NSE Reverse on strong buying volume

Market Update January 16

The nation’s equity market opened for the first day in the third week of January on a slight positive note to reverse the two previous trading weeks that were negative.
The increasing buying position of 91% and selling volume of 9% by investors at this point could be attributed to the earnings season that drawing closer gradually, just as the relative improvement noticed in the December Purchasing Managers Index (PMI), besides the slowdown in inflation data as revealed by National Bureau of Statistics (NBS) also for the month of December made available last Friday.
As a result, the composite Nigerian Stock Exchange (NSE) All-Share Index gained 47.90 points to close at 26,373.83 from the 26,325.93 it opened for the day, representing a marginal growth of 0.18% on a relatively improved volume of trade. Similarly, market capitalisation for the day gained N16.48 billion to close at N9.07 trillion from open value of N9.06 trillion.
Consequently, the NSE All Share Index Year-to-Date negative returns reduced to 1.86%, just like market capitalisation for the same period fell by N172.30 billion.
Market breadth for the day was mildly positive as the number of advancers outpaced decliners in the ratio of 17:12 to reverse it bear transition in the last two trading days.
Volume of trades was up by 17.12% to 174 million shares worth N1.18 billion from the previous session of 149 million units valued at N3.76 billion, representing a 68.72 % decline in value of trade.
Transactions in the shares of Diamond Bank, Fidelity Bank, Stanbic IBTC, Access Bank and FCMB, topped the activity chart as most traded equities by volume.

At the end of the day’s transactions, Diamond Bank and Nahco top the advancers top by 7.21% and 4.48% respectively to close at N1.19 and N2.80, while Total Oil and Cutix led the decliners table with 4.87% and 4.52% loss to close at N285.40 and N1.48.
This trend is likely to continue in today’s trading session but investors should always take advantage of any pullback that will create another trading and investing opportunity.
NSEASI DAILY TIME FRAME
Stock
NSE index on a daily time frame continues its sideways ranging movement, trying to break out of the falling channel and symmetrical triangle chart pattern that supports continuation of trend, the increase in buying volume as earnings draw near may break out the New Year’s strong resistance level of 26,625.85.
The trending ability of the market on a daily time frame is strong, as ADX is above 20, while the weekly is weak at ADX of 16.58
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