The Nigerian Equity market gained 33.15 points to close at 24,659.17 as against its opening figure of 24,626.02 representing 0.13 percent growth to reverse Monday negative position on the strength of marginal improved demand as few banking first quarter earnings reports were not bad for new financial year start. In the same vain market capitalization was up by 0.13 percent to closed higher at N8.48 trillion gaining N11.41 billion. The leading index NSEASI year to date returns is currently at negative 13.91 percent while the market capitalization for same period had lost N1.33 trillion. The market breadth turned bullish as the number of advancers outpaced that decliners in the ratio of 22:16. Despite the technical hitches on the trading floor for two days and it is expected that the market will open today at the normal
The volume of trades stood at 228 million shares in contrast to 129 million shares representing 76 percent improvement while value recorded N1.44 billion as against N580 million naira, representing 147 percent growth from their previous trading levels. Transactions in the shares of UBA, GUARANTY, ZENITH, NEM and UCAP topped the activity chart as most traded equities as measured by volume. NSEASI and all sector indices closed in mixed directions with NSEBNK leading the gainers with 2.04 percent daily gains while NSECNSMRGDS led the losers with 0.91 percent daily loss.
NSEASI DAILY TIME FRAME
NSEASI is currently ranging waiting for trigger in the positive direction or otherwise as economic situation has not help the first quarter scorecards released so far. NSEASI closed above the lower band by 17.9%. Bollinger Bands are 23.18% narrower than normal. The current width of the bands does not suggest anything conclusive about the future volatility or movement of prices. The recent price action around the bands compared to the action of the Relative Strength Index (RSI) does not suggest any trading opportunities at this time. During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
Currently MACD is bearish since it is trading below its signal line. The MACD crossed below its signal line 16 period(s) ago. Since the MACD crossed its moving average, NSEASI’s price has decreased 4.19%, and has ranged from a high of 26,026.48 to a low of 24,569.72. RSI is currently reading 36.55 while technical indicators like Stochastic Oscillator and CCI are signaling buy since Monday trading.
Investors should position with long term goal in fundamentally sound stocks and take short term profit opportunity when it comes up.
Stocks to watch
Access Bank, Dangote Cement, Dangote Sugar, Zenith, FCMB and Ucap