Trading activities on the floor of the Nigerian Stock Exchange closed positively to reverse the two days bear run on the strength of price appreciation of highly capitalized equities like FBN Holdings, Zenith Bank, Nigerian Breweries and GTBank. The composite index NSEASI gained 59.74 points to close at 24,823.86 from an opening figure of 24,765.10 representing 0.24 percent growth on improved demand for shares. The market capitalsiation gained N20.22 billion to close at N8.54 trillion representing 0.24 percent increase in value. NSEASI year to date returns is currently standing at a negative 13.33 percent and for the same period market capitalization had lost N1.31 trillion. The first quarter earnings reports that hit market recorded mixed performance with Total Nigeria beating market forecast while FBNH is relatively okay knowing the position the bank going from to start on a slate. UACN and its holdings company’s earnings reports in recent time have been below market expectation which the market is likely to treat the group accordingly.
The market breadth closed positive as the number of advancers outweighs decliners in the ration of 22 to 8 on a strong volume indicating smart money portfolio repositioning for the month ending this Friday. The volume of trades stood at 212 million shares in contrast to 144 million shares traded in the previous day represent 47percent improvement while value recorded N1.50 billion as against N770 million representing 96 percent increment from the previous trading value. Transactions in the shares of ACCESS, FBNH, ZENITH, UBA and FCMB topped the activity chart as most traded equities as measured by volume.
The leading index NSEASI and all other sectorial indices closed in the green expect for NSEINDUSTR that shed 0.02 percent.
NSEASI DAILY TIME FRAME
NSEASI reversed yesterday on improved volume as triggered by seemingly positive earnings reports that were released to the market. The market is still below its 20 and 50 day moving average but the two averages crossing over signals reversal. MACD red line also crossing the blue line from below is a positive reversal signal too. With the symmetrical triangle chart pattern of the market which is a continuation or reversal, the market is likely to continue in the uptrend but profit taking for end of the month may pullback the trend. Currently the MACD is bearish since it is trading below its signal line. The MACD crossed below its signal line 21 period(s) ago. Since the MACD crossed its moving average, NSEASI’s price has decreased 3.54%, and has ranged from a high of 26,026.480 to a low of 24,569.7. RSI is currently reading 43.39, as CCI and MACD signaled buy but Stochastic Oscillator is signaling sell.
The management of First Bank Holding yesterday made available the belated full year financial position for the year ended December 31st, 2015 along with its first quarter of 2016 result. The bank directors are recommending a 15k dividend. Other companies that released their scorecards are UACN Plc, UACN Property Plc, Total Nigeria Plc, and Berger Paints. The Brent crude oil price yesterday sustained it rally to close at $45.84 per barrel.
OTHER MARKET PERFORMANCE INDEX
|NSE OIL & GAS||336.6||337.72||0.33|
TOP 5 ADVANCERS & DECLINERS FOR THE DAY
|AG Leventis||0.82||0.84||4.88||Market forces|
|Mansard Ins||2.14||2.24||4.67||Q1 Expectation|
|Trans Express||1.13||1.18||4.42||Market forces|
|Berger Paints||9.30||8.84||-4.95||Unimpressive Q1|
|Air services||1,72||1.64||-4.65||Market forces|
|Stanbic IBTC||14.30||13.76||-3.78||Market forces|
The market is likely to slow down as traders will be taking profit while new investors are positioning with first quarter earnings report. This expected mixed sentiment on the floor will finally determine the market direction. Let the first quarter earnings guide your entry and exit, as some companies have outperformed the economic on the strength of their earnings for Q1.
STOCKS TO BUY
Africa Prudential, Fcmb, Access Bank, Uba, Dangote Sugar, and NEM Insurance.