NSEASI DAILY TIME FRAME
At the end of mid-week’s trading, the market closed slightly up to reverse previous day’s down market on improved demand for stocks as revealed by the buy and sell volume indicator showing a buy position of 76% and sell of 24% on a low traded volume that is below average transactions on the exchange. Price appreciation in medium cap equities boosted today’s trading with the Monetary Policy Committee (MPC) decision not having immediate negative impact as was anticipated.
From the monetary policy stance of the CBN, it is obvious that the fiscal side of the economy needs to do much more than wishing for economic recovery in 2017 or relying on such political statement that this year’s budget is adequate to reflate the economy with no solid follow up economic plan.
Truth be told, effects of the 2016 budget coming to an end in the next two months have not reflected in the economy without a clear policy direction, just as the implementation style of the government and its managers is not helping matters. This type downtrend being experienced by the economy must be tackled with aggressive policies and strategies with periodical assessments to review impact and progress, rather than merely talking without actions.
The NSE All-Share Index gained 22.91 points to close at 26,240.45 points, from an opening figure of 26,217.54, representing a marginal growth of 0.09% on low volume of trades. In the same vein, market capitalisation gained N7.88 billion to close at N9.03 trillion from the opening value of N9.02 trillion, which equally represented 0.09% value appreciation for the day.
The marginal improvement reduced the benchmark index Year-to-Date negative returns to 2.35%, just as market capitalisation for the same period shed N218.12 billion.
Market breadth for Wednesday turned positive and up as the number of advancers outpaced decliners in the ratio of 21:16 to reverse the previous day bear dominant.
Volume traded was slightly up by 1.23% to 190.01 million shares from 187.70 million shares recorded in the previous trading session, while value of trades was down to N2.43 billion from N10.43 billion. This was enhanced by transactions in financial services sector, conglomerates and agriculture especially Transcorp, Presco, Fidelity Bank, Fcmb and Zenith Bank that topped the activity chart as most traded equities by volume.
NSE index and sectorial indices were up in the green except for the NSE Banking and Asem that were flat. Today mixed performance closed the day, with NASCON leading the advancers’ table with 4.95% to close at N7.84, followed by Nemeith with 4.96% to close at N0.67. On the decliners side, Honeywell flour topped the table with 4.98% to close N1.15, behind was Livestock Feeds with 4.96% to close at N0.77.
The index on a daily time frame revealed that the market is in a state of indecision as it continues to trend sideways within the bearish channel and symmetrical triangle chart pattern that supports continuation of trend.
Volume traded increased marginally on a mixed buy position of 76% and sell volume position of 24% as of Tuesday’s trading signals mixed sentiments. A breakout of the up yellow line of the falling channel may confirm uptrend as earnings season is underway.
The direction and trending ability of the market on a daily time frame is weak as ADX is below 20 as at close of trading on Tuesday and also trading below its shortest 15-Day moving average. Observed balance volume is looking up which is pointing to possibility of reversal soon.
Watch your position and general market trend today again.