FeaturedMarket Update

NSEASI Pauses Correction Moves on 38.2% Fibonacci Retracement- See Our Trading Strategy

Starting up the week, equities trading on the floor of The Nigerian Stock Exchange rounded up in the positive territory, thus, the lead performance pointer-NSEASI added 17Bpts to its trading points, and closed at 39,396.57 from 39,331.61. Safe NSE-Consumer Goods and NSE-Banking indexes that shed points, all other observed market indices in this report closed above their respective opening points. Thus, Week to Date, the lead activities index is 17Bpts above opening, while the total lost points in the month of March is now 101Bpts. See the index movement table for details.

FUNDAMENTAL VIEW

Despite today’s positive performance, NSEASI trades below 40,000 support point, and is now moving towards the next support point, sported around 38,700.00, should the index break this point, the next visible support is far down 34,396.3 point. Please note that, technically, the ongoing negative move is best described as market correction, and the consistent downtrend could be linked to the consistency with which it gained during the bullish run. Please understand that, the full year earnings season may not be strong enough to end the correction moves, except it is supported by favorable/positive economic indices. We are of the opinion that, playing dividend stock will reduce investment risk around the market at the moment.

Suggested trading strategy during a market correction period includes; selling down to take profit/loss (depending on the entering price), then buy more volume of the same stock at a lower price. Please understand that, consideration gathered from such sales are kept in a less risky investments instruments, preferably in an overnight call with the bank. Another way to edge against loss in a correcting market is to exit 50% of portfolios, fix the funds appropriately, and re-position at the bottom. Nevertheless, since the market is currently at the pick of the full year earnings season, playing dividend stock is another rewarding technique, nevertheless, it is necessary to note that, most expected full year numbers will reflect the negative impact of pandemic/lockdown during the 2020 business session.

TECHNICAL VIEW

Technically, today’s positive performance happened right on the 38.2% Fibonacci Retracement line, this is impressive, but from experience, when it respected the line with a weak gain, the bear usually returns to push it below the line. Should the market lose this recovery attempt, the next Fibonacci line is 38,278.15 point. Please understand that, to always be among the first set of traders to spot new trends/moves, it is important to familiarize yourself with technical analysis tools. Kindly get in touch with us at Tradelines DotBiz Investment Ltd, for Technical Analysis Training-call- 08051003479 or send a mail to tradelinesdotbizinvltd@gmail.com for details.

The total value gained by the Market Capitalization of the listed equities during today’s trading activities was N33.991 billion, same as 16pts above the opening value. Meanwhile, trading activities for the day produced 25 ADVANCERS and 14 LAGERS. NSEASI Year to Date loss is now 217Bpts while the Market Capitalization Year to Date loss stood at N444.277 billion same as 211Bpts below the year’s opening value.

GAINERS & LOSERS 

Leading the advancers’ log is Linkage Assurance and Ardova with 10.00% gain above their respective previous close price, thus, each respectively rounded up at N0.55 and N14.85 from N0.50 and N13.50. Champion Breweries gained 9.52% to close at N1.84 from N1.68 while Oando and Morison completed the top 5 price percentage gainers log with 9.43% and 9.09% respectively.

On the flip side, Meyer led with 10.00% loss as it ended the day’s trade at N0.45 from N0.50, Livestock Feeds came next with 9.87% to close at N2.01 from N2.23. SCOA, Ikeja Hotel and Nem Insurance rounded up the top 5 price percentage losers’ log with 9.85%, 9.48% and 6.88% respectively.

Over the Counter Market Index and Capitalisation closed in the positive territory by adding 1.88% each, thus, each rounded up at 710.44 and N509.75 billion respectively. Today’s performance produced one (1) advancer and zero (0) decliners. Kindly view today’s price list Here.

As at the time this report was gathered, Brent Crude sells at 68.09$/bbl, this is 183Bpts below the previous close price. Please note that the CBN spot reference price as at close of business on 26th February is 66.30$/bbl.

The I&E FX Window opened at N411.64 traded as high as N412.00 before rounding up at N411.88, having transacted a total of $32.58 million through the day. Please note that, margin between the close and open value is 21pts up. We are of the opinion that the FX-Market will trade within same range tomorrow. See below table for Lagos BDC Fx-Rates.

In the money market, the Overnight (O/N) rate closed at 11.75%, same as 4.58% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate as at ended at 11.50% that is 3.83% below the previous close. Safe Trade.

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FeaturedMarket Update

NSEASI Pauses Correction Moves on 38.2% Fibonacci Retracement- See Our Trading Strategy

Starting up the week, equities trading on the floor of The Nigerian Stock Exchange rounded up in the positive territory, thus, the lead performance pointer-NSEASI added 17Bpts to its trading points, and closed at 39,396.57 from 39,331.61. Safe NSE-Consumer Goods and NSE-Banking indexes that shed points, all other observed market indices in this report closed above their respective opening points. Thus, Week to Date, the lead activities index is 17Bpts above opening, while the total lost points in the month of March is now 101Bpts. See the index movement table for details.

FUNDAMENTAL VIEW

Despite today’s positive performance, NSEASI trades below 40,000 support point, and is now moving towards the next support point, sported around 38,700.00, should the index break this point, the next visible support is far down 34,396.3 point. Please note that, technically, the ongoing negative move is best described as market correction, and the consistent downtrend could be linked to the consistency with which it gained during the bullish run. Please understand that, the full year earnings season may not be strong enough to end the correction moves, except it is supported by favorable/positive economic indices. We are of the opinion that, playing dividend stock will reduce investment risk around the market at the moment.

Suggested trading strategy during a market correction period includes; selling down to take profit/loss (depending on the entering price), then buy more volume of the same stock at a lower price. Please understand that, consideration gathered from such sales are kept in a less risky investments instruments, preferably in an overnight call with the bank. Another way to edge against loss in a correcting market is to exit 50% of portfolios, fix the funds appropriately, and re-position at the bottom. Nevertheless, since the market is currently at the pick of the full year earnings season, playing dividend stock is another rewarding technique, nevertheless, it is necessary to note that, most expected full year numbers will reflect the negative impact of pandemic/lockdown during the 2020 business session.

TECHNICAL VIEW

Technically, today’s positive performance happened right on the 38.2% Fibonacci Retracement line, this is impressive, but from experience, when it respected the line with a weak gain, the bear usually returns to push it below the line. Should the market lose this recovery attempt, the next Fibonacci line is 38,278.15 point. Please understand that, to always be among the first set of traders to spot new trends/moves, it is important to familiarize yourself with technical analysis tools. Kindly get in touch with us at Tradelines DotBiz Investment Ltd, for Technical Analysis Training-call- 08051003479 or send a mail to tradelinesdotbizinvltd@gmail.com for details.

The total value gained by the Market Capitalization of the listed equities during today’s trading activities was N33.991 billion, same as 16pts above the opening value. Meanwhile, trading activities for the day produced 25 ADVANCERS and 14 LAGERS. NSEASI Year to Date loss is now 217Bpts while the Market Capitalization Year to Date loss stood at N444.277 billion same as 211Bpts below the year’s opening value.

GAINERS & LOSERS 

Leading the advancers’ log is Linkage Assurance and Ardova with 10.00% gain above their respective previous close price, thus, each respectively rounded up at N0.55 and N14.85 from N0.50 and N13.50. Champion Breweries gained 9.52% to close at N1.84 from N1.68 while Oando and Morison completed the top 5 price percentage gainers log with 9.43% and 9.09% respectively.

On the flip side, Meyer led with 10.00% loss as it ended the day’s trade at N0.45 from N0.50, Livestock Feeds came next with 9.87% to close at N2.01 from N2.23. SCOA, Ikeja Hotel and Nem Insurance rounded up the top 5 price percentage losers’ log with 9.85%, 9.48% and 6.88% respectively.

Over the Counter Market Index and Capitalisation closed in the positive territory by adding 1.88% each, thus, each rounded up at 710.44 and N509.75 billion respectively. Today’s performance produced one (1) advancer and zero (0) decliners. Kindly view today’s price list Here.

As at the time this report was gathered, Brent Crude sells at 68.09$/bbl, this is 183Bpts below the previous close price. Please note that the CBN spot reference price as at close of business on 26th February is 66.30$/bbl.

The I&E FX Window opened at N411.64 traded as high as N412.00 before rounding up at N411.88, having transacted a total of $32.58 million through the day. Please note that, margin between the close and open value is 21pts up. We are of the opinion that the FX-Market will trade within same range tomorrow. See below table for Lagos BDC Fx-Rates.

In the money market, the Overnight (O/N) rate closed at 11.75%, same as 4.58% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate as at ended at 11.50% that is 3.83% below the previous close. Safe Trade.

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