Market Update for May 4
Trading activities on the floor of the Nigerian Stock Exchange had a very upside down volatile session to continue it bullish transition.
The day started out with a little gap down, as the benchmark All-Share index bounced hard, came down again with another bounce up during the last trading minutes of the day to close higher. The index consolidated late in the day and firmed up to close mixed with other sectorial indices.
Thursday volume index was at 1.00, while buying position was 100% and selling volume 0% of the day’s total, to continue the bull rally, as the market sentiments remained positive on strong numbers Q1 to drive high demand for stocks.
Technically, the market’s uptrend continued on a high volume that supported positive market breadth on high stock prices.
Nonetheless, the NSE’s trending ability and direction is still weak as ADX is below 20 at 15.51, while MFI is looking up to indicate money is entering the market as at close of trading. MACD is still bullish, while RSI is reading 64.23 which is relatively at the overbought region as at Thursday close. The bearish candlestick formation pattern at the upper band of Bollinger support imminent reversal of the market for traders to take note.
Meanwhile, the composite Nigerian Stock Exchange (NSE) All-Share index gained 50.01 basis points to close the trading session at 26,166.80 points, from an opening figure of 25,116.79 points, representing a 0.19% growth on a high volume traded. It was however lower when compared to previous day’s volume. Similarly, market capitalisation for the day was up by N18bn, closing at N9.05tr from an opening value of N8.93tr, representing a 0.19% value appreciation.
Value gained by medium and high cap stocks further impacted the All Share index to reduce year- to-date negative position to 2.63%, while market capitalisation adjusted down to N201.62 billion loss, representing 2.18% loss YTD, from the year’s opening value.
Market breadth for the day still positive and strong as the number of advancers outweigh decliners in the ratio of 26:16 to continue five straight days bull run.
Market activity in volume and value were down by 3.34% and 15.52% respectively to 255.65 million shares from previous day’s 264.49m shares, valued N2.45bn from previous day’s N2.9bn. Transactions in the shares of ZENITH BANK, FBNH, UBA, GUARANTY and AIRSERVICE topped the activity chart as most traded equities by volume
The NSE All-Share index and all sectoral indices were in the green, while NSE Industrial Good, NSE Insurance and NSE Lotus were in the red to close the day’s trading activity.
At the end of the day, International Breweries topped the advancers’ log, with its share price gained 9.30% to close at N19.30 on market forces; followed by Fidson Healthcare with 9.09% to close at N1.44 on the back of the interplay of market forces.
On the flipside, Stanbic IBTC led the decliners’ log, shedding 9.62% to close at N24.81 purely on PROFIT TAKING by traders; followed by Unity Bank, which dropped 7.41% to close at N0.50 on market forces.
As market opens this morning, expect mixed performance as profit booking is underway. That means investors should not panic if they take position based on strong numbers and future prospects of any stock. We advise that investors allow numbers to guide their decisions to reposition for the rest of the year’s trading especially now that first quarter earnings reports are out to give insight what should be expected at the year end.
Industry potential is very important when picking a particular company, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry.
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