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Market sentiment bearish despite resilient corporate earnings

By Emeka Anaeto, Economy Editor

DESPITE positive corporate results announced in the stock exchange early in the week the market ended the week negative. Proshare analysts gave insight of what happened.

Analysis of the market activity in the week ended March 18, 2016 technically revealed a speculative trading pattern amid increased price volatility as investors raised profiteering activities.

Also, an extensive analysis revealed a significant surge in supply level as market experienced growing speculative postures across board, particularly in Consumer Goods, Oil and Gas, Conglomerates and Financial Services sectors.

Also, volume analysis revealed active sell tendency towards Access Bank, Oando and FCMB while investors displayed moderate bargain sentiments towards UBA, Sterling Bank and Unity Bank.

In addition, investors displayed fresh and sustained sell tendency in some active sectors, particularly in Financial Services, Oil and Gas and Consumer Goods sectors. Meanwhile, there was an observed waning sell tendency in Industrial Goods sector. The bears ruled the week, depressing the key benchmark index by 293.61 points against 168.30 gain recorded in the previous week to close at 25,694.79. All Shares Index, ASI, remains depressed and battered below its key resistance level at 41,957.50

In addition, the All Share Index traded within the range of 25,853.58 (week-high) and 25,657.48 (week-low) to settle at 25,694.79 below previous week’s low (25,755.01) by 60.22points. This, according to Proshare analysts, indicates growing sell tendency when compared with previous posture. The outlook reveals weak bargain tendency.

In the week just ended, market breadth closed negative at 0.4x against 1.29x recorded in the previous week on the back of profit-taking propensity.

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 and Natural Resources which further revealed the sector(s) investors patronised in the week.

On the other hand, it was observed that negative sentiments appeared stronger in Healthcare, Industrial Goods, Services, Agriculture, Consumer Goods, Financial Services, Conglomerates, Oil & Gas and ICT sector(s).

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