It was definitely a better and stronger market on Thursday as the indicators gapped at the opening of trading session, sustaining the tempo till end of the day to close higher on increased volume of trade. The improvement was noticeable among all the sectoral indexes as they recorded gains except for the NSE Consumer Goods that was down marginally by 0.01%. Price appreciation of high cap stocks at the early hours of the day trading triggered a very strong rally that ran into late morning and consolidated to widen the positive market breadth. The index had formed a double top which is a resistant at 33,257.19 the same level with June 29, position of 33,269.84 that is likely to break out if the trending momentum continues, having once more crossed the psychological line of 33,000 yesterday.
This morning, the market may breakout as it opens but being the last trading day of the week profit takers might be cashing out but due to the market entering the peak of its earnings reporting season next week and inflation figure for June is expected today, a situation that may hold the uptrend.
Meanwhile, the composite NSE All-Share Index gained 265.28 basis points on Thursday to close at 33,246.91 after opening at 32,981.63 points, representing a 0.80% growth on a stronger volume traded that was higher than previous day’s trades. Similarly, market capitalisation was up by N91.2bn to close at N11.46tr from an opening value of N11.37tr, representing a 0.80% value gain in investors’ portfolios.
The upturn in the shares of medium and high cap stocks positively influenced the All-Share index, further boosting its year-to-date return to 23.71%. Also, market capitalisation over the same period improved by N2.21tr, representing a 23.92% gain above the year’s opening value.
Market breadth for the day was positive as the number of advancers outnumbered decliners in the ratio of 33:19 on a high volume of trade to continue the six-day up market.
Market activities in terms of volume and value were up by 6.65% and 37.95% respectively to 288.86m shares from the previous day’s 270.86m and N3.82bn, as against the previous day’s N2.77bn.
Transactions in the shares of UBA, GURANTY TRUST BANK, NIGER INSURANCE, ZENITH BANK and ACCESS BANK topped the volume chart to close the day’s trade.
At the end of the day trading, the top performance in price advancers table was Mobil Nigeria which gained 9.49% to close at N259.00 each on the interplay of market forces, followed by Forte Oil with a 7.00% gain to close at N53.50 per share, on expectation of its Q2 numbers.
On the flipside, Champion Brewery led the decliners’ table after dropping 7.00% to close at N2.39 on market forces. It was followed by First Alum 5.00% to close at N0.57 on market forces.
As the market opens this morning, expect mixed performance with more companies expected to release their Q2 numbers in continuation of the earnings reporting season, just as the inflation figure for June 2017. Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock, but fix their gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.
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 prices of stocks are looking up ahead of the improving economic fundamentals, if the numbers will support the price reversal or continuation.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.
Once more, at the risk of repeating oneself, we must reiterate that industry potential is very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks. Sign up for investdata buy & sell signal setup by calling 08032055467.
Attention! Attention!! Attention!!!!!!
COMPREHENSIVE SHORT-TERM TRADING STRATGIES FOR REST OF THE YEAR & BEYOND workshop comes up tomorrow.
- The Toolbox of Successful Traders & Technical Analysts- Mr Meshach Ukpoma, FX Analyst/Trader
- Outlook and Implications of the 2017 Budget & Petroleum Industry Governance Bill (PIGB) on Nigeria’s Stock Market and Economy- Abiola Rasaq, Group Head Investor Relations, UBA
- A Strategic Outlook; The Fusion of Fundamental & Technical Analysis- Ambrose Omordion, Chief Research Officer Investdata Consulting Ltd
- Understanding Market Timing to Manage Risk, Using Technical Analysis – Mr. Abdul-Rasheed Momoh, Head, Capital Markets, TRW Stockbrokers Limited
The workshop holds on:
DATE: 15 July 2017
VENUE: Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.
The fee is N20, 000 per participant. Payment made a week before the date of the event attracts 10% discount. Companies sending more than two representatives would enjoy a 15% discount. Payment should be made into: Zenith Bank; Account Name: InvestData Consulting Limited; Account Number: 1013033032.
For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223
- OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
Phone 08028164085, 08032055467