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Market | Market Sentiments

Sentiment Analysis Report – W/E October 14, 2016

Oct 16, 2016   •   by   •   Source: Proshare   •   eye-icon 4530 views

Sunday, October 16, 2016/Proshare Research

The Diagnosis
Analysis of the market activity in the week ended October 14, 2016 technically revealed low-key optimistic trading along with speculative tendency while investors dislayed mixed sentiments across board.

Also, an extensive analysis revealed growing accumulation pattern while investors appeared improved bargain tendency towards equities, particularly in Agriculture, Consumer Goods, Services and Oil & Gas sectors.

In addition, volume analysis revealed moderate bagain tendency towards ACCESS, LIVESTOCK, CAVERTON and GUINNESS while investors displayed sell postures towards FCMB, WAPCO, FLOURMILL and FCMB.

Nonetheless, investors displayed fresh and growing sell tendency in some active sector(s), particularly in Agriculture and Services sector(s). However, we observed fresh buy tendency in Oil & Gas, Construction/Real Estate and Financial Services.

Summarily, the bulls dominated the week, strengthening the key benchmark index by 25.81 points against 500.18 loss recorded in the previous week to close at 27,861.03- ASI remains battered below its key resistance level at 41,957.50.


In addition, the All Share Index traded within the   range of 28,034.32  (week-high) and 27,854.78 (week-low) to settle at 27,861.03 - below previous week’s high (28,283.99) by 422.96- This indicates improved bargain sentiments when compared with previous posture. The outlook reveals modest buy postures.

In the week just ended, market breadth closed negative at 0.57x against 0.70 recorded in the previous week on the back of mixed sentiments.

Likely trends in the coming periods: We expect a sustained low bargain pattern as market sentiments appeared mixed while investors remained cautious during the 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 Services and Agriculture 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, Consumer Goods, Oil & Gas, Financial Services, Conglomerates, Industrial Goods, ICT, Healthcare, Construction/Real Estate and Natural Resources



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

UBA experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +1.90% gain in the week against -0.70% loss recorded in the previous week.

The outlook in the week revealed a modest bargain tendency as the stock sets t initiate a price recovery mission, after 19weeks moderate sell-down activities to record 17.26% loss experienced between May 27th  and October 10th 2016.

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

Also, we observed a significant 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 sustained recovery pattern in the coming session, considering improved modest bargain tendency observed during the week.  A Bargain Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE GAINERS
SEPLAT experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +10.30% gain in the week against +1.00% gain recorded in the previous week.

The outlook in the week revealed a sustained price recovery pattern in the last 9weeks to record 68.78% gain, following 12 weeks active sell-down of -33.33% loss, experienced between 27th May and August 19th 2016.

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


Technical conclusion on sentiments: The stock has moderate chance, with moderate reliability to extend uptrend in the coming session, considering the active demand postures and upper breakout observed in the week. However, the extreme overbought posture of the price may incite price correction. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE LOSERS
WAPCO experienced moderate sell tendency to close with negative sentiments in the week. The stock recorded -10.90% loss in the week against -13.90% loss recorded in the previous week.

The outlook in the week revealed active and growing sell-down tendency towards the stock in the last 2weeks to record 24.11% loss, following active and prolonged sell down activities of -55.05 loss experienced between January 8th and October 7th 2016.

Technical indicator (MACD) revealed active sell-down with a sharp falling pattern in price momentum while the stock closed bearish in both short-term and mid-long term periods. This indicates growing presence of the bears towards the stock.

Technical conclusion on sentiments: The stock has moderate chance, with moderate reliability, to sustain the sell sentiments in coming sessions, considering the active sell momentum experienced during the week with a lower-breakout. A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume Analysis



Click to view Due Diligence and Price Performance trend.

Click to view more on;

UBA

SEPLAT

WAPCO

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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