Tuesday, June 30, 2015 5:14 PM / Research
Today, STERLNBANK closed flat at N2.00kobo as sell pressure waned significantly, following a prolonged active sell-down pattern- an indication that the stock may retrace from 30months low anytime soon.
In addition, the stock experienced improved bargain posture, holding its key support level firm at N2.00kobo on huge volume surge- an indication of renewed risk appetite towards the stock.
The market outlook in the recent months revealed bearish trading pattern while the stock maintained a downtrend since 2013 to hit 30months low at N2.00kobo, recording 34.43% fall in its market value. However, a break of this key support level (N2.00kobo) may incite active bearish trend.
Furthermore, the stock closed bearish in both short and mid-long term periods, indicating strong bearish posture as the relationship between the stock and its moving averages had suggested.
Also, the price analysis revealed unimpressive performance as the stock posted -9.09% and -17.36% as its 3months and 6months returns respectively while its 52weeks and YTD performance stood at -14.89% and -21.26% loss respectively.
Conclusively, sub-sector/peer analysis further revealed the stock to be among worst performing stocks in the last one year, which further suggests that the sentiments within the sub-sector remain negative towards STERLNBANK
1. Sterln Bank Receiving trend reversal signal from an oversold zone