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 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

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