NGX Rebounds Amid Reactions To Mixed Earnings, Listing Of Transcorp Power, Low Valuation

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Following the change in trading pattern, trend and momentum on the Nigerian Exchange, market fundamentals have equally changed, just like trading and investing strategies as investors and traders move to ensure they profit from uncertainties that have beclouded the economy and the market at this time. Investors and traders seem conscious of the saying that you learn nothing from trading, if you think you are right all the time.

The market rebounded last week, breaking out the 100,000 basis points mark and psychological line of 101,000bps, closing at 101,330.85bps as market players reacted to the mixed corporate earnings and dividend payouts.

The Nigerian Exchange’s All-Share index was also significantly influenced by the listing of Transcorp Power, just as there was buying interest in stocks that recently suffered loses, creating new entry points during the week. Volume traded during the week was relatively low, even if higher than that of the previous week on a negative market breadth.

The continuation of this trend next week will be a function of dividend payouts and the state of earnings’reports of banks, especially the first-tier players in that sector, among others to shape the market. Global rating agency- Fitch released its outlook for the Nigerian economy, remaining positive, even as the International Monetary Fund (IMF), on its own part is projecting an above 3% growth in 2024, against 2.75% in 2023.

At the current state of the market, players should effectively combine their fundamental, technical, sentiments and commonsense analyses. It is time to keep an eye on technical and sentiments that read the psychology of buyers and sellers in today’s market. Let the charts, price and index actions below guide you:

NGXASI Weekly Chart (Opening chart)

NGX Banking Weekly Chart