• Gainers 18, Losers 21
• Consolidated Breweries Plc. acquisition of 57% equity stake in Champion Breweries Plc. via the purchase of 513m units of the latter’s shares ensured volume and value of trades consummated were 542% and 97% above yesterdays.
•  CBN met the entire $300m demanded at WDAS today, at a cut-off rate of N156.71.
•  At the interbank market, the naira retraced against major foreign currencies, firming up by 0.25% against the dollar to close N159.90.
• Ecobank Nigeria Plc has been placed on full suspension following the court ordered meeting held on Thursday December 22, 2011 in preparation for the delisting of the bank from the stock exchange

Second trading day of the year saw the NSE ASI down by 35.99 points on higher volume than yesterdays closing at 20,635.07.

The Market continued its super congestion between the 20,626 and 20,692 points level touching both the upper and lower limit intraday as the Bulls & Bears battles for control.

The worry in the removal of Fuel subsidy is taking over the market as Investors remained on the fence coupled with impending nation wide strike next week.

Once again, the market is going to ebb and flow with news from the Government and Labour, at least for the next 2 weeks, creating an uncertain trading week.

Technicals

Once again, the 20,617 points level proved itself to be an extremely strong support level. If the index rebounds within these levels tomorrow it will complete an intermediate double Bottom formation with support at around the 20,617 points of 28th December area once again.

But dropping volume, declining short term bullish momentum, None of these sound right for a “Good rebound”. We should see a retest of the 50DMA soon…as breakout below this points once again takes us back to 20,400 & 20,300 levels.

Already The 14 Day RSI broke its support level coupled with a Bearish Divergence of a Lower High which indicates more Pullback.

For now, its a waiting game as the NSE ASI remains in short term neutral trend within an intermediate bear trend and primary bull trend.

TA SIGNALS FOR JANUARY 04, 2012