Stocks to Watch out for the Week ending 2nd November, 2018

15 Jan 2 comments

With the hustle and bustle of Monday mornings and loads of meetings that helps to begin the week, it’s good to see the stock market had a better week and weekend than I did.

Market ASI Overview stock graph
Market ASI Overview stock graph


After talking about how Bearish the market has been for so long, on the 23rd of October 2018 it entered BULL territory. First, the price of the ASI went over the 10-day moving average and 50- day moving average on the 23rd, then on the 25th of October, both the 10-day moving average and the price were above the 50-day moving average. The volumes traded in the market also improved tremendously than it used to be 2 months ago.
The Stocks to watch comprises the top gainers and losers in the prior week, as well as companies in the news for various reasons. There are also those that released their results or made key announcements after the trading session on Friday and those with expected corporate actions.
This is not a buy or sell recommendation but more information about these stocks to help with insightful financial decisions this week. As usual added are the stock graphs in a six months’ average to give you more insights as I will be explaining some quantitative perspective on the market.

Diamond Bank Plc:

Diamond Bank Plc is at the top of our watch list today as a result of being the best performing stock, last week. The stock increased in price by 20% to close at N1.44. word on the street is that the bank would be having some new key investors.
The bank issued a statement debunking these reports, with erstwhile Chairman, Oluseyi Bickersteth, denying that he had resigned. He was of the opinion that the bank would consider recapitalization through a rights issue or capital injection from these so-called new investors.
The stock could either continue to appreciate or decline, depending on the information available to investors this week.

Diamond bank plc stock graph
Diamond bank plc stock graph

Meanwhile, the stock graph shows the stock went into BULL territory on the 22nd of October 2018 when the price of the stock went over the 10 and 50-day average. From the 24th to this very moment, the 10-day moving average went over and is still over the 50-day moving average while the price still remains above both averages. The price increased from N1 .24 to N1.44 hence causing it to be the best performing stock the prior week. I bet investors may be excited to buy in and those with the stocks should make smart moves to “Lock in some gains”.

Unity Bank Plc:

Unity Bank has a spot on our stocks to watch list today as a result of being the only listed mainstream commercial bank that is yet to release its results for the financial year ended December 2017. This is even more pertinent at a period when most financial institutions have either released 3rd quarter 2018 results or are about to do so. This may cause an increase or decline in investors’ interest in the stock. The stock graph however clearly shows the stock is currently in BEAR territory.

Unity bank Plc stock graph
Unity bank Plc stock graph


It has been in BULL territory since 13th of September 2018 with the price above both the 10-day and 50-day moving average. As of Friday 26th of October, it was still in BULL territory. It recently went into BEAR territory today 29th of October. As the price went down, the volumes in the market dropped, and the10-day moving average followed. This may be because of the delay in the release of their 2017 results, who knows?
Awaiting the results investors may buy in or sell out.

May and Baker Plc :

Last Friday, May and Baker Plc held a fact behind the rights issue session at the Nigerian Stock Exchange (NSE). The stock could witness significant velocity in trades as investors may sell down, due to the dilutive effects of the planned rights. By virtue of this is how it is present in our stocks to watch list today.

May and Baker Plc stock graph
May and Baker Plc stock graph


The stock graph is definitely indicating the stock is on BULL territory. The 10-day moving average and price are above the 50-day moving Average. This should be good news but if you take a look at the graph, it shows inconsistency with its trends. This means Buy/sell recommendation cannot be given as predictions won’t be valid. Although the stocks seem to be making progress, the volumes are scarce in the market which further screams “Thread carefully”.

Seplat Petroleum Development Company Plc :

Seplat Petroleum is on our stocks to watch list due to the planned release of its Q3 2018 results on Tuesday, October 30, 2018. The company had disclosed this in a notice released last week. Investors could decide to take up positions in the stock, while others may opt out of the stock, depending on the results released.

Seplat Petroleum Plc stock graph
Seplat Petroleum Plc stock graph


Looking at the stock graph, however, the stock is on BULL territory. It has been since the 19th of October. The price of the stock is above both the 10-day moving average and 50-day moving average. This is good news for those who have this stock in hand. As for buying into the stock, the graph shows trend inconsistency and so recommendations are not exactly valid. As it seems to be a pattern with inconsistent trends, the volumes as you can see is scarce.

McNichols Plc:

McNichols Plc is on our stocks to watch list by virtue of being the worst performing stock last week. At the end of the trading period Friday 26th October 2018, the stock had a 24.07% decrease where the price dropped from N0.50 at the beginning of the week to N0.41 at the end of the week. The stock shed up to 30.51% the entire week and could decline further in the coming weeks.

MC Nichols Plc stock graph
MC Nichols Plc stock graph


The Stock graph shows the stock is on BEAR territory because the 50-day moving average is way above the 10-day moving average and the price. The stock graph also shows the very inconsistent trend of the stock. A recommendation cannot be derived as a result.

SIDE NOTE:

The red line on the graph is the 10-day moving average

The purple line on the graph is the 50-day moving average.

The graph underneath represents the volume of the stocks at various points in the market.

All the images are gotten from the InfoWARE Market Data Terminal, follow this link to enjoy a one-month free trial ( http://www.infowarelimited.com/infoware-product-contact-page/ )

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