Sustained bargain tendency continued to dictate trend on the Nigerian bourse as the outlook so far in the week remained bullish on the back of improved bargain appetite and resilient posture of value investors.
On the other hand, intra-day market price volatility seems to be gaining dominance while the overwhelming and resilient bargain hunting continued to suppress the subtle profit taking tendency due to prolonged overbought posture of the market as revealed by market RSI.
Furthermore, analysis revealed a better outlook and improved prospects on the Nigerian bourse as investors reinforced commitment towards investment in equities while trading pattern suggests the returns of the bulls.
Mid-week analysis revealed increased risk appetite as investors concentrated more on the small and medium CAP stocks so far in the week while the big CAP stocks sustained moderate bargain.
In addition, speculative trading also gained more dominance on the bourse while the key benchmark indices sets to break its 64weeks resistance level at 25,696.46 recorded on June 10th 2011.
Nevertheless, the bargain appetite remained strong amid overbought of the market as reflected in trading pattern with impressive volume turnover while the excitement of market-making has tendency to push market further into new high.
More so, market volume turnover gained more weight considerably with corresponding growth in naira votes, signifying improved bargain appetite as against mixed sentiments and weak bargain appetite noted previously. Though, the newly introduced market-making contributed to institutional buying witnessed so far in the week significantly.
In our opinion as revealed by extensive analysis, market may leverage further on sustained positive divergence while the improved bargain appetite towards medium Cap stocks likely reign further.
At the end of the today’s session, technical analysis revealed active bargain posture, with improved breadth and bargain appetite so far in the week.
Market closed with +1.20% as WTD performance - improved optimism was observed when compared with previous mid-week performance of +0.00% gain while YTD performance stands at 23.69% as against 19.82% recorded in the previous week.
The sustained commitment witnessed towards medium and small CAP stocks in Healthcare, Agriculture, Constructions, Consumer Goods, Finance, Industrial Goods and Oil & gas sectors contributed to the market outlook so far in the week.
The Stocks on the Hunters’ Radar
Investors’ Trading pattern and psychology:
The trading pattern suggests active bargain tendency while the profile of top 10 stocks on the investors’ radar reveals sustained value investing and increased risk appetite as majority of the stocks that made top ten on the investors’ radar are medium CAP stocks.
Analysis of investors’ radar (gainers’ list) revealed grwoing speculative trading due to improved bargain drive towards low priced and medium CAP stocks while big CAP stocks sustained moderate patroange.
The Bleeding Stocks