INVESTORS EYE ROBUST EARNINGS REPORTS, ECONOMIC DATA FOR SUSTAINED BULL-RUN ON NSE


MARKET UPDATE FOR JULY 17, 2017

The nation’s stock market opened the week on a positive note to continue its up trend, marginally breaking out the first resistance level at 33,261.66 on improved volume of trade to reflect the earnings reporting season sentiments which United Capital and Unilever kicked off, presenting mixed performances.
The increasing demand for consumer goods ahead of their quarterly numbers revealed high hope for better performance as recent numbers emanating from the industry showed strong recovery. This is against the backdrop of the Central Bank of Nigeria’s continued intervention in the foreign exchange market, which is having positive impact on numbers from the sector, even as economic fundamentals continue to improve. Monday’s holding was just above the record levels set on Friday. Reason for the slow start? Earnings. That's right, it is another earnings season and we're kicking off a big week of earnings with impressive and even robust numbers from Unilever.

The two-day pullback in the NSE Banking index is creating opportunities for investors and traders to reposition ahead of expected interim dividend payment from players in the sector. The inflation figure for June released on Monday by the National Bureau of Statistics (NBS)at 16.1% came in line with market expectation of further decline from 16.25% in the month of May to 16.10% resulting in five consecutive months of declines. Many analysts were however somewhat disappointed having expected that the figure would come at below 16%.

Stock markets around the world closed higher as oil prices strengthened on Monday, supported by a slowdown in the growth of rigs looking for crude in the United States and because of strong refinery demand from China. In addition to continued weakening of the US$ against other world currencies as traders exit their forward positions.

Meanwhile, the benchmarkNSEAll-Share Index gained 39.77 basis points on Monday to close at 33,301.43 after opening at 33,261.66 points, representing a 0.12% growth on high volume traded that was marginally higher than previous day’s trades. Similarly, market capitalisation was up by N13.71bn to close at N11.48tr from an opening value of N11.46tr, representing a 0.12% value gain in investors’ portfolios.

The upturn in the share price of Unilever, Nestle, Flourmills, NB, 7UP, FO, Okomu Oil, ETI, Zenith Bank, GTBank and Dangote Cement impacted the All-Share index, to boost year-to-date returns to 23.91%. Also, market capitalisation over the same period improved by N2.23tr, representing a 24.10% gain above the year’s opening value.
Market breadth for the day was negative as the number of decliners outnumbered advancers in the ratio of 27:23 on a high volume of trade to continue the eight-day up market.
Market activities in terms of volume and value were mixed as volume was up marginally by 3.60% to 322.81m shares from the previous day’s 311.61m while value was down by 16.40%to N2.73bn, as against the previous day’s N3.27bn.

Transactions in the shares of Niger Insurance, FBNH, FCMB, UBAand Flourmills topped the volume chart to close the day’s trade.
At the end of the day trading, Forte Oil topped the advancers’ log,gaining 7.71% to close at N60.50 each on expectation of its Q2 numbers with improvement in its power business impacting bottom line. It was followed by 7-Up with a 6.41% gain to close at N94.95 per share, on market forces and expectation of its Q1 numbers to bring hope after a dismal full-year performance.

On the flipside, Oando led the decliners’ log after dropping 9.54% to close at N6.83 on negative market sentiment, following news report of an ongoing investigation by the Securities & Exchange Commission(SEC). It was followed by Nascon’s 5.00% decline to close at N9.03 on market forces and profit taking.

TODAY’S OUTLOOK

With the market opening this morning, expect the uptrend to continue as more companies release their Q2 numbers and the earnings reporting season enters its peak period, in addition to market reactions to the June inflation rate of 16.10%. 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.

We must stressed for the repeated time 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 to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

Meanwhile, we say a very big THANK YOU to all participants that made the INVESTDATA workshop a huge success, even as stocks recommended during the workshop have started rallying and activities in the various sectors identified as those to invest in this second half of 2017 continue to look up and promising to lead the rest of the year in performance and returns.
To book for the WORKSHOP VIDEO and SOFT COPIES of WORKSHOP MATERIALS send YES to 08028164085 and 08111811223

MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
Phone 08028164085, 08032055467
https://investdataltd..com.ng/2017/07/investors-eye-robust-earnings-reports.html

INVESTORS EYE ROBUST EARNINGS REPORTS, ECONOMIC DATA FOR SUSTAINED BULL-RUN ON NSE


MARKET UPDATE FOR JULY 17, 2017

The nation’s stock market opened the week on a positive note to continue its up trend, marginally breaking out the first resistance level at 33,261.66 on improved volume of trade to reflect the earnings reporting season sentiments which United Capital and Unilever kicked off, presenting mixed performances.
The increasing demand for consumer goods ahead of their quarterly numbers revealed high hope for better performance as recent numbers emanating from the industry showed strong recovery. This is against the backdrop of the Central Bank of Nigeria’s continued intervention in the foreign exchange market, which is having positive impact on numbers from the sector, even as economic fundamentals continue to improve. Monday’s holding was just above the record levels set on Friday. Reason for the slow start? Earnings. That's right, it is another earnings season and we're kicking off a big week of earnings with impressive and even robust numbers from Unilever.

The two-day pullback in the NSE Banking index is creating opportunities for investors and traders to reposition ahead of expected interim dividend payment from players in the sector. The inflation figure for June released on Monday by the National Bureau of Statistics (NBS)at 16.1% came in line with market expectation of further decline from 16.25% in the month of May to 16.10% resulting in five consecutive months of declines. Many analysts were however somewhat disappointed having expected that the figure would come at below 16%.

Stock markets around the world closed higher as oil prices strengthened on Monday, supported by a slowdown in the growth of rigs looking for crude in the United States and because of strong refinery demand from China. In addition to continued weakening of the US$ against other world currencies as traders exit their forward positions.

Meanwhile, the benchmarkNSEAll-Share Index gained 39.77 basis points on Monday to close at 33,301.43 after opening at 33,261.66 points, representing a 0.12% growth on high volume traded that was marginally higher than previous day’s trades. Similarly, market capitalisation was up by N13.71bn to close at N11.48tr from an opening value of N11.46tr, representing a 0.12% value gain in investors’ portfolios.

The upturn in the share price of Unilever, Nestle, Flourmills, NB, 7UP, FO, Okomu Oil, ETI, Zenith Bank, GTBank and Dangote Cement impacted the All-Share index, to boost year-to-date returns to 23.91%. Also, market capitalisation over the same period improved by N2.23tr, representing a 24.10% gain above the year’s opening value.
Market breadth for the day was negative as the number of decliners outnumbered advancers in the ratio of 27:23 on a high volume of trade to continue the eight-day up market.
Market activities in terms of volume and value were mixed as volume was up marginally by 3.60% to 322.81m shares from the previous day’s 311.61m while value was down by 16.40%to N2.73bn, as against the previous day’s N3.27bn.

Transactions in the shares of Niger Insurance, FBNH, FCMB, UBAand Flourmills topped the volume chart to close the day’s trade.
At the end of the day trading, Forte Oil topped the advancers’ log,gaining 7.71% to close at N60.50 each on expectation of its Q2 numbers with improvement in its power business impacting bottom line. It was followed by 7-Up with a 6.41% gain to close at N94.95 per share, on market forces and expectation of its Q1 numbers to bring hope after a dismal full-year performance.

On the flipside, Oando led the decliners’ log after dropping 9.54% to close at N6.83 on negative market sentiment, following news report of an ongoing investigation by the Securities & Exchange Commission(SEC). It was followed by Nascon’s 5.00% decline to close at N9.03 on market forces and profit taking.

TODAY’S OUTLOOK

With the market opening this morning, expect the uptrend to continue as more companies release their Q2 numbers and the earnings reporting season enters its peak period, in addition to market reactions to the June inflation rate of 16.10%. 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.

We must stressed for the repeated time 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 to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

https://investdataltd..com.ng/2017/07/investors-eye-robust-earnings-reports.html

UPTREND MAY CONTINUE ON NIGERIA’S BOURSE AS MORE COMPANIES PRESENT Q2 NUMBERS

MARKET UPDATE FOR JULY 18, 2017

Tuesday’s was an interesting but mixed and volatile trading session at the Nigerian Stock Exchange (NSE) as its composite NSE All-Share Index caved into pressure initially, sliding down in the morning hours. Thereafter, it rose just as sharply as it went down before managing to maintain an uptrend and in the process confirming a breakout of the first resistant level on a high volume of trade. The moving-average however supported and then rebounded to close the day higher. It retested the highs and made higher highs on the index and rolled over by the afternoon.
Market sentiment and expected numbers on Wednesday will determine a breakout at this level to continue the nine-day rally.

The NSE Consumer Goods index closed higher to continue the recovery move in the sector and market with improved demand for stocks as revealed by the volume traded index at 0.79; just as buying position was 100%, with 0% selling volume of the total for the day.
Investors are looking beyond the inflation figure because most of the economic data are backward looking or historical, while stock markets are forward looking as a leading indicator that points to where the economy is heading. One key data pointing to support the economic recovery is corporate earnings, which is being eagerly expected by all class of investors and traders as such numbers give a hint of where the stock is headed and if indeed it worth holding for the short, medium or long-term, depending on investment horizon and objective, especially with consumer goods stocks looking attractive at this point. Also, the current pullbacks in the financial services and petroleum marketing sectors are creating opportunity for traders and investors to take advantage and position ahead in companies with history of Q2 interim dividend payment, many of which are found in both sectors.
Stock markets around the world were mixed with the global interest rate spreads in the U.S. are narrowing as oil price continued to oscillate on high demand from China and the weakening U.S. Dollar. Among the winners arising from the weakness of U.S. Dollar are the Euro and the European stock markets.

Meanwhile, the All-Share Index gained 135.18 basis points yesterday to close at 33,436.61 after opening at 33,301.43 points, representing a 0.41% growth on huge volume traded that was higher than previous day’s trades. Similarly, market capitalisation went up by N46.59 billion to close at N11.52 trillion from an opening value of N11.48 trillion, representing a 0.41% value appreciation.
Value gained in low, medium and high cap stocks impacted the All-Share index, to boost year-to-date returns to 24.42%. Also, market capitalisation over the same period improved by N2.28 trillion, representing a 24.62% gain above the year’s opening value.

Market breadth for Tuesday was positive as the number of advancers outpaced decliners in the ratio of 25:19 on a huge volume of trade to continue the nine-day bull transition, while transaction volume and value were up by 664.59% and 690% respectively at 2.4bn shares worth N21.61bn, from the previous day’s 322.86m units valued at N2.73bn.
Note that the high amount recorded in the volume and value seen on the market statistic table which differs from that on the price list was because of the special resolution performed by UBA shareholders to cancel shares held under Staff Investment Trust Scheme (SSIT). In order to effect the cancellation, United Bank for Africa (UBA Plc) took to the equities market a cross deal of about 2bn units from the SSIT to the bank (<a href="http://investdata.com.ng/2017/07/uba-buys-back-set-cancel-2-08bn-shares-book/#more">READ</a>). This does not in anyhow affect the bank’s financial position, rather it enhancing shareholders percentage holdings while boosting the earnings position in terms of supporting higher Earnings Per Share and dividend payment that will drive price in the short, medium, or long term.

Transactions in the shares of UBA, CONTINENTAL REINSURANCE, FBNH, OANDO and SKYE BANK topped the volume chart to close the day’s trade on news of the extension of the CBN's lifeline for another year and the management's successful recovery of N60bn of its bad loans in the past one year (<a href="http://investdata.com.ng/2017/07/skye-bank-recovers-n60bn-bad-loans-cbn-extends-guarantees/">Read</a>).

At the end of the day trading, Honeywell Flour topped the advancers’ log, gaining 8.29% to close at N1.96 each on impressive Q4 numbers laced with the dividend of 6kobo. This is besides expectations of an even more impressive Q1 helped by the sustained intervention of the Central Bank of Nigeria (CBN) in the FX market that continues to reflect on numbers from this and other sectors. It was followed by UBN with a 5.00% gain to close at N5.67 per share, on market forces and expectation of its Q2 numbers at a time the bank’s repositioning is likely to better impact on bottom line.
On the flipside, May & Baker led the decliners’ log after dropping 5.02% to close at N2.65 on profit taking activities of investors and traders. It was followed by AXA Mansard, 4.93% decline to close at N2.12 on market forces and profit taking.

TODAY’S OUTLOOK

With the market opening this morning, expect the uptrend to continue as more companies release their Q2 numbers and the earnings reporting season enters its peak period. (Note: The benchmark index was 0.41% up at 10.30am on Wednesday). 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.

Be reminded for the repeated time 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 to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

Meanwhile, we say a very big THANK YOU to all participants that made the INVESTDATA workshop a huge success, even as stocks recommended during the workshop have started rallying and activities in the various sectors identified as those to invest in this second half of 2017 continue to look up and promising to lead the rest of the year in performance and returns.
<strong>To book for the WORKSHOP VIDEO and SOFT COPIES of WORKSHOP MATERIALS send YES to 08028164085 and 08111811223</strong>

https://investdataltd..com.ng/2017/07/uptrend-may-continue-on-nigerias-course.html

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NIGERIA’S INDEX SUSTAINS UPTREND AS Q2 SEASON PEAKS, INVESTORS KEEP EYES ON TRANSCORP

Market Update for July 19, 2017

Nigeria’s stock market indices had a good day nonetheless on Wednesday asthe volatility and mixed performance continued even as it sustained its 10th straight dayof uptrend on above average traded volume. The market from the opening hour gapped up to consolidated a continuation chart pattern until almost the close of the day’s trading before pulling back marginally to 33,514.93 after touching an intraday high of 33,658.67 at midday,holding support above the last resistance level.
At the end of the day, the index continued to move higher, amidst expectation of more positive Q2 numbers as the earnings reporting season enters its peak, which is lower than its recent height of 34.384.70.

Africa Prudential Plc’s impressive Q2 scorecard may have given an insight into what investors should expect of some companies this season, considering the impact of investment income on the bottom line of Afriprud and its sister- United Capital, and despite the flat position of Wema Bank financials for second quarter.
The volume traded index at 0.83 as buying position was 35% while selling volume was 65% of the total transaction for the day. The NSE Consumer Goods index closed flat as traders were taking profit while investors are waiting for more earnings reports from the sector. The retracement in the sectoral index of financial services and petroleum marketing on Wednesday shows repositioning by investors in stocks within these sectors to take advantage of the earlier pullbacks ahead of Q2 interim dividend payment, that are historical common to some of the companies in both sectors.

Meanwhile, the composite NSE All Share index gained 78.62 basis points on Wednesday to close at 33,514.93 after opening at 33,436.61 points, representing a 0.23% growth on above average market traded volume that was lower than previous day’s trades. Similarly, market capitalisation was up by N26.99bn to close at N11.55tr from an opening value of N11.52tr, representing a 0.23% value gain for the day.

The upturn in the share price of NB, GTBank, UBA, Zenith Bank, ETI, Stanbic IBTC, FBNH, Okomu Oil, Guinness, Seplat, Oando and PZ impacted the All-Share index to boost year-to-date returns to 24.71%. Also, market capitalisation over the same period improved by N2.29tr, representing a 24.96% notch above the year’s opening value.

Market breadth for Wednesday was slightly positive but weak as the number of advancers outpaced decliners in the ratio of 25:24 on a high volume of trade to continue the 10-day up market in a row. Market transaction in terms of volume and value were down by 86.21% and 84.98% respectively at 331.43m shares worth N3.24bn, from the previous day’s 2.4bn units valued at N21.61bn.
Activities in the shares of Zenith Bank, UBA, FBNH, Custodian and NEM Insurance topped the volume chart to close the day’s trade.

At the end of the day’s trading activities, Transcorp topped the advancers’ log, gaining 8.76% to close at N1.49 each on expectation of its Q2 numbers and impact of government disbursement of N17.6bn to the power sector against the background of the fact that its power distribution subsidiary (Transcorp Power) is now Nigeria’s highest power generator at peak of 530 megawatts, representing 18% of all power in Nigeria last week. The company assured on its twitter handle during the week that the achievement is not happenstance, being the outcome of a planned intervention and investment expected to make investors better off on the medium to long-term. In the words of Tony Elumelu, chairman of Transcorp Plc: “We took over the Ughelli Power plant (now Transcorp Power Ltd) in 2013 and it was generating 160mw of power. Today, after investing over $300m we are at 670Mw.”

Transcorp was followed by Skye Bank with a 5.00% gain to close at N0.63 per share, on market forces and extension CBN guaranty, added to its recovery of N60bn from its pool of toxic loans.
On the flipside, Presco led the decliners’ log after dropping 4.99% to close at N61.32 on profit taking activities of investors and traders. It was followed by MRS Oil’s 4.99% decline to close at N35.44per unit on market forces.

TODAY’S OUTLOOK
As trading opens this morning, expect the uptrend to continue as more companies release their Q2 numbers and the earnings reporting season enters its peak period. 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.

Be reminded once more 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 to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

Meanwhile, we say a very big THANK YOU to all participants that made the INVESTDATA workshop a huge success, even as stocks recommended during the workshop continue to rally and activities in the various sectors identified as those to invest in this second half of 2017 are looking up and promising to lead the rest of the year in performance and returns.
To book for the WORKSHOP VIDEO and SOFT COPIES of WORKSHOP MATERIALS send YES to 08028164085 and 08111811223.

MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
Phone 08028164085, 08032055467
https://investdataltd..com.ng/2017/07/nigerias-index-sustains-uptrend-as-q2.html

CAUTION, AMIDST WATCH FOR MARKET REACTION TO COURT RULING ON $800M TSA REFUND ON BANKING STOCKS


MARKET UPDATE FOR JULY 20, 2017

Trading on the floor the Nigeria Stock Exchange (NSE) on Thursday recorded a relatively big gain compared to other days since the week began to continue an 11- day uptrend, despite volatile session during which its benchmark All-Share index touched an intraday high of 33,702.61 and then a low of 33,435.98 before closing the session higher at 33,695.83.
The index fell as the market opened and moved up in the mid session strongly,a move that was consolidated again by the afternoon. The market trailed a little, but it was a solid session, although there was low volume of trade.

Sentiments in the market were positive as demand for stocks were high as more impressive Q2 numbers are being released. Earnings reports released during trading included the impressive Q2 numbers of Lafarge Africa which moved from a loss in the corresponding period of 2016 to profit of N19.19bn;and mixed numbers for the same period from Transcorp Hotel.

The volume traded index for the day was 0.50 as buying position had 97%, while selling volume was 3% of the total transaction. The NSE Insurance index closed in red as short-term players took profit as long-term investors who see growth potentials wait for earnings to confirm the sector position.
The banking and petroleum marketing indexes on Thursday remained positive as investors continued to buy into stocks within these sectors likely to pay Q2 interim dividend, even as the board of United Bank for Africa, one of the stocks on investors’ radar, at their meeting approved the earnings report and payment of dividend, while awaiting Central Bank of Nigeria (CBN) approval before notifying the exchange.

Stock markets around the world were mixed to close higher, despite the continued fluctuation of oil price and dwindling value of the U.S$, following the outcome of meetings of the Bank of Japan (BOJ) and the European Central Bank (ECB), both of which have assumed the responsibility of sustaining global liquidity. This as we know, keeps stock and real estate markets on the rise, even as rates drop lower or stable. Given the little progress made on the pro-growth Donald Trump policy front, the offset for rising Fed interest rates has been Quantitative Easing in Europe and Japan.
Meanwhile, the benchmark ASI gained 180.90 basis points on Thursday to close at 33,695.83 after opening at 33,514.93 points, representing a 0.54% growth on low transaction volume that was lower than previous day’s. Similarly, market capitalisation rose by N62.35bn to close at N11.61tr from an opening value of N11.55tr, representing a 0.54% growth in the worth of investor’s portfolio.
Price appreciation in the shares of medium and high cap stocks impacted the All-Share index to boost year-to-date returns to 25.38%. Also, market capitalisation over the same period improved by N2.37tr, representing a 26% growth over the year’s opening value.

Market breadth for the day was positive and strong as the number of advancers outnumbered decliners in the ratio of 29:19 on a low volume of trade to continue the 11-day bull-run. Market transaction in terms of volume and value were down by 42.24% and 32.76% respectively at 191.43 million shares worth N2.18bn, from the previous day’s 331.43m units valued at N3.24bn.
Transactions in the shares of Prestige, Guaranty Trust Bank, FBNH, Zenith Bank and Transcorp topped the volume chart to close the day’s trade.

At the end of the day’s trading activities, Nemeith topped the advancers’ log, gaining 9.52% to close at N0.92 each on expectation of its Q3 numbers and impact of the Federal Government’s policy on the sector.It was followed by Skye Bank with a 9.52% gain to close at N0.69 per share, on market forces and extension CBN guaranty, added to its recovery of N60bn from its pool of toxic loans.
On the flipside, 7-Up led the decliners’ log after dropping 4.99% to close at N90.20 on profit taking activities of investors and traders; ahead of Vitafoam’s 4.99% decline to close at N2.56per unit on market forces.

TODAY’S OUTLOOK
As trading opens this morning, expect mixed performance as market to react to Lagos High Court judgement that banks should return $793m to the Federal Government’s Treasury SingleAccount (TSA) with the CBN. Thereafter, the banks affected: United Bank for Africa, Diamond Bank, Skye Bank, First Bank, Fidelity Bank, Keystone Bank and Sterling Bank are to appear before the court on August 8 to explain why they had withheld the funds.

Before then, the management of Sterling Bank, on Thursday, denied reports alleging that it is hideously keeping huge sums allegedly belonging to the National Petroleum Investment Management Services (NAPIMS) and Nigerian Petroleum Development Company (NPDC).
In a statement by Henry Bassey, its Chief Marketing Officer, Brand Management & Communications Group, denied that it failed to remit the sum of $46.5m to a designated Federal Government Asset Recovery Account with the CBN.The amount supposedly represents undisclosed qualifying funds under the TSA policy illegally kept by NAPIMS and NPDC.

“We wish to state unequivocally that Sterling Bank does not hold any sum in any currency as a deposit from either of these entities.
“We have therefore written formally to the Office of the Accountant General of the Federation (AGF) demanding a clarification of this claim and a correction in the interest of the general public,” the bank added.

Meanwhile, more companies have continued to release their Q2 numbers as the earnings reporting season enters its peak. 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.

Be reminded once more 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 to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

Meanwhile, we say a very big THANK YOU to all participants that made the INVESTDATA workshop a huge success, even as stocks recommended during the workshop continue to rally and activities in the various sectors identified as those to invest in this second half of 2017 are looking up and promising to lead the rest of the year in performance and returns.
To book for the WORKSHOP VIDEO and SOFT COPIES of WORKSHOP MATERIALS send YES to 08028164085 and 08111811223.

https://investdataltd..com.ng/2017/07/caution-amidst-watch-for-market.html

MARKET UPDATE FOR WEEK ENDED JULY 21 AND OUTLOOK FOR JULY 24-28

INVESTORS BEGIN COUNTDOWN AHEAD OF JULY 31 DEADLINE FOR Q2 EARNINGS REPORTS

Nigeria’s equity market last week closed strong and positive to continue its bullish run that was driven by positive economic data and impressive numbers emanating from the manufacturing sector, especially Unilever’s local arm, Lafarge Africa, Honeywell and Flour Mills,while stocks in the financial services sector that have so far published their results revealed mixed performance. In particular, insurance companies have so far remained dominant among those making their numbers available to the Nigerian Stock Exchange (NSE) earlier this season than before.

Those stocks that have so far presented their half-year score-cards include: NEM, Guinea Insurance, Lasaco and United Capital, Wema Bank. In the past week, Africa Prudential has presented an impressive half year report which beat market expectations.
Another booster of the NSE’s bull-run is news of plans by the Federal Government to listits assets on the exchange to further deepen the market and raise funds needed to support its infrastructural development drive.

Market performance on the last trading day of last week was particularly strong, emerging the highest gain for the period as banking stocks were in high demand ahead of their interim dividend declaration, which does not seem capable of being blighted by last week’s court ruling that United Bank for Africa, Diamond Bank, Skye Bank, First Bank, Fidelity Bank, Keystone Bank and Sterling Bank should return about $793m to the Federal Government’s Treasury Single Account (TSA) with the CBN. The banks have continued to react since the ruling insisting on their innocence. Besides Sterling Bank, United Bank for Africa, on Friday said it “has fully remitted all NNPC/NLNG dollar deposits since August 24, 2016.”

It emphasized in the statement “that none of such funds are currently in the bank’s books,” this, it continued, has been “further corroborated by a clearance memo published by CBN on its website on same date.”
Such news or court ruling, where not properly managed, it is believed, is capable of deflating the confidence that is gradually returning to the economy and stock market.
Also, INVESTDATA believes that if the Federal Government is really ready to achieve its Economic Recovery Growth Plan (ERGP),there must be a change in the style of implementing the budget, especially that of 2017, just as it must manage information among the three arms of government to ensure that the desired rebound of the economy from recession is not truncated by actions or statements from any arm or agency of government.

The recent refund of second tranche of the Paris club deduction to state governments is expected to further boost the economy with many of the state governments using the money to settle backlog of salaries thereby strengthening disposable income among the citizenry.

The volume index for the week under review was 1.14 with buying position at 98% and 2% selling volume of the total transaction as investors and traders continued their repositioning ahead of the statutory deadline for quoted companies to release their Q2 numbers as well as the meeting of the CBN’s Monetary Policy Committee(MPC).

The benchmark Index for the week gained 758.71 points to close at 33,261.66 points, from an opening figure of 33,261.66 points, representing a 2.30% growth on a huge volume of transactions to breakout the psychological line of 34,000 again to confirm a healthy trendy market. With the positive momentum ahead of the last full week of earnings reporting season the possibility of breaking out the recent market high of 34,384.70 is high to continue the recovery move of the market ahead of improving economic fundamentals.

In the same vein, market capitalisation for the period closed higher at N11.73tr from an opening value of N11.46tr, representing a 2.28% appreciation in investors’ position.
The best performing stocks table for the period was dominated by low and medium cap stocks, as investors and traders took advantage of pullbacks in the stocks to position so as to ride with the rallying market, particularly when their Q2 numbers are yet to be released.
The upturn in share prices for the week pushed the NSEASI’s year-to-date return to 26.59%, just as market capitalisation appreciated by N2.57tr, representing a 26.98% gain from the year’s opening value.

Market breadth for the period was positive with the number of advancers outpacing decliners in the ratio of 36:33 on a huge volume of trades to reflect buying a market with expectation.
Stock markets around the world were mixed as crude oil price fluctuation continued, especially on the back of meetings of the Bank of Japan (BOJ) and the European Central Bank (ECB) during the week, with both officially assuming the responsibility of sustaining global liquidity. Given the little progress made on the pro-growth Donald Trump policy front, the offset for rising Fed interest rates has been Quantitative Easing in Europe and Japan.

Japan’s Nikkei and Britain’s FTSE 100 for the period recorded growth, while Germany‘s DAXand U.S market indexes were mixed to close lower. TheU.S. market indexes were mixed despite the good numbers of positive economic indicators that were release within the period, especially housing stars that rebounded to 1.215m in June. Jobless claims came lower than expected at 233,000 last week, while the index leading economic indicators posted better than expected 0.6% gain last month. All these gains and improvement were offset by falling crude oil prices that hurt the energy sector, amidst the rising political risk that threatens lofty valuations.

In Europe, investors are concerned that the zone’s growth may be at risk again after on unexpected decline in consumer confidence. The upshot is that the first quarter deficit fell to a 10 year low which means public finance is improving. In Asia, the Chinese economy is projected to grow 6.6% in 2017which exceeds government’s target despite policy curbs. The Bank of Japan (BOJ) offered its most upbeat assessment of the country in over a decade and plans to maintain its Quantitative Easing as loose monetary policy, until inflation surfaces.

Back home, the All-Share Index opened the week on a positive note, rising 0.12%, which was sustained during the week on the rising magnitude of gains. As Friday trading session had the highest gain of 0.98% to close the week higher with 2.30%.
The All-Share and other sectoral indexes for the period closed the week in green, except for NSE Insurance that was in red with 2.81% due to mark down and profit booking from the sector, while NSE ASeM closed flat.

The week’s activities, measured by aggregate volume and value, were up by 185.83% and 149.39% respectively to 3.63bn from the previous week’s 1.27bn units, worth N34.89bn, compared to previous week’s N13.99bn.
During the week also, 10 quarterly earnings reports and two full year numbers were made available to the market.

At the end of last week’s trading, Skye Bank topped the advancers table with a gain of 19.69% to close at N0.73, driven by market forces, based on news of the extension of the CBN lifeline and recovery of N60bn toxic loans. It was followed by Unilever Nigeria’s 16.12% gain to close at N38.32 on the impressive Q2 numbers released last week. The decliners’ logon the other hand was led by AXA Mansard Insurance and AG Leventis, which lost 8.97% and 7.69% to close at N2.03 and N0.72 each owing to profit taking.

Market Outlook
The market is expected to be mixed this week as more companies release their numbers ahead of the deadline of July 31 and profit taking from the current uptrend. Also,it is the week of the MPC meeting and expectations are that the committee will maintain its policy stance, expecting fiscal authorities to up their games to support the economic recovery and usher in growth by implementing the 2017 budget in the manner that Nigerians will feel the impact.
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

Attention!!!!!!!!!!!!!! Attention!!!!!!!!!!!!!!!!!!!!!! Attention!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
In the game of life there are two groups of people - those who focus on short term gains and immediate needs even if it means they struggle to reach their bigger goals, and those who are prepared to make short term sacrifices and invest time improving themselves to get the huge improvements for the rest of their life.

This is revealed in the workshop video and materials. Grab your copy now and ride with the recovery stock market and economy.
https://investdataltd..com.ng/2017/07/market-update-for-week-ended-july-21.html

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED JULY 21, 2017

CORPORATE ACTION FOR 14TH JULY TO 7TH AUGUST 2017

https://investdataltd..com.ng/2017/07/corporate-action-for-14th-july-to-7th.html

HOW TO READ FINANCIAL STATEMENTS OF COMPANIES

Before taking an investment decision on a stocks, even if it is a "brand name" with seemingly predictable growth prospects, a solid understanding of its financials always is very necessary for any investor.

You don't have to be an expert or get too far into the weeds. However, if you want to be a savvy stock investor, you should understand the importance of crucial financial concepts, such as Return on Equity and free cash flow. That's particularly true, if you're considering an investment in a company that may become involved in future uncertainties.
Think of financial statements as a company's medical charts, and you the doctor who's using these charts to determine a diagnosis as to the company's financial health.

Here are the "Big Three" pointers in any financial statement:

• The balance sheet of a company gives a snapshot of its financial health condition. The majority of public companies publish an interim balance sheet each quarter and a comprehensive one at the end of their fiscal year.
Typically, the end of the calendar year is defined as the end of a reporting year. The balance sheet reveals a firm's financial resources and obligations at a given moment in time.

• The income statement summarizes a firm's financial transactions over a defined period of time. The balance sheet and income statement match money coming in (revenues) with the expenses tied to generating those revenues.

• The cash flow statement reflects a company's liquidity. Generally expressed, a healthy company will spend and hang onto less money than it takes in. The difference is the profit distributed to the shareholders and owners. This is called a "positive cash flow."

Let's take a closer look at all three elements.

The Balance Sheet

The balance sheet will give you an indication as to the sensitivity of a company's bottom line to market ups and downs—especially important knowledge, for cyclical firms whose fortunes are tied to economic conditions. The balance sheet will reveal the company's risks during hard times and its upside during good times.

What follows is a breakdown of the most important lessons that you can learn from a balance sheet—the meaning of key terms, and how to extract and interpret information that are of most use to investors.

The balance sheet is broken into two sides. Assets are on the left side, while on the right is the company's liabilities and shareholders' equity.
The balance sheet is said to be "balanced" when the value of the assets equals the combined value of the liabilities and shareholders' equity.

The balance sheet is therefore: Assets equal Liabilities, plus Shareholders' Equity.

In other words, it is sectioned into two and according to the assets (the inherent means necessary to keep the company operating). It is "balanced" by: 1) the company's financial obligations, and 2) equity investment and retained earnings.
Scrutinize these aspects:

• Current assets

Current assets can be easily turned into cash, because they have a lifespan of 12 months or less. These assets include accounts receivable, and inventory cash and cash equivalents. Cash includes non-restricted cheques and bank accounts. Cash equivalents include extremely safe assets, such as Treasury Bills that can be easily transformed into cash.

• Non-current assets

Non-current assets are those that can't be easily converted into cash; they have a lifespan of more than a year. This class of asset includes buildings, land, machines, computers, etc. Non-current assets also can be intangible assets, such as patents, copyrights, or other intellectual property.

• Liabilities

Liabilities reside on the other side of the balance sheet. They include a company's financial obligations to outside parties. As with assets, they are classified as either current or long-term.

• Long-term liabilities, these financial obligations are debts as well as non-debts, due after a period of at least one year from the balance sheet's date.

• Current liabilities, these are the company's liabilities that must be paid within 12 months. These include both short-term borrowings, such as accounts payables, and the current payment on long-term borrowing.

• Shareholders' equity, this is the initial amount of money invested into a business. If, at the end of the fiscal year, a company (after taxes) decides to reinvest its net earnings or profit after tax into its operations. This retained earnings will be transferred from the income statement onto the balance sheet and therefrom into it shareholder's equity or funds account. This shareholders' fund account represents a company's total net worth.

The Income Statement

With a greater understanding of the balance sheet and how it is constructed, we can now look at the income statement.

Here's a breakdown of the important aspects for investors:

• Gross profit

Gross profit is the basic difference between the cost of production and/or rendering services and the revenues generated in the process. The selling, general and administrative (SG&A) expenses category entails administrative and marketing cost and overhead involved in operating the business. Another category is expenses for research and development (R&).

• Operating profit

This statistic is calculated as:

Operating Profit = Operating Revenue – Operating Expenses

Operating profits are earned from a company's everyday core business operations. This figure doesn't account for any profit earned from the company's investments and the effects of interest and taxes. Operating profits also are called "Earnings Before Interest and Tax" (EBIT).

The Cash Flow Statement

A cash flow statement shows how changes—the continual ebb and flow, if you like—in balance statement. Simply put, the cash flow statement reflects the flow of cash in and out of the company.
The cash flow statement is an important barometer for investors, because it reveals the short-term viability of a company. Most importantly, it can show you the ability of a company to pay its bills or meet maturing obligations.

The cash flow statement leaves out transactions that don't directly affect cash receipts and payments; it only includes inflows and outflows of cash (or cash equivalents).

The cash flow statement directly applies to activities related to these three areas: financing, operating and investing. As an investment tool, it is the best way for you to determine a company's liquidity and solvency.

• Free cash flow, this indicator is crucial. Here's the formula for determining free cash flow:

Net Income

+ Amortization/Depreciation
- Changes in Working Capital
- Capital Expenditures
= Free Cash Flow

Essentially, free cash flow is operating cash flow minus capital expenditures. It represents the cash that a company is capable of generating after spending all of the money necessary to maintain its asset base.

As an investor, think of free cash flow as "steroids" that boost the growth rate of the company. That's because free cash flow can be used to make acquisitions, repurchase stock, or repay debt, all of which are highly positive actions that enhance earnings per share.

Financial Ratio Analysis, Using the yardsticks conveyed by these financial statements, you can perform interpretive analysis of the company's finances and its operations, to assist you in your efforts to gauge the company's suitability as an investment. This is known as "financial ratio analysis."

When scrutinizing financial statements and extracting certain numbers from them, you can calculate financial ratios that provide you with a clearer understanding of the company's financial condition, as well as the efficiency of its operations.

It's not as complicated as it sounds. Keep in mind, though, that to perform some of these ratios, you'll need to extract information from more than one financial statement.

The main types of ratios that use information from the balance sheet are activity ratios and financial strength ratios.

Activity ratios focus on current accounts to reflect how efficiently the company manages its receivables, inventory and payables, which all come under the heading of "operating cycle." These ratios can provide insight into the company's operational efficiency.

Financial strength ratios, such as the working capital and debt-to-equity ratios, provide information on how well the company can meet its obligations and how they are leveraged.

• Debt-to-equity ratio

The ratio is determined this way: D/E = Debt(liabilities)/equity.

This ratio reveals the company's financial leverage. Debt that has been financed with every Naira of equity would constitute a ratio of 1; scant debt compared to assets would represent a low ratio, such as 0.2. Any ratio above 1 tells you that the company owes more than it's actually worth—surely, not a good sign for investors.

• Working capital (or current) Ratio
Here's the formula for determining this ratio:

Current assets

= Current liabilities

The working capital ratio can give you inklings as to the company's financial stability and the manner in which it finances itself. A declining working capital ratio over a sustained period of time is a very bad sign.

• Return on equity (ROE)

For investors, this ratio is hugely important. It is calculated by dividing the net income by the shareholder's equity. It is a measure of the company's Rate of Return on the money provided by its owners. An ROE of about 12% is roughly the average for public companies.

Now that you're armed with the basics of financial statement analysis, sharpen your pencil and put on your green eyeshades. You're ready to do some financial tracking—if not for fun, then certainly for profit.


https://investdataltd..com.ng/2017/07/how-to-read-financial-statements-of.html

HONEYWELL FLOUR: EARNINGS REBOUND ON RISING CAPACITY, RECOVERING ECONOMY

The management of Honeywell Flour Plc recently made its full year earnings report for the period ended March 31, 2017 available to the investing public in line with its post-listing requirement of the Nigerian Stock Exchange (NSE). The numbers came the same time as the release date for the 2016 scorecard which allows investors and traders to plan their investment and forecast the company's pattern.

The company's performance for the period was impressive and did not reflect much of the harsh economic situation, especially with manufacturers coming under more intense pressure from the operating environment that negatively impacted cost and purchasing power at a time Nigeria’s economy was deep in recession, especially for most part of the financial year.


The company recorded a 5% increase in revenue from N50.88bn to N53.23bn; profit after tax grew significantly from a loss of N3.02bn to N4.3bn, a growth of 242% over the preceding year. Shareholders' Funds and Total Assets increased by 219% and 49% to N52.33bn and N113.15bn respectively. Earnings per share rose from loss of 38 kobo in 2016 to 54 kobo.

Honeywell is technically placed at a fair value of N6.00 per share. The growth in its numbers were attributed to continuous investment in expansion of its production capacity to meet market demand and capture new markets. But increase in cost of production as a result of currency devaluation has put serious pressure on the company's operations. This profitability reflected in Honeywell's profit margin that is below international standard of 15%. The impressive full year earnings had further boosted the intrinsic value of the stock to give investors high margin of safety, considering its market value in a recovering stock market and economy.

The marginal growth in revenue was primarily caused by reduction in sales due to weak disposable income of the consumers that kept many products on the shelve but with the little improvement in economic fundamentals and positive data, helped by exchange gains resulting from the Central Bank of Nigeria (CBN) intervention in the foreign exchange market that reduced cost, impacting on the food segment of the company, comprising of flour, pasta, noodles, semolina, sugar, rice edible and snacks.
The food sector contributed 85% of a total revenue of N53.23bn in March 2017 from N50.88bn in March 2016. The marginal increase in sales is a major concern for investors if company with such business model and products that are essential to the body records such lean growth in revenue.


The company’s rebounding earnings power was supported by decreasing cost of sales and other cost elements in its operations, added to other incomes from sales of by-products, exchange gain and sundry income that boosted the year’s bottom line. This was boosted by management's cost cutting efforts and have not impacted much on bottom line, looking at profit margin for the period. With the economic recovery and continued turn around in the company's operation, shareholders should expect a better dividend payout in 2018 financial year.

Valuation/Recommendations

The company's full year Book Value stands at N6.60, with Price/Earnings ratio of 3.24x on the strength of its strong earnings per share of 54 kobo.
Investors with short, medium and long term horizon should look the way of this stock. Traders and investors can take advantage of the low price to position now. We have revalued Honeywell and upgraded it to a BUY.

Technical View
The stock has been trending up for the last four months before pulling back, even as there were attempts to rebound that failed. But now that the stock is side trending with move to breakout the trend line above as the market expect its Q1 financials.The price action had formed a descending triangle chart pattern that revealed continuation of trend or reversal. Traders should watch for the first breakout at N2.00 and second resistance level at N2.12 as the market and analysts continue to interpret the numbers.

Honeywell Flour Mills is a major flour milling company in Nigeria initially registered as Gateway Honeywell Flour Mills Limited in 1985. However, in June 1995, a change ownership structure led to a change of name to Honeywell Flour Mills Limited (HFML). After its initial public offer (IPO) in 2008, the company became a public liability company and listed on the Nigerian Stock Exchange (NSE) in 2009. Honeywell Flour Mills PLC processes and packages flour and livestock feeds from wheat. The company's products are used in the baking and confectionery industries.

Honeywell Flour Mill PLC
Share Holding Structure
Siloam Global Services Ltd
75%
First Bank Nigeria Plc
5%
Other Nigerians/ Institutional Investors
20%
Other Statistics
Shares Outstanding (MN)
7,930,197,658
Opening Price (2017)
1.46
Closing Price (2017)
1.05
Closing Price as at Jul 21, 2017
1.96
Date Listed
20th Oct., 2009
Year End
31st March

Earnings Performance
Honeywell Flour's mixed performance for the past five years has reflected in its sales revenue and profitability level that led to an unstable dividend payout for the period under review. The company’s sales revenue for the period has been on the rise, revealing its penetration into new markets, but as stated earlier, this has reflected on its bottom line, despite the fluctuating cost centres that continue to influence profit.

With the recovering economy and improving output from the manufacturing sector that has reflected on the company's performance to place a fair value that matches the current market price, investor confidence and sentiments for the equity’s price to retain strength.
Nevertheless, other ratios such as the low Price to Earnings (P/E) ratio and high Book Value, when compared to current market price. All these considered, it will be appropriated to place the equity at an intrinsic value of N6 to reflect the recent numbers posted for 2017.

Over the past five years specifically, the company’s turnover grew by 16.45% to N53.23bn from N45.71bn in 2013 after touching a high of N55.08bn in 2014, while within the same period, profit after tax has oscillated to a negative position of N3.02bn in 2016 and low of N1.12bn 2015 from N2.84bn in 2013, representing 51.41% growth to N4.5bn.

The company’s profit level has been unstable in the five-year period and at the beginning of the financial year 2017. In the same vein, dividend payout has been irregular to indicate its earnings power that may result in investors retention of its shares, while the company's current shareholding structure and float are expected to support its share price.



Source: NSE, Company Report &Investdata Research


Profitability Ratios
The company’s rebounding earning power and low P/E ratio of 3.24x as against the 5.61x in 2013, has reduced investors' waiting period to recoup their investment as at 2017 release date. Along with the high estimated Earnings Yield of 30.84% of the price.

Please note that the fluctuations recorded year-on-year in P/E ratio and Earnings Yield in the table below was due to the company’s unstable earnings and price movement. Estimated ratios show that the Book Value of company has not been stable in the last five years. Also, profit margin has been low significantly, due to the increasing cost of operations from a low of 2.28% in 2015 to 8.09% in 2017. Return on Equity for investors have been mixed also for five years as depicted in the table below.
HONEYWELL FOLUR PLC- ESTIAMATED RATIOS

2013
2014
2015
2016
2017
Earnings Per Share
0.36
0.42
0.14
-0.38
0.54
PE Ratio
5.61
10.06
24.78
-4.64
3.24
Earnings Yield
17.84
9.94
4.04
--21.54
30.84
Book Value
2.34
2.60
2.56
2.06
6.60
Price To Book
0.86
1.64
1.37
0.86
0.27
ROE (%)
15.33
16.27
5.51
-18.48
8.23
Profit Margin (%)
6.22
6.08
2.23
-5.94
8.09
Year End
March
March
March
March
March
Source: Company Financial &Investdata Research


https://investdataltd..com.ng/2017/07/honeywell-flour-earnings-rebound-on.html

FOUR FACTORS TO CONSIDER IN CHOOSING A STOCKBROKER OR STOCK BROKING FIRM

As far as the stock market business is concerned, traders and investors need the services of a broker or stock broking house to buy or sell on their behalf or trade on your own by doing it yourself through the online trading platform or portal at any given time to take advantage of market timing and speedy execution of your buy and sell decision under a house. The assistance of a good

stockbroker can be an essential element in achieving success but doing it yourself with knowledge is faster and more reliable for your financial independent through stock market investment. The role of brokers in trading stocks cannot be overemphasized as the growth of your income depends directly or indirectly on them. Stockbrokers are specially trained individuals whose concerns are to buy and sell shares for investors at a fixed commission. The statutory commission for stock broking firm is below four per cent on both sides of buying and selling. A regular trader with a volume can negotiate lower to boost the returns and enhance funds management. This commission is regulated by the Nigerian Stock Exchange (NSE) and Securities and Exchange Commission (SEC). Stock broking firms have a fixed rate and what accrues to them on any transaction. The factors below would help you choose a reliable stockbroker:

1. LICENSED/REGISTERED
Make sure that the stockbroker or the stock broking firm is fully registered and licensed by the NSE and SEC to carry out the business of stock trading. A registered stock broking firm will usually be a member of the exchange and with the approval of SEC. Whenever you enter into any stock broking firm, at its reception, you will see the certificates of registration and licensee displayed on the wall. But when this is not displayed on the wall, please have a rethink and walk out of that place. While this is important at the first instance, is that you want to deal with the right people. If the stock broking firm is licensed it suggest that the company has met the entire requirements.

2. PROACTIVE HOUSE WITH STRONG RESEARCH BACKGROUND
The objective of stock trading and investing is to make money. You need to be in a house where the people are active and informed through their research-based analysis that guides and directs their decisions on what to do in the market at any time. A stock broking firm knows how to combine different forms of analyses to take advantage of the market before offering a profitable investment advice to their clients. Also, the level of transactions in terms of volume and value to ascertain how forceful the firm is in the market is equally important.

3. RELATIONSHIP
Look for a house that believes in good relationship that drives business, even if it means consulting professionals in the market for a guide to go ahead; a situation where you can have a one-on-one discussion with your broker regardless of the amount you have at that moment. You should feel at ease with your stockbroker since you will be providing personal information about your finances and investment goals. The stockbroker should listen to your expectations and understand your needs. Based on the information provided, the stockbroker can develop an investment strategy tailored to an investor's needs. Make sure you understand the investments recommended to you for purchase. A good stockbroker takes time to explain how any security purchased can fit your investment goals.

4. Online Trading Platform or Portal
That is directly link to the trading floor of the Nigeria stock exchange, were no know third party infer with your order if you have the funds that can cover your transactions. This online trading help you to achieve your investment goal by not waiting or putting your financial destiny in another man hands. In Nigeria market today only 16 brokerage firms have the online portals for their clients to trade on their own, which suggests that new traders or investors should consider this when choosing a stock broking firm. When you do it yourself with skill and knowledge you are ban to win more than loose.
In the game of life there are two groups of people - those who focus on short term gains and immediate needs even if it means they struggle to reach their bigger goals, and those who are prepared to make short term sacrifices and invest time improving themselves to get the huge improvements for the rest of their life.

By getting the comprehensive short term trading strategies video and materials to guide you, it will be obvious that you are one of life’s winners-it’s a great decision as you are going to improve your investment with new and world class skill that can really fast track your investing and trading success. One of the topics discussed is the mathematics of profitable trading, where trading target of just 1% in a week for a year with principal or capital of N100, 000 will give return of N67, 768.89 which is 67.78% gain, which many superstars and investment houses in the world cannot achieve but with your consistent, commitment and diligent to your trading goals and objective you will get there. In 5 years your N100,000 will turn to N1.32 million. This is revealed in the workshop video and materials. Grab your copy now and ride with the recovery stock market and economy.
The workshop video can be view in your phone, laptop and television. The cost of the pack is N20,000 including DHL delivery at your door step. Payment should be made into Investdata Consulting Ltd, Zenith Bank 1013033032. When payment is made, kindly send details to 08032055467,

How not to lose money in stocks
It is true that your hard-earned income is invested in the stock market and it becomes necessary for you at any given point to protect this money and grow it in the same market by investing knowledgeably. It happens that one Monday afternoon, a friend of mine called to say that his broker has always made him to lose money by buying at the highest price and selling for him at the lowest price. This had always made him to lose money. It is true that brokers would not buy stocks for their clients without a mandate or instruction from the buyer. That means my friend also has his own faults, either by giving instruction to buy stocks for him when prices have gone up, anticipating that they would go higher but go down or reverse down due to profit taking. This may result in selling at a lower price, thus making the buyer to lose money. To avoid this, always ensure you enter and exit a position fairly by buying into a weak market and selling in a strong market as buying or selling pressure will always affect the market price of any stock.

Confidence: Your confidence in the market and the specific stock you are buying is very important, suggesting that you should understand the companies you are putting your money -their business model and other things that are necessary to know that the company is strong. Confidence is just as important in investing as it is in any other aspect of life, whether it is sports, business or a relationship etc. Use numbers to help decide when to buy or sell, and also your learning how to use your instinct in all these will go a long way to help you protect your money. The more confident you are in your decisions, the more likely you will be correct.

Factors for the market
Here, what are the factors that support the market at that particular time, listen to what’s going on around you. Consciously or subconsciously you cannot avoid soaking in external stimuli. The market, in a large part, is dictated by emotions, which are evident everywhere – TV, radio, social media, friends etc. If you can learn to pick up on a consumer sentiment and use this to help predict the direction the economy or the market is heading, you will have a huge advantage. As we always say, the trend is your friend but it’s when you identify it at the right time and ride with it that matters. And that is why you should register with INVESTDATA buy and sell signal setup for weekly stocks to trade with target of 4% after your transaction charges

Trade stocks you understand
Finally, stick to a proven strategy and trade a handful of stocks that you’re familiar with. So often, I see people with 20 – 30 positions in their portfolios. What’s the point? If you’re that worried about diversification, buy bond. Too much work goes into the management of a portfolio of that size. Stick to five – eight stocks that you are very familiar with and that have potential of rallying. Then, you know exactly where the support and resistance points are, when earnings will be announced, what products are in the pipelines and much more pertinent information that will drive price.

https://investdataltd..com.ng/2017/07/four-factors-to-consider-in-choosing.html

MARKET UPDATE FOR JULY 24, 2017




NSE INDICATORS HIT NEW HIGHS, RETURN 28.94% YTD ON LOW, MEDIUM CAP GAINS
· As N’East Reconstruction Agenda Set To Boost Building Material Stocks

Monday’s trading session was a very good on the Nigerian Stock Exchange (NSE), kick-starting the last full trading week in the Q2 earnings reporting season, as the uptrend momentum continued 13-day bull-run on a higher magnitude of gains, especially as highly capitalized stocks appreciated in value amidst expectations of positive Q2 numbers from quoted companies.
Already, the earnings season has entered high gear with Transnational Corporation of Nigeria (Transcorp) and Nahco presenting half-year unaudited results that beat market expectations during the day’s trading session. Investors and traders, especially participants at INVESTDATA CONSULTING’s Comprehensive Short Term Trading Strategies Workshop a fortnight ago which dwelled on the Fusion of Fundamental & Technical Analysis in picking value stocks for the rest of the year and beyond, are already in value stocks and now recording gains.
Investor’s positive sentiments for banking stocks continued, ahead of their earnings reports as demand for the interim dividend paying bank stocks increased, following which most of them finished Monday’s trading on high bid.

The demand for building material stocks also were in high demand as impressive numbers had started emanating from the sector, which expectation of better numbers in Dangote Cement has pushed its share price to two year high on a strong volume.
In the months to come, stocks in the building materials sector could become the toast of investors, given plans by the Federal Government to begin the reconstruction of the insurgency-ravaged area, particularly Borno, Yobe and Adamawa, after almost a decade of supremacy battle between the Boko Haram insurgents and Federal troops. The plan has been tagged: THE BAMA INITIATIVE.
Back to the NSE, Monday’s volume traded index was 0.80. Buying position was 95% and selling volume, 5% of the total transaction. The NSE banking and Industrial indexes closed in green, while the NSE Consumer and Insurance indexes were red, as traders continue booking profit from the resent rally in these sectors to position in other industries and stocks with possibility of paying interim dividend.

Meanwhile, the composite index NSEASI gained 632.15 basis points yesterday to hit a two-year high, while closing at 34,652.52 from an opening figure of 34,020.37 points, representing a 1.86% growth on low transaction volume that was lower than previous day’s. Similarly, market capitalisation rose by N217.87bn from the opening value of N11.75tr, representing a 1.86% growth in the worth of investor’s portfolio.
The upturn in share prices of low, medium and high cap stocks impacted the All-Share index to boost year-to-date returns to 28.94%. Also, market capitalisation over the same period improved by N2.7tr, representing a 29.16% growth over the year’s opening value.
Market breadth for Monday was flat,as the number of advancers outnumbered decliners in the ratio of 21:20 on a low volume of trade. Market activities in terms of volume and value were down by 22.35% and 22.75% respectively at 293.75m shares worth N3.95bn, from the previous day’s 378.19m units valued at N5.11bn.

Transactions in the shares of Access Bank, UBA, Guaranty Trust Bank, UnityKap and Transcorp topped the volume chart to close the day’s session.
At the end of the trading activities, Transcorp topped the advancers’ log, gaining 8.05% to close at N1.61 each on the back of its impressive Q2 numbers and brighter prospects. It was followed by Dangote Cement with a 5% gain to close at N222.60 per share, on expectation of better Q2 numbers and impact of government infrastructural development on the it sector.
On the flipside, Aiicoled the decliners’ log after dropping 5% to close at N0.57on profit taking activities of investors and traders, ahead of Vitafoam’s 4.85% decline to close at N2.53per unit on market forces.

TODAY’S OUTLOOK
As trading opens this morning, expect mixed performance as market ride on release of more Q2 numbers as the season enter high gear with positive earnings. However, it is advisable to expect a blend of surprises and disappointment from the companies reporting their numbers, even as investors need not panic due to the pullbacks if they have taken position based on strong numbers and future prospects of any stock. You should therefore fix your 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.
Be reminded once more 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 to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

Meanwhile, we say a very big THANK YOU to all participants that made the INVESTDATA workshop a huge success, even as stocks recommended during the workshop continue to rally and activities in the various sectors identified as those to invest in this second half of 2017 are looking up and promising to lead the rest of the year in performance and returns.
To book for the WORKSHOP VIDEO and SOFT COPIES of WORKSHOP MATERIALS send YES to 08028164085 and 08111811223.

MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
Phone 08028164085, 08032055467
https://investdataltd..com.ng/2017/07/market-update-for-july-24-2017.html

MARKET UPDATE FOR JULY 25, 2017


NSE’S GAIN WIPES OFF TWO-YEAR LOSS, AS CAPITALISATION LEAPS 32.68% YTD

Nigeria’s stock market indices had a strong bull-run Tuesday with a gap up at the opening, as they formed consolidation patterns in the early hours, held support, and then had a strong midday rally. The index made much progress in the last few hours to consolidate with nice gains and moved higher on high demand for stocks with traders and investors taking last minutes positioning as the market continued to react positively to the impressive numbers released so far by quoted companies.
Meanwhile, despite the decision of the Central Bank of Nigeria’s Monetary Policy Committee (MPC) to leave the benchmark Monetary Policy Rate (MPR) unchanged at 14%, at the end of its two-day meeting which ended on Tuesday, the continued appreciation of the Naira and improved liquidity in the foreign exchange market has supported inflow of the greenback into the economy and indeed the equity market. This has so far also impacted positively on economic data, such that the CBN is saying it is early in the day to ease monetary policy on the back of the much expected fiscal reforms, structural changes and delayed implementation of the 2017 budget, which now threatens the much expected economic recovery. The Federal Government must therefore at this point brace up to the nation’s economic challenges and do the needful to sustain the recovery pace. One way of doing this would be to put the right policies in place to drive the administration’s much celebrated Economic Recovery & Growth Plan.

Also, with the proposed Federal Government promissory note to local contractors expected to reduce high debt that is now slowing down execution of many projects across the country because banks are not ready to give these contractors facilities any more. With these notes, contractors will have access to fresh funds, knowing that the government will not disappoint in terms of redemption of the promissory note at maturity.
The day’s volume traded index was 1.41; buying position, 93% and selling volume, 7% of the total transaction. The sectoral indexes were higher as investors and traders took position in different sectors with expectation of their Q2 scorecards.

The composite NSEAll-Share Index gained 880.48 basis points to breakout its two-year psychological line of 35,000 on a huge volume to close at 35,533.00 from an opening figure of 34,652.52 points, representing a 2.54% growth, while volume transacted for the day was higher than previous day’s. Similarly, market capitalisation went up by N303.35bn to close at N12.25 trillion from the opening value of N12.02tr, representing a 2.54% growth to wipe away two-year loss position in investor’s portfolio as the market continue recovery move.

The upturn in share prices of Nestle, UBA, Forte Oil, Okomu Oil, Zenith Bank, Access Bank, Stanbic IBTC, Dangote Cement, Presco,Oando, Lafarge Africa, Flourmils and others boosted the All-Share index year-to-date returns to 32.20%. Also, market capitalisation over the same period improved by N3.01tr, representing a 32.68% growth over the year’s opening value.
Market breadth on Tuesday was positive as the number of advancers outweighed the decliners in the ratio of 27:18 on a huge volume of trade to continue the 14 straight days of bullish trading. Market activities in terms of volume and value were upby 74.79% and 49.32% respectively at 513.45mshares worth N5.90bn, from the previous day’s 293.75m units valued at N3.95bn.
Transactions in the shares of UBA, Access Bank, Zenith Bank, Fidelity Bank and Transcorptopped the volume chart to close the day’s session.

At the end of trading activities, UBA topped the advancers’ log, gaining 10.16% to close at N10.41 each on the back of its expected Q2 numbers and brighter prospects as it consolidates operations in various Africa countries. It was followed by May&Baker with a 10% gain to close at N3.19 per share, on market forces and expected impact of government policy on the health sector to influence its numbers going forward.
On the flipside, Unity Bank led the decliners’ log after dropping 8.96% to close at N0.61 on profit taking activities of investors and traders, ahead of Morison’s 8.92% decline to close at N1.43per unit on market forces as this company has been inactive on the exchange.

TODAY’S OUTLOOK
As trading opens this morning, the market is expected to continue riding on the prospect of more Q2 numbers being released amidst countdown to the end of this earnings season. Already, investors and traders have reacted to the mixed numbers released so far, receiving positively to surprises, while treating disappointing earnings otherwise.
However, it is advisable to expect a blend of surprises and disappointment from the companies reporting their numbers, even as investors need not panic if any pullback occurs now due to profit booking, if they have taken position based on strong numbers and future prospects of any stock. You should therefore fix your 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.
Be reminded once more 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 to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
In the game of life there are two groups of people - those who focus on short term gains and immediate needs even if it means they struggle to reach their bigger goals, and those who are prepared to make short term sacrifices and invest time improving themselves to get the huge improvements for the rest of their life.

By getting the comprehensive short term trading strategies video and materials to guide you, it will be obvious that you are one of life’s winners-it’s a great decision as you are going to improve your investment with new and world class skill that can really fast track your investing and trading success. One of the topics discussed is the mathematics of profitable trading, where trading target of just 1% in a week for a year with principal or capital of N100, 000 will give return of N67, 768.89 which is 67.78% gain, which many superstars and investment houses in the world cannot achieve but with your consistent, commitment and diligent to your trading goals and objective you will get there. In 5 years your N100,000 will turn to N1.32 million. This is revealed in the workshop video and materials. Grab your copy now and ride with the recovery stock market and economy.
The workshop video can be view in your phone, laptop and television. The cost of the home study pack is N20, 000 including DHL delivery at your door step. Payment should be made into Investdata Consulting Ltd, Zenith Bank 1013033032. When payment is made, kindly send details to 08032055467,


MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
Phone 08028164085, 08032055467

https://investdataltd..com.ng/2017/07/market-update-for-july-25-2017.html

MARKET UPDATE FOR JULY 26, 2017

Banking stocks by buy for Profitable Interim Dividend Income

Nigeria’s equity market at the end of midweek’s trading had a volatile day, with strong volatility at the opening and end.
The day started out with a pullback to intraday low of 35,504.88 and made a three year new high of 37,794.22 to close higher in continuation of its 15-day bullish run with highly capitalized stocks recording value gain on the strength of increasing demand for blue-chips in expectation of their Q2 numbers. Many investors and traders also used the blue-chips to build hedges in their portfolios.
The day’s volume traded index was 0.94; buying position, 96% and selling volume, 4% of the total transaction. Sectoral indexes were higher as investors and traders took position in different sectors with expectation of their Q2 scorecards.

The increasing inflow of foreign portfolio investors into the market continues to be driven by the flexible exchange policy of the Central Bank of Nigeria (CBN)which has helped to stabilize the rate of the Naira. In particular, the import and export window of the FX market continues to get more liquidity from oil companies, export businesses and banks, while the CBN plays the supervisory role. This is gradually impacting positive on the corporate performance and macro-economic indices.
With the economy or markets of the developed world are headed for crash in no distance time, which will affect U.S., Europe and Japan, many foreign institutional investors are looking at emerging markets, particularly Africa as preferred destination to diversify their portfolios. Many of these investors have over the years identified the infrastructural challenges on the continent and the huge investment opportunities they present, especially with Nigeria the largest economy in Africa in recession and South Africa, the second largest economy going into recession. This makes Nigeria’s stock market a preferred destination for Foreign Portfolio Investments (FPI), at a time transparency in the Nigerian market remains high.

Meanwhile, the benchmark All-Share Index gained 1207.77 basis points to break into its three-year psychological line of 36,000 on above average market traded volume to close at 36.740.77 from an opening figure of 35,533.00 points, representing a 3.40% growth. Also, volume transacted for the day was lower than previous day’s, even as market capitalisation went up by N416.36bn to close at N12.66tr from the opening value of N12.25tr representing a 3.4% growth to enhance investors’ positions.
Price appreciation in low, medium and high cap stocks boosted the All-Share index year-to-date returns to 36.71%. Also, market capitalisation over the same period improved by N3.25tr, representing a 36.94% growth over the year’s opening value.
Market breadth for Wednesday’s session was positive as the number of advancers outnumbered the decliners in the ratio of 31:17 on average volume of trade to continue the 15 day up market. Market activities in terms of volume and value were downby 34.89% and 21.10% respectively at 335.34m shares worth N4.64bn, from the previous day’s 513.45m units valued at N5.9bn.
Transactions in the shares of FBNH, UBA,Access Bank, Zenith Bank and Fidelity Bank topped the volume chart to close the day’s session.

At the end of trading activities, Conoil topped the advancers’ log, gaining 10.21% to close at N33.04 each on the back of its expected Q2 numbers. It was followed by Fidson Healthcare with a 10.06% gain to close at N3.39 per share, on market forces and expected impact of government policy on the health sector to influence its numbers going forward.
On the flipside, Aiico Insurance led the decliners’ log after dropping 5.26% to close at N0.54on profit taking activities, following its unimpressive Q2 numbers, ahead of SCOA’s 4.77% decline to close at N3.09per unit on market forces as this company has been inactive on the exchange.

TODAY’S OUTLOOK
As trading opens this morning, the market is expected to continue riding on the prospect of more Q2 numbers being released amidst countdown to the end of this earnings season. Already, investors and traders have reacted to the mixed numbers released so far, receiving positively to surprises, while treating disappointing earnings otherwise.
However, it is advisable to expect a blend of surprises and disappointment from the companies reporting their numbers, even as investors need not panic if any pullback occurs now due to profit booking, if they have taken position based on strong numbers and future prospects of any stock. You should therefore fix your gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.

Money management in equity trading and investing is very important as picking the right stock at the right time, as the market is expecting Q2 interim dividend from banking, insurance and petroleum marketing stocks. Investment is all about expectations and returns. Look at this simple mathematics of profitable trading/investing, dividend history of the banking stocks shows that GTBank pays interim of 25 kobo, UBA pays 20 kobo, Zenith Bnak pays 25 kobo, AccessBnak pays 25 kobo while Stanbic is inconsistent with its interim payout. N100,000 capital will give you 2564 units of Guaranty, 10,000 units of UBA, 4000 units of Zenith and 9523 units of Access Bank. Your dividend income not excluding holding tax in Guaranty is N641, UBA is N2000, Zenith Bank is N1,000 and Access Bank is N2381, Let this guide you as buy banking stocks for interim dividend.
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.

Be reminded once more 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 to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

Grab your home study pack today and ride with the recovery stock market and economy.
The workshop video can be view in your phone, laptop and television. The cost of the home study pack is N20, 000 including DHL delivery at your door step. Payment should be made into Investdata Consulting Ltd, Zenith Bank 1013033032. When payment is made, kindly send details to 08032055467,

https://investdataltd..com.ng/2017/07/market-update-for-july-26-2017.html

Juicier Investment Income, Leaner Tax Provision Lift Afriprud’s Profit By 229.1%

Share registration and investment giant- Africa Prudential Plc, on Wednesday gave investors hope for better profit and dividend at year end with its s...

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Share registration and investment giant- Africa Prudential Plc, on Wednesday gave investors hope for better profit and dividend at year end with its superlative half-year performance, helped by the growth in net investment income and a reduced provision for income tax expense resulting in a three-digit growth in profit after tax.
Gross earnings for the period rose to N1.491bn, an increase of N529.715m or 55.08% increase from previous half year’s N961.678m, helped by net investment income rose N467.498m or 87.26% from N535.742m in the first half of 2016 to N1.003bn. Registrars fee income rose from N412.804m to N464.268m; just as other income increased to N23.885m from N13.132m.
While registrars fees income comprised of fixed periodic administration fees, transaction processing fees, fees for managing corporate actions, professional and IT services and that earned on administration of client funds including value added tax; net investment income was made up of revenue from treasury bills totaling N668.923m, up from N90.99m, interest on term deposit worth N219.953m, down from N284.42m; just as N114.364m came from interest on bonds, down from N160.332m.

Impairment loss on goodwill dropped from N147.46m to N62.5m, arising from the acquisition of the former UAC Registrars which is carried at cost on the date of the acquisition which began on May 30, 2013, ending in October 2015. Personnel expenses rose to N190.691m from N140.322m; other operating expenses rose to N267.653m from N195.413m. Depreciation and amortization was flat at N19.759m, compared to N20.453m.
Profit before tax rose to N950.79m from N605.49m, income tax expense fell sharply to N86.504m, up from N342.865m; leaving profit after tax at N864.286m, representing a N601.661m or 229.09% rise from N262.625m. The net profit increased total comprehensive income for the period jumped to N979.857m or 43 kobo earnings per share, as against the previous N262.625m or 13 kobo.

http://investdata.com.ng/2017/07/juicier-investment-income-leaner-tax-provision-lift-afripruds-profit-229-1/

Photo News: NIPC CEO Visits Nigerian Stock Exchange, Performance Closing Gong Ceremony

From left to right: Oscar Onyema, Chief Executive Officer, The Nigerian Stock Exchange (NSE); Ms. Yewande Sadiku, Executive Secretary/CEO, Nigerian Investment Promotion Commission (NIPC) and Haruna Jalo-Waziri, Executive Director, Capital Market Division, NSE at the Closing Gong Ceremony at the Exchange today.

Nestle Plc: Overcoming Finance Cost Challenges To Value
Lagos Unveils Taskforce To Remove Disused Vehicles From State
Photo News: IITA Chief Visits Nigerian Stock Exchange
From left to right: Oscar Onyema, Chief Executive Officer, The Nigerian Stock Exchange (NSE); Ms. Yewande Sadiku, Executive Secretary/CEO, Nigerian Investment Promotion Commission (NIPC) and Haruna Jalo-Waziri, Executive Director, Capital Market Division, NSE at the Closing Gong Ceremony at the Exchange today.

http://investdata.com.ng/2017/07/photo-news-nipc-ceo-visits-nigerian-stock-exchange-performance-closing-gong-ceremony

Market Update for July 27, 2017

NSE Indices Ride Higher, Despite Mixed Earnings Report, End Of Season Countdown

Trading on the Nigerian Stock Exchange (NSE) on Thursday was extremely volatile even as the bullish rampage continued as buying position increased on daily basis as influx of earnings reports supported the uptrend momentum. This is despite the overbought state of many technical indicators that signaled the onset of profit taking any moment from now to allow the investing community and analysts fully interpret the numbers to reposition their portfolios.

Thursday’s session started out with a little slide down before gapping to the upside, making a new three-year high on the benchmark index, while some of the sectoral indexes also made a new three-year high, reflecting an increased level of investor confidence and liquidity in the market to close higher at the end of the day with huge volume of trade and increased number of advancers. The day’s volume traded index was 1.50; buying position, 98% and selling volume, 2% of the total transaction.
On Thursday, I wrote on money management in equity trading and investing as a key factor, especially as interim dividend is expected from the banking stocks and a positive force for individual stocks and the market if expectations are met. Also on Thursday, over 10 companies released their Q2 earnings reports to the market with surprises and disappointment that should give insight into what investors should expect from others today and Monday when the earnings reporting season officially comes to a close, given that the news is abundant this week, with earnings and revenue growth coming in as good as investors and traders have seen in a long while.

Meanwhile, at the close of trading, composite index NSEAll-Share Index gained 504.40 basis points to break into its three-year psychological line of 37,000, closing at 37,245.77 from an opening figure of 36,740.77 points, which represented a 1.34% growth. Also, volume transacted for the day was higher than previous day’s, even as market capitalisation rose by N173.84bn to close at N12.84tr from the opening value of N12.66tr, representing a 1.34% growth to enhance investors’ positions.
The upturn in the share pricesof Conoil, Nestle, Okomu Oil Palm, Presco, GTBank, Zenith Bank, Total, Nigerian Breweries, Stanbic IBTC, UBA and Seplat that boosted the All-Share index year-to-date returns to 38.59%. Also, market capitalisation over the same period improved by N3.59tr, representing a 38.82% growth on the year’s opening value.
Market breadth for day was positive as the number of advancers outweighed decliners in the ratio of 38:17 on a huge volume of trade to continue the 16-day bullish transition. Trading activities in terms of volume and value were upby 61.87% and 72.50% respectively at 542.8mshares worth N8.01bn, from the previous day’s 335.34m units valued at N4.64bn.
Transactions in the shares of UBA, Zenith Bank, Diamond Bank, FBNHand FCMB topped the volume chart to close the day’s session.
At the end of trading activities, Conoil topped the advancers’ log, gaining 10.17% to close at N36.40 each on the back of its expected Q2 numbers. It was followed by Champion with a 6.74% gain to close at N2.85 per share, on market forces.
On the flipside, Cadbury led the decliners’ log after dropping 9.68% to close at N11.20 on the back of its unimpressive earnings report released yesterday(READ); ahead of UACN Property’s 5.46% decline to close at N2.77 per unit on market forces and profit taking.

TODAY’S OUTLOOK
As trading opens this morning, the market is expected to continue riding on the prospect of more Q2 numbers being released amidst countdown to the end of this earnings season. Already, investors and traders are reacting to the mixed numbers released yesterday, as surprising numbers are receiving positive reactions, while treating disappointing earnings otherwise.
However, it is advisable to expect a blend of surprises and disappointment from the companies reporting their numbers, even as investors need not panic if any pullback occurs now due to profit booking, if they have taken position based on strong numbers and future prospects of any stock. You should therefore fix your 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.
Be reminded once more 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 to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

Get your home study pack today and ride with the current recovery in Nigeria’s stock market and economy.
The workshop video can be viewed on your phone, laptop and television set. The home study pack costs N20,000 including DHL delivery at your door step. Payment should be made into Investdata Consulting Ltd, Zenith Bank 1013033032. Afterwards, kindly send payment details to 08032055467.


MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED

http://investdataltd..com/2017/07/market-update-for-july-27-2017.html

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED JULY 28, 2017

https://investdataltd..com.ng/2017/07/investdata-price-earnings-tracking-for_31.html

MARKET UPDATE FOR WEEK ENDED JULY 28 AND OUTLOOK FOR JULY 31 - AUGUST 4, 2017

PROFIT TAKING, MISSED EXPECTATIONS FROM BANKS, OIL STOCKS CUT SHORT 3-WEEK UPTREND

Trading activities on the Nigeria Stock Exchange last week was seriously bullish being the peak of the second quarter earnings reporting season when quoted companies are statutorily required to submit their quarterly earnings reports to the investing community, which ends on Monday, July 31, 2017.
During Friday’s session, the market expectedly rode on the last minutes momentum of influx of corporate earnings, with over 50 listed companies jostling to make available their scorecards, which came with mixed performance.

The impressive numbers from fast moving consumer goods and industrial sector players supported the positive economic data, confirming the hints of economic recovery that has been propelled largely by the foreign exchange policy slant of the Central Bank of Nigeria (CBN), which has resulted in regular weekly intervention.This has significantly boosted confidence among foreign and domestic investors, as well as consumers. In the financial services sector, the first tier banks are expected to submit their score-cards to the market in August as most of them have announced,because of plans to audit the reports, as well as seek CBN approvals as required.
The three-week uptrend momentum was short lived on the last trading day of the week as end of the month profit taking hit the market, after financials of second tier banks and petroleum marketing stocks missed expectations.The volume index for the period under review was 1.54 with buying position at 78% and 22% selling volume of the total transactions as investors and traders continue to position in blue chips stocks, while seeking to protect their portfolios. In the process, they are building a hedge of safety ahead of end of earnings reporting season portfolio reshuffling on the strength of the recently published Q2 numbers, as well as the future prospects of the companies of which Q3 numbers will be factored in the current market value.

Meanwhile, the composite NSEAll-Share Index for the week gained 2,844.34 points to close at 36,864.71 points, from an opening figure of 34,020.37 points, after hitting intra week high of 37,655.46 and low of 33,999.14, representing 8.40% growth on a huge volume of transactions. The index broke out multiple psychological lines of 35,000, 36,000 and 37,000 to new three-year high that confirm a bullish run which affected all the sectors represented on the exchange.
Similarly, market capitalisation for the period closed higher at N12.71tr from an opening value of N11.73 trillion, representing a 8.36% value gain in investors’ portfolios to wipe out a two-year loss position.

The top performing stocks for the week was dominated by high cap stocks, as investors and traders hedge their risk in defensive stocks that are mainly blue chips with good dividend payment history.
Equities price rally during the week pushed the NSEASI’s year-to-date return to 37.17%, just as market capitalisation appreciated by N3.27tr, representing a 37.76% gain from the year’s opening value.
Market breadth for the period was positive with widen number of advancers outnumbering decliners in the ratio of 51:23 on a huge volume of trades to reflect a buying market despite the pullback on Friday.
Stock markets around the world were mixed to close lower despite the earnings season, irrespective of the unstable oil price and the decision of the Feds to leave interest rate unchanged at its last meeting. Japan’s Nikkei, Britain’s FTSE 100, Germany‘s DAX and U.S market indexes were mixed as expectation for a wind down of the stimulus package any moment from now in US remains a source for concern for investors. The Feds remain optimistic that inflation will improve,a situation that boosted expectations for rate hike to levels that would have a neutral effect on the economy.
In Europe, economic confidence has soared to its highest level in a decade as the region regains momentum. In Asia, China’s confidence among small and medium sized companies posted a strong rebound in July as steel traders and producers expressed confidence in the economy. In Japan, inflation matched expectations as consumer prices rose by 0.4% year-over- year. That however remains well below the BOJ target of 2%.

Back home, the All-Share Index opened the week on a positive note, gaining 1.86%, which was sustained on Tuesday, Wednesday and Thursday when it gained 2.54%, 3.40% and 1.39% respectively. The market suffered a 1.02% pullback on Friday to close the week higher at 8.40% gain.
The ASI and other sectoral indexes for the period closed the week higher, except for NSE ASeM closed flat.
The week’s transaction, measured by aggregate volume and value, were down by 39.12% and 12.18% respectively to 2.21bn shares, down from the previous week’s 3.63bn units, worth N30.64bn, compared to previous week’s N34.89bn.

At the end of last week’s trading, Conoil topped the advancers log with a gain of 21.41% to close at N36.40, driven by market forces and expectation of better Q2 numbers, followed by Presco’s 20% gain to close at N73.20 also on expected Q2 numbers. The decliners’ logon the other hand was led by Cadbury Nigeria and Morison Industries, which lost 18.17% and 17.58% to close at N10.45 and N1.36 respectively, following the unimpressive numbers posted by Cadbury.

Market Outlook
The market is expected to be mixed this week as few companies will release their numbers ahead of the July 31 deadline and profit taking from the current uptrend to watch the next trend after the end of the reporting season.
Bearing all these in mind,investors should position in stages in valued 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,
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https://investdataltd..com.ng/2017/07/market-update-for-week-ended-july-28.html

CORPORATE ACTIONS JULY 31, 2017

https://investdataltd..com.ng/2017/07/corporate-actions-july-31-2017.html

MARKET ROUNDUP FOR JULY 2017


At the end of July on Monday, the Nigerian Stock Exchange (NSE) recorded its third best month in 2017 to continue five consecutive months of up market that was sustained by the increasing confidence of foreign and domestic investors on the strength of improving economic and market fundamentals that were majorly driven by the sustained intervention of the Central Bank of Nigeria (CBN)in the nation’s foreign exchange market. In particular, was the creation of FX products such as the import and export, Small and Medium-scale Enterprises windows, among others that had helped to relatively support the continued appreciation of the Naira, while ensuring a stable exchange rate.

The nation’s external reserve also benefited from an inflow of foreign direct or portfolios investments in the process, while driving positive macro-economic data, improving corporate earnings and consumer confidence all of which now point to real economic recovery. They also provide pointers showing that the nation is gradually coming out of recession even when the fiscal authorities are yet to do the needful to hasten the recovery process. A change in fiscal policy reforms, structural adjustment, early disbursement of capital project funds and real change in implementation style of the government will further boost the recovery, productivity and the nation output that support growth.

The bull rampage during the period under review was obvious in the 21 trading sessions of the month, during which the market was up for 16 trading sessions and down in just five, wiping away two-year loss position, resulting a year-to-date gain of 33.40%,attributed to factors mentioned above, to make the Nigerian Stock Exchange (NSE) closed the month higher and rank number one in terms of YTD return in Africa and among the best performing in the globe, despite other challenges. The unprecedented improvement in the listed companies’ fundamentals and the economic recovery made the equities attractive even as many remain undervalued with high margin of safety.
Meanwhile, the benchmark NSEAll-Share Index for the month of July gained 2,730.27 points to close at 35,847.75 after touching high of 37,655.46 and low of 32,149.69 within the month from the 33,117.48 it opened, representing a 8.24% growth over the period on a strong buy-market position that impacted on stock prices to hit a new three-year high within the month.

The buying volume of total transactions for the month was 67%, while selling position was 33% to continue the five months of bull-run,while volume index for the period was 1.00. Market capitalisation for the month gained N990bn to close higher at N12.35tr, from an opening value of N11.45tr, representing a 7.86% appreciation in value. The market sustained a bullish sentiment for stocks, especially with the export and import window of the CBN foreign exchange stabilizing, helped by the improving liquidity, added to inflows from oil companies and financial institutions which matched the market’s supply side, supporting the Naira’s appreciation against other currencies.
Traded volume for the month was down by 37.0% to 6.58bn shares from 10.45bn in the preceding month.

The ASI’s year-to-date gain stood at 9.76%, just as market capitalisation for the same period adjusted up to N950.7bn, representing a 10.21% gain YTD from the opening value.
Market breadth for the month waspositive with the advancers outnumbering the decliners in the ratio of 44:37 to continue the bull transition despite the pullback on the last two trading session of the period due to profit booking.
The sectoral performance chart below shows that NSE Banking and Industrial indices drove the market the most in the month under review. While the banking index gained 11.50%, its industrial counterpart notched 11.49%. as they outperformed the composite index NSEASI during the period, followed by the NSE Premium which rose by 9.66% to reflect the high tempo of activities in Zenith, FBNH and Dangote Cement. This was followed by the NSE Lotus index, which moved 9.07% up, to reveal investors’ interest in blue-chip stocks, amidst their low Price-To-Earnings attraction in the sector. Other sectors that closed up during the month were: the NSE Consumer Goods, NSE Main Board, NSE 30, NSE 50, NSE Insurance and NSE Oil/Gas. The NSE Asem, was the only sector that closed in the red, shedding 1.09% to reflect investors and traders low confidence in small listed companies.




The month’s best performing stocks were Okomu Oil, which rallied on the strength of strong numbers and general bull market, gaining 36.83% of its opening price; followed by Dangote Sugar, which appreciated by 33%; while insurance company- NEM chalked all of 27.62%; and Honeywell Flour, 25%.
Low, medium and high cap stocks among the top gainers for the month included: Forte Oil with 23.23%; C&I Leasing, 20.57%, Continental Reinsurance, 20.17%, ETI, 18.11% and Zenith Bank, 17.81%; among others.

Best Performing Stocks in July
Securities
Sector
Open
Close
% Change
Okomu Oil
Agribusiness
58.49
80.03
36.83
Dangote Sugar
Consumer Goods
9.00
11.97
33.00
NEM
Insurance
1.05
1.34
27.62
Honeywell Flour
Consumer Goods
1.76
2.20
25.00
Forte Oil
Oil/Gas
50.07
61.70
23.23
C& I Leasing
Services
0.62
0.74
20.57
Continental Reinsurance
Insurance
1.19
1.43
20.17
ETI
Financial
13.57
16.50
18.11
Zenith Bank
Financial
20.89
24.61
17.81
Airservices
Services
4.50
5.26
16.89
Fidson Healthcare
Healthcare
2.78
3.02
15.83
BetaGlass
Industrial Goods
52.17
60.34
15.66
Cutix
Industrial Goods
2.00
2.31
15.50
Lafarge Africa
Industrial Goods
50.00
57.72
15.44
Avoncrown
Industrial Goods
1.04
1.18
13.46
Skye Bank
Financial
0.60
0.86
13.33
Source; Investdata Research

The worst performing stocks for the period were led by University Press, which lost 22.69%, linked to the company’s unimpressive full-year and Q1 numbers released recently; Cadbury Nigeria lost 21.64%as a result of its weak performance; just asMorison Industries declined by 21.21%; May & Baker, 20.88%; and Conoil,18.31% on the back of profit taking by investors.

Worst Performing Stocks in July 2017
Securities
Sector
Open
Close
% Change
University Press
Service
3.57
2.76
22.69
Cadbury
ConsumerGoods
14.00
10.57
21.64
Morison
Healthcare
1.65
1.30
21.21
May & Baker
Healthcare
3.88
3.07
20.88
Conoil
Oil/Gas
44.56
36.40
18.31
Livestock
Agribusiness
0.95
0.78
17.89
AG Leventics
Conglomerates
0.86
0.72
16.28
UBN
Financial
6.12
5.24
14.38
CCNN
Industrial Goods
71.50
65.05
9.02
Guinness Nigeria
Consumer Goods
0.83
0.81
2.41
Source: Investdata Research Chart view of July market.


NSEASI MONTHLY TIME FRAME




Where To Invest And Expectations For August & September
The global economy has remained unstable despite the gradual recovery. In Europe and the U.S, the near-term growth outlook remains unpredictable, as political and economic uncertainties threaten the moderate recovery in investment and better labour market conditions. At the same time, economic activity in several large emerging economies has strengthened, amid a rebound in international trade and relatively higher global commodity prices that had remain unstable anyway.
There are equally concerns over North Korea’s continuous testing of missiles at a time of political risk, even as oil prices continue to fluctuate in the international markets. All these factors have kept the level of global uncertainty high. There are also the unstable fiscal and monetary policies around the world, as stimulus is gradually being withdrawn.

Back home, the seeming positive economic data that supported the recovery move in the system for the past five months is likely to continue if urgent steps are taken to start implementing the 2017 budget to bring the Economic Recovery and Growth Plan (ERGP) into action to complement the CBN’s effort at boosting productivity that will create employment and sustain the ongoing recovery. Reasons for this are not far-fetched, given the relative peace and security that have since returned to the nation’s troubled Niger Delta region and stability in oil output, all of which would impacted the nation’s revenue positively in the coming months.
In August, we expect inflation figure for July to be released by the NBS and continue to nosedive further; just as Purchasing Managers Index (PMI) is expected to improve again in order to support the seeming recovery in Nigeria’s manufacturing sector as Q2 numbers from the sector surpassed market expectation.

The May year-end accounts that are expected in the month are few so it would not impact much on the market but with investors and analysts interpreting the recent scorecards to reposition and balance their portfolios ahead of Q3 will keep the market oscillating in the new month. The recent Q2 numbers are expected to strengthen market fundamentals as business environment continue to look up. The low valuation in the market despite the recent rally in many stocks still remain undervalued on the strength of the intrinsic value that should guide the investing public to know where to look while seeking to invest profitably for the rest of the year.
Traders and investors who understand the importance of combining fundaments and technical analysis in making investment decisions in the stock market should take this opportunity of pullback to position in some sectors for short, medium and long term gains, especially in the fast moving consumer goods, banking, agribusiness, building material, oil and gas after carefully study of the recent price pattern and fundamental data available in the market.

What to expect in August and September
Release of May full year earnings as August is the end of the statutory 90-day for audited results. This numbers from blue-chip companies may strengthen market fundamentals, if positive.
The oscillating trend of equity prices as a result of repositioning of portfolio along the line of positive numbers and profit taking.
Market outlook for the new month remain mixed as less quarterly and full year are expected. But with the positive sentiment and strong momentum as the market expect, the economic recovery to be strengthened with the implementation of 2017 budget and CBN sustaining its intervention in the FX market that had boosted liquidity and confidence in the economy and market which has impacted business activity as revealed by recent corporate earnings.
The relative low price to earnings in market may further attract demand for stocks, but invest wisely, using bids, offers and volume when taking decisions as a trader.
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.
Let numbers released by companies guide you decision and time to stay in that position.

To learn how to manage trading risk, get INVESTDATA comprehensive stock market trading and investing home study pack where short trading strategies and how to identify quality companies to invest before the market look toward ii were discuss.


http://investdataltd..com/2017/08/market-roundup-for-july-2017.html

UNION DIAGNOSTIC: IMPROVING PROFITABILITY CUTS ACCRUED LOSSES TO PAVE WAY FOR DIVIDEND


Union Diagnostic & Clinical Services Plc, last week made its half-year earnings report available to the investing community, earlier than the release date in for the 2016 scorecard, further whetting the appetite of shareholders even as its track record continues to reveal improvement on quarterly and yearly basis, despite the harsh economic conditions militating against its growth.
The company’s high Net Profit Margin of 19.85% shows improved efficiency in managing its operational costs, supported by the earnings capacity over the past three years which has helped to reduce the accumulated losses, thereby paving way for payment of dividend to shareholders. Already, the accumulated loss position dropped by 66.06% to N179.19m, thereby shortening investors’waiting period for reward, such that price starts responding to the company’s impressive performance. Added to this is the company’s plan to expand into providing hospital services for the good of Nigerians; with government policy in the health sector to encourage local content.
The company’s technology-driven operational processes and its increasing network of operating offices have supported top and bottom-lines that continue to point northward. The Q2 numbers consolidate its first quarter position to point to where the company will be at the end of this financial year.

The 2017 half-year revenue rose by 9.1%from N654.95min 2016 to N714.36m, driven by improvements as shown in the innovations, effective service delivery and cost management that helped to eliminate waste.
This improved earnings report confirms management's strong determination to build and preserve value for shareholders, as the company moves to wipe off the accumulated losses as quickly as possible to enable it begin paying dividend.
The cost of financing the company's borrowing inched marginally by 3.45% to N3.48m from N3.36m in 2016, which when added to the hike in expenses recorded for the period did not impact its profit level negatively. The profit for the period was N141.8m, up from N123.19m in the corresponding period of 2016.

With Union Diagnostic's financials trending up, we foresee higher earnings at the end of current financial year that would sufficiently clean up the accumulated losses and enhance dividend payment along with share price appreciation on the floor of the exchange soon.
The stock is currently selling at a par value of 50 kobo with low risk that indicates value for discerning investors, especially with Book Value currently at N1.19 and Price to Book Value of 0.42, which means investors are paying less for the company's net assets.
Moreover, the second quarter Price to Earnings Ratio of 3.13x, indicates that Investors’ waiting period has reduced, as a result of the improved earnings, from 3.58x in 2016.

UNION DIAGNOSTIC PLC
SIX MONTHS REPORT FOR 2017
COY
2016
2017
% Chg
(N)
(N)
Date Released
August 1, 2016
July 27, 2017

Price as@Rel.Date
0.50
0.50

Gross Earnings
654,952,772
714,364,863
9.07
Profit After Tax
123,954,522
141,797,456
14.40
Shareholders' Fund
3,864,759,595
4,213,553,890
9.07

Earnings Per Share
0.03
0.04
33.33
PE Ratio
3.58
3.13
-12.6
Earnings Yield
6.98
7.98
14.33
Book Value
1.09
1.19
9.17
Price/Book
0.46
0.42
-8.70
ROE (%)
3.21
3.37
4.98
Profit Margin
18.90
19.85
5.03

Dec
Dec

SOURCES: COMPANY DATA & INVESTDATA RESEARCH

Valuation/Recommendations
The continued improvement in the company's earnings is a major source of attraction for all stakeholders; regardless of the ongoing economic situation as investment risk in Union Diagnostics is almost zero. With the progress recorded so far on quarterly basis, there are indications that the company would beat earnings forecast for 2017, based on the fact that government at the federal and state levels are eager to concentrate efforts on improving the nation's health care system.
The current Book Value of N1.19 per share and profit margin of 19.85% signifies that the stock is now undervalued at the current market price, on the strength of its Q2 Price-Earnings ratio and Price to Book, while being okay for the market is low in its sector.
The share price of Union Diagnostic is fairly and technically placed at N1.00 as future earnings performance will determine any further review.
The continued repositioning of its operations and services to deliver satisfactory services has started yielding results and ready to begin dividend payment soon.

History
The company was incorporated in 1994 and listed on the Nigerian Stock Exchange in May 2007 and has the capacity to provide services ranging from Sonology, Colour Doppler imaging, X-ray imaging, to Electrocardiography and Endoscopy. Others include: Computed Tomography (CT) Scan, Magnetic Resonance Imaging (MRI), Echocardiography (ECG), Electroencephalography (EEG), Electromyography (EMG), Cytology and Toxicology. The company is also able to undertake DNA testing (thereby saving the nation huge foreign exchange), to laboratory services, including Immuno Assay, among others.

UDCS Plc currently has presence in 16 states,operating from 21 branches, which makes it the largest diagnostic firm in West Africa. This is besides having the most extensive workload as per its 2014 reported statistics of more than 300,000 clients per year, mainly referrals from hospitals, clinics and other laboratories as a result of its technology and new equipments for effective and efficient services. Its relationship with state governments and health authorities has boosted revenue and clientele base.
Share Holding Structure
Dr. A.O. Akinniyi
8.10%
Senior Design Ltd.
12.80%
Mr.E.A. Akingunoye
9.80%
Foyin Chemist & Stores Ltd.
9.80%
Merrybome Investments Ltd
7.70%
Rosel Communications Ltd
9.20%
LifeCare Partners
14.10%
Others Nigerians
28.5%
Other Statistics
Shares Outstanding
3,553,138,530
Opening Price (2017)
N0.50
Closing Price as at July 28, 2017
N0.50
Date Listed
May, 2007
Year End
December 31


The company’s earning capacity in Q1 and Q2 ’17 were up to its comparable period’s figure to maintain uptrend, investors are yet to react to the numbers when compared to the selling price of the company's stock, knowing that the quarterly earnings are better and looking up. This is a pointer to the fact that the company will start paying dividend, going forward. The price movement of the equity in the current financial year has been weak, remaining static at 50 kobo per share, regardless of the small float due to its shareholding structure.

Management

From the foregoing, there is need for management to continue its proactive plans of capturing more market share, especially the recent expansion into more states to support the building of top and bottom lines.

Five-Year Performance Analysis

Looking at the numbers posted over a five-year period, it is obvious that the business environment has remained very challenging for the company in the face of decaying and inadequate infrastructure, particularly in the power and transport sectors. Repairs and other costs impacted performance negatively, just as increasing competition from the cottage industries in the same laboratory business.
But then, a cursory look at the company's five-year (2012 to 2016) financials reveals two years of loss position and three years of sustained profitability that today gives investors hope of receiving dividend after about six years. The profit of the last three years in the period is now being used to wipe off the accumulated loss.
Union Diagnostic's turnover for the period was up from N904.21m in 2012 to N1.55bn, representing 71.36% growth.

Meanwhile, the company experienced a mixed profit performance, recording a loss for two straight years before returning to profit in 2014, a situation that has been sustained till date.
Specifically, the loss level soared from N5.55m in 2012, to N995.90m in 2013, before recovering the following year with aN111.18m profit, which rose to N316.89m in the 2016 full-year. This is a good signal that the company has come to stay in the path of profit and to reward its shareholders in no distant time.
Shareholders' fund on the other hand currently stands at N4.07bn from N4.45bn recorded in 2012. The non-payment of dividend by the company is a function of its loss for a long time, but with the recent year's improvement in earnings power, investors should anticipate dividend payment very soon.

Estimated Performance Ratios
The company's financial ratios for the period under review shows that the amount earned by investors and management were better at N0.09 in 2016 from a loss per share of N0.23 in 2013, while 2012 recorded mild loss per share of -0.00, a reflection of the company's unstable earning power. P/E ratio is relatively okay at the current estimate of 5.61x from the negative high of 320.09x in 2012. The last full year EPS is a yield of just 17.84% of the market price as of the release date. This simply signifies an improvement on the stock valuation by the market as against the posted numbers.

This is further shown in the Book Value that ranges between the low of N0.97 and high of N1.28. Putting the ratios and the market price of the stock side-by-side signals opportunities for medium and long term investors. The profit margin of the company has returned to positive with improvement in its cost management as revealed by the scorecards to remain above the international average of 15% profit margin.

https://investdataltd..com.ng/2017/07/union-diagnostic-improving.html

ECONOMIC RECOVERY,STRONG MARKET FUNDAMENTALS SUPPORT PRICES AS Q2 NUMBERS INSPIRE INVESTORS

All over the world, the stock market is acknowledged as a leading indicator and a discounting machine, which points to future expectations from any economy because almost all major sectors of that economy are represented.
In the same way, it equally factors the expected future of the economy into prices of equities listed, which means that 50 to 80% of the economic and market fundamentals influences equity prices. While the performance of a company has 20 to 30% impact on its share price since the industries and sectors are integral parts of the economy at any time.

Contrary to fears some investors may be entertaining at the moment, if any, the current rally of Nigeria’s stock market is not artificial,given that the bourse has suffered three consecutive years of negative growth. This resulted from the effects of an unholy combination of multiple evils such as: Low consumer confidence, low oil price at almost $28 in January 2016, low national output that resulted in economic recession, as well as a seeming lack of focus and direction by the Federal Government on the economy at the beginning of the Muhammadu Buhari administration.
As if these were not enough damage already, and due to the impact of the above, the Naira came under severe attack from official and unofficial devaluation, made worse by the import dependent nature of the Nigerian economy and high interest and inflation rate, all of which affected the economic and market fundamentals, with disposable income among many Nigerians seriously hampered.

As a result, many state governments and private companies owed workers’salaries, which also affected purchasing power, resulting in many company products being left to gather dust on shelves of many stops, following which warehouses were filled with unsold inventories.
With the poor sales came a drop in earnings capacity of companies, even as operating costs of companies continued to bloat helplessly, as a result of which many of them started posting losses. With these manufacturers unable to repay their loans to banks, non-performing loans of the industry soared further, following which many of the banks were unable to pay dividend to their shareholders at year-end, because they had to make the huge loan loss provisions in line with regulatory requirements.

But since the Central Bank of Nigeria (CBN) began tackling the supply side of the nation’s foreign exchange market which was identified as the major problem, the story of Nigeria’s economy has been reversed to what we are seeing today that is attracting inflow of foreign exchange in form of direct and portfolio investment. This also equally rekindled domestic investor confidence due to positive data in the last five months pointing to economic recovery,which is currently being driven solely by monetary policy. Expectations are that the fiscal authorities will brace up and begin to do the needful, a situation that would further fast-track recovery, knowing that without a thriving economy, there is no politics.
Performance of the domestic equity market, when compared to the global markets is relatively in order, because improving economic fundamentals have started impacting positively on the listed companies as revealed by their first quarter numbers and reinforced in Q2 figures now being released that support the current prices of stocks on exchange.

Even then, the share prices of many companies on Nigeria’s stock exchange are still undervalued. Only a few companies are overpriced due to market sentiment for those particular stocks.
Price to earnings ratios of quoted companies are below 15x, dividend yields of majority are above 4%, economic growth is expanding, unemployment rate as at December 2016 was 14.2%,industrial production growth is equally expanding as revealed by the Purchasing Managers’ Index(PMI) remained above 50 points in the past three months, inflation figure is on the decline in the last five month, FX market performance remains strong with improving liquidity and 10-year Federal Government bond yields and interest rates at 16.18%.

This review is intended as a tool for both reference and ideas generation at a time many people have expressed palpable fears that the market is set for a huge correction. You may however choose to take profit and still keep your eyes on the market with the earnings reporting season at its peak, boosted by strong investor confidence, positive economic data and strong liquidity in the import/export window of the FX market.

This is first stop for basic background info on how the economy is performing, and what issues are driving the economy. This will help you get up to speed on and keep track of the basics for the most important sectors and industries in the economy, informing starting points for further research and risk management. As you keep your eyes on the CBN intervention that is driving the economy and market, get INVESTDATA home study pack to understand market timing and the four phase of the market to protect your capital and manage trading/investing risk.

Grab your pack now and ride with the recovery stock market and economy.
The workshop video can be view in your phone, laptop and television. The cost of the home study pack is N20, 000 including DHL delivery at your door step. Payment should be made into Investdata Consulting Ltd, Zenith Bank 1013033032. When payment is made, kindly send details to 08032055467,


Money Management: Banking Stocks To Buy For Juicy Interim Dividend Income

Money management in equity trading and investing is very important, particularly when it comes to picking the right stock at the right time, especially now that the market is eagerly expecting the Q2 financials of banks, insurance and petroleum marketing stocks with a history of interim dividend payment.
Investment is all about expectations and returns.
Consider this simple mathematics of profitable trading/investing: Dividend history of banking stocks in Nigeria shows that Guaranty Trust Bank pays interim cash dividend of 25 kobo; United Bank for Africa, 20 kobo; Zenith Bank, 25 kobo; and Access Bank, 25 kobo; while Stanbic IBTC has over the years been inconsistent with its interim dividend payout.

Simple investment analysis for beginners is that in today’s market, while you can with the sum of N100,000 as seed capital purchase 2564 units of GTBank; the same amount would fetch you 10,000 units of UBA; or 4000 units of Zenith; and 9523 units of Access Bank.

Now, while your dividend income, not excluding holding tax in Guaranty, is: N641, UBA, N2000; Zenith Bank, N1000 and Access Bank, N2381. While you should decide for yourself which of the stocks gives you the greatest happiness, let the above analysis guide you as buy banking stocks for interim dividend in this earnings season and beyond.

Simple Mathematics of Profitable Equity Trading Return of 1% in a Week for one years, is shown on the table below. Where 67% is attained at the end of the year with diligent, consistent and discipline in trading your plan. For stocks that should be on your shopping list to buy in this oscillating or recovery market to achieved 4% in week, sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

https://investdataltd..com.ng/2017/07/economic-recoverystrong-market.html

MARKET UPDATE FOR AUGUST 2, 2017

NSE INDICATORS CLIMB HIGHER, AS INVESTORS REVALUE STOCKS ON Q2 NUMBERS


Nigeria's stock market indices had an interesting midweek trading session to continue its volatility after opening to the downside, coming up strongly by the afternoon to an intraday high of 36,905.06bp From that point they had a nice and long serve back, taking back the majority of the pullback, following which the session ended positive to consolidate gains recorded beginning from the first trading day of the month, as value investing on the strength of the Q2 numbers remains one of the factors to drive market in August.
The manufacturing sector's Purchasing Managers' Index (PMI) for the past four months has been stable in its expansion trend to close July at 56.3, from 55.9 in previous month, indicating improvements in the nation's production capacity. Nigeria was not alone, as global manufacturing activities grew for a 17th consecutive month in July, up 0.10 point to 52.7, according to JP Morgan-IHS manufacturing purchasing managers' index. This means that Nigerian has joined the world's improving manufacturing sector again to support the positive economic data that further confirms that the economy is fast recovering from recession.
Back home, Wednesday’s volume traded index was 0.73; with buying position of 100% and selling volume, 0% of total transaction.

The demand pattern for blue-chip stocks during the earnings reporting season and after indicates value positioning among market players as the recent corporate earnings, which has supported the bright picture of economic growth. This is provided that the government judiciously implements the 2017 budget to hasten the economic recovery process and then move it to growth stage. In the process, it will support the economy and market fundamentals to drive consumer confidence and stock prices, especially given that many of the stocks traded on the exchange are still undervalued. While few others are entering the overpriced region, they continue to ride on the recent bull-run, even asthey still have strong intrinsic fundamentals.

Meanwhile, at the close of trading, the benchmark NSE All-Share Index gained 184.44 basis points to close at 36,905.06 after touching a low of 36,252.17 from an opening figure of 36,720.62 points, which represented a 0.50% growth. Volume traded for the day was lower than previous sessions, even as market capitalisation went up by N64.38bn to close at N12.72tr, from the opening value of N12.66tr, also representing a 0.50% value gain in investors portfolios.

Price appreciation in the share prices of Lafarge Africa, Guinness, Flour Mills, NB, Stanbic IBTC, Zenith Bank, Dangote Sugar, UBA, Forte Oil, Oando, Nestle and Guaranty Trust Bank boosted the All-Share index year-to-date returns to 37.32%. Also, market capitalisation over the same period improved by N3.47tr, representing a 37.56% growth on the year’s opening value.
Market breadth for day remained positive as the number of advancers outpaced decliners in the ratio of 31:17 on a low volume of trades to extend the two-day up market. Trading activities in terms of volume and value were downby 70.46% and 95.98% respectively at 251.01m shares worth N3.78bn, from the previous day’s 874.61m units valued at N94.05bn.

Transactions in the shares of Transcorp, Fidelity Bank, FBNH, Zenith Bank and Guaranty Trust Bank topped the volume chart to close the session.
At the end of trading activities also, C & I Leasing topped the advancers’ log, gaining 10.00% to close at N0.88 each on market forces. It was followed by Lafarge Africa with a 5.00% gain to close at N57.75 per share, on impressive Q2 numbers and the prospect of increased spending on infrastructure development by the government in the coming months.
On the flipside, Okomu Oil led the decliners’ log after dropping 5.00% to close at N72.25 per share on market forces and profit taking, ahead of Continental Reinsurance, which lost 4.93% at N1.35 per unit on profit taking.

TODAY’S OUTLOOK
As trading opens this morning, the market is expected to continue it mixed reaction to the Q2 numbers released recently, as surprising numbers are receiving positive reactions, while treating disappointing earnings otherwise, as interpretation of the umbers in relation to market value continues.
However, investors need not panic if any pullback occurs now due to profit booking, if they have taken position based on strong numbers and future prospects of any stock.
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.
Be reminded once more that industry potential, market timing are 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. Market is in phases know it in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy.
The workshop video can be viewed on your phone, laptop and television set. The home study pack costs N20,000 including DHL delivery at your door step. Payment should be made into Investdata Consulting Ltd, Zenith Bank 1013033032. Afterwards, kindly send payment details to 08032055467.


MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2017/08/market-update-for-august-2-2017.html

MARKET UPDATE FOR AUGUST 3, 2017

INDICATORS CLIMB HIGHER AS ALL EYES ON INTERIM DIVIDEND PAYING STOCKS

The equity market on Thursday had another mixed session, as it extended its gaining momentum to consolidate a three-day rally on high transaction volume.
The session started out with the indicators moving slightly downward and thereafter the index had a strong surge back by afternoon to cross another 1000 point threshold to 37,135.23 basis points. The gain came on the back the rebound in some equity prices to their three-year new highs on the strength of improvements in their recently released Q2 numbers that surpassed market and analysts’ estimates.

Interim dividend expectations in banking stocks that are yet to release their half year scorecards have kept transactions in these stocks high, with investors and traders positioning ahead of announcement of their numbers. The statement interest is fueled by the fact that all of the banks with history of interim dividend payment have sent their Q2 audited accounts for approval by the Central Bank of Nigeria (CBN) before they are presented to the investing community through the Nigerian Stock Exchange (NSE).
Meanwhile, in a bid to further boost the import and export window of the FX market, the CBN has introduced screen display of exchange rates to attract more green back, while the phone trading is still in use. This is to further compliment the apex bank's effort at exchange rate convergence in the nation to a single exchange rate. Already, the gap between the black market and official exchange rate is close.

Meanwhile, investors and analysts are expecting government to fashion complimentary fiscal policy
measures that will quicken economic recovery and further attract foreign exchange inflows in the form of direct or portfolio investments.
Thursday’s volume traded index was 1.05; with buying position of 100% and selling volume, 0% of total transaction that revealed more buying pressure which support the lingering up market. This is especially as portfolio rebalancing continues based on companies improving fundamentals as shown in their earnings reports so far in this current financial year.

Meanwhile, the composite NSE All-Share Index gained 230.17 basis points to close at 37,135.23bp, breakout the psychological line of 37,000 after opening at 36,905.06 points. This represented a 0.62% growth on a higher volume traded when compared to the previous sessions, even as market capitalisation rose by N79.33bn to close at N12.8tr, from the opening value of N12.72tr that represented a 0.62% appreciation in investors trading positions.

The upturn in the share prices of medium and high cap stocks impacted the All-Share index year-to-date returns to 38.18%. Also, market capitalisation over the same period improved by N3.52tr, representing a 38.58% growth on the year’s opening value.
Market breadth for day still remained positive as the number of advancers outnumbered decliners in the ratio of 25:17 on a high volume of trades to extend the three-day bull rally. Trading activities in terms of volume and value were up by 64.18% and 25% respectively at 412.12m shares worth N4.72bn, from the previous day’s 251.01m units, valued at N3.78bn.
Transactions in the shares of Livestock Feeds, Access Bank,Guaranty Trust Bank, Transcorp and Zenith Bank topped the volume chart during the session.

At the end of trading activities also, Dangote Sugar topped the advancers’ table, gaining 9.80% to close at N14.00 each on impressive Q2 numbers and the 50 kobo interim dividend. It was followed by C & I Leasing with a 9.09% gain to close at N0.98 per share, on market forces.
On the flipside, Cutix led the decliners’ table after dropping 5.00% to close at N2.09 per share on market forces and profit taking, followed by NPF Microfinance that lost 4.76% at N1.20 per unit also on profit taking.

TODAY’S OUTLOOK
As trading opens this morning, expect profit taking by traders being the last trading day of the week as the mixed reaction to the Q2 numbers released recently continues.
However, investors need not panic if any pullback occurs now due to profit booking, after taking position based on strong numbers and future prospects of any stock.
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.

Be reminded once more that industry potential, market timing are 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. Market is in phases know it in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

https://investdataltd..com.ng/2017/08/market-update-for-august-3-2017.html

INVESTORS DIGEST Q2 NUMBERS MARKET UPDATE FOR WEEK ENDED AUGUST FOR AND OUTLOOK FOR AUGUST 7-11

EXPECT MIXED WEEK, WITH PROFIT TAKING, PORTFOLIO RESHUFFLING

As at the end of the first four trading days of the month of August, nation’s equity market closed up to continue four straight weeks of bull run, following which the Nigerian Stock Exchange (NSE) year-to-date gain increased to 39.26%.
Looking at the sectoral indices for the period, three sectors are outperforming the general market, while others still closed in the green, leaving only the second tier market’s NSE ASeMalone in the red. Year-To-Date market breadth across sectors remains strong and healthy.
Banking and Industrial sectors are leading, although the consumer goods sector has bounced back significantly since mid-July as revealed and supported by scorecards emanating from the sector.
Since July 31, 2017 was the statutory deadline for the submission of quarterly earnings reports by quoted companies that was within the period under review, were 37 listed companies made available their numbers. Indeed, the numbers to which the market reacted appropriately came mixed to the investing public, as some beat expectations, while others were disappointing, helping to keep the uptrend throughout the week after pulling back at the beginning of the week.

The volume index over the past week was 1.32 with buying position at 97% and 3% selling volume of the total transactions as consumer goods, low priced and high cap stocks remained the toast of investors and traders. This followed the continued reshuffling of portfolios by such investors and traders ahead of subsequent quarterly numbers and more positive economic data, especially amidst expectations that fiscal and monetary authorities will intensify efforts to sustain Nigeria’s recovery to boost economic and market fundamentals that will continue to attract more inflows into the system.

Meanwhile, the composite NSE All-Share Index for period gained 560.44 points to close at 37,425.15 points, from 36,864.71 points, after crossing the psychological line of 37,000 to a high of 37,476.69 and low of 35,444.00, representing 1.52% growth on a huge transaction volume. Similarly, market capitalisation for the period closed higher at N12.9tr from an opening value of N12.71tr, representing a 1.53% appreciation in investors’ portfolios position.

The top performing stocks table for the week was dominated by low and medium cap stocks, as investors, analysts and traders continue to digest the recently released company quarterly earnings reports, following which that are either disposing due to disappointing numbers, or taking position in companies with up-trending earnings that will support future rally and dividend at the end of the day.
Despite the slowdown in the weekly market breadth, upturn in the share prices of low and medium cap stocks pushed the NSEASI’s year-to-date return to 39.26%, just as market capitalisation appreciated by N3.78 trillion, representing a 39.75% gain from the year’s opening value.
Market breadth for the period was positive with number of advancers outweighing decliners in the ratio of 38:28 on a huge volume of trades to remain bullish in the four-day week, with Friday gain increasing the trending momentum thereby strengthening the up market.
International markets were mixed as oil commodity traders are exiting their future position as price continue to dwindle amidst political tension in developed economies and market due to comments by U.S President Donald Trump on world trade, North-Koen missile testing, Brexit as well as mixed corporate earnings.

Britain’s FTSE 100 and Germany‘s DAX closed up over the past week while Japan’s Nikkei and U.S market indexes were mixed despite the positive labour market data that shows 209,000 jobs were created in July, better than what economists expected, just as unemployment rate fell to 4.3%, while average hourly earnings increased by just 2.5%, compared to the amount a year ago,an indication that inflation can be contained.
In Europe, retail sales unexpectedly jumped 0.5% in June which was well above analyst expectations of 0.1%, even as preparations for the eventual exit of Britain from the zone continues to exact pressure on that countries economy, which is not unexpected. A pointer to this is the contraction in the British economy as shown in its Purchasing Managers’ Index which remains below 50 point. In Asia, China is expected to report strong growth in July, although a high trade surplus could spark problem with the U.S., given President Trump’s stance.

Back home, the All-Share Index opened the week on a negative note, losing 2.76% as investors took profit, while engaging in month-end portfolio rebalancing activities. This was reversed in the second trading day, when the NSE All-Share index notched 2.54%, beginning another uptrend that was sustained till Friday. In the four-days, the NSEASI gained 0.50%, 0.62% and 0.78% respectively to close the period higher at 1.52% gain.
The benchmark index and other sectoral indexes for the period closed the week in green, except for NSE Banking and NSE Industrial which were in red, after shedding 1.64% and 3.05% respectively, even as the NSE ASeM closed flat.

The week’s transaction, measured by aggregate volume and value, were up by 16.74% and 272.45% respectively to 2.58bn shares, from the previous week’s 2.21bn units, worth N114.12bn, as against previous week’s N30.64bn.
At the end of last week’s trading, C & I Leasing topped the advancers log with a gain of 44.93% to close at N1.00, driven by market forces; followed by Dangote Sugar’s 37.27% gain to close at N14.91 on impressive Q2 numbers, especially with plans by the directors to pay an interim dividend of 50 kobo per share. The decliners’ logon the other hand was led by Morison Industries, which lost 16.91% to close at N1.13 on market forces, ahead of the 12.4% slide by Red Star Express, which closed at N4.38 per share, following adjustment of its price for the 40 dividend proposed by its board at the end of its last financial year.

Market Outlook
The market is expected to be mixed this week due to profit taking and portfolio reshuffling on the strength of the Q2 numbers released recently as analyst, investors and traders study the numbers to take trading and investing decision.
Bearing all these in mind,investors should position in stages in valued stocks with high upside potentials, despite their current prices on the exchange as many are still undervalued.
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

https://investdataltd..com.ng/2017/08/nvestors-digest-q2-numbers-market.html

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED AUGUST 4, 2017

DANGOTE CEMENT BEATS EXPECTATIONS, AS PAN-AFRICAN EXPANSION IMPACTS NUMBERS
Image result for DANGOTE CEMENT BEATS EXPECTATIONS



The management of Dangote Cement Plc recently presented its half year earnings report to the investing public, same date it was released a year ago to demonstrate its high level of corporate governance, as seen in the consistent provision of quarterly and full-year results to enable investors forecast and plan their investment.
The company consolidated its strong footing in Q1’17 by growing revenue and profit, helped by the continued market expansion and investments across the continent where Dangote Cement is fast turning into Africa’s cement hub. This has been particularly helped by capacity expansion and widening of its distribution network across the continent and beyond to support infrastructural development that will drive economic development and growth.
The recent sale of 412.2m shares, representing 2.3% stake of Dangote Industries Limited in the company was sold to foreign investors, that an indication that the company's capacity building efforts and investment in many Africa countries remains an attraction, especially with its earnings power looking up to drive future price action.

The impressive Q2 numbers was equally supported by the improvement in the nation FX market, its independent power project to sustain optimal production on coal and the 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 as the company sought to factor in the increasing cost of production as reflected in the profit margin for the quarter. There is hope that the increasing consumption of cement locally will continue in this current financial year till 2018 and beyond.
The top and bottom line for the period under review were up to reflect the improving business environment in the country and region, as sales revenue was up by 41% to N412.68bn from N292.19bn in the corresponding period of 2016. Also half year profitability grew of 39% from N103.42bn in 2016 to N144.04bn.

Shareholders fund for the period was up by 20.94% to N822.06bn from N680.24bn in 2016, reflecting the inflow of investment as well as the growing profitability resulting from earlier investments and expanding market share. Earnings Per Share for the period moved to N8.45 from N6.07 in the corresponding year, a replica of price at 7.25x, which has reduced investors’ waiting period due to the improving earnings, especially when you consider the fact that it is lower than the 7.42x recorded in 2016. The Book Value Per Share for half year stood at N48.28 from N39.92 in 2016, just as Net Profit Margin of 34.90% is an indication of management’s efficiency and cost cutting measures.
DANGOTE CEMENT PLC
SIX MONTHS REPORT
COY
2016
2017

(N)
(N)
% Chg
Date Released
July 28, 2016
July 28, 2017

Price As At Released Date
180.06
244.99
36.06
Turnover
292,191,000,000
412,676,000,000
41.24
Profit After Tax
103,420,000,000
144,044,000,000
39.28
Shareholders' Fund
680,235,000,000
822,688,000,000
20.91
ESTIMATED RATIOS
Earnings Per Share
6.07
8.45
39.21
PE Ratio
7.42
7.25
-2.29
Earnings Yield
3.37
3.45
2.37
Book Value
39.92
48.28
20.94
Price To Book
4.51
5.07
12.42
ROE (%)
15.20
17.51
15.20
Profit Margin
35.39
34.90
-1.38
Year End
Dec
Dec





Source: Company Financial &Investdata Research

The faithful implementation of the 2017 budget, especially the juicy capital expenditure of N2.3tr would necessarily create higher demand for cement, in addition to the private sector as macro-economic indices improving to confirm the recovery of the nation's economy, while influencing production.
Dangote Cement's forex earnings from its operation in 25 countries across Africa will further strengthen earnings and balance sheet over the coming years.

Technical View
The company's price action on a weekly time frame had formed a saucer chart pattern that supports continuation trend that is already on a bullish channel with strong resistant at N250. However,we have noticed that the stock price is pulling back after touching high of N245 declining with the first support level to be N220.




MACD is bullish while MFI is looking up to indicate that funds are entering the stock while RSI is reading 81.43 to show that Dangote Cement is at its overbought region, pointing to an imminent pullback.However, a breakdown of support level will be a good opportunity for new entrants.

Recommendation /Analyst Opinion
The company's operating cash flow for the period is still looking up in the same direction as earnings, an indication that it can sustain earnings growth in subsequent quarters of this year, and in the process drive price during this current financial year.
Short and long term outlook on cement consumption remains strong, in spite of the recession the economy witnessed in 2016, Nigeria’s cement consumption was at the highest (about 24 million tonnes) and looks poised for further growth in 2017 this year. We maintain that the sector will sustain its bullish momentum through 2018 as the Federal Government's determination to develop infrastructure that will quicken the economic recovery on CAPEX gains.
We recommended HOLD for investors with long term horizon, while traders should book profit from the recent rally and wait to reposition at a pullback.



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 @ August,3 2017
N240.00
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 Nigeria into a cement exporter.
Today, its deep penetration into the African market has helped the company significantly boost revenue as a result of the increase in metric tons of cement produced per annum. The company’s good corporate governance remains the driver, helping to sustain performance that creates value for shareholders thereby supporting its: 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

https://investdataltd..com.ng/2017/08/dangote-cement-beats-expectations-as.html

MARKET UPDATE FOR AUGUST 7, 2017



CONTINUED VOLATILITY ON NSE, AMIDST PROFIT TAKING,PORTFOLIO REBALANCING ON Q2 NUMBERS

The Nigerian equity market had a strong start on Monday to continue its intra-day volatility with a gap up, a little bit of a pullback, and then the index rallied again to close the day higher. The composite index went into a bit of consolidation by midday, before closing not far off from the session’s high to continue the five-day bull transition in August tore main a topper forming African and global market. The problem for the market on Monday was that traded volume was low and market breadth closed in the negative.
The Naira continued to appreciate against other major world currencies as a result of the enhanced liquidity in the investor and exporter’s window of the foreign exchange market which had relatively helped to stabilize its value, thereby helping to achieve the much need rate convergence desired by the Central Bank of Nigeria (CBN). This is necessary to further attract FX inflow into the country at a time positive economic data continues to confirm recovery and improving economic and market fundamentals.

The positive Q2 numbers posted by players in the consumer goods sector and the expected interim dividend in the banking sector have attracted high patronage to stocks in both sectors as the investing community continues to interpret and digest the numbers.
Monday’s volume traded index was 0.63; with buying position of 56% and selling volume, 44% of total transaction that revealed selling pressure is rising, despite the positive buying position in the up market.
Meanwhile, the benchmark NSE All-Share Index gained 100.23 basis points to close at 37,525.38bp, after opening at 37,425.15 points which represented a 0.27% growth on a lower volume traded when compared to the previous sessions, even as market capitalisation rose by N34.55 billion to close at N12.93tr, from the opening value of N12.9tr that represented a 0.27% value gain in investors trading portfolio.

Price appreciation in the shares of medium and high cap stocks, especially the fast moving consumer goods impacted the All-Share index year-to-date returns to 39.63%. Also, market capitalisation over the same period improved by N3.81tr, representing a 40% growth on the year’s opening value.
Market breadth for day was negative as the decliners outnumbered advancers in the ratio of 27:23 on a low volume of trades to extend the five-day bull rally. Trading activities in terms of volume and value dropped by 50.63% and 8.02% respectively at 254.49m shares worth N5.8bn, from the previous day’s 515.48m units, valued at N6.3bn.

Transactions in the shares of Access Bank, Zenith Bank,Guaranty Trust Bank, UBA and FBNH topped the volume chart during the session.
At the end of trading activities also, CCNN topped the advancers’ log, gaining 10.16% to close at N10.84 each on market forces and impressive Q2 numbers as the market expect faithful implementation of the 2017 budget and proposed reconstruction of the book haram insurgency ravaged north east geo-political zone to influence performance. CCNN was followed by C & I Leasing with a 10.00% gain to close at N1.10 per share, on market forces and improved numbers.
On the flipside, AXA Mansard Insurance led the decliners’ log after dropping 4.61% to close at N2.07 per share on market forces and profit taking; ahead of sub-sector peer- Continental Reinsurance, which lost 4.32%, closing at N1.33 per unit also on profit taking as traders exit for interim dividend paying stocks.

TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue as profit taking and portfolio reshuffling on the strength of Q2 numbers released recently to influence market players’ decision.
However, investors need not panic if any pullback occurs now due to profit booking if they take position based on strong numbers and future prospects of any stock.
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.

Be reminded once more that industry potential, market timing are 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. Market is in phases know it in order to manage your trading and investing risk.

http://investdataltd..com/2017/08/market-update-for-august-7-2017.html

EIGHT THINGS YOU DO WITH FACEBOOK MESSENGER





For a lot of people, Messenger was that app that you downloaded because Facebook stopped allowing you to send messages in-app (much to the chagrin of many users).
Thankfully, Messenger has come a long way since then and now has some really cool features. According to TechRadar, here’s a list of some of the great things available for you to try on Messenger that you probably don’t know about.

REACTIONS ON YOUR FACE
You know those little reaction emojis that you can put on Facebook posts if a ‘Like’ just doesn’t quite cut it? Now you can put those on your face during a video call. Of course, you do already have your face there doing the reaction for you but the added giant tear drops are a fun feature.
Once in a video chat, you’ll have the options at the bottom of the screen to add filters, masks, and reactions. Tap on the ‘Like’ button and it’ll bring up the different reactions. Try tapping them both with the camera pointed at you and away from you for extra fun.

BOOK A RESTAURANT TOGETHER
Making group plans can be a real pain. But now you can have a chat about where you want to go and when, then in the same app book a table and share the booking with the group, taking all the pain out of the ‘who’s going to ring them?’ conversation.
Simply tap the blue plus symbol in the bottom left of the screen and then open the OpenTable app. What’s even better is that you can share the restaurant info with the group so it’s really easy to suggest places and come to a conclusion that everyone is happy with.

HAVE A SECRET CONVERSATION
If you have sensitive information that you want to share with someone, this is the feature for you. Not only are the messages encrypted from device to device, making it totally secure, you can also set your message to delete itself within a certain time of being seen.
You can enter a secret conversation one of two ways: you either go to start a new message and then toggle the symbol with a padlock (the app will change to a darker color) or if you are already in a chat with the person you want a secret conversation with, you can tap on the i logo in the top right corner of the screen and then ‘Go to Secret Conversation’.

CREATE A SPOTIFY PLAYLIST TOGETHER
The pressure of being passed the AUX cable on a car journey is soon to be a thing of the past. And not just because phone manufacturers are dropping headphone jacks like they’re going out of fashion. You can now create a group playlist on Spotify in Messenger, meaning everyone gets their say in what ends up on the playlist.
In order to start a group playlist, just create a group that contains all of the people you want to have control over the playlist, tap on the blue ‘plus’ logo in the bottom left corner of the screen, then create a playlist and share it with the group. You only get the ability to add one track at a time in the Messenger extension of Spotify. But as long as all the group follow the playlist, they will now all be able to play with the playlist in the Spotify app.

PLAY GAMES
Phone games are fun but arguably more fun when you can play with friends. Well, good news: Messenger has games native within the app. And good games too. You can play Pac-Man, and your friends can play to beat your high score. Or if you want the real interactive experience, you can play Words with Friends.
To start a game, tap on the controller icon in the bottom right hand corner of the app, and then choose which game you want to play. Depending on which game, there will be options for selecting which friends you want to compete against, then away you go.

SHARE A MESSENGER CODE
Getting someone to find you on Facebook is getting more complicated nowadays, with many people sharing the same name. Thankfully, Messenger has a really simple way to find new contacts and start new chats. Each user has his or her own unique Messenger Code that you can scan to start a new chat.
To display or scan a Messenger Code, click on the blue square icon on the bottom of the screen, then click on scan messenger code. You’ll then have the option to either take a picture of a code or display your own. Just point your phone’s camera at the code and you’re in a chat. Perfect if you have an incredibly common name, an incredibly complicated name, or you’re somewhere very loud.

PLAN A HOLIDAY
Deciding on flights, hotels and car hire can be taxing when it’s just you making the decisions. When you have to make a decision with a group of people, it can become a truly excruciating experience.
The KAYAK extension won’t make a decision for you, but it is an incredibly easy way of suggesting ideas to your group. You can search for flights or hotels individually, or even cooler you can use Travel Planner to create a poll of possible destinations and dates, and share with the group so they can all vote on it.
In a chat, just tap on the blue plus icon in the bottom left corner, then tap on the KAYAK logo.

REACT TO THINGS PEOPLE HAVE SAID
Sometimes, people say things in messages that require a reaction, but there are only so many ‘yeah’, ‘cool’ and ‘lol’ responses you can type before you start losing your mind. Thankfully, you can use the same reactions that you can use in Facebook in Messenger.
Next to a speech bubble that someone has typed, there will be a smaller bubble with a little emoticon next to a plus symbol. If you tap on that, you’ll see a range of different reactions that you can apply to that specific comment.
Also, if you just want to show someone that you really like what they said, try holding down the blue ‘Like” button and watch it grow.

TAKEAWAY
Impact of technology on future of urban mobility

As the world increasingly moves towards finding alternative ways to solve some of its most urgent and pressing socio-economic challenges such as health, education, water, transport and shelter, it is clear that technology and innovation are key elements in ensuring these changes are sustainable and scalable.
The General Manager for Uber, Sub-Saharan Africa, Alon Lits, said, “Technology is a crucial element in creating a society that is more efficient and sustainable. Our focus at Uber is on how we can cut congestion, pollution, and parking, as well as provide access to seamless transportation by using private cars for public good. How are we able to achieve this? By using new technology and today’s infrastructure.”
Sharing some global figures, Alon added, “Today, ride-sharing accounts for under four per cent of the miles driven globally. By 2030, that number is estimated to go up to 25 per cent – so imagine the possibilities that lie ahead for mobility.
“In Lagos for example, technology and collaboration between the private and public sector is vital in building transport systems that work. We are pleased about the plans the Lagos State Governor, Mr. Akinwunmi Ambode, has to restructure public transportation in the state. With these sorts of plans in place, it means that there will be less congestion, increased productivity and more efficient modes of mobility.”

Copyright PUNCH.

http://investdataltd..com/2017/08/eight-things-you-do-with-facebook.html