn, as against the previous day’s 107.15m units valued at N1.37bn recorded
in the previous session.
Transactions in the shares of Continental
Reinsurance, Sterling Bank, Access Bank, AXA Mansard and Transcorp topped the
volume chart.
At the close of the day’s trading, Neimeth Pharmaceutical
topped the advancers’ log with a 4.84% gain to close at N0.65 per share on
market forces, followed by Nascon with a 4.80% notch at N13.10 per
share on market sentiment and Q3 numbers expectation. On the
flipside, International Breweries lost 4.98% to close at N35.68 on profit
taking, followed by McNichol’s , which shed 4.74% to close at N1.20 per unit on
market forces.
TODAY’S OUTLOOK
The market continues to search for direction
after pulling back once more on Tuesday. Also 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.
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
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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
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show you how you too can successfully and confidently trade and invest in
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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, 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
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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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