LAST WEEK REVIEW:
Week on Week, The Nigerian bourse was down last week. The lead national indicator, NSEASI closing at 42,638.83 or decline of -1.13% from the week’s open of 43,127.92 is indicative of pressure in the first two trading sessions in the week while the last three days ended in the green. This much was expected as expressed in this column last week.
Aside NSE Pension index which closed the week with a growth of 0.08%, most others recorded negative performance in the week. With 1.70% NSE Insurance recorded highest loss in the week under review.
OTHER MARKET INDICATORS:
Other market indexes showed a largely somewhat mixed week but with lots of positive emotions despite bargain hunting.
- TURNOVER: Quantities of shares traded showed a decline of 33.57% from 4.426 billion shares in the previous week to 2.940 billion shares last week.
- FACT: This may suggests a reducing numbers of willing sellers at declining equity prices.
- VALUE: Values of stocks traded inched up by 13.20% to N27.924 billion last week from N24.236 billion recorded in the previous week.
- FACT: This is an indication that price performances were largely domin ated by equities with higher prices. A glimpse at highest gainers include Zenith, PZ, GSK, Access and Beta Glass all selling above N10 as against performances of previous weeks where stocks below N10 dominated. On the other hands, highest percentage losers list consist of stocks all selling below N5.
- DEALS: Deals were marginally down 3.39% to 28,570 last week from 29,573 recorded in the previous week.
INVESTING THIS WEEK:
- Largely because there are no regulator to scrutinise and approve reports, next to Vitafoam to release audited report was NB Plc. Up until the Q2 2018, audited reports will trickle in. Market movements will be largely determined by realities against expectations.
- Earnings possibilities should determine stock picks. Investing only after results have been declared is not advised except if you intend to hold on to stock.
POSSIBILITIES THIS WEEK:
- The market is yet showing signals of mixed performance amidst positive expectations. Closing bids Friday were slim and in just few quality stocks. Closing offer sizes were by far higher though in low cap stocks. At that, Monday might be turbulent. Into the week however, there are signals of growth but there are equal weights of pressure from bargain hunting to depress. On the whole, the market stands to perform better this week, all things being equal.
- Technically speaking, bullish reversal is shown on the weekly chart. This suggests that this week might be up no matter how slim the growth is. On the daily charts, closing with an indecision signal may suggest a weak open Monday. Generally, a few days of green and red signals are expected. In other words, it might not be an outright green trading sessions all week long. In the same vein, the market is not expected to see red all through the week.
STOCKS TO WATCH FOR THE WEEK:
Most suitable for medium to long term hold, though price could go either way this week but performance looks more like will be mild. Indicators within the organisation in product development, diversification and strategic positioning qualify the stock for a purchase. Notably, shareholding structure might not give room for enough float for short term trade hence, the consideration for medium to long term hold. Closing offer size of 750,500 as against bids of 456,192 units suggests a weak Monday at open.
- DIAMOND BANK PLC:
Though the bank might not declare any dividend in its expected 2017 audited result, for which reason the price might sharply decline. Keep a tab on the stock to see appropriate entry point. for this week, a closing bid size of 1000,000 units against offer size of over 1,500,000 units suggests weak opening Monday. One or two more days of decline might see a reversal within the week.
- FLOUR MILLS PLC:
The start of last week was rough with two days of decline. The last three days ended well for the stock. A closing bid size of 207,470 against 50,900 offer size places Monday at a strong open. Remaining four days of the week will be shared with possibility of positive WoW return. Notably, the company’s Q3 results showing a 79% PAT growth and EPS of N4.50 relative to a price of N32.50 makes the stock attractive at current price.
- GUARANTY TRUST BANK PLC:
Seeing the stock price below its all time high of 57 is just an advantage to get in as it is bound to touch that same price again soon. Its closing bid size of 250,000 units though little relative to volume it usually commands yet makes Monday open looks mildly strong. In other words, no matter the margin, Monday is expected to close in the green while remaining four days will be shared between the red and blue all things being equal. N4.44 was the 2017 Q3 earnings with 2017 Q4 earnings’ projection between N5.50 and N6, GTB is a stock to watch.
- ACCESS BANK PLC:
Indicators are mixed. At that, this week stands to be shared between green and red days. 105,000 offer sizes at Friday’s close of trading session suggest a mild decline Monday. If the excess offer is taking off, green session should be in force between Tuesday and Wednesday all things being equal. The key attraction is in its 2017 Q4 earnings expectations. The result will sure come with mild dividend as usual. The high point will be its retained earnings.
Reference to last Friday’ closing bid and offers sizes of the stock make Monday opening weak. Strategic investment in power and its oil assets all make Transcorp equity to watch over time. Wiping off previous losses remain major credit to the company’s management. 8kobo 2017 Q3 earnings might be low but encouraging when past is considered.
The stock closed Friday with just about 11,000 units on offer. Monday might be slow and end with marginal price growth. A few days of green performances are being expected in the week. Dividend outlook is positive but will not be frivolous.
- LAW UNION