Monday, September 16, 2013 08:59 PM / Research
At the end of today's bearish session, analysis revealed the following stocks (AIRSERVICE, COURTVILLE, JOSBREW, LEARNAFRCA, NEIMETH, NESTLE, NPFMCRFBK and THOMASWY) to have traded above their one week high with average gain of +5.35%, defying the strong bearish sentiments on the Nigerian bourse as ASI plunged by -1.39% in the last 1 week.
This further reveals investors' radar i.e. the stocks investors have been buying and accumulating in the last one week. Majority of the stocks are trading with moderate RSI which indicates increased chance for continued uptrend in short term. Only JOSBREW and LEARNAFRCA are trading at their tops .i.e. an over-bought region.
The interpretation of this is that investors that have these set of stocks in their respective portfolios are 5% better than others.
Among the eight of them on the screened list, we are going to give special attention to Thomas Wyatt Nigeria Plc as the stock maintained strong reversal trend after long active sell-down, recording maximum gain in the last 2 sessions while the bargain tendency and money inflow gained new tempo today.
The outlook before the reversal trend reveals active sell-down activities towards the stock since beginning of the year. The stock had plunged by -45.45% between June 10 and September 13, after a prolonged (above 1year) flat posture.
Further analysis reveals growing bargain tendency towards the stock as it is gradually stepping out of bearish zone to close neutral in short term but still trades bearish in mid-long term. Technically, there is strong indication that the stock may extend the uptrend in the coming sessions, considering increased money inflow into the stock while the bearish volume is thinning out- an indication of growing demand.
However, price analysis reveals unimpressive performance outlook as the stock posts -40.15% and -40.15% as its 3months and 6months returns respectively while its 52weeks and YTD performance stood at -40-15% loss respectively.
Conclusively, Thomas Wyatt Nigeria Plc traded at N0.79kobo, +19.70% above the 52 week low of N0.66kobo set on Sep 11, 2013.