Taking further steps towards the north, the Lead Indicator of the Nigerian Stock Exchange added 25Bpts and ended the day’s trade at 27,880.46 point. NSE-Pension, NSE-Insurance and NSE-Lotus II all closed below their respective previous close points, while others trailed the lead indicator’s path as shown in the Index Movement Table.
Today’s trading activities produced 17 advancers and 17 lagers. NSEASI YtD return is currently -2.66% while the Market Capitalization YtD return stood at –N275.077 billion.
Today’s move is a confirmation of yesterday’s candlestick interpretation, which suggested a continuation towards the green zone. Nevertheless, today’s positive performance was achieved with reduced volume (on the average) and could imply likely reversal of the ongoing up-trend. In other words, we foresee the market closing marginally in the red zone tomorrow. Please note that it is appropriate to wait for the confirmation tomorrow (at the early hours of trade) before taking investment decisions in this regard.
Transcorp is currently battling a resistant (sighted around N1.20) and may take some steps backward before re-gathering strength to attempt the resistant, on the back of this, we advise against panic selling. Forte Oil remains strong towards the north, and may record more points, although a support turned resistant point awaits the stock around N195.00.
Access Bank currently stands on a weak support; so far it had respected same, as it inched back after hitting the point today, should Access fail to recover on this point, the next support stands around N5.28. Nevertheless, we hope to see the stock add some points tomorrow. The candlestick pattern that represented activities on UBA for the day is a reversal pattern that depicts traders’ indecisiveness. Please note that major fundamental news will fully determine UBA share price direction.
Volume Index for today is 0.85 while buy volume and sell volume is estimated at 100% and 0% respectively. As mentioned above, today’s volume is below the average volume of NSEASI, thus, the probability of the stock yielding the bears’ call any moment from now is close to one.