MARKET UPDATE FOR SEPTEMBER 27, 2017
CONTINUED VOLATILITY, AS NIGERIA’S EQUITIES MARKET SEARCHES FOR
DIRECTION
The nation’s stock market continued its
volatility on Wednesday, as it continues struggling to find direction in the
last trading week of quarter with mixed sentiments that had been reflected in
the traded volume trend since the beginning of the week, which made the period
somewhat dull, thereby disappointing many market players. The seeming low
volume seems an extension of the wait-and-see attitude of traders and investors
in the days leading to Monday and Tuesday meeting of the of the Central Bank of
Nigeria’s Monetary Policy Committee (MPC) to see steps by the monetary and
fiscal authorities to boost productivity that will drive economic growth and
development, going forward.
The benchmark index on Wednesday had a
snapback-recovery to halt two trading sessions of bear run.
Trading started out with big gaps to the upside,
in the morning, which held secondary support, and then came on strong as more
high caps record gains in value but pulled back by mid afternoon as the high
caps shed some gains. This was after the composite NSE All-Share index touched
an intraday high of 35,170.70 and low 34,653.22 to close above the
psychological line of 35,000 at the end of the day to give back a marginal
gain.
The market at this point is only looking at the seasonal
changes associated with the coming final quarter of the year (October and
December) with Q3 earnings season kicking off effectively at mid-October, following
which speculative trading should have started by now but low sentiment has
slowed down price performance. Market volume
index for the day stood at 0.59 and buying position at 87% and 13% selling
volume of the day’s transaction to reverse previous day’s selling pressure.
At the end of the session, the All Share Index
gained 152.13 basis points to close at 35,103.40 from the 34,951.27 points
opening level which represented a 0.44% growth, just as market capitalisation
for the day rose by N52.44bn to close at N12.1tr, from the previous session’s
N12.05tr, representing a 0.44% appreciation in investors’ portfolios after
previous days of losses.
The upturn in the share prices of Dangote
Cement, Zenith Bank, Transcorp, Stanbic IBTC, Nestle and Dangote Flour impacted
positively on the All-Share Index’s year-to-date return to 30.62%, just as
market capitalisation gain stood at N2.85tr, representing 30.85% above the
year’s opening value.
Market breadth for the day turned positive as
the number of advancers outnumbered decliners in the ratio of
24:22 on a very low volume traded that was lower than the previous
day’s level to halt the down market.
Market activities in terms of volume and value
were reversed down by 72.74% and 64.95% respectively to 136.4m shares worth N1.27bn,
as against the previous day’s 500.3m, units valued at N3.62bn recorded in the
previous session.
Transactions in the shares of Jaiz Bank, Meyer,
FBNH, Diamond Bank and Access Bank topped the volume chart.
At the close of the day’s trading, Champion
Brewery topped the advancers’ log with 8.14% gain to close at N2.39 per share
on market forces, followed by Neimeth Pharmaceutical with a 4.62%
notch at N0.68 per share on market sentiment and Q4 numbers
expectation. On the flipside, Morison Industries lost 8.33% to close at
N0.66 on market forces, followed by Uacn Property, which shed 5.00% to close at
N2.85 per unit on profit taking.
TODAY’S OUTLOOK
Nigeria’s equities market continues to search
for direction. Expect volatility to persist as trading opens this morning,
amidst profit taking, 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 independence is financial
freedom.
Theme: PROFITABLE STOCK MARKET TRADING STRATEGIES FOR FINANCIAL INDEPENDENCE AND FREEDOM
Have you traded the stock market before and
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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
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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
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Registration is
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There will be
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08111811223
Ambrose Omordion
CRO | Investdata Consulting Ltd
ambrose.o@investdataonline.com
Tel: 08028164085, 08032055467
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