MARKET UPDATE FOR DECEMBER 4, 2017
Trading on the Nigerian Stock Exchange
started off the week on a positive noteto consolidate the four straight trading
sessions of bull transition with mixed technical,after Friday’s public holiday
declared by the Federal Government.
The day started out with a little upside
movement which the index held to
throughout the mid-morning but oscillated by the midday to afternoon, hitting
intraday highs of 38,023.27 and low of 37,913.99 on mixed sentiments as traders
booked profit from the recent rally.
The composite index closed higher in the
last hour to extend the five-wave trend, slightly touching the 38,000 level
that had become a resistant in recent times and pullback, but it was not strong
enough to make the cross meaningful. The volume traded remained high despite
the huge drop that was driven by last week’s crossed deal in Transcorp that influenced
transaction for that day.
The recent $455m surge in the nation’s
external reserves, which took it to $34.82bn in one week as a result of crude
oil price crossing $64 per barrel, is expected to boost government revenue and
attract more foreign inflows as Central Bank of Nigeria (CBN) intervention in
the foreign exchange market continues to impact positively on the value of the
Naira. Already, the Purchasing Managers’ Index (PMI) at 55.9 for November, from
55 at the end of previous month,an indication of growth in Nigeria’s manufacturing
sector and that the nation’s productivity is still expanding. This will
continue to impact the real sector as shown by numbers from manufacturing
stocks, offering insights into what investors should expect at the end of the
current financial year.
The
mixed sentiment on Monday was revealed by volume index of 1.22 with buying
pressure of 55% and selling volume of 45% of the total transaction to continue
the bull-run. This trend may likely continue depending on market forces, since
institutional money flow is green and looking up, but there is need for caution
in this short primary bullish market because profit taking is underway. NSE
Banking, NSE Oil/Gas, NSE Insurance and NSE 30 were in red while NSE Consumer
goods that had laggard before now outperformed the composite index as numbers
continuing to reveal trading and investing opportunity in that.
Meanwhile, the
All Share Index gained marginal 29.98 basis points to close at 37,974.58, from the
37,944.30 points, representing a 0.08% growth and similarly, marketcapitalisationwas
up by N10.76bn to close at N13.23tr from previous day’s N13.22tr, representing
a 0.08% value gain. The sustained market upbeat for the day was driven by price
appreciation in medium and high cap stocks like Dangote Flour, FBNH, NB, TOTAL
Nigeria, Seplat, Dangote Sugar, UBN and Dangote Cement. This impacted
positively on the ASI’s year-to-date returns, taking it to 41.30%, just as YTD
growth in market capitalisation stood at N3.9tr, representing a 42.87% rise over
the year’s opening value.
Market breadth
on Monday was negative as the number of decliners widened to outpace advancers
in the ratio of 25:19 on a high traded volume that was lower than previous
day’s level.
Transactions in
terms of volume and value were down by 95.75% and 70.27% respectively to 500.19m
shares worth N6.36bn from previous day’s 11.77bn units valued at N21.38bn. The
day’s activity was driven by Custodian Allied Insurance, FBNH, Zenith Bank,
Transcorp and Fidelity Bank, which topped the volume chart.
Cadbury topped
the advancers’ table with a gain of 10.125 to close at N14.25 on market forces,
followed by Diamond Bank with 9.94% appreciation to N1.37 on positive sentiment
that the recent sales of its investment in SA will boost bottom line.
On the
flipside, Fidson Healthcare shed 5% to close
at N3.61 each on market forces and
profit taking, ahead of Guinness Nigeria, which lost 4.99% to close at
N92.35 each, on profit taking.
TODAY’S
OUTLOOK
Expectvolatility tocontinue,as traderstake
profit, while investors repositionahead of year-end and Santa Claus season amidst
improving and positive economic data.
Again, we advise that investors allow
numbers to guide their decisions while repositioning for the rest of the year’s
trading activities, especially now that stock prices remain volatile amidst
improving company, economic and market fundamentals.
It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases know the cycles in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this seasonality changes as the year winds down, 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
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available (Home Study Pack), you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467 or 08111811223.
Best regards
Ambrose
Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
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