Equities rise on the Exchange amid volatility

ANALYSIS of the market activity in the week ended February 06, 2015, technically revealed improved optimism along with high speculative tendency as short-term traders remained in control of the market trend.

  Also, an extensive analysis revealed growing accumulation pattern during the week while investors sustained cautious value investing pattern towards medium capped stocks. Meanwhile, it was observed that distribution still sustained moderate posture during the week due to short-term profit taking.

  In similar vein, volume analysis also revealed active bargain tendency towards Access, Diamond bank, Dangote Flour, and Nascon while investors displayed low-key bargain postures towards Zenith bank, ETI and Ikeja hotel. 

  Proshare analysts observed sustained bargain pattern in construction/real estate, and consumer goods sector(s) and fresh bargain tendency in services and conglomerates. However, investors displayed continued sell activities in oil and gas and healthcare sectors and fresh sell sentiments in agriculture sector during the week.  

  Summarily, the bulls ruled the week, strengthening the key benchmark indices by 432.01 points against by -249.98 recorded in the previous week to close at 29,985.08 – All Share Index [ASI] remains depressed and battered below its key resistance level at 41,957.50 

  In addition, the ASI traded within the range of 30,617.96 (week-high) and 29,882.28 (week-low) to settle at 29,985.08, above previous week’s high (29,907.66) by 77.42- This indicates improved bargain posture when compared with previous posture. The outlook reveals renewed bargain sentiments. 

  In the week just ended, market breadth closed positive at 1.16x against 0.65x recorded in the previous week on the back of improve optimism.

  Likely trends in the coming periods, proshare analysts  expect sustained cautious optimism and moderate accumulation trend to persist as we move closer to earning season while speculative tendency would still dictate market trend as market atmosphere still appear tensed.

 Technically, market sentiments during the week favoured liquid and active stocks of medium cap categories, but with stronger positive sentiments construction/Real estate, services, consumer goods, financial services, conglomerates, industrial goods, which further revealed the sector(s) investors patronised in the week. 

  On the other hand, it was observed that negative sentiments appeared stronger in healthcare, agriculture and oil and gas sectors.

  Meanwhile, First bank experienced waning sell tendency to close with negative sentiments in the week. The stock recorded -1.30 per cent loss in the week against -5.30 per cent loss position recorded in the previous week.

  The outlook in the week revealed improved bargain postures amid mixed sentiments towards the stock while the stock price hits new historical low at N6.99 as new support line on the back of sustained negative sentiments in the week. Meanwhile, the stock had shed N64.77 per cent in the last 25months.

  In addition, technical indicator revealed sustained feeble bargain sentiments towards the stock while it closed bearish in both short term and mid-long term periods as revealed by its price moving averages- this however indicates sustained presence of the bears towards the stock during the week. 

  Also, we observed a significant surge in bearish volume during the week while the stock holds its new support line at N6.99. 

  Dangote Flour experienced renewed bargain tendency to close with positive sentiments in the week. The stock recorded +33.30 per cent gain in the week against -6.00 per cent loss position recorded in the previous week.

The outlook in the week suggests improved bargain optimism towards the stock, following active 47weeks sell-down experienced between March 14th 2014 and January 30th 2015 to record -68.42 per cent loss. 

  Technical indicator revealed reversal pattern with growing bargain tendency towards the stock. The stock closed neutral in short term but remained bearish in mid-long term periods as revealed by price moving averages, indicating improved presence of the bulls towards the stock.