MARKET UPDATE FOR OCTOBER 18, 2017
CAUTION AMONG
INVESTORS STILL, AS MORE Q3 COME BELONG EXPECTATION
The
nation’s stock market struggled on Wednesday, searching for direction as Q3
earnings numbers continued to trickle in to the market, even as scorecards so
far released have come with mixed performance, while the ones that even came
with seemingly impressive numbers are yet to receive positive market acknowledgement
in terms of upward price movements.
Guaranty
Trust Bank Plc, Nigeria’s biggest banking stock (by market capitalization) released
its numbers for the nine-month ended September 30, 2017, which analysts agree
were below market expectation also at the midweek. This reality is expected to
reflect on its price performance as the market open this morning. The earnings report came with marginal
decline in Topline, while bottom line moved slightly up as the bank needed to
make far less provisioning for loan loss during the period.
The trading session opened with the
market index sliding down marginally in the early hours of the day, before
continuing its back and forth movement till mid-day where it turned green,
before slipping marginally into the red towards the last minutes of the
afternoon trade, as profit booking continued in low, medium and high caps
stocks.
Market traded volume was
low with a stronger selling pressure as revealed by the volume index for the
day that stood at 0.80, while buying position was at 11% and 89% selling volume
of transactions to continue the down market just as market breadth turned
negative. It is gladdening to note the World Bank’s statement that it is with the Federal Government on the same page in terms of the need to step up the nation’s revenue drive that will support national economic growth and development, just as it commended the Central Bank of Nigeria (CBN) for its consistent intervention that had stimulated and driven the recovery so far. This has continued to attract foreign direct and portfolio investors into the economy at a time the exchange rate has remain relatively stable to allow investors plan their investment.
Meanwhile,
the composite NSE All-Share Index shed 28.09 basis points to close at 36,641.52
from an opening figure of 36,669.61 basis points, which represented 0.08%
decline, just as market capitalisation went down N9.67bn to close at N12.61tr,
from the previous session’s N12.62tr, representing a 0.08% value loss in
investors’ portfolios.
The
downturn in the share prices of Zenith Bank, Access Bank, UBA, Total Nigeria,
Flour Mills, Fidson Healthcare, FBNH and Dangote Sugar impacted negatively on
the ASI’s year-to-date return, pulling it down to 36.34%, just as market
capitalisation notched N3.37tr YTD, representing a 36.40% rise above the year’s
opening value.
Market breadth on
Wednesday was negative as the number
of decliners outpaced advancers in the ratio of 21:13 on a volume
traded that was lower than previous day’s level to halt Monday’s bull
market.
Market activities
for the day, in terms of volume and value, were down by 4.96% and 37.66%
respectively to 198.63m shares value at N2.94bn from the previous day’s 211.96m
units valued at N4.74bn.
Transactions in the
shares of Guaranty Trust Bank, Zenith Bank, Access Bank, Dangote Sugar and
Guinness topped the volume chart.
At the close of the
day’s trading, Cutix topped the advancers’ table, chalking 9.09%, to close at
N2.20 per share following the offer of 18 kobo dividend by its directors and
market forces. It was followed by GSK’s 4.99% to close at N23.15 per
share, also on market forces and expectations of its Q3 numbers.
On the flipside,
Nahco Aviance lost 5.56% to close at N3.40 on profit taking activities, followed
by Law Union & Rock Insurance, which shed 4.94% to close at N0.77 per unit
on profit booking.
Also, the
share price of Oando was placed on full suspension on the orders of the
Securities & Exchange Commission (SEC), preparatory to a forensic audit.
TODAY’S
OUTLOOK
As the market opens
this morning, expect volatility to continue in the midst of positioning and
profit taking ahead of more earnings releases.
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. Market is in
phases know it in order to manage your trading and investing 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
The workshop materials
on Trading and Investing for Financial Independence series are Available.
Kindly call or send yes to 08032055467 or 08111811223.
Attention! Attention!! Attention!!!
INVEST 2018 FINANICAL SUCCESS
To
register for the coming summit Kindly call
or send yes to 08032055467 or 08111811223.
Best
regards
Ambrose
Omordion
CRO | Investdata
Consulting Ltd
ambrose.o@investdataonline.com
Tel: 08028164085,
08032055467
N.B:
At this event you'll hear real case studies and see examples of exactly how you
can use these same techniques. This summit is packed with great content, but
the room only has capacity for 100 people and registration is ongoing, so
you’ll need to act fast.
Comments
Post a Comment