Sunday, September 04, 2016/Proshare Research

The Diagnosis
Analysis of the market activity in the week ended September 02, 2016 technically revealed improved optimism as investors displayed fresh risk appetite towards equities, particularly towards the bellwethers.

Also, an extensive analysis revealed an improved accumulation pattern across key active sectors, particularly towards stocks in Financial Services, Oil & Gas and Consumer Goods sectors.

In addition, volume analysis revealed improved bargain tendency towards FCMB, SKYEBANK, FBNH, PRESCO and NB while investors sustained sell sentiments towards ZENITHBANK, CHAMPION, OANDO and DANGFLOUR.

In a similar vein, investors displayed fresh and growing bargain tendency in some active sector(s), particularly in Financial Services, Agriculture, Oil & Gas  and Consumer Goods sector(s). However, we observed a fresh sell tendency in Industrial Goods, Conglomerates and Construction/Real Estate 

Summarily, the bulls dominated the week, strenghtening the key benchmark index by 305.75 points against 199.41 loss recorded in the previous week to close at 27,756.67- ASI remains battered below its key resistance level at 41,957.50

In addition, the All Share Index traded within the   range of 28,419.92 (week-high) and 27,368.41 (week-low) to settle at 27,756.67 - above previous week’s low (27,378.95) by 376.72- This indicates improved bargain sentiments when compared with previous posture. The outlook reveals moderate bargain postures.

In the week just ended, market breadth closed positive at 1.28x against 0.92x recorded in the previous week on the back of improved risk appetite.

Likely trends in the coming periods: We expect an improved bargain pattern as investors had displayed improved risk appetite with positive divergence during the week while RSI is now in bargain range.



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 Agriculture, Financial Services, Oil & Gas and Consumer Goods 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, Services, Industrial Goods, Conglomerates, ICT, Construction/Real Estate and Healthcare



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 sell tendency to close with negative sentiments in the week. The stock recorded -2.30% loss in the week against +1.80% gain recorded in the previous week.

The outlook in the week revealed a sustained weak bargain tendency, extending 13weeks moderate price correction pattern to record -13.89% loss, following an impressive rally of +93.85% gain experienced between January 15^th and May 27^th 2016.

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

However, we observed a significant growth in bearish volume during the week, indicating active distribution of the stock during the week.

Technical conclusion on sentiments: The stock has moderate chance, with low reliability to sustain the pattern in the coming session, considering the weak bargain postures observed in the last two sessions in the week. A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE GAINERS
7UP experienced active bargain tendency to close with positive sentiments in the week. The stock recorded +28.20% gain in the week against 1.30% loss recorded in the previous week.

The outlook in the week revealed a price recovery pattern in the week, following prolonged 27 weeks active sell-down of -42.35% loss, experienced between January 28^th and August 26^th 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 neutral in short-term but remained bearish in mid-long term periods, indicating growing presence of bulls towards the stock as revealed by its price moving averages.

Technical conclusion on sentiments: The stock has moderate chance, with low reliability to extend uptrend in the coming session, considering the active demand postures observed in the week. However, the overbought position of the price may incite short-term pull-back. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE LOSERS
MAYBAKER experienced active sell tendency to close with negative sentiments in the week. The stock recorded -19.80% loss in the week against -7.30% loss recorded in the previous week.

The outlook in the week revealed a continued sell-down tendency towards the stock in the last 8 weeks to record -32.50%, following 10weeks rally to record 50.00% gain experienced between April 29^th and July 8^th 2016.

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

Technical conclusion on sentiments: The stock has low chance, with low reliability, to sustain the sell sentiments in coming sessions, considering the active sell momentum coupled. However, its over-sold posture may attract fresh speculative buying. A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume Analysis



Click to view Due Diligence and Price Performance trend.

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UBA

7Up

MAYBAKER

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.