For the second time since the bullish run commenced, the performance index of the Nigerian Bourse posted an almost flat ending of 2Bpts. HWC5-Index, NSE30-Index, NSE-Consumer Gds-Index and NSE-Industrial Gds-Index all shed marginal points while other observed market indices gained. See the index movement table for details.
Today’s trading activities produced 22 advancers and 13 lagers. NSEASI YtD return is currently -1.49% while the Market Capitalization YtD return stood at –N158.739 billion.
Today’s pattern was a hammer; this is a reversal pattern which ordinarily indicates a possible pull back (drops), probably due to profit taking activities. Should the market pull back, it’s an opportunity for traders who missed out in the positive trend to join. Please note that reversal pattern always require a confirmation.
Recommendations
Reviewing our last recommendations of 19th September, 2016; Wema Bank reversed lost points with 4.84%, Pz Cussons joined the gainers’ log with 4.98%, Zenith Bank equally featured on the advancers list with 2.74%. Though still in a reluctant mood, UBA gained 0.23% while the most doubted FBNH added 1.31%. Given the very poor performance posted by Guinness, we reaffirm a Sell Rating on the stock. We are of the opinion that the reported loss earnings and the very low dividend (50k) proposed is a pure reflection of recession.
We maintained our position that traders should pay more attention to their trades and seriously mind their stops (up (+) or down (-)). Investment greed should be avoided at all cost.
Volume Index for today’s activity is 0.91 while buy volume and sell volume is estimated at 68% and 32% respectively.
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