Market Update Jan 12

Equities value closed lower Thursday on the floor of the Nigerian Stock Exchange to continue the up and down movement that has characterized the market since the beginning of the year. This trend has been attributed to bargain hunting ahead of the earnings season and the state of the economy which has kept investor confidence low, just as it has triggered the need for caution on the part of traders and investors.
At the close of trading, the composite NSE All-Share index shed 55.41 points to close at 26,330.39 as against the opening level of 26,385.80, representing a 0.21% decline, on relatively low volume of trades as stock prices depreciated in value amidst the continuing selling pressure. This dragged the market capitalization down by N19.07 billion to close at N9.06 trillion from opening value of N9.08 trillion.
This has further pushed, the Year-to-Date negative returns of the NSE’s All Share Index down to 2.10%, just like market capitalisation also had lost N187.56 billion for the same period.
The negative market breadth was deepened, as the number of decliners outnumbered advancers in the ratio of 23:13, just as volume of transactions fell by 9.14% to 179 million shares, worth N1.49 billion as against the previous session’s 197 million units valued at N1.05 billion, representing 41.9% increase in value.
Transactions in the shares of UBA, FBNH, ACCESS, TRANSCORP and UCAP, topped the activity chart as most traded equities by volume.
At the close of trading, all the sectorial indexes and the All Share index were in the red, except for the NSE BANKING and NSE PREMIUM, while NSE ASem closed flat.
Agribusiness stock- Livestock Feeds again led the advancers table with 4.94% to close at N0.85, while FO was atop the decliners table with a -9.20% loss to close at N73.99.
NSEASI DAILY TIME FRAME

The index on a daily time frame continues its up and down move, trying to rebound within a falling channel and symmetrical triangle chart pattern that supports continuation of trend, moving to the New Year’s strong resistance level of 26,625.85. If market forces go positive this morning the trend might reverse. But if not, wait to jump in below the blue trend line.
The trending ability of the market on a daily time frame is strong as ADX is above 20. The probability of the market to maintain this up direction for today is mixed as the buying position for today’s trading was 23% and selling, 77%. Traders should watch out.

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