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Sentiment Analysis Report - WE January 06, 2017

Proshare

Sunday, Jan 08, 2017/Proshare Research

The Diagnosis  
Analysis of the market activity in the week ended January 06, 2017 technically revealed  active speculative tendency while investors were cautiously opportunistic in the week.

However, an extensive analysis revealed opportunistic trading and subtle accumulation pattern while investors remained value driven, particularly in Oil & Gas and  Conglomerates sectors.

In addition, volume analysis revealed active bargain tendency towards FCMB, OANDO, UCAP and TRANSCORP while investors sustained sell postures towards GUARANTY, STERLNBANK, STANBIC and FO.

Furthermore, investors displayed fresh and sustained bargain tendency in some active sector(s), particularly in Oil & Gas, Construction/Real Estate and Conglomerates sector(s). However, we observed fresh and sustained sell tendency in Consumer Goods and Industrial Goods sector(s).
 

Summarily, the bears dominated the week, depressing the key benchmark index by 623.23 points against 402.84 gain recorded in the previous week to close at 26,251.39- ASI remains battered below its key resistance level at 31,071.25, recorded on 26th June 2016.

In addition, the All Share Index traded within the   range of 26,616.89 (week-high) and 26,212.09 (week-low) to settle at 26,251.39 - below previous week’s high (26,874.62) by 623.23- This indicates active sell sentiments when compared with previous posture. The outlook reveals strong sell postures.

In the week just ended, market breadth closed negative at 0.75x against 1.65x recorded in the previous week on the back of falling bargain sentiments.

Likely trends in the coming periods: We expect speculative trading to dictate trading pattern while investors would remain value-driven in the coming week.



Technically, market sentiments during the bearish week favoured liquid and active stocks of Medium Cap categories in the sector(s) but with stronger positive sentiments in Construction/Real Estate, Oil & Gas and Conglomerates sector(s), which further revealed the sector(s) investors patronised in the week.

On the other hand, it was observed that negative sentiments appeared stronger in, Financial Services, Consumer Goods, Services, ICT and Industrial Goods



Stock Trend & Direction
We conducted a review of stocks that have sharpened market direction and performance in the week - using technical tools like RSI, MACD, VOLUME, MFI, CANDLESTICK, MOVING AVERAGES, BOLLIGER BANDS and ACCUMULATION & DISTRIBUTION to reveal investors’ sentiments towards the market movers.

THE BIG VOLUME
FCMB experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +6.40% gain in the week against +1.90% gain recorded in the previous week.

The outlook in the week revealed a sustained price recovery pattern on the back of renewed bargain tendency in the recent weeks to record +17.00% gain in the last 5weeks, following a prolonged sell-down of -42.53% loss experienced between June 17th and December 22nd 2016.

In addition, technical indicator (MACD) revealed moderate bargain sentiments towards the stock while RSI and CCI revealed improved price momentum. The stock closed bullish in short-term but remained neutral in mid-long term period, indicating improved presence of bulls towards the stock as revealed by its price moving averages.

Also, we observed a modest growth in bullish volume during the week, indicating active accumulation from investors during the week.

Technical conclusion on sentiments: The stock has low chance, with low reliability to extend uptrend pattern in the coming session, considering the improved demand postures and upper breakout observed in the last trading session. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE GAINERS
UAC-PROP experienced active bargain tendency to close with positive sentiments in the week. The stock recorded +15.50% gain in the week against +15.50% gain recorded in the previous week.

The outlook in the week revealed a sustained price recovery pattern in the last 4weeks to record +47.48%, following 10weeks moderate sell-down of -48.61% experienced between October 7th and December 9th 2016.

In addition, technical indicator (MACD) revealed active bargain tendency towards the stock as RSI and CCI revealed sharp uptrend momentum. The stock closed neutral in short-term but remained bearish in mid-long term periods, indicating growing presence of bulls towards the stock as revealed by its price moving averages.

Technical conclusion on sentiments: The stock has moderate chance, with low reliability to reverse uptrend in the coming session, considering the increased bearish pressure and weak demand postures observed during last session.  A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE LOSERS
NAHCO experienced moderate sell tendency to close with negative sentiments in the week. The stock recorded -13.19% loss in the week against +23.40% gain recorded in the previous week.

The outlook in the week revealed a price correction pattern towards the stock in the week, following 3weeks rally of +44.95%, experienced between December 19th and December 30th 2016.

Technical indicator (MACD) revealed moderate sell-down trend with a sharp fall in price momentum while the stock closed bullish in short-term and remained neutral in mid-long term period. This indicates sustained presence of bulls towards the stock.

Technical conclusion on sentiments: The stock has low chance, with low reliability, to extend the downtrend in the coming sessions, considering the growing sell pressure observed in the last session. A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume Analysis



Click to view Due Diligence and Price Performance trend.

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FCMB

UAC-PROP

NAHCO

Disclaimer: The information provided herein is our opinion only. Under no circumstances do any statements here represent a recommendation to buy or sell your stocks or make any kind of an investment. You are responsible for your own due diligence. To summarize, we do not provide recommendations nor do we make any claims or promises that any information here will lead to a profit, loss or any other result. They are for your guidance purpose only.

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