MARKET UPDATE FOR OCTOBER 11, 2017
LONG TERM TRADERS STILL BULLISH ON THE MARKET
DESPITE PROFIT TAKING AHEAD OF EARNINGS SEASON, MARCO-ECONOMIC DATA
Trading
activities on the floor of the Nigerian Stock Exchange had a tough session on
Wednesday to having closed lower for the second consecutive trading session,
despite the presence of bull in the market arena ahead of macro-economic
indices like September inflation and Q3 GDP figure expected to be released
soon. In addition to Q3 earnings season that had just commenced with few
companies like Infinity Trust Finance, United Capital and others
which have made available their Q3 scorecards to the investing public.
The market index opened the day with a little slide in the morning, but the magnitude of losses increased in the mid-morning to midday, but price appreciation in Seplat and Nestle sharp took back about two-thirds or three-quarter of the losses. In spite of the gains by these companies, the market ended on a negative note.
The two-day bear market is attributed to profit booking and tight liquidity currently in the money market. Despite the equilibrium, state of market breadth, the intraday high of 36,776.60 remained the new resistance level, while the day’s low was 36,620.52 points before closing lower on a high volume.
Up trending ability or momentum for the day remained weak as selling pressure increased as revealed by the volume index of 1.36, while buying position was 32% and 68% selling volume, to continue the previous day’s bear transition. However, the market remained on a mixed sentiments as investors are earnestly expecting the listed companies quarterly earnings result to guide investment decision as the year winds down.
Meanwhile,
the All-Share index shed 123.78 basis points to close at 36,652.82 from an
opening figure of 36,776.60 which represented a 0.34% decline, just
as the market capitalisation for the day fell by N42.61 to billion close at
N12.62 trillion, from the previous session’s N12.66 trillion, also representing
0.34% value loss in investors’ portfolio.
Price depreciation suffered by medium and high cap stocks like: Dangote Sugar, Vitafoam, Stanbic IBTC, UBA, Oando, United Capital and Nigerian Breweries impacted negatively on the ASI’s year-to-date return, which stood at 36.38%. This is just as the market capitalisation growth year-to-date stood at N3.37 trillion within the same period, representing a 36.44% rise above the year’s opening value.
Market
breadth for the day was flat as the number of advancers and decliners were
equal in the ratio of 19:19 on a high volume traded that was lower
than previous day’s level to continue a down market.
Market
activities for the day, in terms of volume and value, were down by 4.76% and
43.87% respectively to 336.39 million shares worth N1.83 billion, from previous
day’s 353.19 million units valued at N3.26 billion.
Transactions
in the shares of Diamond Bank, Skye Bank, Zenith Bank, Fidelity Bank and FBNH
topped the volume chart.
At
the close of trading on Wednesday, AXA Mansard topped the advancers’ table,
chalking 10.00% to close at N2.31 per share on market forces and Q3
expectations, followed by CCNN which rose by 9.23% to close at N10.18 per
share on expectations of its Q3 numbers and market sentiment.
On
the flipside, Vitafoam dropped 5.00% to close at N2.66 on market
sentiments and profit taking, followed by Law Union that lost 4.71% to
close at N0.81 on market forces.
TODAY’S OUTLOOK
As
the market opens this morning, expect volatility to persist owing to
positioning, profit taking and earnings season speculation that kicked off with
traders returning to play the season ahead of September
inflation and Q3 GDP figure in the amidst of year-end
seasonality.
As
we move into mid-month of earnings season period more numbers are likely to be
released but one thing that is clear in the current market situation is that
smart investors are accumulating and enhancing their positions in selected
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.
Investing
in the stock market is in phases. You must know this in order to manage your
trading and investment risk. For stocks that should be on your shopping
list to buy in this oscillating market or pullbacks sign up to INVESTDATA BUY
AND SELL signal setup by calling 08032055467.
Get
your home study pack today and ride with the current recovery on Nigeria’s
stock market and economy. By investing and trading knowledgeable in this
recovery market.
The
workshop materials on Trading and Investing for Financial Independence series
are Available. Kindly call or send yes to 08032055467 or 08111811223.
Ambrose Omordion
CRO | Investdata Consulting Ltd
ambrose.o@investdataonline.com
Tel: 08028164085, 08032055467
Comments
Post a Comment