At the end of midweek trading the Nigerian Equities market slide back marginally to close in the red reversing the previous day gain on increased volume of trades. The Composite index NSEASI shed 14.57 points to close at 24,809.29 from the opening number of 24,823.86 representing 0.06 percent decline. The market had a mixed sentiment as mentioned in our earlier analysis revealed by market indices and price depreciation of high cap stocks like Dangote Cement, NB, Total, FO and GSK. In the same vain, the market capitalization shed N5.02 billion to close at N8.53 trillion from opening value of N8.54. The composite index NSEASI year to day returns is currently at a negative 13.38 percent while the market capitalization for the same period had lost N1.32 trillion.
The market breadth was negative as the bear took over with the number of decliners outpacing that of advancers in the ratio of 22 to 19. The volume of trades stood at 285 million shares in contrast to 212 million shares, representing 34 percent improvement from the previous day close. On the other hand, the value of trades recorded N1.35 billion as against N1.50 billion, representing 10 percent decline from the previous trading level. Transactions in the shares of ACCESS, FBNH, UBA, WEMA and FCMB topped the activity chart as most traded equities as measured by volume.
The leading NSEASI and all sector indices recorded a decline except for NSEBNK, NSEPENSION and NSEPREMIUM which were up by 0.44 percent, 0.42 percent and 0.29 percent respectively. The banking stocks dominating the activity chart in the two trading days reveals how marketable the sector equities are for traders. The impressive numbers from the oil & Gas and positive moves of crude oil price in the international market have not supported its share price yet, as price depreciation in industry shares propelled yesterday market decline.
NSEASI DAILY TIME FRAME
The little pull back of NSEASI yesterday on improved volume suggests that the two remaining trading days of the month of April may experience positive rally depending on strength of the numbers that will be released this period, the mixed performance of companies scorecards that hit the market yesterday also contributed to the pullback. 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. Today trading will finally confirm break down or reversal. With the symmetrical triangle chart pattern of the market which is a continuation or reversal, the market is likely to continue to look down as profit taking for end of the month may support down trend unless there is positive news as the market opens or during trading.
Currently the MACD is bearish since it is trading below its signal line. The MACD crossed below its signal line 22 period(s) ago. Since the MACD crossed its moving average, NSEASI’s price has decreased 3.60%, and has ranged from a high of 26,026.48 to a low of 24,569.72. RSI is currently reading 42.96, as CCI and MACD signaled buy but Stochastic Oscillator is signaling sell. MFI is indicating that funds are leaving the market already
Diamond Bank Plc yesterday made available its belated financial result for the year ended 31st December, 2015. Going by the details of the result, investors will have to go home with a zero reward, this is due to the N55.17 billion Net Impairment Loss on Financial Assets recorded by the bank during the reported year. This jacked down the full year earnings to N5.65 billion against the N25.48 billion earned in 2014. Others companies that released its quarterly earnings reports to the market are Mobil Oil, Livestocks feeds, Wema Bank, Nahco, Fidson, Portland Paints, Morison Industries, and Tourist Company of Nigeria
OTHER MARKET PERFORMANCE INDEX
|NSE OIL & GAS||337.72||330.58||-2.11|
TOP 5 ADVANCERS & DECLINERS FOR THE DAY
|Diamond Bank||1.42||1.49||4.93||Market forces|
|Honey Flour||1.42||1.49||4.93||Q4 Expectation|
|UACN Property||4.45||4.03||-9.44||Unimpressive Q1|
The market is likely to continue on the down trend due to profit taking and the possibility smart traders going away in May to come later in August. 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
There is profit taking in Dangote sugar now, NEW positioning should wait.
Profit Taking will hit Africa Prudential any moment from today wait to buy later,