Market update for April 4
(BY AMBROSE OMORDION) The stock market on Tuesday had somewhat of a resistance after retracing up but later succumbed to pressure with the indices suffering marginal losses towards the last hour of the trading session. Support was held at 25, on an improved traded volume for the day. The continued pullback to the down channel is a signal of bear transition and cautious trading on the side of traders and investors in the market.
The new anomaly in the market at this point is stockbrokers helping to drill the market of the little liquidity by massively promoting the savings bond at the detriment of the equity market, giving that such commitment in promoting bond has not been employed by regulators and operators of the market to educate Nigerians on the importance of savings through investing in the stock market. Instead, there remains an unhealthy expectation always for some foreign investors to bring in Foreign Direct Investments that would help boost market activities at a time when the nation’s economic fundamentals are not attractive enough, except for those die-hard optimists. There is need to re-emphasise at the risk of sounding like a broken gong, that domestic investors, whether individual or institutional, must first demonstrate faith in the economy, before foreigners can be encouraged to come in.
Oil prices in the international market in recent time is rebounding amidst uncertainties in the global markets and economies as increasing mixed monetary and fiscal policies, in addition to global PMI have been of serious concern for investors. The upcoming meeting between U.S President, Donald Trump and China’s President ahead of the summit of both nations later in the week, has triggered a run-for-safety by investors, thereby causing mixed performance in major stock markets across the world.
Meanwhile, the composite NSE All Share Index shed 6.88 basis points to close at 25,266.15, from an opening figure of 25,273.03, representing 0.03% marginal decline on an improved volume traded, when compared to the previous day’s figures that was low on average daily traded volume. Similarly, market capitalisation for the day was lower by N2.38 billion to close at N8.74trillion, from an opening value of N8.74trillion, representing 0.03% loss in value, which is flat.
Depreciation in the value of Forte Oil, UBA, GTBank, Seplat, Access Bank, 7-Up and Guinness for the day further push the All-Share index’s year-to-date negative position to 6.03% and market capitalisation adjusted to N504.54 billion, representing 5.52% loss YTD, from the opening value.
Advancers to Decliners ratio for the day at 19:19, was flat keeping market breadth at equilibrium to continue three trading sessions of bear run. Market transactions in volume and value were up by 84.48% and 137.27% respectively to 180.22 million shares from 97.69 million shares in the previous day and N1.62bn from the previous value of N682.76m respectively.
The day’s activity was driven by shares of Glaxosmith, Flourmils, Access Bank, UBA and Fidelity Bank that dominated the day’s trading as most traded equities by volume.
The NSE All-Share index and all sectoral indices were mixed to close the day’s trading.
During the session, more of 2016 full year financials were released, just as a few others filed for delay in submission of their 2016 financials. Also Guaranty Trust Bank and Transcorp notified the exchange of the closing date for their first quarter results.
NASCON led the advancers log with 10.23% to close at N8.60, driven by dividend offered by the board, followed by CAP with 5.51% to close at N15.12; while Forte Oil topped the decliners log, shedding 5.86% to close at N45.00.
We advise that investors allow numbers to guide their decision in repositioning for Q2 as the first earnings reporting season is just kicking off. Industry potential is very important when picking a particular company, because there are things that are sector-wide and would naturally impact positively or negatively on companies operating within that industry.
Industries to watch in second quarter
Insurance, Banking, Services and Agribusiness.

OMORDION AMBROSE
CHIEF OPERATING OFFICER
INVESTDATA LIMITED
TEL:01-4724645,08028164085,07028061501
ambroseconsultants@yahoo.com