Conoil Plc Records 9-yr Low as Investor Loyalty Plunges
Category: Investors NewsBeat
Sunday, April 22, 2012/ Proshare Research
The market sentiments review of activities in the equities market for the week ended 20th April 2012 revealed the inactive status of Conoil Plc as the stock traded below its 9-year supports amid its continued bearish trend in recent time.
Conoil Plc experienced negative and bearish sentiments in the week ended to record a -9.7% loss as against -5.0% recorded in the previous week on the back of continued moderate sell tendency and bearish sentiments towards the stock.
Noteworthy, the stock has been on a downtrend since 16th Dec 2011 and so far in the year the stock has not experienced a sustained bargain trend while its YTD loss stood at -33.46%.
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Technically, the stock broke its 9-yrs support (re: N21.00 established on May 6th 2003), on April 17th 2012 with a maximum 5% loss to close at N20.96. The stock plunged by -33.75% between December 16th 2011 and April 17th 2012 to hit the new 9-years low of N20.96 as the bearish sentiments persisted.
The bearish volume trend reveals a strong sell tendency from investors in the year - a pointer to weak shareholders/investors loyalty. The stock recorded its 9-years high of N195.51 on June 15th 2004.
In the year thus far, the stock has traded a bearish volume of 4.89million units only. This points to the inactive status of the stock as total volume traded so far in the year represents less than 1% of the shares outstanding.
We observed a consistent outflow of the cash from the stock as money flow index closed negative, buttressing the significant weakness in shareholders' loyalty while the stock remained depressed as technically revealed by the RSI. The high selling propensity suggests the possibility of a sustained downtrend in the coming periods.
Be that as it may, a price trend reversal is not in doubt as the stock appears to have bottomed-out while the depressed posture of the price as revealed by RSI could actually incite speculative buying if fundamentals run a positive pitch.
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