MARKET UPDATE FOR OCTOBER 12, 2017
INVESTORS POSITION, TAKE PROFIT, LOOK TO EARNINGS SEASON, ECONOMIC DATA FOR DIRECTION
The stock market on Thursday had a
volatile and mixed performance to slightly reverse two trading sessions of
a down market that had been on sideways trending range, before closing higher. The
NSE benchmark index opened the day lower, and then rallied marginally in the
mid-morning till afternoon as the intraday high of 36,732.24 remained the new
resistant to breakout for new trend to
be ushered in in this recovery market and economy, especially when the Q3
corporate earnings reports that will further boost market fundamentals is
around the corner. Add this to the September inflation figure and Q3 GDP
numbers which will further reveal the health status of the Nigerian economy that
is underway, as government still continues. It is also unfortunate that the promise has at this point in time continue to promise
that it would release funds to implement capital projects in 2017 budget, just
as it is going ahead with its plan to borrow to finance the year’s Appropriation
Act.
With the market in recovery mode and the
loss sustained so far this week, market breadth on Thursday was healthy on a
very high volume largely driven by foreign investor activities in the shares of
Diamond Bank, despite the decline in the banking sector index to close lower at
the end of the trading session due to profit taking. The NSE Insurance and NSE
Consumer Goods indexes were top performers for the day as prices of stocks in
the sectors were up.
The up trending momentum for the day
was supported by buying pressure that increased as revealed by the volume index
of 2.12, while buying position was 100% and 0% selling volume, to halt the
previous day’s bear transition. However, the market remain expectant on a mixed sentiments as investors and
traders are still bullish on the bourse with seasonal
changes likely to have positive effects on the market especially with positive
fundamentals favouring oil price increase, as revealed recently by the research
arm of the world’s biggest commodity trader. Also the expected reclassification
of Nigeria into the emerging market index in November is expected to be a plus
at a time many international fund managers look to emerging markets for higher
yield at a time their domestic markets hit at saturated point amidst crashes,
corrections and pullbacks.
Thursday’s marginal gain on a very high
volume did not create a negative
divergence, despite the pockets of profit taking here and there with a
potential pullback, which the expected numbers will decide.
Meanwhile,
the All-Share index gained a marginal 79.42basis points to close at 36,732.24
from an opening figure of 36,652.82 which represented a 0.22%
growth, just as market capitalisation for the day went up by N27.34bn close at N12.64tr, from the
previous session’s N12.62tr, also representing a 0.22% value gain in investors’
portfolio.
The
upturn recorded in the share price of low, medium and high cap
stocks impacted positively on the ASI’s year-to-date return, which stood at
36.68%. This is just as the market capitalisation growth year-to-date stood at
N3.40 trillion within the same period, representing a 36.74% rise above the
year’s opening value.
Market
breadth for the day was positive and strong
as the number of advancers widen to outpaced decliners l in the ratio of 30:13 on a
high volume traded that was higher than previous day’s level to halt down
market.
Market
activities for the day, in terms of volume and value, were up by 31.98% and
73.77% respectively to 443.68m shares worth N3.18bn, from previous day’s
336.39m units valued at N1.83bn.
Transactions
in the shares of Diamond Bank, UBA, Zenith Bank, Transcorp and Fidelity Bank
topped the volume chart.
At
the close of trading, AXA Mansard topped the advancers’ table, chalking 6.49%
to close at N2.46 per share on market forces and Q3 expectations, followed
by Diamond Bank which rose 5.00% to close at N1.05 per share on expectations of
its Q3 numbers and market sentiment.
On
the flipside, University Press dropped 4.90% to close at N2.33 on market
sentiments, followed by Fidson Healthcare that lost 4.57% to close at N3.34 on
market forces and profit taking.
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