Market Update for March 5
The nation’s equity market had a spectacular session to start the week on strong, even if volatility, as traders and investors reacted to the few impressive numbers that had hit the market so far to reposition for other expected earnings reports.
This supported the bull eye with sentiment turning positive as revealed by market breadth. Trading for the day opened up, holding support above Friday’s highs when it had a very strong intraday rally. By the afternoon session it had a pull back after touching highs of 44,062.23 to test that level again from a low of 42,876.23 at which it opened for the day, but held up to close positive.
The sharp retracement witnessed during the trading session were due to the plethora of upbeat economic data, as confirmed by the few corporate earnings so far released and the rebound in oil price at the international market. These served as the energy behind the symmetrical triangle chart pattern and index’s breakout to trade above the short moving average of 20 and 50 and open the week positive, despite the low volume of trade.
Market technicals for the day were strong but mixed with buying pressure of 54% on low volume traded, while selling position was 46%. Volume index was 0.29 with money flow index at 65.30 point.
At the close of trading, the NSE composite All-Share index gained 637.70 points to close at 43,513.93 after opening at 42,876.23 basis points, representing a growth of 1.50% on low traded volume that is lower than the previous day’s. Similarly, market capitalisation for the day was up by N229.09bn to close at N15.63tr from an opening value of N15.4tr, which also represented 1.50% value gain in investors’ positions.
The upturn recorded was due to price appreciation in low medium and high cap stocks like Seplat, Beta Glass, Presco, Unilever, Access Bank, Guaranty Trust Bank, Total Nigeria, UACN, Dangote Sugar, Dangote Cement, Lafarge Africa, Cadbury and ETI that positively supported the NSE’s Year-To-Date returns to 13.78%, just as market capitalisation gain for the period was up to N2.02tr, representing 14.86% YTD growth.
The All-Share index and other sectorial indexes were bullish for the day to close higher, just as market breadth was positive as there were more advancers than decliners in the ratio of 32:25. Market activities in volume and value terms were down by 44.08% and 54.87% to 252.05m shares worth N5.75bn from previous day’s 403.14m units valued at N9.15bn.
Transaction volume for the day was boosted by financial services and IT stocks like Guaranty Trust Bank, Access Bank, FBNH, Courtville and UBA, which witnessed increased trading to top the activity chart.
Caverton and Japual Oil were the best performing stocks for the day, topping the advancers table with 10.00% and 9.5% respectively to close at N2.43 and N0.69 on market forces, while Regency Insurance and Learn Africa were worst performers, shedding 8.3% and 4.9% to close at N0.44 and N0.97 respectively on market forces and profit booking
Market Outlook
On the strength of improving positive sentiment for earnings season, we expect the market to maintain strong energy that will drive prices up as market players expects more earnings and react positively if the numbers beat estimates. Also expect volatility and strong recovery moves to continue and profit taking at different times depending on the expected numbers.
Also, expect volatility and repositioning to continue, while profit taking will reduce on the strength of expected payout and earnings surprises.
However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing.
We advise investors to allow numbers guide their decisions while repositioning for the year trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. A stock market is in cycles. You must know the cycle it, or particular stocks therein are to successfully manage your trading and investment risk. For stocks that should be on your shopping list to buy in these seasonal changes as the year unfolds, sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
Get your home study pack of the INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy, thereby ensuring that you invest and trade with knowledge. You can also access stocks analysed in the home study pack of the INVEST 2018 traders and the investors’ summit held on February 24, 2018, including the 15 stock-picks for 2018 are available now to guide your positioning as trading for the year.
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and TV set. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.
Meanwhile, a big THANK YOU to facilitators and participants that made the Chart Summit over the weekend a huge success. The eyes of participants were opened to the three tents of technical analysis and how it can enhance traders income, as well as simple trading indicators and tools for successful traders were revealed. Charting of the NSE Index on short and long term direction movements were carried out to guide investors and traders using technical indicators to know the energy behind funds entering the market, or individual stocks and when such funds begin to exit.
Here are some of the great feedbacks from the just concluded Chart Summit:
I have not seen a more lucid, concise, organized & insightful trading and investing educational presentations than the chart summit. All the speakers opened my eyes to how to manage risk using TA, despite the fact that I have been playing the market for 21 years. Mr Ambrose thank you. Please keep this good work you are doing for Nigerians.
Ikechukwu Olisa
Ambrose and Tunde’s presentations were the simplest, clearest and best understood of the many that I have heard in my trading lifetime of nearly 25 years, please keep it up. Thanks for your time.
Oyebola Ademola
The Invest 2018 home study pack content was what attracted me to attend this chart summit today, it was so good that I just couldn’t stop watching. Today’s chart summit was the best class I have attended in over 10 years. It’s going to make a big difference in my trading.
Patrick Udo
Thanks Mike for opening my eyes to risk management and portfolio selection using Technical Analysis tools. Thanks to investdata for putting chart summit together for novice and advance traders. It was well presented and right to the point. Again thanks so much for the beautiful presentation. It’s superb.
Musa Ahmed
Chart Summit on technical analysis for novice and advance traders home study pack is available, for those who have booked for the USB, you can play it on your phone, TV and laptop. Those interested in the pack should send ‘Yes’ or call any of: 08032055467, 08028164086 or 08111811223.
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 0803205546
