The Analyst | - Part 3

Nigerian naira is trading at fair value says Pabina Yinkere

Lagos, Nigeria (Capital Markets in Nigeria) — Is naira overvalued or undervalued? It depends on which methodology is used; results could point to an overvaluation or undervaluation. Using a relative PPP methodology, the result suggests the currency is trading near its fair value at N199-200/USD and we are somewhat inclined to this conclusion. Practically, it is unlikely to trade around these levels under a floating market arrangement as the market is pricing in economic risks associated…

African Stock Market Mid-Year 2015 Report: BRVM June leader, Botswana Q2 winner, Malawi YTD champ

Posted on by The Editorial Team

Lagos, Nigeria, Capital Markets in Africa — African stock market performance measured by country equity benchmark index return ended in red for the month of June, with seven advancers and eleven decliners on the local currency basis. The June monthly returns ranges from -4.7% registered by the Egyptian stock markets (measured by EGX30 index) to 5.49% recorded by Ugandan equity markets. Looking it from the quarterly return basis for local investor, African equity performance ended on neutral…

How to use Bollinger Bands when trading the markets

Posted on by The Editorial Team

EXPLOSIVE moves: everyone wants to be part of them, but how can we detect them before it’s too late? A basic indicator which is standard on most systems are Bollinger Bands. Loading this indicator for a FX pair like euro-dollar will show you the 20 day moving-average and the standard deviation of price over the same period. The standard deviation will be shown as two lines, one above and one below the current 20 day…

Trade business cycles for a universe of profit

Posted on by The Editorial Team

GLOBAL financial markets, like weather patterns, are governed by macro and micro cycles and these cycles are definable and predictable. This may come as a surprise, but each financial asset class forms part of a larger constellation, much like a constellation of planets, and can be seen to move in a similar orbital way. All asset classes closely interweave with each other and are strongly influenced by each other in a similar way that planets…

Four patterns every trader should know

Posted on by The Editorial Team

London (Capital Markets in Africa):- The financial markets can be a fickle beast. After all, you can attempt to model and predict every possible outcome, but prices are driven by human decisions, with traders staying in a position longer than they know is wise, or panic buying in a rally. But armed with a knowledge of some common chart formations, you can get a better feel for what is ahead in a short amount of…

How to identify market trends with Heikin-Ashi charts

Posted on by The Editorial Team

THEY’RE not a new invention, but Heikin-Ashi charts have gained popularity over the last 12 months. They are an offspring of the famous Candlestick charts, which are now standard on most trading platforms around the world. The main difference between the two is that Heikin-Ashi gives a better take on trending markets by generating fewer false signals. In fact, it’s almost impossible for a normal human being to misjudge a trend when using Heikin-Ashi charts….

Nigerian Economy and Financial Market: After Elections… What Next?

Posted on by The Editorial Team

After Elections …What Next? Nigeria’s macroeconomic scene in recent times has been laden with issues surrounding the domestic polity in anticipation of the upcoming elections in March and April. Election campaigns are getting more intense with no one actually sure of which of the two major political parties will carry the day. Falling oil prices still continues to pressure the fiscal stability of government whilst Naira stability is continually tensed on the back of falling external…

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