How Prices of 25 Hitherto Stagnant Stocks React to NSE’ New Price Rule

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MARKET REBOUND

LAST WEEK REVIEW:

Going by the performances of Nigeria’ national stock market index, the Nigerian stock exchange all share index, NSEASI last week, it could be deduced that the rate of growth was slow in the week under review, Monday of the week being the best with a growth of 1.5%. 0.2% was the performance recorded Tuesday as the market lost 1.5% Wednesday but recovered Thursday with a growth of 0.3% and wrapped the week on Friday March 9, 2018 with 0.2% growth. In all, WoW, it was 0.68% growth, 0.4% decline Mtd and 12.9% growth YtD. It suggests that on the average, March has been rather sluggish for the market.

 

SECTOR INDEXES:

With a WoW growth of 5.58%, NSE OIL & GAS led its peers. Mtd, 8.88 MtD and 13.14% YtD.

NSE PENSION was up 2.04% WoW, NSE LOTUS 1.77% growth while NSE INDUSTRIAL GOOD and NSE CONSUMER GOODS all tallie at 1.70 growth WoW.

On the flip side, NSE ASEM was down 1.76% to emerge as the worst performer in the week. While NSE BANKING lost 1.08%, NSE PREMIUM was also down 0.25% to make up the list for the week.

OTHER MARKET INDICATORS:

High cap stocks were largely silent during the week thus leaving the stage for low cap stocks to dominate gainers and losers charts.

IMPACT OF NSE’ NEW PRICE RULE:

  • Japaul began a descent on Feb 02, 2018 at a price of 50kobo and consistently declined to a low of 35kobo on February 19. It was that highest gainer last week.

 

  • Consolidate Hallmark Insurance also began to tumble on February 02, 2018 from a price of 50kobo and never looked back until February 27, 2018 when the price hit 25kobo. From that recovery, the stock has not looked back one day until its current price of 39kobo. It is however doubtful if the 50kobo price will soon be achieved.

 

 

  • LASACO started a descent on February 29, 2018, touched a low of 33kobo on February 6, recovered and touched another low of 31kobo on February 19. It sold last Friday at 44kobo.

 

  • African Alliance Insurance began to decline on January 30, 2018, halted the descent and even climbed higher to 44kobo on February 9. It has been consistent decline till last Friday when it started selling at 31kobo.

 

 

  • ABC Transport left the shore of 50kobo on January 29, 2018. Got to a low of 36kobo on February 28. It closed at 42 kobo last week on its way back to where the race started- 50kobo.

 

  • CHAMS made a decline to 48 on February 6. It has since remained so.
  • Cornerstone currently sells for 41kobo. Its price descent started on January 31, 2018.

 

  • Courtville started out at 50kobo on February 9, 2018. It currently sells at 32kobo after a lowest low of 27kobo touched on March 1, 2018.

 

 

  • DAAR moved only once on March 1, 2018. It now sells at 58kobo.

 

  • DEAP recently reported a major investor. The comatose price woke up on February 5, 2018 to sell at 48kobo.

 

 

  • DUNLOP started to decline on February 20, 2018. It now sells at 36kobo with possibilities of stagnating there for a while.

 

  • Equity Assurance stagnated at 50kobo until February 6, 2018. It currently sells at 36kobo.

 

 

  • FTN Cocoa was selling at 50kobo until January 30, 2018. It currently sells at its lowest level of 32kobo with possibilities of further decline.

 

  • Guinea Insurance broke the 50kobo jinx down on February 6, 2018 to 48kobo. Three subsequent losses brought it to the current 42kobo price level. It does not look as if a respite is in the offing but then in the market, anything is possible.

 

 

  • John Holt got to a low of 46kobo after the initial loss that brought the price to 48kobo on March 2, 2018. It is back at 48kobo.

 

  • Multiverse Resources began a journey of nineteen-day descent on January 30, 2018. The price was down in the process, 50% to 24kobo on March 7. It currently stands at 26kobo after two days of growth.

 

 

  • Prestige Insurance has maintained a measure of volatility since the price broke down the 50kobo limit on January 29, 2018. It has so far tested 44kobo, 45 and now around 48kobo. Within the period also, it has tested a high of 58kobo on February 08, 2018. Significantly, this has been the best set of activities the equity had seen since 2014.

 

  • Regency Alliance Insurance pays regular dividend but this had often failed to impact price until a new price limit is set by the stock exchange. From February 20 when it first broke the 50kobo limit, it has seen in price, five major moves. All were negative thus bringing its price to 35kobo.

 

 

  • Royal Exchange Insurance first broke its 50kobo limit after a loss of 4% to a price 48kobo on January 29. It has since seen a measure of activities which pushed the price to a low of 30kobo on March 05. Four consecutive days of gains till March 09 brought the price to 35kobo.

 

  • Sovereign Trust Insurance lost 4% in price on February 01, 2018 to close at 48kobo. The price relaxed for four days before embarking on a journey of ten days of descent to hit a current low of 33kobo.

 

 

  • STACO recorded a 4% decline on February 19, 2018 to close at 48kobo. That would be the first since June 04, 2010. The galloped decline brought the price to 44kobo on March 01. It has since remained dormant.

 

  • Tantalizer sure had sour aroma in price as two days of galloped decline brought price to a current level of 46kobo. Earlier than February 19, 2018, it has been stagnant since June 07, 2011.

 

 

  • Unic Insurance’ stock price had been stagnant since September 15, 2010 at 50kobo. The new price rule forced the price down 46kobo on January 31, 2018. There were fourteen sessions of decline before a halt on March 08, 2018. Another abnormal day of gains which was later cancelled got the price to current 21kobo level. Unfortunately, the company is currently under NAICOM’ management.

 

  • Unity Kapital Insurance broke its eight years’ price stagnancy on February 01, 2018 to close at 48kobo after a loss of 4%. Ten subsequent days of decline was halted on March 08 at a low of 34kobo. It sells at 33kobo as the previous day’s performance was not sustained.

 

  • GAINERS AND LOSERS:

Both sides were largely dominated by equities that were hitherto stagnant in price. These include, on the gainers’ side, Japaul, Consolidated Hallmark Insurance and Lasaco. On the flip side were Regency Alliance Insurance, African Alliance Insurance and FTN Cocoa.

 

POSSIBILITIES THIS WEEK:

  • Barring any unforeseen circumstance, the market stands to open mildly strong. In other words, a marginal growth is possible than decline. Expected stability in the prices of NB plc, Dangote cement and a few others is expected to create the support as low cap stocks show possible domination of market activities. The five days of the week will be shared between green and red colours, either way; performances are expected to be mild and not sharp.

 

  • Technically, the odd favours a rise for most of the days this week though growth might not be that sharp. Indicators place the market within a level where growth is possible with lower tendencies of decline.

 

STOCKS TO WATCH FOR THE WEEK:

  • ACCESS BANK PLC
  • ABC TRANSPORT
  • AFRIPRUD
  • CUSTODIAN AND ALLIED
  • FBNH
  • FIDELITY
  • CONSOLIDATED HALLMARK INSURANCE
  • JAPAUL
  • JOHN HOLT
  • LASACO
  • NB PLC
  • NNFM
  • OKOMU
  • PZ
  • STERLING
  • STANBIC
  • UCAP
  • ZENITH

 

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