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INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED JUNE 16, 2017

DANGOTE CEMENT CAPACITY BUILDING ACROSS AFRICA DRIVES PROFIT, PRICE, DIVIDEND


Dangote Cement Plc has from its onset in its sector and on the Nigerian Stock Exchange (NSE) since 2010 when it became the market’s most capitalized equity upon listing its shares, demonstrating high quality corporate governance, especially in the area of consistently keeping to its post-listing requirement. This has helped the investing public to plan their investment while the company continues to create value for shareholders by way of dividend payment and capital appreciation. To achieve this, the company has continued an ambitious expansion across the African continent and the process supporting its growth and development today for increased sales revenue and sustained profit in the future.

The continued investment across the continent is fast turning it into Africa’s cement manufacturing hub, especially with capacity expansion and widening of its distribution network across the continent and beyond to support its growing revenue, equally impacting on the profitability ratios on quarterly and yearly basis. This is regardless of its huge operating cost and challenges in the economies of African countries as a result of the fall in commodity prices, particularly crude oil in 2016 before the rebound that is now inspiring hope again to the region, despite security challenges in some of these countries.

The company’s impressive Q1 numbers is just a reflection of the yield from the continued investments in expansion over the past five years, in addition to improvement in Nigeria’s FX market, its independent power project to sustain optimal production on coal and integrated power, especially as gas supply has improved relatively with the seeming peace in the Niger Delta region. In all of these, the company’s market dominance and low price regime helped to sustain patronage despite the upward adjustment in price during the period under review to factor in the increasing cost of production as reflected in the profit margin for the quarter, hoping that cost will drop in this current financial year.

The sales revenue and profitability level for the period under review were up to reflect the improving business environment in the country and region, as revenue was up by 48.12% to N208.17bn from N140.52bn in the corresponding period of 2016, with quarterly earnings growth of 33.71% from N52.78bn in Q1 2016 to N70.57bn.

Dangote Cement’s net assets for the period rose by 24.46% to N869.17bn from N698.35bn in 2016 to show the net inflow of investment in capacity building. Its earnings per share for the period grew to N4.14 from N3.10 in the corresponding year. This is a replica of price at 9.66x, which has reduced investors’ waiting period due to the improving earnings, when you look at the fact that it is lower than the 13.00x recorded in 2016. The Book Value per share for the period stood at N51.01 from N40.98 in 2016, just as Net Profit Margin of 33.90% is an indication of management’s efficiency andcost cutting measures. The strong Retained Earnings position of N749.95bn as of Q1 is impressive, while at the same time pointing to a possibility of the company recording N1tr savings and continue to support dividend payment and future expansion.

DANGOTE CEMENT PLC
THREE MONTHS REPORT
COY
2016
2017

(N)
(N)
% Chg
Date Released
April 25, 2016
April 28, 2017

Price As At Released Date
161.04
160.00
-0.65
Turnover
140,521,000,000
208,166,000,000
48.12
Profit After Tax
52,779,000,000
70,572,000,000
33.71
Shareholders' Fund
698,354,000,000
869,167,000,000
24.46
ESTIMATED RATIOS
Earnings Per Share
3.10
4.14
33.55
PE Ratio
13.00
9.66
-25.69
Earnings Yield
1.92
2.59
34.90
Book Value
40.98
51.01
24.48
Price To Book
3.93
3.14
-20.10
ROE (%)
7.56
8.12
7.40
Profit Margin
37.56
33.90
-9.74
Year End
Dec
Dec





Source: Company Financial &Investdata Research
The company’s influence on the market is noticeable, especially being the most capitalised stock, a position it continues to retain with its huge revenue and profit continues to be acknowledged by the market. It has gained the interest of traders and institutional investors who use the stock to manage risk in their portfolio. It is also generally known that the stock continues to swing the market along its trending pattern.

Dangote Cement forex earnings from its operation in 25 countries across Africa will further strengthen its earnings and balance sheet over the coming years.

Technical View
The price action of Dangote Cement has recently broken out of a symmetrical triangle to form a rising channel that was supported by strong momentum as its trending ability has equally remained strong since ADX is above 20 at 58.92. However,we have noticed that the stock price is pulling back after touching high of N214.99 declining with the first support level to be N199.



MACD is bullish while MFI is looking down to indicate that funds are leaving the stock while RSI is reading 72.01 to show that Dangote Cement is at its overbought region, pointing to an imminent correction.However, a breakdown of support level will be a good opportunity for new entrants.

Recommendation /Analyst Opinion
The company operating cash flow for the period is looking up in the same direction as earnings, an indication that Dangote Cement can sustain its earnings growth in subsequent quarters of this year and in the process drive price during this current financial year.

We see an improvement in government expenditure, especially with the bigger budget size for capital projects, particularly in the area of road and rail projects captured in the 2017 budget recently signed into law by Acting President Yemi Osinbajo. This is also not forgetting the company’s partnership with the Federal Government in the area of concrete road construction, which is central to further earnings growth in this and coming years. Also, important are factos such as tax credit and concessionary plans, especially as the Federal Government plans to accelerate infrastructure development in the current year by partnering with the private sector. Dangote Cement will be a net beneficial of this for which it is better positioned to sufficiently drive growth in 2017 and afterwards.
It must also be noted that with the impending implementation of the 2017 budget and reconstruction of the insurgency ravaged North East geo-political zone, we see a lot of opportunities for the company to further boost its top and, more importantly, bottom line at the end of the day.
We previously recommended HOLD before now, but based on the above mentioned expectations, among others, we upgrade to BUY position for new entrants with long-term investment objective.



DANGOTE CEMENT
Share Holding Structure
Alhaji Aliko Dangote
0.16%
Dangote Industries Ltd
90.93%
Other Nigerian Citizens & Ass.
8.91%
Other Statistics
Shares Outstanding (MN)
17,040,507,405
Opening Price (2016)
N170
Closing Price (2016)
N173.99
Closing Price as @ June,16 2017
N205
Date Listed
26TH October, 2010
Year End
December 31st
Source: Company Financial &Investdata Research Five-Year Financial Analysis.

Looking at the company's financials over the past five years, its continued investment in capacity building to meet the growing cement demand for development of infrastructure has further helped to turn Nigerian into an exporter of clement.

Today, its deep penetration into the African continental market has helped the company to significantly boost revenue as a result of the increase in metric tons produced per annum. The company’s good corporate governance remains the driver, helping it to sustain performance that creates value for shareholders thereby supporting the share price. In the process, investors are better able to forecast with improved measure of accuracy for enhanced returns on their investment.
Over the five-year period, sales revenue grew consistently from N298.45bn in 2012 to N615.1bn, representing an increase of 106.1%. Also, profitability level was up by 29% from N145.02bn in 2012 to N186.62bn after hitting a profit level in excess of N200bn in 2013.

Net Asset for the period was up by 97% to N797.35bn from N404.54bn in 2012.
Over the period also, the company has consistently rewarded shareholders with dividend, supported by the improving numbers.
In the period, Dangote Cement distributed a total dividend of N32.50 per share to shareholders.

DANGOTE CEMENT PLC FIVE-YEAR FINANCIAL POSITIONS


2012
2013
2014
2015
2016

Date Released
April 22,2013
March 26, 2014
March 26, 2015
March 1, 2016
Feb 28, 2016

Price @ Released
116.50
230
151.00
148.34
168.99

Turnover
298,454,068,000
386,177,220,000
391,687,060,000
491,725,000,000
615,103,000,000

Profit After Tax
145,024,234,000
201,198,088,000
159,501,493,000
181,323,000,000
186,624,000,000

Total Equity
404,536,401,000
550,093,270,000
591,885,155,000
644.720,000,000
797,345,000,000

Dividend
3
7
6
8
8.50

Bonus
Nil
Nil
Nil
NIL
NIL


Estimated Performance Ratios
Earnings Per Share for the five-year period grew by 17% to N10.95 from N9.36 in 2012, after it had recorded an all-time high of N12.99 in 2013, when a dividend of N7 was paid them. The company went through an up and down trend in earnings for the period, due to the increased investment in capacity building and the harsh business environment.

Price Earnings Ratio for the period moved from 12.45x in 2012 to 15.43x in 2016 to elongate investors waiting after dropping from an all-time high of 17.71x in 2013 and 16.30x in 2014 respectively. This was attributed to different prices as at the released date.
The Book Value as at the last financial year was N46.79, the highest so far in the company's history, representing a 79.2% rise from N26.11 in 2012. However, this is relatively low, compared to its share price. The growing net assets and robust retained earnings would further boost the Dangote Cement’s ability to earn more and grow shareholders’ funds.

The estimated ratio also reveals that Dangote Cement's profit margin for the period has consistently been above the benchmark internationally, even while it has been on a downtrend in the past four years from 52.10% in 2013 to 30.34%. This is healthy and shows the commitment of management to reduce cost and support the profit line, while creating better value.

On the strength of the numbers posted and expectation of better financials in 2017, the stock is fairly priced at N245 per share, considering fund managers and investor’s preference for consistent dividend and competent management to drive profitability and clear business model.
DANGOTE CEMENT PLC- ESTIAMATED RATIOS

2012
2013
2014
2015
2016
Earnings Per Share
9.36
12.99
9.36
10.64
10.95
PE Ratio
12.45
17.71
16.30
13.94
15.43
Earnings Yield
8.03
5.65
6.13
7.51
6.48
Book Value
26.11
32.28
34.73
37.83
46.79
ROE (%)
36.00
37.00
27.00
28.12
23.41
Profit Margin (%)
48.59
52.10
40.73
36.87
30.34
Year End
Dec
Dec
Dec
Dec
Dec
Source: Company Financial &Investdata Research

MIXED WEEK AHEAD, AMIDST PROFIT TAKING, AS INVESTORS DIGEST ECONOMIC DATA

MARKET UPDATE FOR WEEK ENDED JUNE 16 AND OUTLOOK FOR JUNE 19-23, 2017

Trading in Nigeria’s equity market over the past week experienced strong volatility on mixed sentiments as profit taking prevail in the first two trading sessions despite positive economic data but closed higher as investors repositioned in equities that are pulling back in view of the impending Q2 earnings reporting season expected to kick-off in July.

There is also the implementation of the 2017 budget signed into law by Acting President Yemi Osinbajo,billed to begin soon. The 2017 budget is further expected to enhance the second leg by way of fiscal reform stimulus as contained in the Economic Recovery and Growth Plan (ERGP) that would go a long way to support the monetary policies of the Central Bank of Nigeria (CBN), particularly its regular intervention in the nation’s foreign exchange market. These have so far helped to drive Nigeria’s economic recovery to this time, with economic data already reflecting improvement in macro and micro-economic fundamentals.

The pullbacks in the first two days of the week eventually gave way to bullish momentum for the remaining three days, even as the National Bureau of Statistics (NBS) published a better than expected Consumer Price Index of 16.25% for the month of May within the period, from previous month’s 17.24% rate. This, further confirmed the economic recovery and impact of the CBN’s intervention, which significantly reduce the high rate of imported inflation, which has equallyChelped the Naira sustain its relative appreciation against major currencies of the world.

Meanwhile, the composite NSE All-Share Index for the week gained 533.88 points to close at 33,810.56 points, from an opening figure of 33,276.68 points, representing a 1.60% growth on a high volume of transactions.
As the market still remains within the rising channel, the possibility of breaking out the psychological line of 34,000 is high, despite profit taking and little setback as international investors wait for the reclassification of Nigeria in the MSCI frontier Index come Tuesday, June 20, 2017.
Should the reclassification be positive, expect more rally as the forex window that will be a major consideration for Morgan Stanley Capital International is relatively stable with improved liquidity. The volume index for the period was 2.04 as buying position was 83%, while selling volume was 17%.

Similarly, market capitalisation for the week closed higher at N11.6tr from an opening value of N11.5tr, representing a 1.63% value gained by investors.
The advancers’ log for the week was dominated by low and medium cap stocks as investors and traders booked profit and repositioned in stocks that had pulled back and have good upside potentials, ahead of the earnings reporting season.
Appreciation in equity prices during the period further pushed the NSEASI's year-to-date return to the north by 25.81%, just as market capitalisation has grown YTD by N2.44tr, representing 26.44% gain from the year’s opening value.

Market breadth for the period was negative with the number of decliners outpacing that of advancers in the ratio of 42:38 on a high volume of trades to reflect profit taking by investors and traders.
This was as a result of investors expecting mixed performance for March year-end account and ahead of Q2 interim dividend by those companies known to regularly engage in such.
Already, the first earningsreport for companies with March year-end (International Breweries) has disappointed investors by not recommending a dividend; the market has also reacted by punishing the company as can be seen from the continued nose-diving of its share price sinceafter the release ofthe company’s full-year 2017 scorecard some weeks ago.
7-Up Bottling Company is likely to go the same way on the strength of it negative numbers in Q3 and calculations that the Q4 performance may not significantly change its situation well enough to make investors happy.

Meanwhile, the developed stock markets around the world were mixed over the past week, closing lower with crude oil trading at its lowest level in the last six weeks, just as the rate hike in U.S is piling pressure on equity markets as tech stocks suffered adecline.
Germany‘s DAX, Japan’s Nikkei, Britain’s FTSE 100 and U.S market indexes were down for the week. Particularly, the U.S market indexes were mixed on interest rate hike. Tech stocks suffered losses despite appreciation recorded by industrial stocks during the period, even as the U.S market struggled to maintain growth without President Donald Trump’s promised tax cut and spending programmes.

The Blomberg U.S Economic Surprise Index, which measures whether economic data beat expectations, fell below zero for the first time this year to signal potential troubles ahead.
In Europe, leaders are worried about new US sanctions on Russia which targets the country’s new gas pipeline to the continent and have threatened retaliation if the measures harm the Eurozone, especially now the region’s economy is recovering ahead of Britain’s proposed exit.
In Asia, the Bank of Japan (BOJ) at the end of it meeting last week left policy rate unchanged. The international monetary fund boosted its forecast for China’s growth rate to 6.7% due to policy support.
Back home, the Nigerian Stock Exchange’s All-Share Index opened the week onMonday on a negative note, losing 0.12%, which was sustain on Tuesday with a higher decline of 0.28% on a profit taking. There was a reversalduring mid-week’s trading on a bull-sh momentum to gain 1.38% that was boosted by increased activity from fund managers. It retained the bullride on Thursday through Friday, pushing the ASI to 33,810.56, bringing the week’s total gain to 1.60% on strong demand, supported by expectations.

The All-Share index and other sectoral indexes for the week were mixed to close the week higher, except for the NSE ASeM, NSE Oil/Gas, NSE Lotus II and NSE Industrial index that were down by 0.32%, 4.20%, 0.71 and 0.28% respectively.
The week’s transaction, measured by aggregate volume and value were mixed as volume traded went down by 11.61% to 2.74bn shares, as against the 3.1bn units in the preceding week, while value for the period was up by 9.8% to N32.04bn from N29.18bn a week ago.

During the week also, the share price of Beta Glass, Learn Africa, NPF Micro Finance and Newrest ASL were adjusted for dividend recommended by their directors, while eTranzact International Plc announced a dividend of 10 kobo. Also, a total of 396,793,587 ordinary shares were added to the share outstanding of Oando as a result of the debt-to-equity conversion implemented by the company.
At the end of the week’s trading, May & Baker and Skye Bank topped the advancers table with gain of 60.50% and 41.51% respectively to close at N4.56 and N0.75, driven by MoU signed by government to produce certain vaccine, while the other was low price attraction in addition to general market uptrend, while the flip side was topped by International Breweries and Forte Oil, which suffered 19.12% and 13.569% slide to close at N26.05 and N55.58 each respectively.

Market Outlook
The market is expected to be mixed this week as a result of continued profit taking and investors interpretation of the inflation rate that dropped significantly in May, what it portends for the market ahead of Acting president brief on 2017 budget implementation,the expected economic rating and outlook from international rating agency Fitch. Another factor expected to play out and reflect on investor sentiments is the unstable price of oil, considering the fact that Nigeria has remained a mono-product economy like ours. Also is the expectation of more March year-end earnings reports in the market this week.
Investors at this level of the market should position in stages in value stocks with high upside potential despite the current prices of stock on the exchange.
Again, the time to combine company fundamental data and chart pattern for your trading and investing decisions is now, to enable yu know the support and the resistance levels.

INVESTDATA PRICE @ EARNINGS TRACKING FOR THE WEEK ENDED JUNE 23, 2017

MARKET UPDATE FOR WEEK ENDED JUNE 23 AND OUTLOOK FOR JUNE 28-30, 2017



MIXED TRADING WEEK, AMIDST HOPE FOR BUDGET 2017, PORTFOLIO RE-BALANCING


Nigeria’s stock market moved lower during the past week as selling pressure increased on the heels of profit taking as many stocks were selling above their 52-week highs. At the same time, there are the effects of negative reactions of investors to none readmission of Nigeria into the Morgan Stanley Capital International (MSCI) Frontier Index’s in its June review. China was admitted into emerging market index, while Nigeria and Argentina were put under consideration for a ”Standalone.” Nigeria's re-classification was postponed to November in the midst of the unstable global oil price and the danger of increased non-performing bank loans, where Etisalat, the country's fourth largest communication companies defaults in repaying its estimated N534.1bn US$ denominated loan from a consortium of Nigeria banks. Graciously, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), on Friday in a statement noted ongoing plans to intervene in the face off, so as to save jobs, while the company and its creditor banks discuss ways to resolve the issue and rekindle the investing public's confidence. This is just as positive and improving economic data continue to confirm recovery of the economy.

Bearish sentiments dominated the market after the first two trading sessions of last week before the pullback lingered till the Friday. The volume index for the period was 1.65 as buying position was 1%, while selling volume was 99% of the total transaction to reveal the level of selling situation in the market as investors move to hold cash and watch for the next trend. This is especially as month end window dressing and statutory date for releasing march year-end account are around the corner.
Meanwhile, the benchmark Index for the week shed 1,688.42 points to close at 32,122.14 points, from an opening figure of 33,810.56 points, representing a 4.99% decline on a high volume of transactions. The market pulled back to close lower after it had broken out the psychological line of 34,000 within the period under review.

Similarly, market capitalisation for the week closed lower at N11.11tr from an opening value of N11.6tr, representing a 4.99% after hitting high of N11.89tr.
The advancers’ table for the week was dominated by low and medium cap stocks as investors and traders continued to book profit from banking and high cap stocks that had rallied recently, thereby creating opportunities for repositioning as earnings reporting season for Q2 kick off in July while the remaining march accounts are expected in the market after the holidays.
Losses suffered by listed companies during the period reduced the SEASI’s year-to-date return to 19.53%, just as that of market capitalisation dropped to N2.01tr, representing 20.49% gain from the year’s opening value.

Market breadth for the period was negative with the number of decliners widening and outweighing that of advancers in the ratio of 52:23 on a high volume of trades to reflect selling pressure from investors and traders.
Stock markets around the world were mixed over the past week, closing higher on positive economic data, as oil price suffered further decline to retrace up on falling US Dollar.
Germany‘s DAX and Britain’s FTSE 100 were down, while Japan’s Nikkei and U.S market indexes were up for the week. TheU.S market indexes were driven by the rebounded Tech stocks after CEOs in the industry met with President Trump. In addition to the positive leading economic index that rose by 0.3% in the month of May to suggest that the U.S economy is still strong. There was also effects of the rebound of the housing sector, especially with the 1.1% increase in the existing home sales to a higher than expected 5.62m, while jobless claims were little changed from its strong prior position.
In Europe, IHS market’s June flash purchasing manager composite dipped to 55.7 in May, which is well above the 50 mark that would indicate a contraction.

Investors have continued to worry about North Korea's continued test of nuclear missiles, which has become a concern to the U.S government and indeed, the rest of the world.
In Asia, China’s economy has been projected to grow by 6.7%, due to policy support, especially as the country's stock market continues to rise following its inclusion in the MSCI Frontier Index of emerging markets. Japan offered the first upbeat assessment of its economy since December with the visible sign of improvement.

Back home, the All-Share Index opened the week on a positive note, gaining 0.96%, which was sustained with Tuesday's 0.71% up market. There was reversal during mid-week’s trading on a bearish sentiment and profit taking, leading to a loss of 2.61%, linked to negative market reactions to the postponement of Nigeria's inclusion in the MSCI index. This continued on Thursday and Friday when the market lost 1.60% and 2.45% respectively to bring the week’s total loss to 4.99% on selling position to halt four weeks bullish transition.

The All-Share index and other sectoral indexes for the period were down to close the week, except for the NSE ASeM, that was up 0.08%.
The week’s activities, measured by aggregate volume and value were down by 15.69% and 21.39% respectively to 2.31 billion shares, as against the 2.74bn units in the preceding week and N24.58bn and N32.04bn in the previous week.

During the week also, the share priceof Lasaco and Continental Reinsurance were adjusted for recommended dividends by their directors, while Conoil Plc announced a dividend of 310 kobo.
At the end of the week’s trading, Neimeth and Ashaka Cement topped the advancers log with a gain of 44.12% and 21.39% respectively to close at N0.98 and N17.08, driven by government's new policy of sourcing all drugs and vaccine locally before looking elsewhere. The flip side was topped by Trancorp and Jaiz Bank, which suffered 23.12% and 17.98% slide to close at N1.43 and N0.73 each respectively as a result of profit taking.

Market Outlook
The market is expected to be mixed in three trading days of the week as a result of the end of month trading account balancing by fund managers and market players. This is in addition to repositioning by traders ahead of the Q2 earnings season, amidst expectations that implementation of the 2017 budget would boost economy recovery. Also, is the expectation of more March year-end earnings reports in the market this week.
Investors at this level of the market should position in stages in value stocks with high upside potentials, despite the current prices of stock on the exchange.
Again, the time to combine company fundamental data and chart pattern for your trading and investing decisions is now, to enable you know the support and the resistance levels.

Train yourself and study to know the new approach to adopt at this point and going forward,
To join us at the coming one day workshop by calling 08032055467 and 08111811223.
Also for our webinar every Friday 8pm to 9pm, WhatsApp group and get market updates, SMS web*name*email to 08124050850

HOW TO SUCCEED WITH YOUR MONEY

Since the introduction of money as a replacement for trade by barter, it has always been in circulation. One thing has remained constant in the history of money is that only those who understand and know how to send it on errands or make it work for them successfully amassed and controlled it.

Before I go further, what is success? Success is travelling on the right road towards your goal. Simply put success is, “a progressive realization of worthy ideal”. Though money is very hard to define, for economic reasons, it is anything that is generally acceptable for settlement of debts, and a medium of exchange.

It is a common scene to see people who work round the clock or even earn reasonable salaries and yet have little or nothing to show for it. This is because they have one source of income, called "Linear Income”. Until you put your money down to work for you in the investment mix such as: real estates, bonds and shares, where residual income is generated, you have not succeeded with your money.
We live in Africa where some attribute their lack of wealth to being bewitched by some unseen forces. But the truth is not far fetched; it is lack of knowledge and non-application of the basic principles of wealth creation. Without the application of these principles, one will end up being enslaved by others, no matter how much one earns.

As a man’s status improves, so his responsibilities, while climbing the socio-economic ladder. Wealth does not come automatically to those who earn fat salaries or to the extra strong or educated. It only responds to appropriate principles, which like the law of gravity, will never fail as long as heaven and earth remains.

Receive the tenets of succeeding with your money
Here, a part of all your earnings should not be spent. Make it a duty basis to save a part of what you earn on a regular basis. Do not spend all your earnings, no matter how pressing a need may be. Most people that applied this principle in the past are wealthy today. No matter how much you earn, keep at least 10 percent of such for savings every month. Suppose you earn NGN15,000 per month, spend NGN12,000 on your needs and leave the remaining NGN3000 in your savings account. This is because you add NGN3,000 to your account each month. You will notice that in just five months, you will have at least NGN15,000. If you continue with this diligently, in 10 months, you will have over NGN30,000 (interest exclusive). So, you see that each passing month makes you worth more than you were the previous months. Your money will grow by the month.

As it grows, you get stimulated and greater inspirations will come to you to assist you make more money by investing in multiple sources of income. When you begin to implement and save part of the money that comes to you, money will flow to you more easily than before. Remember that doors of opportunity will only open to you when you have a solid financial base to utilize the opportunity for greater wealth.
No matter your profession, money/wealth can be yours if only you are ready to follow these principles.

Therefore, every one that is involved in a venture has to afford himself a stream that can make him as wealthy as he hope to become. Remember that all the money you desire in life is tied to the one you have now if you know how to send it on errand. It is a fact of life that the one who gathers much begin with little. The money you possess now, if properly utilized, can lead to a greater wealth tomorrow, but if you continue to spend all that comes to you, you have denied yourself the opportunity of succeeding with your money, thus making your future cloudy.
Be wise! Money flow to those who use it well, but flies away from those who spend extravagantly. Spending all your earnings brings you below the line, while saving and investing a part of all your earnings will bring you above line and sure prosperity!

A snapshot of Investdata Buy and Sell Signal Setup for one week

The table below shows how the stocks recommended have performed:
Just One Week
Securities
Buy Price
Target Price
Sell Price/April
Gain/loss%
Eterna
3.40 to 3.60
4.00
3.90, 2/6/17
14.70
Nahco
3.00 to 3.10
3.35
Holding
Vitafoam
2.10 to 2.35
2.54
2.64, 23/5/17
20.00
Aiico
0.53 to 0.55
0.60
Holding
Diamond Bank
0.85 to 0.91
0.97
1.02, 1/6/17
20.00
long term position
AS@Six WK%
Aiico
0.53
0.51
-3.67
Transcorp
0.79
1.17
48.1
FCMB
1.01
1.19
17.81
Uacn Property
1.76
2.14
21.59
Fidelity Bank
0.83
1.01
21.68
Honey well
1.12
1.27
13.93
Fidson
1.68
2.12
26.19

If you have sent your money an errand by investing in the stocks mentioned above for just a week, your financial worth would have increased with ease to meet many needs and enhanced your value creation

WATCH INTERVIEW ON TVC BREAKFAST 28TH JUNE 2018 | CBN'S GROWING NAIRA INTERVENTION


https://www.youtube.com/watch?v=SHGelSoVUDI

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED JUNE 30, 2017

FIRST HALF OF THE YEAR 2017 MARKET ROUNDUP

NIGERIA’S BENCHMARK INDEX GAINS 23.23%, CAPITALISATION UP N2.2TR ON STRONGER DEMAND

The Nigerian stock market and economy for the first half of the year was a reversal of the 2016 economic and market performance as commodity prices, particularly oil in the international market moved from a low of $28 per barrel in January 2016 to high of $57 in 2017, before closing the period under review at $45. The big surge recorded in crude oil price was between November 2016 and April 2017. This improvement in oil price impacted the government revenue positively to reflect on our reserve that supported government spending.

Also noteworthy is the monetary and exchange policies of the Central Bank of Nigeria (CBN) so far this year, which has been a major driver of economic recovery through its sustained intervention in the foreign exchange market. This has significantly helped to revamp the nation’s manufacturing and other sectors by meeting the US$ supply side of the market and ensuring relative stability in exchange rates. By extension, this has supported appreciation of the Naira against major global currencies, thereby closing the exchange rate gap in the black market.

All of these have impacted the nation’s inflation rate which has remained on the decline over the past four straight months, dropping to 16.25% from high of 18.55% in January 2017.
The success of the ongoing economic recovery efforts reflected in the Q1 GDP figures of negative 0.52%, a sign that the nation is gradually, but steadily turning green, especially since the CBN reviewed its ongoing exchange rate regime in February, a pointer to where the economy is heading after the market suffered three consecutive years of down market resulting in huge under-valuation of equities with equities parading low price to earnings (P/E ratios). The improvements recorded in the Q1 corporate earnings presented to the Nigerian Stock Exchange (NSE) have supported prices so far during the recent rally.

The delay in passage of the 2017 budget and signing of the appropriation bill into law, coupled with the implementation style of the extended lifespan of the 2016 budget’s capital expenditure affected the fiscal authorities for the period under review. Incidentally, these are expected to drive the economic recovery and growth plan agenda of the government.

Meanwhile, the composite NSE All Share Index for the first half of the year gained 6,242.86 points to close at 33,117.48 points from the opening figure of 26,874.62 points, representing a 23.23%growth on improved volume of 43.13bn shares traded, from previous half-year’s 40.29bn shares traded. Demand for stocks increased on the ameliorating economic condition that supported stronger corporate numbers upon which investors acted to drive prices, with eyes on enhanced dividend payment.

The buying volume of total transactions for the period was 88%, while selling position was 22% to maintain the same up market for same period in 2016. Similarly, market capitalisation for the period rose by N2.2tr to close higher at N11.45tr, from an opening value of N9.25tr, representing 24.04% appreciation in value. This was as a result of positive sentiments as market confidence and fundamentals become stronger, despite the unstable crude oil price as well as the socio-political environment.

The Q1 corporate earnings that beat expectations and the positive macro-economic indices released so far especially the Purchasing Managers Index (PMI) that remained above the 50 point threshold, added to the improving inflation data that have confirmed economic recovery, while supporting market fundamentals. In addition to the improved liquidity in the import and export window of the foreign exchange market that had continues to attract inflow of portfolio foreign investments to allow foreign players pull their funds, unlike in the past when this was impossible, thereby negatively impacting the confidence to reinvest their dividend or reposition portfolios. The CBN move therefore gave them confidence as the new window give easy access to FX.

No doubt, Nigeria’s economic recovery has influenced its equity market positively in the period under review. The recovery is expected to enhance subsequent corporate earnings that will further drive equity prices if the numbers beat estimates. The recession resulted in the Naira becoming undervalued, just like equity prices, agro produce, real estate and others, thereby creating investment opportunities in the market, even as risk management was key amidst continued cautious trading and investing among investors seeking to protect their investable capital.

Market breadth for the period was positive and strong as the number of advancers outpaced decliners in the ratio of 64:22, reversing the bearish transition of 2016, after the market had suffered three consecutive years of downturn.

As shown in the sectoral performance chart below, the banking sector gave the market the most significant boost in the half-year, gaining 45.08%, more than double that of the composite NSE All-Share Index. It was followed by the Pension index that soared by 42.92%, while NSE Premium galloped by 31.15%. Other sectors that recorded growth were: Industrial Goods, Consumer Goods, Insurance, NSE 30, Oil and Gas. The only sub-sector that closed red was the alter\native market index, which lost 1.12%.


Sector Performance First Half 2017

The best and worst performing stocks in the first half of year are recorded in in the table below.
Of the 64 stocks with share prices appreciation, 40 gained over 20% compared to the closing value at the end of last year, with May& Baker as the best performing having gained 312.77%, helped by the Memorandum of Understanding (MoU) it signed with the Federal Government for the production of vaccines locally. The price movement follows expectation that the move would boost the company’s earnings power and profit, expected to result in enhanced dividend payout at year end. It was followed by Stanbic IBTC’s 120%, helped by its impressive Q1 numbers that investors hope would result in far better payout than the seemingly miserly dividend of the 2016 financial year. With banking stocks pushing the market higher, it shouldn’t come as too much of a surprise that 12 of the best performing stocks for the period having over 20% value gained were from the sector, as UBA’s 94.67% placed it behind Stanbic IBTC; whileFBNH, ACCESS, FIDELITY and ZENITH BANK closed the half year better by 90.45%, 58.43%, 55.95% and 41% respectively.

Best Performing Stocks in H1 2017

May & Baker
HealthCare
0.94
3.88
312.77

Stanbic IBTC
Financial
15.00
33.00
120.00

Fidson Healthcare
Healthcare
1.28
2.78
117.19

UBA
Financial
4.50
8.76
94.67

CCNN
Industrial Goods
5.00
8.70
94.00

FBNH
Financial
3.35
6.38
90.45

PRESCO
Agro Business
40.10
73.00
82.04

ASL Newrest
Services
2.50
4.50
80.00

BetaGlass
Industrial Goods
30.32
52.17
72.06

International Brew
Consumer Goods
18.50
30.57
65.24

Transcorp PLC
Conglomerates
0.87
1.43
64.37

Access Bank
Financial
5.87
9.30
58.43

PZ
Consumer Goods
14.50
22.92
58.07

Fidelity Bank
Financial
0.84
1.31
55.95

Oando
Oil/Gas
4.70
7.30
55.32

The worst performing sectors in the period under review were Oil/Gas and Manufacturing, followed by services providers. The half-year’s worst performing stocks in terms of share price movement was petroleum products marketing and power generation giant-Forte Oil, which shed 40.70% on account of weak earnings and market reactions to its proposal to raise fresh capital which investors fear would dilute their stake in the company. There is also the fact that the company could not pay dividend at the end of the 2016 financial year ended December 31.It was followed from afar by 7-Up with 32.98% decline in value due to its dwindling earnings and loss after tax of N10.3bn in the 2017 financial year; Meyer lost 19.54%; and Trans nation-wide Express, 17%.
See others on the table below:
Worst Performing Stocks in 1H

Forte Oil
Oil/Gas
84.43
50.07
-40.70

7UP
Consumer Gd
129.00
86.45
-32.98

Meyer
Industrial Gd
0.87
0.70
-19.54

Transnation Express
Services
1.00
0.83
-17.00

Tripple Gee
Industrial Gd
1.36
1.14
-16.18

University Press
Services
4.24
3.57
-15.80

Union Dicon
Industrial/Agro
15.67
13.43
-14.17

Guinness Nigeria
Consumer Gd
83.05
71.50
-13.91

MRS OIL
Oil/Gas
43.24
37.30
-13.74

AG Lentics
Conglomerates
0.96
0.86
-10.42

Mobil Oil
Oil/Gas
279.00
250.02
-10.39

Custody Insurance
Insurance
3.89
3.49
-10.28

Total Nigeria
Oil/Gas
299.00
280.00
-6.35

Boc Gas
Industrial
3.52
3.30
-6.25

NNFM
Consumer Gd
6.01
5.71
-4.99

Where to invest/Expectation For 2017 Q2
The market and indeed the economic outlook for the second half of 2017 are becoming unpredictable and unstable due to the delayed disbursement of funds for implementation of the 2017 budget, despite the fact that it took a whole half-year before it was passed and signed into law. The proposed initial release of N350bn to Ministries, Department and Agencies (MDAs) after such long delay is afar cry from the N2.36tr planned spending on infrastructure to drive economic growth after the much celebrated N1tr capital vote in 2016, which has not translated into improved power supply that would result in reduced production cost for manufacturers, good road to reduce cost of transporting agricultural produce and persons.

Until there is a change in government’s implementation style, the Economic Recovery & Growth Plan may remain just good reforms agendas only on paper and the imagination of its promoters. The improved oil production and relatively stable exchange rate as a result of CBN intervention and flexibility in the FX market, in addition to the stable oil price would nonetheless contribute to the attainment of positive real GDP growth this year. We equally acknowledge the positive impact of the relative peace and security in the nation’s Niger Delta region and stability in oil output with upside implications for the nation’s revenue, economic health and well-being.

For this third quarter and rest of the year, more positive economic data are expected, especially inflation figure for June, PMI and second quarter GDP to really confirm the level and stage of economic recovery.
As second quarter earnings reporting season kicks off this month, it would expectedly reveal the impact of the economic recovery on corporate performance.
Traders and investors who understand the operations of the stock market and the economic cycle know that they are instruments to identify leading sectors and at the same time forces behind the recovery so far to take advantage and position in those sectors for medium to long term gains. This is especially true of the financial services sectors, as well as the agro-allied businesses, construction/building material related companies and healthcare companies.

Meanwhile, the 2017 first quarter financials due to be released soon should help investors project whether the companies are likely to post a better Q2 or not, after studying the target company’s full-year 2016 numbers and Q1 2017 earnings to show trend and direction.

Equity price movement as we have always noted in INVESTDATA, is a function of earnings and dividend payment at any time. This is in addition to information emanating from these companies, which are expected to attract more market players, dividend investors and possibly foreign bargain hunters to the market.

INVESTDATA analysis shows that over the past three years on the Nigerian stock market, the month of July and August have been bearish, despite being an earnings reporting season which suggests that traders should be cautious and watch their position when the numbers start rolling. This will enable the investor know when to cut his/her loss immediately and move to other stocks that are already on their watch list.
What to expect in July and August
More quarterly and few full year earnings would be released. Earnings from blue-chip companies may strengthen market fundamentals, if positive and beat estimates.
The oscillating trend of equity prices as a result of profit taking and some disappointing numbers that will be released this period. Also the source of funds brought to the market may cause fluctuations, giving that both local and foreign institutional investors trade in the market. Also, there is the factor of the Federal Government overcrowding the financial market, offering high and mouth-watery rates that private players cannot.
Investors are expected to reshuffle their portfolio and invest in equities with strong fundamentals and prospects of growing their earnings going forward.
A more vibrant market as a result of market players positioning for second half of the year, even as we expect liquidity to improve more.
Market outlook for these months are dicey but invest wisely, using dates, bids, offers and volume when taking decisions.
Managing risk and protecting capital at this point is very important, so you will be able to determine when to buy or sell by watching the stocks and the market, using technical analysis tools.

Attention! Attention!! Attention!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Workshop on COMPREHENSIVE SHORT-TERM TRADING STRATGIES FOR REST OF THE YEAR & BEYOND

Sub Topics:
1. The Toolbox of Successful Traders & Technical Analysts- Mr Meshach Ukpoma, FX Analyst/Trader
2. Outlook and Implications of the 2017 Budget & Petroleum Industry Governance Bill (PIGB) on Nigeria’s Stock Market and Economy- Abiola Rasaq, Group Head Investor Relations, UBA
3. A Strategic Outlook; The Fusion of Fundamental & Technical Analysis- Ambrose Omordion, Chief Research Officer Investdata Consulting Ltd
4. Understanding Market Timing to Manage Risk, Using Technical Analysis - Mr. Abdul-Rasheed Momoh, Head, Capital Markets, TRW Stockbrokers Limited
The workshop holds on:
DATE: 15 July 2017
TIME: 9.00am
VENUE: Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.

The fee is N20, 000 per participant. Payment made a week before the date of the event attracts 10% discount. Companies sending more than two representatives would enjoy a 15% discount. Payment should be made into: Zenith Bank; Account Name: InvestData Consulting Limited; Account Number: 1013033032.
For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223

MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
TEL:01-4724645, 08028164085

CORPORATE ACTIONS AS AT JUNE 30, 2017

7-UP BOTTLING COMPANY: PRICE DECLINE ON RED ACCOUNT POSITION

The board of 7-Up, the only listed soft drinks bottling company on the Nigeria Stock Exchange (NSE), recently released its full-year earnings report for the period ended March 31, 2017 to the investing community in line with its post-listing requirements. To enable investors plan and forecast their investment, the company has in the past five years has become regular in releasing its numbers within the stipulated time frame.

The 2017 full-year numbers revealed a mixed performance as the top line moved northward while the bottom turned red from profit in the comparable year. The high financing and cost of sales have served as a major factor of earnings volatility for Fast Moving Consumer Goods (FMCG) in recent times amidst higher debt balances on a number of balance sheets due to the high cost of production which has robbed on 7-Up. This was also despite the growth in sales revenue to show that its market share or segment is still expanding but high of operation has eaten up profit, pushing it to a huge loss position of N10.78bn in just one financial year, despite the decline in profit 2016.

In the midst of the current tight monetary environment and possibility of further currency movements, we expect finance charges to stay elevated in the short-term, even as the high cost environment may lead to further increase in short term borrowings which is already high in the case of 7-Up. This operating cash flow in red is not good for the company and its stakeholders for now until there is a turnaround again to profit. Even then, the company’s Price to Earnings ratio of 26.79x in 2016 had already shown that the company is struggling to grow earnings to support its share price.
Any attempt by the company to raise the price of its product at this point could be suicidal, as such a move would further discourage consumption in the face of the stiff competition among major carbonate beverage and water packaging companies, especially the cottage industries. Amidst the currency weakness, and consequent increase in imported input prices, there has been an uptrend in cost of production and sales.

However, the higher demand for its products, coupled with pass through from higher transportation prices and sustained supply shocks from the cottage industry continue to threaten future sales, made worse by the company's heightened debt position. Added to these key ratios like return on assets and cost to sales of 7-Up are 10.78% and 88.79% in the red respectively.

The company’s retained earnings declined to N13.79bn from N24.78bn without major investments in capacity building for this period, a pointer to the fact that all is not well. For the processed numbers look at the table below.


7UP BOTTLING COMPANY PLC.
AUDITED FULL YEAR MARCH 2017
2016
2017
% Chg
(N)
(N)
Date Released
June 29, 2016
June 30, 2017

Price as @ Released Date
140.00
91.00
-35.00
Turnover
85,634,579,000
108,277,000,000
26.45
Profit After Tax
3,347,463,000
-10,776,712,000
-421.8
Shareholders' Fund
24,779,594,000
13,225,471,000
-46.61
Dividend
1.60
nil

ESTIMATED RATIOS
Earnings Per Share
5.29
-16.82
-418.0
PE Ratio
26.79
-5.41
-120.2
Earnings Yield
3.73
-18.49
-595.7
Book Value
38.68
20.65
-46.61
Price to Book Value
3.62
4.41
21.82
ROE(%)
13.53
-81.48
-702.2
Profit Margin
3.91
-9.95
-354.5
Source: Company Financials& Investdata Research

The company’s declining quarterly profitability became noticeable the during 2017 financial year, just as reacted appropriately, following which its share price moved southwards to reflect the weak performance. Even many traders and institutional investors who once saw the stock as one to manage risk in their portfolio started exiting earlier to cut loss.

The disappointing numbers as a result of which approval of dividend would not be one of the items on the agenda at the next annual general meeting triggered a 5% loss of share price as at released date, revealed investors ’negative sentiments for the equity, considering the loss position.

Technical View
7-Up’s price rally to the peak in 2016 was driven by impressive numbers of previous years before the company performance started dwindling following the release of its numbers for the 2016 financial year. The price action has formed a falling channel chart pattern that supports trend continuation,despite various attempts to reveres that fail.

The share could bottom out, on the basis of its shareholding structure, around N68 per share.
However, any new positioning should wait to see the Q1 and strong support level before jumping into it for the medium to long term.

The lower lows is making the stock attractive as the economic recovery is likely to impact positively on it performance going forward, meaning that investors should keep 7-Up on their watch list to know exactly when to position.
7 UP Bottling Co PLC
Share Holding Structure
Affelika S.A
73.22%
Nigerian and others
26.78 %
Other Statistics
Shares Outstanding (MN)
640,590,363
Opening Price (2017)
N155.00
Closing Price as @March 31”17
N83.00
Closing Price as @June 30, “17
N91.00
Market Capitalisation
N58,293,723,033
Date Listed
1986
Year End
31st March

Five-Year Performance Indices
The market continues to revalue the company’s share price on the strength of numbers posted since 2016 before this last financial year ended 31st March 2017, compared to the impressive performance recorded between 2013 and 2015 which supported the price rally witnessed during the period. The bottling company over the past five years seems to have recorded a constant growth in sales revenue, while profitability declined until it slipped into the red zone at N10.78bn in 2017.

Turnover gradually rose from the N64.09bn in 2013 to N108.28bn in 2017; just as bottom line had a geometric growth in the first three years of period under consideration, before turning negative in 2017. From N2.87bn in 2013, it peaked at N7.13bn in 2015 before dropping to N3.35bn in 2016, from where it turned red in 2017.Profit recorded through the five-year period was mixed as the price moved up and then down to the level it was last week end. Total Equity for the same period recorded same trend, falling to N13.23bn from its high of N24.78bn in 2016 and N12.58bn posted in 2013 to reflect investment injection into its capacity building.

One of the strong supporting factors of the equity before now was its constant reward in terms of dividend payment to shareholders, no matter how small, in relation to its share price and strong earnings power that had just disappeared to keep the stock on a downtrend. Looking at the table, investors have cumulatively taken N9.05 per share as dividend in five years.

Please note that the company’s share capital has remained constant for this period and is also relatively small to support the numbers and share price so far. This company, even with its increasing capacity, is yet to meet the growing demand for its products, since it rebranded and repackaged its products. Demand for its products have been on the increase as reflected on its top line,but earnings have remained in the red due to the high cost of operation, increasing debt and competition with the cottage industry .

SEVEN BOTTLING COMPANY PLC FIVE YEARS FINANCIAL POSITIONS


2013
2014
2015
2016
2017

Date Released
August 1,2013
June 30, 2014
June 29, 2015
June 29, 2016
June 30, 2017

Price @ Released
72.00
93.00
179.10
140.00
91.00

Turnover
64,088,879,000
77,888,548,000
82,450,505,000
85,634,679,000
108,277,000,000

Profit After Tax
2,865,504,000
6,434,601,000
7,125,788,000
3,347,463,000
-10,776,712,000

Total Equity
12,577,980,000
17,328,695,000
23,933,633,000
24, 779,594,000
13,225,471,000

Dividend
2.20
2.50
2.75
1.60
Nil

Bonus
Nil
Nil
Nil
NIL
Nil

Source: Company Financial & Investdata Research

Ratio Analysis
The company’s earnings power and growth reflected on its earnings per share that moved from N4.47 in 2013 to N10.04 in 2014 and to N11.12 in 2015, after which it dropped in 2016 to N5.23, before this latest loss per share of N16.82 each. Investors’ negative response to the latest unimpressive results and weak earnings can be traced to its increasing their waiting investment period from 16.10x in 2013 to negative 5.41x of the period of entry. Please note that the 2017 full year loss per share yielded negative 18.49 percent of the price at released date. Returns on Equity employed through the period were on the average 24.23%before the negative return of 81.48%, while the margin of the profit to the turnover figures stand low between 4.47% and 8.28% to reflect the huge cost of operation. This should expectedly require immediate action from management, because it led to the loss position.

Unfortunately, the book value of the company is far below its market value, an indication of the premium placed on the stock by the investing public, suggesting that management should also grow its assets to build margin of safety.

SEVEN BOTTLING COMPANY PLC- ESTIAMATED RATIOS

2013
2014
2015
2016
2017
Earnings Per Share
4.47
10.04
11.12
5.23
-16.82
PE Ratio
16.10
9.26
16.10
26.79
-5.41
Earnings Yield
6.21
10.80
6.21
3.73
-18.49
Book Value
19.63
27.05
37.36
38.68
20.65
Price to Book
3.67
3.44
4.79
3.62
4.41
ROE (%)
22.78
37.13
29.77
13.51
-81.48
Profit Margin (%)
4.47
8.26
8.64
3.91
-9.95
Year End
March
March
March
March
March
Source: Company Financial & Investdata Research

4 Ways Of Losing Money In The Stock Market

Just as there are several reasons why some investments make money, there are just as many, if not more, for why an investment loses money. More often than not, there is some investor error lingering in the background of a failed investment. Many investments lose money simply because of investor behavior which is trading based on emotion and not facts. Whether the investor is trading too often or not often enough which could affect the portfolio.

However, when an investment loses money despite otherwise sound investing behavior on the part of the investor, reasons for the loss might go back to the company itself or unethical business practices.

2. No Customers: Consumers don’t buy the company’s products or services. It doesn’t matter if they have great products. No customers, No Money or profit to share. It is as simple as that.

2. Effective Competition: This is very common. A company will release a new product in other to compete with the current reality of consumer behavior but at the end of the day nothing will really be achieved as a result of poor marketing technique, scaling, errors. I could still remember an advert done by Nigerian Brewery for their Star Lager brand in 2013 on yahoo. The link provided either by Nigerian Brewery was completely error 404 for 10days.

3. Mismanagement of funds: The officers of the company mismanage the business, perhaps by fraud or by failing to follow a budget, and their costs exceed their income hence loss is inevitable.

4. False Profit Declaration: the company’s profits are less than you were told, the contracts that were a “sure thing” never existed, or the financial statements were doctored up.

Definitely, there are no bullet-proof investments or investment strategies, but there are patterns that can save you from significant loss. In the end, good investments that make money aren’t always the most exciting (in fact, they generally aren’t exciting at all), but the key is to find the balance between the risk and reward and not make those common investing mistakes which is by seeking knowledge by attending seminars, subscribing to monthly nugget on stock investment.

Many people have made mistakes so it is better you learn from them

MARKET UPDATE FOR JULY 3, 2017


NSE INDICATORS STRUGGLE AMIDST MIXED PERFORMANCE, EXPECTED Q2 NUMBERS

The first half of the year ended last Friday.On the Nigerian Stock Exchange (NSE), the banking sector took the lead in terms of market performance, with its index gaining 45.08%,almost double the 23.23% growth recorded by the composite index NSE All-Share index.

The second half of 2017 kicked off on a negative note at the end of Monday’s volatile trading session, beginning with the benchmark index inching up in the early trading hours before gapping down at mid-day to close below the 33,000 psychological line on a low volume of trade.
The day’s trading volume index stood at 0.34 on a buying position of 6%, while selling was 94% of the total volume traded.

The continued positive economic data and information hitting the market is a factor to support the expected reverse from the two-day trend, particularlyas the nation’s manufacturing sector sustained its recovery in the Purchasing Managers’ Index (PMI) for June, which rose to a five-month high of 52.9, up from the May reading of 52.4. This reflected the impact of the Central Bank of Nigeria (CBN) intervention in the forex market through makingforeign exchange readily available at the import and export window. This also has supported the Naira’s stability and appreciation against other currencies of the world in both the official and parallel market windows.

All these are coming ahead of the Q2 earnings reporting season for which companies have started notifying the exchange of their closed period, preparatory to submitting their accounts, to avoid a situation where company insiders trade, based on price sensitive information available to them, while in the process influencing the market to their advantage.

Another pointer to the nation’s improving economic health and wellbeing was the listing of six Nigerian banks among the top 1000 banks in the world and 25 in Africa,indicating their strong fundamentals and sustainability strength. This is in addition to expected implementation of the 2017 budget, which would boost macro-economic indices and the recovery.

On the global terrain, stock markets around the world were mixed as oil price halted its eight-day up movement,while the US$ depreciated against other major currencies. The Bank of England, yesterday, assured of rate normalization soon, a situation that may be the beginning of another global tightening that would affect assets classification and movement in the world economies and markets.
Meanwhile, Nigeria’s composite NSE All-Share index shed 347.65 basis points on Monday to close at 32,769.80 after opening at 33,117.48 points, representing a 1.05% decline on a low volume traded. Similarly, market capitalisation for the day went down by N120.23bn to N11.33tr from an opening value of N11.45tr, representing 1.05% value decline.

The downturn in the share of prices of blue chips stocks impacted negatively on the All-Share index, reducing its year-to-date return to 21.94%, just as market capitalisation for the same period stood at N2.2tr, representing a 23.99% gain above the year’s opening value.

Market breadth for the day was negative as the number of decliners outpaced advancers in the ratio of 29:17 on a low volume of trade to continue Friday’s bear transition.
Market activities in terms of volume and value were downby 53.06% and 54.70% respectively to 162.35mshares from previous day’s 345.86m and N1.52bn, compared tothe previous day’s of N3.35bn.
Transactions in the shares of ACCESS BANK, FIDELITY BANK, UBA, ZENITH BANK and TRANSCORP topped the volume chart to close the day’s trade.

At the end of trading, Honeywell Flour topped the advancers’ log with its share price gaining 9.66% to close at N1.93 each, on impressive Q4 numbers and expected Q1 earnings report. It was followed by PZ Cussons with 6.24% gain to close at N24.35per share, on market forces ahead of it Q4 numbers.
On the flipside, May & Baker led the decliners’ log, after dropping 9.54% to close at N3.51 on profit taking, ahead of 7-Up’s9.53% to close at N78.21 each on the back of its unimpressive 2017 full-year numbers.

The management of Flourmills Nigeria Plc released its full year earnings reports with mixed performance as top line rose, while profit for the period declined to N8.2bn from N14.32 billion (READ STORY: http://investdata.com.ng/2017/07/update-flour-mills-net-profit-38-72-finance-cost-hits-n32-52bn/). Also during the day trading in the share price of Presco and Trans nation-wide Express were adjusted for the dividend.

TODAY’S OUTLOOK
As the market opens this morning, expect mixed performance as more company release their closed period ahead of making their Q2 earnings reports available to the market. Investors should not panic on the any pullbacks if they have taken position based on strong numbers and future prospects of any stock. But quickly bail out when your expectations are not met when the actual figure hit the market to cut loss.
Again, we advise that investors allow numbers to guide their decisions to reposition for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of recovery economic fundamentals, if the numbers will support the price reversal or continuation.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.
Once more, at the risk of repeating oneself, we must reiterate that industry potential is very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. For stocks that should be on your shopping list to buy in this up market or pullback sign up for investdata buy & sell signal setup by calling 08032055467.

Workshop on COMPREHENSIVE SHORT-TERM TRADING STRATGIES FOR REST OF THE YEAR & BEYOND

Sub Topics:
1. The Toolbox of Successful Traders & Technical Analysts- Mr Meshach Ukpoma, FX Analyst/Trader
2. Outlook and Implications of the 2017 Budget & Petroleum Industry Governance Bill (PIGB) on Nigeria’s Stock Market and Economy- Abiola Rasaq, Group Head Investor Relations, UBA
3. A Strategic Outlook; The Fusion of Fundamental & Technical Analysis- Ambrose Omordion, Chief Research Officer Investdata Consulting Ltd
4. Understanding Market Timing to Manage Risk, Using Technical Analysis - Mr. Abdul-Rasheed Momoh, Head, Capital Markets, TRW Stockbrokers Limited.

The workshop holds on:
DATE: 15 July 2017
TIME: 9.00am
VENUE: Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.


For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223

MARKET UPDATE JULY 4, 2017

INDICATORS REMAIN RED, CAUTION, AS INVESTORS SEEK COMFORT FROM Q2 NUMBER

The volatility on the floor Nigerian Stock Exchange continued as the indices inched up in the early hours of Tuesday’s trading before closing lower to end the day, as investors await Q2 numbers, amidst continued profit taking. It is important to note the rate of demand for equities as revealed by the trading volume index at 0.44 on a buying position of 1%, while selling was 99% of the total volume traded. This signaled negative sentiments ahead of the earnings reporting season. However, the investing public should not panic as opportunity for reversal is high if the trend does not breakdown the next support level of 32,000 and below the blue trend line.

As the factors that brought the market high in June is still partially intact as traders and investors are looking forward to see the Q2 numbers confirming the positive economic data and the recovery so far. Seeing that CBN had successful managed foreign exchange measures to stabilise the naira and narrow the wide gap between the official and parallel markets' exchange rates. However, since April, the apex bank had introduced forex window for investors and exporters, which allows traders to swap naira for dollars at market-determined rates, it seems to have become a historical date in the annals of forex management in the country, despite the up and down movement of the oil price that is the nation major source of revenue.

Stock markets around the world were mixed to close lower as investors increasing tensions on the Korean peninsula supported safe-harbors including the yen, bonds and gold. A holiday in the United States and a dearth of major data kept activity muted, but the expectation of Federal Reserve's last meeting proceedings could add some impetus to the market.

The composite NSE All-Share index shed 359.60 basis points yesterday to close at 32,410.20 after opening at 32,769.80 points, representing a 1.10% decline on average traded volume of the market, but higher than the previous day trade volume. . Similarly, market capitalisation for the day fell by N162.00 to close at N11.17 trillion from an opening value of N11.33 trillion, representing 1.43% value decline as Ashaka Cement was delisted yesterday.


Price depreciation in the share of UBA, Zenith Bank, Flourmills, NB, Guranrty Trust Bank, Guiness, Conoil, Julius Berger, Stanbic IBTC , Oando and FBNH impacted negatively on the All-Share index, reducing its year-to-date return to 20.60%, just as market capitalisation for the same period stood at N1.92 trillion, representing a 20.79% gain above the year’s opening value.
Market breadth remained negative as the number of decliners outnumbered advancers in the ratio of 33:10 on a high volume of trade to continue three day bear run.
Market activities in terms of volume and value were up by 27.00% and 12.19% respectively to 206.18 million shares from previous day’s 162.35 million and N1.70 billion, compared to the previous days of N1.52 billion.

Transactions in the shares of FIDELITY BANK, ACCESS BANK, FBNH, STERLING BANK and TRANSCORP topped the volume chart to close the day’s trade.
At the end of the day trading Redstar Express topped the advancers’ log with its share price gaining 10.14% to close at N5.32 each, on impressive Q4 numbers and 40 kobo dividend. It was followed by Honey well Flour with 9.84% gain to close at N2.12 per share, on impressive Q4 numbers and 6 kobo dividend ahead of it Q1 numbers.
On the flipside, Neminth led the decliners’ log, after dropping 8.54% to close at N0.75 on profit taking, ahead of UBA 5.75% to close at N8.20 each on profit booking from the recent rally.

The management of Guinness Nigeria Plc got SEC and NSE approval for right issue of N59.7 billion. The first Q2 result was released by Infinity Trust Microfinaice while ETI filed for late releasing of it Q2 audited report.

TODAY’S OUTLOOK
As the market opens this morning, expect mixed performance as more company releasetheir Q2 earnings reports with Infinity Trust released of its numbers to kick start the earnings reporting season. Investors should not panic on the any pullbacks if they have taken position based on strong numbers and future prospects of any stock. But quickly bail out when your expectations are not met when the actual figure hit the market to cut loss.
Again, we advise that investors allow numbers to guide their decisions to reposition for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of recovery economic fundamentals, if the numbers will support the price reversal or continuation.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.
Once more, at the risk of repeating oneself, we must reiterate that industry potential is very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. For stocks that should be on your shopping list to buy in this up market or pullback sign up for investdata buy & sell signal setup by calling 08032055467.

https://investdataltd..com.ng/2017/07/rs-market-update-july-4.html

As a newbie in stock trading what are list of company shares that i can buy for now that will yield me profit either long term or short term profit

MARKET UPDATE FOR JULY 5, 2017



VOLATILITY, CAUTION CONTINUE, AS INVESTORS AWAIT Q2 EARNINGS REPORT


The market indices on Wednesday continued its intraday volatility on mixed sentiments to close lower for the repeated time. The reduced rate of decline and the improved volume of trade are indicating traders last minute’s portfolio repositioning with the Q2 earnings reporting season gradually kicking off. The trading volume index of 0.66 on a buying position of 46%, while selling was 54% of the total volume traded revealed that demand for stocks again is looking up, despite the previous three-day selling pressure that had befallen the market.
However, the investing public should not panic as opportunity for reversal is high if Wednesday’s trend of up demand continued as more companies released their closed period and actual numbers to the market. We are still watching for a reversal or breakdown of the next support level of 32,000 or below the blue trend line.

As we have always noted in Investdata, the fiscal policy or intentions of the government as expressed in its Economic Recovery &Growth Plan are not enough to drive the much needed recovery, especially given that the implementation style of the 2015 and 2016 budgets have not impacted the economy, even as we expect the disbursement of funds in the third quarter to kick start implementation of this years pending plan. Also the over clowding of the financial market by the government is slowing down the participation of private sector players, given that the high and irresistible rate at which government borrows is unaffordable for private companies, limiting their access to source of funds locally. This has forced many of such companies that can afford it to look outside for low rate funds, despite the foreign exchange risk and problems associated with external borrowing.

According survey data released by IHS Market on Wednesday, Nigeria’s private sector growth slowed to its lowest level in four months in the month of June, yet the pace of expansion remained robust, supported by strong gains in both new orders and output. The survey showed that new export orders returned to growth in May after contracting for the most part of the past two years. This has been the impact of the new Central Bank of Nigeria (CBN)foreign exchange policy to make liquidity available in the investors and exporters window of the market.

Meanwhile, the composite NSE All-Share index shed 107.88 basis points on Wednesday to close at 32,302.32 after opening at 32,410.20 points, representing a 0.33% decline on above average traded volume in the market which is higher than the previous day trade volume.
Similarly, market capitalisation for the day went down by N36.69bn to close at N11.13tr from an opening value of N11.17tr, representing 0.33% depreciation in value.

Value loss in medium and high cap stocks impacted negatively on the All-Share index, reducing its year-to-date return to 20.20%, just as market capitalisation for the same period stood at N1.91tr, representing a 20.46% gain above the year’s opening value.
Market breadth remained negative as the number of decliners outpaced advancers in the ratio of 33:11 on a high volume of trade to continue four day down market.

Market activities in terms of volume and value were up by 51.02% and 74.71% respectively to 311.38m shares from previous day’s 206.18m and N2.97bn, compared to the previous day’s N1.70bn.
Transactions in the shares of NIGER INSURANCE, FBNH, ZENITH BANK, UBA and TRANSCORP topped the volume chart to close the day’s trade.

At the end of the day’s trading,Berger Paints topped the advancers’ log with its share price gaining 7.21% to close at N7.17 each, on market forces; followed by UBA with 5.00% gain to close at N8.38 per share, on a strong earnings expectations ahead of it Q2 numbers.

On the flipside, Flour Mills led the decliners’ log, after dropping 10.00% to close at N23.14 on profit taking and the decline in its profit; ahead of Unilever Nigeria’s 6.78% to close at N35.03 each also on profit taking and fear of share dilution arising from its public offering.

TODAY’S OUTLOOK

As the market opens this morning, expect mixed performance as more companies are expected release their numbers asthe earnings reporting season continues. Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock. But quickly bail out when your expectations are not met when the actual figure hit the market to cut loss.
Again, we advise that investors allow numbers to guide their decisions to reposition for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of recovery economic fundamentals, if the numbers will support the price reversal or continuation.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.
Once more, at the risk of repeating oneself, we must reiterate that industry potential is very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks. Sign up for investdata buy & sell signal setup by calling 08032055467.

NSEASI DAILY TIME FRAME

Financials Awaiting CBN Approval, Says Fortis MFB

Following the suspension of trading on its shares on Thursday afternoon by the Nigerian Stock Exchange (NSE) for failing to present its audited result...

Following the suspension of trading on its shares on Thursday afternoon by the Nigerian Stock Exchange (NSE) for failing to present its audited results for December 31, 2016 in line with the post-listing requirement, the board of Fortis Microfinance Bank Plc, says it is awaiting approval of the Central Bank of Nigeria (CBN), its primary regulator to do so.

A statement by Victor Aderemi Emerson, Fortis MFB’s company Secretary and Chief Legal Officer, dated Friday, July 7, 2017, assured that the account would “be filed within the shortest possible time post-approval from the Central Bank of Nigeria.”
The NSE had on Thursday announced the full suspension of trading on the shares of 17 companies, including Fortis MFB, for failing to file their relevant accounts at the end of the permissible periods.

A breakdown of the list showed that the insurance sub-sector of the financial services sector was the most prominent with six listed companies: African Alliance Insurance Plc; Equity Assurance; Goldlink Insurance, Guinea Insurance; Sovereign Trust Insurance; Great Nigeria Insurance; and Universal Insurance Company.

Others are: Evans Medical and Ekocorp (owners of Eko Hospital); Resort Savings & Loans; and Union Homes Savings & Loans (subsidiary of Union Bank of Nigeria); and Fortis Microfinance Bank.
Also on the list are: Omatek Ventures, the only computer manufacturing firm listed on the NSE in 2008 and founded by late Mrs. Florence Seriki; as well as two chemical and paint makers- Premier Paints and African Paints; as well as Union Dicon Salt.
The NSE in the notice to dealing members explained that the suspension is “pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the Exchange (Issuers’ Rules).

The NSE in a statement by Godstime Iwenekhai, acting head of its Listings Regulation Department explained that “in accordance with the rules set forth above, the suspension of the afore-listed companies will only be lifted upon the suspension of the relevant accounts, provided the Exchange is satisfied that the accounts comply with all application rules of the Exchange.”

The board of Guinea Insurance, had shortly after the announcement on Thursday written to the exchange saying its 2016 full year result had been submitted to “the National Insurance Commission (NAICOM), its primary regulator for verification and subsequent approval, before dissemination to other stakeholders.”

It could not however give a specific date for submission of the said audited financials, because, according to the statement by jointly signed by Pius Edobor, its Executive Director (Finance & Admin) and Oluranti Oke, Team Lead (Legal Advisory Services), “we are not in control of the approval process of the National Insurance Commission.”

http://investdata.com.ng/2017/07/aftermath-nse-suspension-2016-financials-awaiting-cbn-approval-says-fortis-mfb/

Four-Nation Boycott: Qatari Stock Market Loses $15bn In Month

A report by Bloomberg on Wednesday estimated the loss by Qatar’s stock market since the June 5, 2017 boycott by the country’s neighbours: United Arab ...

A report by Bloomberg on Wednesday estimated the loss by Qatar’s stock market since the June 5, 2017 boycott by the country’s neighbours: United Arab Emirates, Saudi Arabia and Egypt, who accuse Doha of supporting known terrorist groups, at about $15bn in one month. The quartet restricted access of Qatar to their airspace and ports and sealing Qatar’s only land border, which it shares with Saudi Arabia.
They issued a 13-point list of demands to end the standoff June 22 and gave the natural gas-rich country 10 days to comply.
Although the gas-rich nation has repeatedly denied the allegation, the loss represents 10% of its stock market value since the start of the boycott has seen 17 of 19 members on the main QE index declining led by investors’ group- QSC.

Qatar submitted a response on Monday to the group’s 13 demands, which the Saudis said they will study before responding.
“Hopes are up for a resolution,” said Marwan Shurrab, head of high net-worth and retail equities brokerage at Al Ramz Capital LLC in Dubai. A positive diplomatic outcome “could bring strong momentum,” he said.

Qatar’s QE index fell 0.1% to 8,883.83 as of 9:55am Wednesday in Doha as the crisis enters its second month.
Qatari Investors Group, down 23% through July 4; one of the companies it owns, Al Khalij Cement, could suffer with a slowdown in the construction sector

Aamal Co., fell 17%; has business in retail, medical, construction and real estate, and fell to the lowest level in 30 months this week
Qatar National Bank QPSC, declined 15%; the Middle East’s largest lender by assets, and the biggest weighting in the benchmark; relies heavily on foreign funding, and financial sanctions could cool its credit boom, according to Arqaam Capital
Qatar Islamic Bank, dropped 15%; has the highest percentage of deposits from the Gulf Cooperation Council plus Egypt among the main lenders in Qatar, according to Arqaam Capital

Qatar Navigation, rose 7.5%; offers marine freight transportation and may be benefiting from increased trade with Iran and Turkey since the boycott started; the only other index gainer was Qatar Gas Transport.

http://investdata.com.ng/2017/07/four-nation-boycott-qatari-stock-market-loses-15bn-month/

JOIN Me on Sunday on How you can trade for yourself and make profit in Nigeria Stock Exchange. Click below

http://starrygoldacademy.com/members/investdatafacebooklivelanding-3/

To your live success,
Ambroso Omordion CEO of Invest Data Consulting.

y4code:
As a newbie in stock trading what are list of company shares that i can buy for now that will yield me profit either long term or short term profit

Stocks to look at for are Zenith Bank, Ucap and GTBank.

JOIN Me on Sunday on How you can trade for yourself and make profit in Nigeria Stock Exchange. Click below
http://starrygoldacademy.com/…/investdatafacebooklivelandi…/
To your live success,
Ambroso Omordion CEO of Invest Data Consulting.

MARKET UPDATE FOR JULY 6, 2017

Nigeria equity market on Thursday had a very interesting session, even as the volatility witnessed over the past days continued. It gapped down in the early hours of the day’s trading only to rebound at mid-day, closing higher on positive sentiments that reflected on improved demand for stocks after four straight days of pullbacks as a result of profit booking and expectations for Q2 numbers of quoted companies by investors.

The day’s trading volume index stood at 0.36 on a buying position of 100%, while selling volume was 0% of the total volume traded. We can see that the market is resisting breakdown at the support level of 32,000. However,the decline in volume at this point makes the whole things unclear, but then, let see what happens on Friday, being last trading day of the week.

The market uptrend reversal on Thursday was driven by positive sentiments for banking stocks, especially the interim dividend paying ones in expectation of better numbers as second quarter earnings reporting season had gradually kicked off. There is also positive sentiment for petroleum stocks and building material making companies from which positive numbers are expected based on the Q1 numbers posted already by players in both sector on the strength of recovery and improving economic fundamentals.

Meanwhile, the composite NSE All-Share index crawled 52.46 basis points up to close at 32,354.78 after opening at 32,302.32 points, representing a 0.16% growth on a low volume traded that was lower than previous day trade’s. Similarly, market capitalisation limped N18.08bn up to close at N11.15tr from an opening value of N11.13tr, representing 0.16 % value gained in investors’ portfolios after four day of losses.

Price appreciation of high cap stocks like Dangote Cement, Zenith Bank, UBA, Seplat, ETI, Access Bank, 7-Up, Oando, FBNH and Guaranty Trust Bank impacted positivelyon the All-Share index, boosting its year-to-date return to 20.20%, just as market capitalisation over the same period improved by N1.89tr, representing a 20.40% gain above the year’s opening value.
Market breadth for the day was negative as number of decliners outpaced advancers in the ratio of 23:20 on a low volume of trade to halt four day bearish run.

Market activities in terms of volume and value were mixed as volume went down by 45.88% to 168.51m shares from previous day’s 311.38mand value was up by 21.93% to N3.63bn compared to the previous day’s N2.79 billion.

Transactions in the shares of GTBANK, FBNH, ZENITH BANK, TRANSCORP and LIVESTOCK FEEDS topped the volume chart to close the day’s trade.
At the end of the day’s trading, Oando topped the advancers’ log with its share price gaining 4.97% to close at N7.39 each, on market forces; followed by AXA Mansard with 4.91% gain to close at N2.35 per share, on a strong Q2 earnings expectations.
On the flipside, May & Baker led the decliners’ log, after dropping 9.40% to close at N3.18 on profit taking by investors, followed by UACN’s 4.95 % to close at N16.50 each also on profit taking.

TODAY’S OUTLOOK

As the market opens this morning, expect mixed performance, against the backdrop of the fact that more companies are expected release their numbers to continue the earnings reporting season. Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock. But quickly bail out when your expectations are not met when the actual figure hit the market to cut loss.

Again, we advise that investors allow numbers to guide their decisions to reposition for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of recovery economic fundamentals, if the numbers will support the price reversal or continuation.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.

Once more, at the risk of repeating oneself, we must reiterate that industry potential is very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks. Sign up for investdata buy & sell signal setup by calling 08032055467.

NSEASI DAILY TIME FRAME

INVESTDATA PRICE AND EARNING FOR WEEK ENDING JULY 7, 2017

CORPORATE ACTION JULY 3- JULY 10, 2017

MARKET UPDATE FOR WEEK ENDED JULY 7 AND OUTLOOK FOR JULY 10-14, 2017


CAUTION AMID Q2 REPORTS, INFLATION, BUDGET MUSINGS WEIGH DOWN ON NSE INDICATORS

The Nigeria stock market indices were mixed during the past week as struggle for dominance continued between bear and bull on the heels of selling pressure and portfolio repositioning by smart money ahead of the earnings reporting season and release of the inflation data for the month of June by the National Bureau of Statistics (NBS), following which it caved in to pressure to close lower.

The low cap stocks outperformed the high caps in the period as the NSE Insurance appreciated to close higher.
Inflation remains a major determinant of interest rate at any time because no investor likes to invest where returns are less than the rate of inflation, just as the nation’s declining inflation rate supports interest rate cut,supported by the stock market in the short and long term if interest rate is lowered or cut in the nearest future. This will further accelerate the economic recovery that will help to sustain the positive economic data which will attract local and foreign investors to take advantage of this recovery for growth in different sectors of the economy, especially in manufacturing, agriculture, construction, banking and healthcare.

The mixed sentiments in the first trading week of the second half of the year is a reflection of cautiousness by investors as they factor in the expected numbers to the current market prices of equities, realizing that if the numbers beat expectations their valuation would rise again. However, anything short of market forecast will trigger another round of sell off.

The volume index for the period under review was 0.78 with buying position at 31% and 69% selling volume of the total transaction as volatility continued ahead of the Q2 numbers.
The composite NSEAll Share Index for the week shed 658.31 points to close at 32,459.17 points, from an opening figure of 33,117.48 points, representing a 1.99% decline on a low volume of transactions. The pullback by the market to breakdown the psychological line of 33,000 before trying to retrace up is a sign that investors are hungry for numbers and positive information. Similarly, market capitalisation for the week closed lower at N11.19tr from an opening value of N11.45tr, representing a 2.31% value loss, with the huge difference between the percentage drop in the ASI and capitalization accounted for by the voluntary delisting of Ashaka Cement.

The advancers’ log for the week was dominated by low cap stocks after the market had suffered massive sell off in form of profit taking by investors and traders, creating opportunities for repositioning as more Q2 numbers are expected in the market any moment from now.
Price depreciation recorded by listed companies during the period reduced the NSEASI’s year-to-date return to 20.78%, just as that of market capitalisation dropped to N1.91tr, representing 20.98% gain from the year’s opening value.

Market breadth for the period was negative with the number of decliners widening and outnumbering that of advancers in the ratio of 51:16 on a low volume of trades to reflect the cautious trading by investor and traders.
Stock markets around the world were mixed over the past week, as the U.S Dollar continues to be weakened alongside the fluctuating price of oil in the international market. The geopolitical conflicts involving the face-off between Saudi Arabia, Egypt, United Arab Emirates and Bahrain on one side and Qatar accused of sponsoring terrorism at this point is not a threat to OPEC and S&P Global plats and oil producing states. In any case, global oil supply remains vulnerable to geopolitical risks and significant disruption could see price rise to $120 per barrel, especially with output from the U.S, Libya and Nigeria adding around one million barrels daily and undermining the oil cartel.

Japan’s Nikkei was down for the period while Germany‘s DAX, Britain’s FTSE 100 and U.S market indexes were up for the week, despite the holiday that shortened trading days in the U.S. The positive labour market data from the U.S for the month of June indicated that 222,000 new jobs were created,which was higher than expected amidst the stagnated growth of just 2.5% in wages for the period.

In Europe, IHS mark it PMI showed that the regional economy likely accelerated in the three months leading up to June, which prompted speculations that the zone’s central bank would consider reducing its stimulus measures. In Asia, Chinese Premier Li Keqiang expects that his country’s economy would maintain steady and improving momentum during the second half of this year but noted that there were still various hurdles.

Back home, the All-Share Index opened the week on a negative note, losing 1.13%, which was sustained on Tuesday and Wednesday with 1.30% and 0.71% respectively. Neither Thursday’s marginal 0.05% nor the following day’s better 0.32% gain was however insufficient to pull the market out of the red zone. The decline reduced the week’s total loss to 1.99% on mixed position that ushered in bullish transition within the week.

The All-Share index and other sectoral indexes for the period were down to close the week, except for the NSE Insurance and NSE Industrial Goods which closed 1.10% and 0.225% up respectively, while the NSE ASeM closed flat.
The week’s activities, measured by aggregate volume and value were mixed as volume traded for the period was down by 9.40% to 1.06bn from the previous week 1.17bn shares, while value was marginally up by 7.33% to N12.3bn from the previous week of N11.46bn.

During the week also, the share price of Trans-nationwide Express and Presco were adjusted for recommended dividends by their directors, while Northern Nigerian Flour Mills Plc released it full-year result showing that the company closed in the red, following which it was unable, once more, to offer a dividend to shareholders, while remaining on life-support from its Flour Mills of Nigeria Plc, its majority shareholder.

At the end of the week’s trading, Cutix and Continent Reinsurance topped the advancers table with a gain of 10.00% and 9.24% respectively to close at N2.20 and N1.30, driven by market forces and expectation of full year earnings by Cutix and Q2 numbers from Continental Re. The decliners’ side was led by May&Baker and Neimeth, which lost 25.32% and 24.13% of the week’s opening price to close at N2.88 and N0.65 each respectively as a result of profit taking ahead of Q2 numbers.

Market Outlook
The market is expected to be mixed as more companies are expected to release their numbers this week ahead of the inflation figure for June in the amidst of expectations that implementation of the 2017 budget would boost economy recovery. It must be noted that the failure of government to begin full implementation of the capital projects contained in the budget, while Babatunde Fashola, ex-Lagos State Governor and Minister of Power, Works and Housing continues to bicker with the National Assembly over his Ministry’s appropriation remains a source of concern yet, just as the Senate continues to heat the polity with the rumoured plans to impeach ailing President Muhammadu Buhari over the continued retention of the Ibrahim Magu, chairman of the Economic & Financial Crimes Commission (EFCC).

The recurring distractions in the political space continues to send the wrong message to investors, a situation made worse by a terrible and even unholy combination of the fact that there remains a remnant of the Boko Haram insurgency in Nigeria’s north east zone, threat of chaos in the South East from Biafran agitators led by Nnamdi Kanu and the threat that hostilities could resume in the Niger Delta, thereby shattering the fragile peace in the oil bearing region.
This is in addition to the Executive Order on easy of doing business and the sustained intervention of the CBN in the investors/exporters window and retail market of the foreign exchange market.
Investors at this level of the market should position in stages in value stocks with high upside potentials, despite the current prices of stock on the exchange.

Again, the time to combine company fundamental data and chart pattern for your trading and investing decisions is now, to enable you know the support and the resistance levels.

Train yourself and study to know the new approach to adopt at this point and going forward,
To join us at the coming one day workshop by calling 08032055467 and 08111811223.

Also for our webinar every Friday 8pm to 9pm, WhatsApp group and get market updates, SMS web*name*email to 08124050850

https://investdataltd..com.ng/2017/07/market-update-for-week-ended-july-7-and.html

HOW TO IDENTIFY BEST STOCKS




Nigeria’s equity markets in the first half of the year did remarkably well, as the NSE All share index returned 20.40%year-to-date gain, which many investors did not enjoy in their investment.
There was no other reason for this than that such investors were in the wrong stocks, because they lacked no clear objective and road map to guide their buying decision. The rising tide of a broad rally, like the one we experienced in the first half of 2017, will produce plenty of green arrows in most portfolios. But that is not enough for any investor to come out ahead of the market’s benchmark index, which should be the goal of every investor.

With the investment environment changing and full of uncertainty, a clear plan of action is needed to navigate the murky and often uncertain waters, by those who desire to make money.
One very important question any investor desirous of robust returns must ask and answer is: How is your portfolio and how do you want to select stocks so as to reposition or balance it for profitability in the rest of the year.

I would like to share the investment process that we rely on here at InvestData, making use of factors below to build a winning portfolio. Each one of these factors will help you pick good stocks. But putting all of them together gives you a significant edge over others in stock market investing.


1) Valuation- There is plenty of practical evidence showing that stocks with low valuations will outperform the market over the long haul. It's not easy to find 'cheap' stocks after the market's impressive run, but we look for companies that are trading with low Price-to-Earnings (P/E) and Price-to-Book (P/B) multiples relative to their peers and history.

2) Management Effectiveness - It is very important to get a sense of how effective the company's management is in utilizing the resources available. This can be done a number of different ways. However, our research shows that Return on Equity (ROE) does a good job of capturing this attribute. So we seek out companies generating ROEs that are superior to their industry peers.

3) Recent Analyst Upgrades - Our research also clearly shows that stocks that have recently received a recommendation upgrade from analysts will continue to outpace the market. Most of that benefit is felt in the short run. However, quite often a stock that receives one upgrade is likely to get more in the future, which keeps pushing the stock higher as the quarterly earnings changes or something happen to the stock positively or negatively that could cause up or down share price adjustment.

4) Best Industries- Even the best looking stock will underperform the market if it is in an out-of-favour industry. That is why we overweight stocks from the best industries and sectors. And there is no better guide to choosing the right groups than to focus on the earnings estimate revisions for all the stocks in the industry.

5) Long-Term Attractiveness- We look for stocks with potentials that can transform the company in the future, the nature of its products or service, is it expanding or acquiring new production lines or companies to boost market share. While our preferred long-term indicator is an 'Outperform' rating, we also consider neutral-rated stocks that stand to get upgraded to our preferred rating. The main ingredient behind the recommendation is positive changes in a company's earnings estimates.

6) Timeliness - There is no better timeliness indicator like the technical analysis tools that signals or tells us that now is a good time to get into the stock, combined with the company’s earnings position. There is always a time to position in stocks no matter how solid the fundamental of the stock is. You cannot be in a stock at all times, because there is a time to be in and time to be out. You buy into position using fundamental and technical analysis while you sell using technical analysis.

https://investdataltd..com.ng/2017/07/how-to-identify-best-stocks.html

Independent Investor July 10th, 2017

On this episode, Kirk and Ambrose talk about: The feud between Acting President Osinbajo and the Legislature, its effect on the stock market, and the Global oil market.


https://www.youtube.com/watch?v=3qebdmc84yU

HOW TO PROFIT FROM A BEAR MARKET

When a stock market correction is prolonged, it becomes a bearish or down market as prices continues to nose-dive. In this type of situation, many stocks hit their lower lows while some remain in a range as they oscillate within a set price, waiting for external forces to impact it positively or otherwise.
Whenever the market is in a bearish mood many investors and traders panic and sell even at a loss to cut their loss, while staying away from the market without really sitting down to analyse the factors behind the particular state of the market.

I have since discovered,while reviewing the responses of different classes of investors within this period led me to the conclusion that most of them and even some market players lack the understanding of market dynamics. This is because in the real sense of it, hopelessness and panic are products of the unknown which suggest that most people either did not take time off to analyse the situation that led to the fall or did, but got the strategy wrong.
Hence, there is need to briefly comment on the kinds of bear markets and how to ride with them, which are factors that cannot be overemphasized today, just as always.

Causes and Effects of Bear Market
There is what is called a‘fundamentally-induced’ bear market. It means that the bearishness of the market is traceable to events that have general negative influences on the entire financial or even economic ecosystem within which the market operates. For example, account has to be taken of the global financial crises, as well as country specific political unrest, bad governance, wars or attacks, sanctions against a country by foreign bodies, natural disasters, epidemics and the like.
You will discover that these events are such that could adversely affect the confidence level and reduce the earnings power and capacity of the generality of the population. In many nations, you will agree with me that such events have led to migration and capital flight. This is so because businesses and investments operate best in times of peace. In effect, the fundamentals of listed companies in a country at war will be affected. In other words, there would be low capacity utilisation and consequently, poor earnings reports and, of course, declining share prices.
When you sight a down market brought about by the kinds of occurrences mentioned above, please note that it would take a while for such to ease and if you do panic, it is justified. Under such circumstance, it may be wise to sell off your positions early and hold cash while you study the market.

A system-induced bear market is associated with negative situations arising from changes in the system or style of managing the financial market; or it could be caused by the stock market itself, the government or the regulators.
This could first affect an industry and later spread to the general market. It may also affect the general market at the same time, depending on the kind of changes and their sources.You saw the impact of policy change such as the government’s implementation of the Treasury Single Account (TSA) that moved trillions of Naira in public sector deposits from the vaults of Nigerian banks in 2015. More recently, there was the impact of the economic recession that started in 2016 Q1, before heightening by end of last year, and how it played out on the nation’s economy and financial system. There was also the attendant currency crisis that resulted in the devaluation of the Naira by as much as 60%, reflecting in the stock market for months. This obviously caused panic in the system,though short-lived.

Again, for now,Nigeria is enjoying relative peace. Regardless of the insecurity in the country’s north east, its economic fundamentals are intact. Recall also that the falling price of oil at the international market put enormous pressure on Nigeria’s budget, external reserve and the exchange rate, even as foreign portfolio investors sold their positions ahead of the general election of 2015. The Asset Management Corporation (AMCON) of Nigeria also sold assets under its control to raise a significant N1tr,which further piled serious pressure on the stock market.

A system-induced bear market is a buy opportunity. To benefit from this bear market and correction, it is advised that you target stocks with the following characteristics:

1. Buy stocks with high dividend yield
2. Buy stocks that are down due to the general downward market
3. Buy stocks that have always been defensive in previous down markets and still have strong fundamentals
4. Chart markets and stocks regularly to know the resistance and support
5, Buy high quality dividend stocks with strong earnings and high payout.

Attention! Attention!! Attention!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Workshop on COMPREHENSIVE SHORT-TERM TRADING STRATGIES FOR REST OF THE YEAR & BEYOND

Sub Topics:
1. The Toolbox of Successful Traders & Technical Analysts- Mr Meshach Ukpoma, FX Analyst/Trader
2. Outlook and Implications of the 2017 Budget & Petroleum Industry Governance Bill (PIGB) on Nigeria’s Stock Market and Economy- AbiolaRasaq, Group Head Investor Relations, UBA
3. A Strategic Outlook; The Fusion of Fundamental & Technical Analysis- Ambrose Omordion, Chief Research Officer Investdata Consulting Ltd
4. Understanding Market Timing to Manage Risk, Using Technical Analysis - Mr. Abdul-Rasheed Momoh, Head, Capital Markets, TRW Stockbrokers Limited
The workshop holds on:
DATE: 15 July 2017
TIME: 9.00am
VENUE: Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.


The fee is N20, 000 per participant. Payment made a week before the date of the event attracts 10% discount. Companies sending more than two representatives would enjoy a 15% discount. Payment should be made into: Zenith Bank; Account Name: InvestData Consulting Limited; Account Number: 1013033032.
For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223

https://investdataltd..com.ng/2017/07/how-to-profit-from-bear-market.html

MARKET UPDATE FOR JULY 11, 2017


MIXED PERFORMANCE AHEAD ON NSE AS PEAK OF EARNINGS SEASON BECKONS

Nigeria stock market on Tuesday had an interesting and volatile day as the indices came down at the opening of trading session to hold support at 32,546.08 point before retracing to intraday high of 32,910.31, closing the day’s trading higher on above average market volume before the recent rally that changed the face of the market that made the volume traded low looking at the transaction volumes that supported price appreciation during last two month daily trade. The uptrend has broken out the first resistant level at 32,770.59 since its bottomed out after forming the double bottom chart pattern on the 5TH July 2017 to extend the bull transition that is driven by banking stocks as investors and traders take last minutes position on half year dividend paying stocks with Q2 numbers already underway.

The possibility of the trend continuing today is high with expectation of inflation figure for June to hit 15.46 or lower from analysts and economic watcher, ahead of positive Q2 numbers, despite the mixed performance from investment banking company- United Capital released after trading hours yesterday. Traders in Ucap are likely to bail out this morning which will push the price down after net profit dropped, despite a relative earnings rise.

With the planned meeting of the Senate, management of the Central Bank of Nigeria (CBN) and managing directors of banks to proffer solutions to the high interest rate that will further boost the nation’s economic recovery.If at the end of the day something tangible comes out of the meeting even as the apex bank continues its intervention in the foreign exchange market as to drive the positive economic data and news that will attract local and international investors.
The global stock markets is becoming dicey at this point as the rate environment is widening as rate hike and exit of Quantitative Easing is spreading when US Dollar is weakening with oil price oscillating and looking for direction. Today the world is waiting for the Fed briefing of the congress.

Meanwhile, the benchmark index gained 213.38basis points up to close at 32,827.98 after opening at 32,614.60 points, representing a 0.65% growth on above average volume traded that was higher than previous day’s trades. Similarly, market capitalisation went up by N73.55bnto close at N11.31tr from an opening value of N11.24tr, representing a 0.65% value gained in investors positions.
The upturn in highly capitalised stocks impacted positively on the All-Share index, to further boost its year-to-date return to 22.15%. Also, market capitalisation over the same period improved by N2.07tr, representing a 22.36% gain above the year’s opening value.

Market breadth for the day was positive as the number of advancers outnumbered decliners in the ratio of 25:21 on a better volume of trade to continue the four-day bull-run.
Market activities in terms of volume and value were up by 20.05% and 3.83% respectively to 218.76mshares from the previous day’s 182.07mand N2.11bnfrom N2.47bn.
Transactions in the shares of UBA, NIGER INSURANCE, ZENITH BANK, DIAMOND BANK and FCMB topped the volume chart to close the day’s trade.

At the end of the day’s trading, Neimeth topped the advancers’ table with its share price gaining 9.37% to close at N0.70 each, on market forces, followed by Vitafoam with a 5.45% gain to close at N2.71 per share, on market forces and expectation of Q3 numbers.
On the flipside, UBN led the decliners’ table after dropping 6.27% to close at N5.23 each on profit taking by investors, followed by Presco with 4.99% to close at N64.54on profit taking.

TODAY’S OUTLOOK

As the market opens this morning, expect mixed performance, against the backdrop of the fact that more companies are expected to release their numbers to continue the earnings reporting season. Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock, but fix their gaze on the actual numbers and bail out when expectations are not met, thereby cut loss.

Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of the improving economic fundamentals, if the numbers will support the price reversal or continuation.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.

Once more, at the risk of repeating oneself, we must reiterate that industry potential is very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks. Sign up for investdata buy & sell signal setup by calling 08032055467.

NSEASI DAILY TIME FRAME


Attention! Attention!! Attention!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Countdown to COMPREHENSIVE SHORT-TERM TRADING STRATGIES FOR REST OF THE YEAR & BEYOND

Sub Topics:
1. The Toolbox of Successful Traders & Technical Analysts- Mr Meshach Ukpoma, FX Analyst/Trader
2. Outlook and Implications of the 2017 Budget & Petroleum Industry Governance Bill (PIGB) on Nigeria’s Stock Market and Economy- Abiola Rasaq, Group Head Investor Relations, UBA
3. A Strategic Outlook; The Fusion of Fundamental & Technical Analysis- Ambrose Omordion, Chief Research Officer Investdata Consulting Ltd
4. Understanding Market Timing to Manage Risk, Using Technical Analysis - Mr. Abdul-Rasheed Momoh, Head, Capital Markets, TRW Stockbrokers Limited

The workshop holds on:
DATE: 15 July 2017
TIME: 9.00am
VENUE: Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.

The fee is N20, 000 per participant. Payment made a week before the date of the event attracts 10% discount. Companies sending more than two representatives would enjoy a 15% discount. Payment should be made into: Zenith Bank; Account Name: InvestData Consulting Limited; Account Number: 1013033032.

For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223
https://investdataltd..com.ng/2017/07/market-update-for-july-11-2017.html

MARKET UPDATE FOR JULY 13, 2017



ANALYSTS EXPECT UPTREND, AS PROFIT TAKING, EARNINGS SEASON PEAK, JUNE INFLATION DOMINATE MARKET

It was definitely a better and stronger market on Thursday as the indicators gapped at the opening of trading session, sustaining the tempo till end of the day to close higher on increased volume of trade. The improvement was noticeable among all the sectoral indexes as they recorded gains except for the NSE Consumer Goods that was down marginally by 0.01%. Price appreciation of high cap stocks at the early hours of the day trading triggered a very strong rally that ran into late morning and consolidated to widen the positive market breadth. The index had formed a double top which is a resistant at 33,257.19 the same level with June 29, position of 33,269.84 that is likely to break out if the trending momentum continues, having once more crossed the psychological line of 33,000 yesterday.

This morning, the market may breakout as it opens but being the last trading day of the week profit takers might be cashing out but due to the market entering the peak of its earnings reporting season next week and inflation figure for June is expected today, a situation that may hold the uptrend.

Meanwhile, the composite NSE All-Share Index gained 265.28 basis points on Thursday to close at 33,246.91 after opening at 32,981.63 points, representing a 0.80% growth on a stronger volume traded that was higher than previous day’s trades. Similarly, market capitalisation was up by N91.2bn to close at N11.46tr from an opening value of N11.37tr, representing a 0.80% value gain in investors’ portfolios.

The upturn in the shares of medium and high cap stocks positivelyinfluenced the All-Share index, further boostingits year-to-date return to 23.71%. Also, market capitalisation over the same period improved by N2.21tr, representing a 23.92% gain above the year’s opening value.
Market breadth for the day was positive as the number of advancers outnumbered decliners in the ratio of 33:19 on a high volume of trade to continue the six-day up market.
Market activities in terms of volume and value were up by 6.65% and 37.95% respectively to 288.86m shares from the previous day’s 270.86m and N3.82bn, as against the previous day’s N2.77bn.

Transactions in the shares of UBA, GURANTY TRUST BANK, NIGER INSURANCE, ZENITH BANK and ACCESS BANK topped the volume chart to close the day’s trade.
At the end of the day trading, the top performance in price advancers table was Mobil Nigeria which gained 9.49% to close at N259.00 each on the interplay of market forces, followed by Forte Oil with a 7.00% gain to close at N53.50 per share, on expectation of its Q2 numbers.
On the flipside, Champion Brewery led the decliners’ table after dropping 7.00% to close at N2.39 on market forces. It was followed by First Alum 5.00% to close at N0.57 on market forces.

TODAY’S OUTLOOK

As the market opens this morning, expect mixed performance with more companies expected to release their Q2 numbers in continuation of the earnings reporting season, just as the inflation figure for June 2017. Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock, but fix their gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of the improving economic fundamentals, if the numbers will support the price reversal or continuation.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.
Once more, at the risk of repeating oneself, we must reiterate that industry potential is very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks. Sign up for investdata buy & sell signal setup by calling 08032055467.


https://investdataltd..com.ng/2017/07/market-update-for-july-13-2017.html

MARKET UPDATE FOR WEEK ENDED JULY 14 AND OUTLOOK FOR JULY 17-21, 2017

MIXED WEEK AHEAD, AMIDST EXPECTED INFLATION DATA, EARNINGS REPORT, BUDGET HOPES

Nigeria’s equity market was bullish last week, recording five straight days of up-market on the back of increasing demand for stocks, especially banking stocks that largely boosted performance for the period and in the process reversed previous week’s pullback. The index,after a healthy rally within the period, consolidated to form a double top which is the first resistance at 33,261.66 points, the same as the June 29 level of 33,269.84. This is likely to break out if the earnings reporting season beat market expectation to keep the trending momentum up as the index had crossed the psychological line of 33,000 within the week.

The NSE Banking index for the period gained 6.1%, outperforming the composite All Share index through the week. Meanwhile, the sector responded to traders’ profit taking activities on Friday when it surrendered 0.21%. The effect of the move was clear as sentiment around resistant level was obvious while momentum slowed down, waiting for a push which the expected Q2 numbers will do if corporate performance remain impressive to surpass expectation.

The banking sub sector still remains one to watch by traders, since it remains the most active with good volume that provides liquidity, allowing for taking and exiting from positions at any time. In any case, the sector accounts for the highest number of companies that pay interim dividend.If the pull back seen on Friday continues on Monday, the gap will provide another opportunity for positioning, especially if you are in cash, a situation we expect traders to capitalize on. Please understand that one major attraction to this sector is the expected half year financials and consistent dividend payment by majority of stocks in the sector. On the strength of the impressive first quarter performance from the sector, most traders have already heightened their expectations.
The volume index for the week under review was 0.94 with buying position at 95% and 5% selling volume of the total transaction as investors and traders continued their last minutes repositioning ahead of the Q2 numbers and inflation figure for June.

At the close of activities for the week on Friday, the benchmark Index gained 802.49 points to close at 33,261.66 points, from an opening figure of 32,459.17 points, representing a 2.50% growth on a high volume of transactions. The retracement of the market above 33,000 on a weekly time frame supported the daily uptrend that signaled investors’ sentiments for positive numbers.
Similarly, market capitalisation for the week closed higher at N11.46tr from an opening value of N11.19tr, representing a 2.47% value gain that boosted investors’ portfolios for the period.
The week’s top performance table was dominated by mixed class of stocks, rangingfrom low, medium to high cap stocks, reflecting a buy market after forming double bottom earlier.
Within the period, price upturn in shares pushedthe NSEASI’s year-to-date return to 23.77%, just as that of market capitalisation appreciated toN1.22tr, representing a 23.98% gain from the year’s opening value.

Market breadth for the period was positive and strong with the number of advancers outweighing that of decliners in the ratio of 48:27 on a high volume of trades to reflect positive investors sentiment.

Global stock markets also closed higher in the past week, as oil prices in the international market were up while the dollar is weakening against major currencies.
Japan’s Nikkei,Germany‘s DAX, Britain’s FTSE 100 and U.S market indexes were up.TheU.S. indexes moved up on testimony of the chairperson of Fed to the effect that the economy is not in danger of overheating, but that inflation remained stubbornly low and the pace of monetary tightening would remain gradual. Also, economic indicators released during week were mixed with the retail sales declining on unexpected 0.2% and industrial production posting a better-than-expected 0.4% increase, boosted by the mining sector. In Europe, the economic recovery will likely be accelerated during the second quarter according to a business survey. The improvement could spark the European Central Bank to consider reducing stimulus measures, but inflation has remained surprisingly weak.

In Asia, the Chinese economy would maintain steady and improving momentum during the second half of this year despite all hurdles. The Bank of Japan (BOJ) offered its most upbeat assessment of the country in over a decade and plans to maintain a loose monetary policy until inflation surfaces.
Back home, the All-Share Index opened the week on a positive note, rising 0.17%, which was sustained during the week on increasing magnitude of gains. It however declined on Friday due to profit taking to record marginal gain of 0.04%. As the week had a bullish transition to close higher with 2.50%.

The All-Share and other sectoral indexes for the period were up to close the week, except the NSE ASeM closed flat.
The week’s activities, measured by aggregate volume and value were up by 19.81% and 13.74% respectively to 1.27bn from the previous week’s 1.06bn units, worth N13.99bn, compared to previous week’s N12.3bn.
During the week also, the share price of Conoil was adjusted for the dividend recommended by theboard, while Unilever and United Capital Plc released their Q2 results to the market, with many other companies release their closed period.

At the end of last week’s trading, Neimeth and Unity Bank topped the advancers table with a gain of 24.62% and 19.67% respectively,closing at N0.81 and N0.73 respectively, driven by market forces and low price attraction on expectation of their Q2 numbers. The decliners’ log was led by Conoil and University Press, which lost 17.43% and 14.12% of the week’s opening price to close at N29.98 and N2.92 each owing tothe price adjustment/activities of market forces and weak earningsrespectively.

Market Outlook
The market is expected to be mixed this week as more companies release their numbers ahead of the implementation of the 2017 budget which is reportedly still being adjusted. Expectations are thatthe budget would boost economy recovery, even as the Economic Report of the Central Bank of Nigeria (CBN) for the month May, released last weekend, indicated that federally collected revenue has been lagging behind the 2017 budget estimates on a monthly basis, especially non-oil revenue. Also, the National Bureau of Statistics would on Monday (July 17, 2017) release inflation data for the month of June, which analysts expects would follow the trend of a gradual decline for the fifth consecutive month year-to-date.

Bearing all these in mind,investors should position in stages in value stocks with high upside potentials, despite their current prices on the exchange.
Again, the time to combine company fundamental data and chart pattern for your trading and investing decisions is now, to enable you know the support and the resistance levels.
Train yourself and study to know the new approach to adopt at this point and going forward,
Join our WEBINAR every Friday 8pm to 9pm and for our WhatsApp group/to get market updates, SMS web*name*email to 08124050850. To register for Investdata Buy and Sell Signal Setup call 08032055467

As the market enters the peak period of earnings reporting season for the half-year financial performance watch out for equities with December financial year end. We believed that, those with second quarter cash dividend history will attract more patronage from intelligent investors. In other words, such equities stand a higher chance of improving your portfolio during the season.
Consequently, we have carefully selected few of such equities for your timely investment guide. Please understand that using the information side-by-side the 2017 three-month financial positions will increase the probability of success.

Let the Table in the attached guide you.
https://investdataltd..com.ng/2017/07/market-update-for-week-ended-july-14.html