Wednesday, December 17, 2014 5:14 PM / Research
Today, FLOURMILL hits 50 months low on the back of active sell-off postures. The stock closed with another plunge by -9.70%, breaking its key and long term support level at N43.00 as investors and shareholders maintained prolonged negative sentiments.
Also, the stock closed depressed in an oversold region, hitting below 4years low to remain bearish at N35.65kobo- this may indicate negative change in the fundamentals of the firm. Though, the recent overwhelming bearish trend on the Nigerian bourse could not be isolated from this pattern.
In addition, the stock recorded a lower breakout, hitting below lower Bollinger band by 7.3% on high bearish volume as active sell-down persists.– this further buttressed the negative change in fundamentals as noted above.
The market outlook in the year revealed a continued sell-off pattern while the stock had shed weight by -59.02% so far in the year.
Furthermore, the stock closed bearish in both short and mid-long term periods as the relationship between the stock and its moving averages suggests. This is to buttress the unwillingness to hold the stock at the current price – a pointer to growing negative sentiments towards the stock.
Also, the price analysis revealed unimpressive performance as the stock posted -42.78% and -53.70% as its 3months and 6months returns respectively while its 52weeks and YTD performance stood at -58.55% and -59.02% loss respectively.
Conclusively, sub-sector/peer analysis further revealed the stock to lead the worst performing stocks in the last one year, which further suggests that the sentiments within the sub-sector remained negative towards FLOURMILL