NSE Market Review [12-16, Sept]

There isn’t a stronger signal of this markets search for direction than its sharp reversal on September 14, 2011 after it tiptoed towards 21,000. 
With the dividend yield above 8% and the 10 year bond yield below 10%, this market is clearly ripe for accumulation. The spread between these two product types is less than 1.7%, its narrowest since the last visit to 21,000. In the early days of the correction, this metric was as wide as 7% at the markets lowest point. 

Bond Current Yields

Premium subscribers have access to a feature that makes it easy for you to search for current bond yields. 

The current yield is the interest payment divided by the current price of the bond. A bond with a price below par will have a yield that is higher than its coupon and vice versa. 

You can easily search for these using the bond screening tool. This is useful in the current environment of low interest rates in the money markets. Investing in a bond fund will be advisable as they are able to participate in huge volumes at low transactions costs.

NSE Market Review[5-9, Sept]

With the NSE-ASI closing 0.50% shy of 21,000 last week, a dip below this key resistance point appears imminent. In this sort of scenaro, heavy volumes would signal mass exits, however this does not appear to be the case pointing to cautious accumulation. 

At times like this it is always useful to get a little historical encouragement, volumes today are 15x what they were in 2001. In 2006 they were 5x what they were in 2001.

AFRICA INVESTOR

BroadStreetLagos.Com will be one of the media partners for Africa Investor's (AIs) Index Series awards at the New York Stock Exchange on September 26, 2011. If you are coming look out for our publications.

Africa Investor (Ai) supplies a broad range of investment data, research, broadcast and published content to a growing number of investors with interests in Africa. Africa investor Group provides strategic research, indices, communications and investment publishing services to support its clients investment and communication programmes. 

Through its sister organization, African Investment Advisory the group also provides project advisory services. Operating at the intersect of business, government, international organizations and the media, Africa investor group has a growing network of clients across Africa serviced from regional hub offices in Nairobi, Lagos  and Johannesburg, affiliate offices across the continent and a coordinating office in London.

NSE Market Review[29 Aug-2 Sept]

The market continued its slide this week with a slight uptick on only Friday. Trading may have been limited by the 2 day sala holiday. However, with the confluence of negative events: bombing of the UN by Boko Haram, nationalization of banks, etc its is difficult to identify the common cause for the markets current mood. 
Clearly, it represents a great buying opportunity, fundamentalists, value investors and contrarians will say. The PE Ratio as computed by BSL hovers around 25 for the first time in 3 years, the dividend yield appears to prefer an +8% bias. 

NSE Market Review[22-26 Aug]

This week the NSE-ASI breached 22,000 for the first time since January 14, 2010 (20 months ago). The next resistance point is 21,000 (which was last breached on January 5, 2010). Both occurred within 9 days of each other with the market scaling 25,000 3 months later. 

It will be interesting if recent history repeats itself. While we seek evidence of a stronger reversal it is important to focus on the benefits of the markets move to lower lows.

NSE Market Review[15-19 Aug]

The market appears to be crawling back after its dip below 23,000, a key resistance point. It seems to have overcome its disappointment in the nationalization of three listed banks. 

It is important to note that the last time the market dipped below 23,000 was September 29, 2010 (10 months ago). How the market behaves in this delicate range is anybody's guess. Its other two resistance points are 21,000 and 20,000 and clearly should be in the rear view mirror of any close watchers.  Prices appear numb to positive reports of company fundamentals as Government and regulator policy actions appear to weigh more on the market. 

NSE Market Review [8-12 Aug]

Last week’s nationalization of three listed banks seemed to be the push this market had been ignoring. A market that had been on edge for some time briefly appeared to be tottering. It may have been emotional but certainly not irrational. 
It appeared to show its discontent with the nationalization during the first three days of trading, the NSE-ASI dropped some 1,061 points (-4.53%). It then reversed its path in the last two days appearing to pick up the pieces from what may have been an overreation.

Focus Indicator:NSE-ASI

The NSE-ASI stands for the Nigeria Stock Exchange All Share Index. It is the most widely followed barometer on the Nigeria Stock Market. Although other indexes have been created, the NSE-ASI is the most closely followed for investors seeking to guage the markets mood or temperature.

NSE Market Review [25-29 July]

The market's mood appears cautious but anticipatory. Caution, as the aftershocks of the banking crisis, the markets meltdown and governance issues at corporate level can still be felt. Anticipatory, as the new leadership at the Ministry of Finance is expected to provide common direction to the financial markets. Recently Nigeria Eurobond yields were reported to have dropped in anticipation of this new leadership. 

Company Focus: AFPRINT NIG PLC

The company was incorporated in Nigeria as a private limited liability company on 11th December, 1964 and became a listed company in 1978. The shares are quoted on the Nigerian Stock Exchange. The company and its subsidiaries are mainly into Agricultural developments activities such as cotton cultivation, cotton ginning, manufacturing of edible oil and the supply of Agricultural inputs to farmers and government agencies.

NSE Market Review [18-22 July]

It might be too early to give up on this market. Although higher highs are preferred, the current move to lower lows for the NSE-ASI is not strange. There appear to be four resistance points in the markets near term trading pattern; 25,000 (which has been breached); 23,000; 21,000 and 20,000.

NSE-Market Review [11-15 Jul.2011]

The market continued its downward trend last week, with an uptick on only one day - however Friday this time rather than Thursday. The NSE-ASI closed at 23,832.14 -0.0157%  (-0.015% in the previous week). Volume for the week was a cumulative 0.938 billion shares (1.685 billion shares in the previous week). The turbulence in this new market needs proactive attention.

A premium profile on www.broadstreetlagos.com gives you access to the data you need. Over the next few weeks we will discuss more indicators.

NSE-Market Review[4-8 Jul,2011]

Suspension of 41 companies by the NSE for not submitting annual reports. The NSE-ASI closed at 24,310.03 -0.015% ,Volume for the week was a cumulative 1.685 billion shares 

Although, former Minister of Finance and World Bank Managing Director, Dr Okonjo-Iweala was confirmed by the Senate to be a Minister in the new Jonathan administration, the market continued its downward drift. It appeared to mirror last weeks trading pattern with an uptick on Thursday only to reverse the next day, same as last week.