Post Views: 233 Market Update for August 14 Nigeria’s stock market kicked off the week with continuation of its volatility by gapping up in the early ...
Market Update for August 14
Nigeria’s stock market kicked off the week with continuation of its volatility by gapping up in the early hours of Monday’s trading session to touch another high of 38.241.67 before yielding to selling pressure in the afternoon, following which the benchmark All-Share Index dropped to 37,949.49 on profit booking by traders to close the day lower on high volume of trade, which brought the indicator below the psychological line of 38,000. It therefore formed a new resistant level around the 38,241.67 point.
Any likely breakout of this level will usher in another rally. However, it would depend on market sentiments or, release of more positive economic news, going by the fact that Monday’s selling pressure was high as revealed by the volume traded index of 0.97; with buying position of 1% and selling volume of 99% of total transaction, this supports the down market.
While Monday’s cash out of gains from the recent bull rally across all classes of stocks on the exchange, losses suffered by medium and high cap equities impacted negatively on the benchmark index as portfolio reshuffling and rebalancing continued in the absence of any bad news in the market to set investors on panic mode.
Meanwhile, the international markets Monday recovered from last week panic that sent many stock exchanges down, even as they continued cautious trading.
Back home, at the close of trading the composite NSEASI shed 247.64 basis points to close at 37,950.96, after opening at 38,198.60 points, representing a 0.65% decline on high volume traded when compared to the previous sessions. Similarly, market capitalisation was down by N85.36bn to close at N13.08tr, from the opening value of N13.17tr, representing 0.65% value loss in investors’ portfolio.
The downturn in the share price of Total Nigeria, Flour Mills, Oando, UBA, Dangote Cement, Dangote sugar, Guinness Nigeria, National Salt, Zenith Bank and Guaranty Trust Bank reduced the ASI’s year-to-date returns to 41.21%. Market capitalisation improved by N3.92tr, representing a 41.63% growth on the year’s opening value.
Market breadth for day was negative as the decliners outweighed advancers in the ratio of 27:18 on high volume of trades to reverse last Friday gain. Trading activities in terms of volume and value dropped by 10.61% and 32.96% respectively at 316.12m shares, worth N4.22bn, from the previous day’s 353.65m units, valued at N6.3bn.
Transactions in the shares of Access Bank, Guaranty Trust Bank, FBNH, Fidelity Bank and Zenith Bank topped the volume chart during the session.
At the end of trading activities for the day, Fidson Healthcare topped the advancers’ table, gaining 4.67% to close at N3.13 each on market forces, sector influence and improving company fundamentals. AG Leventies followed with a 4.35% gain to close at N0.72 per share, on market forces.
On the flipside, C & I Leasing fell the most after dropping 9.26% to close at N0.98 per share on profiting taking; ahead of Med-view Airline that lost 5.00%, closing at N1.52 per unit on market forces.
As trading activities opens this morning, expect volatility to continue amidst profit taking and portfolio reshuffling on the strength of Q2 numbers, even as July inflation figures are expected today ahead of Nigeria’s second quarter GDP data.
However, investors need not panic of yesterday pullback due to profit booking if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
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.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.
Be reminded once more that industry potential, market timing are 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. 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.
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The workshop video can be viewed on your phone, laptop and television set. The home study pack costs N20,000 including DHL delivery at your door step. Payment should be made into Investdata Consulting Ltd, Zenith Bank 1013033032. Afterwards, kindly send payment details to 08032055467 or 08111811223.
MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
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