MARKET UPDATE FOR AUGUST 8, 2017



ALL EYES ON FMCGS, BANKING, AGRIBIZ STOCKS AS SMART MONEY INTENSIFIES ENTRY

The nation stock market had a very volatile session on Tuesday and heightened by afternoon to touch a three-year high of 38,005.80 psychological line before closing at 37,999.56 point on low volume of trade to continue six straight days of bullish run. This signals the increasing entrance of smart money into Nigeria's stock market with focus on blue chip stocks that posted stronger Q2 numbers and brighter prospects of higher return based on the improving fundamentals of companies. The hope is driven by the potential recovery of the economy supported by the positive macro-economic indices.
The attraction in Nigeria's stock market remains the low valuation of stocks as a result of currency devaluation suffered earlier in 2015/2016 that made the prices of stocks cheaper, compared to other markets of the world. The low market Price to Earnings ratio of 3.68x is another major factor in favour of the market, helped by the continued intervention of the Central Bank of Nigeria (CBN) in the interbank foreign exchange market which has significantly helped by boosting liquidity to a level that has sustained the Naira's exchange rate. The investors and exporters window that was created in the market was also of great help, as it assured foreign investors of hitch-free repatriation of their capital. All that is left now is for the CBN to do more towards the single rate regime that will further boost inflow to the country, thereby boosting the confidence of investors in the medium to long term.
Another attraction is the nation's relatively robust external reserve at $30.95bn as at last week, despite the continued CBN intervention and the unstable oil price in the international market.

Meanwhile, with the failure of the Vote-of-No-Confidence on President Jacob Zuma on Tuesday at the South African parliament and the economy struggling with recession, many portfolio investors in the country are likely to look elsewhere in the short to medium term for juicy returns. The Nigerian market and economy remains a destination of choice, especially with its economy on the path of recovery as shown by the GDP that is gradually coming from a negative terrain; while the infrastructural challenge that offer investment opportunities particularly for those interested in public/private sector partnership (PPP); added to the fact that many of the listed companies are still undervalued. This is not also forgetting that we are gradually coming close to the November date for the much awaited reclassification of Nigeria into the Morgan Stanley Index (MSCI). The delay at the instance of Morgan Stanley, it would be recalled was to test the ability of the CBN to sustain the robust intervention in the Investors and Exporters FX window that has guarantee this relative stability experienced so far since April.
Back to the stock market, volume traded index on Tuesday was 0.68; with buying position of 99% and selling volume, 1% of total transaction to reveal the rising buying pressure, that has supported the up market.

The composite NSE All Share Index gained 474.18 basis points to close at 37,999.56bp, after opening at 37,525.38 points, representing a 1.26% growth on lower volume traded when compared to the previous sessions. Similarly, market capitalisation for the day was up by N163.43bn to close at N13.1tr, from the opening value of N12.93tr, surpassing the 2008 highest market.
The upturn in the shares of medium and high cap stocks, especially fast moving consumer goods, banking and agribusiness impacted the ASI's year-to-date returns to 41.40%. Also, market capitalisation over the same period improved by N4.06tr, representing a 42% growth on the year’s opening value.

Market breadth for day turned positive as the advancers outweighed decliners in the ratio of 31:20 on low volume of trades that sustained the six trading sessions of up market. Trading activities in terms of volume and value dropped by 14.25% and 12.52% respectively at 218.22m shares, worth N5.07bn, from the previous day’s 254.49m units, valued at N5.8bn.
Transactions in the shares of FCMB, Zenith Bank, Sterling Bank, Guaranty Trust Bank and UBA topped the volume chart during the session.

At the end of trading activities also, Guinness Nigeria topped the advancers’ table, gaining 10.25% to close at N79.35 each on market forces and sector influenced performance. Dangote Flour followed with a 10.16% gain to close at N6.39 per share, on market forces, improved numbers and smart money interest in consumer goods.
On the flipside, Morison Industries led the decliners’ table after dropping 8.85% to close at N1.03 per share on market forces. Next was Caverton that lost 8.73%, closing at N1.15 per unit on profit taking.

TODAY’S OUTLOOK
As trading activities opens 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 with attention in consumer goods, Financial services, Agribusiness and Healthcare.
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. 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.

http://investdataltd..com.ng/2017/08/market-update-for-august-8-2017.html

FG LIST 27 INDUSTRIES TO ENJOY TAX HOLIDAY



The federal government has announced a list of 27 new industries that is going enjoy tax holiday.
This was able to take effect after lifting the administrative suspension on processing Pioneer Status Incentives (PSI) applications.
Dr. Okechukwu Enelamah, The Minister of Industry, Trade and Investment, told journalists in Abuja doing the week that the pioneer status initiative seeks to help beneficiary companies.
The industries that will benefit from this are: Mining and processing of coal; Processing and preservation of meat/poultry and production of meat/poultry products; Manufacture of starches and starch products; Processing of cocoa; Manufacture of animal feeds; Tanning and dressing of Leather; Manufacture of leather footwear, luggage and handbags; Manufacture of household and personal hygiene paper products.
Others are: Manufacture of paints, vanishes and printing ink; Manufacture of plastic products (builders’ plastic ware) and moulds; Manufacture of batteries and accumulators; Manufacture of steam generators; Manufacture of railway locomotives, wagons and rolling stock; Manufacture of metal-forming machinery and machine tools; Manufacture of machinery for metallurgy; Manufacture of machinery for food and beverage processing; Manufacture of machinery for textile, apparel and leather production.
Also included are: Manufacture of machinery for paper and paperboard production; Manufacture of plastics and rubber machinery; Waste treatment, disposal and material recovery; E-commerce services; Software development and publishing; Motion picture, video and television programme production, distribution, exhibition and photography; Music production, publishing and distribution; Real estate investment vehicles under the Investments and Securities Act; Mortgage backed securities under the Investments and Securities Act; and Business process outsourcing.

The Executive Secretary of the Nigerian Investment Promotion Council (NIPC) Ms Yewande Sadiku, said in quote.. “The reforms have brought further clarity, predictability and process efficiency to the PSI regime. We will continue the reform process as we plan to take the PSI application process online. We will also engage with relevant stakeholders with a view to updating the existing legislations,”
The suspension was placed on the processing of PSI applications in September 2015.


http://investdataltd..com/2017/08/fg-list-27-industries-to-enjoy-tax.html

MARKET UPDATE FOR AUGUST 9, 2017

NIGERIA’S EQUITY MARKET SURGES FURTHER, AMIDST PERSISTING VOLATILITY

The benchmark index of Nigeria's equity market at mid-week's trading session continued its volatility moving slightly down at the opening session. The index later gapped up sharply to finally breakout the 38,000 psychological line to 38,144.02 after an intra-day high of 38,186.79 and low of 37,961.43. The sharp rally is a continuation of a 4-wave motive on seven straight days of up market with improving volume to support the rally.

The continued interest of domestic and international investors in the consumer goods sector reflected on the volume of trade among the players, as their improving fundamentals has become point of attraction. The increasing transactions in Guinness Nigeria, Nestle and Nigerian Breweries that involved foreign investors since the beginning of the week revealed rising participation of smart money in the market. This is just as the nation's foreign exchange reserve hit a two-year high of $31.22bn, helped by rising in oil prices and the increasing foreign exchange inflows with the Naira appreciating on the back of a relatively stable exchange rate. The nation's economy also continues to attract direct and portfolio foreign investors arising from the Central Bank of Nigeria (CBN) sustained intervention in the foreign exchange market which is now awash with liquidity. This has been helped by inflows from oil companies, banks, commodity exporters, supporting the investors and exporters' window of the forex market.

It is noteworthy that the Federal Government approved the medium-term framework for 2018-2020 on Wednesday based on its forecast for next year and beyond for easy planning and early presentation of budget for approvals. Also there is the plan to refinance the nation's domestic debt with borrowing from abroad to lower cost serving it, thereby further quickening the recovery of Nigeria's economy from recession.

Back to the stock market, volume traded index for yesterday was 1.02; with buying position of 81% and selling volume, 19% of total transaction that supported high buying pressure. Nevertheless, profit takers are gradually cashing out.
This notwithstanding, the composite NSE All-Share index gained 144.46 basis points to close at 38,144.02, after opening at 37,999.56 points, representing a 0.38% growth on higher volume traded when compared to that of previous session. In the same vain, market capitalisation for the day went up by N49.79bn to close at N13.15tr, from the opening value of N13.1tr, representing a 0.38% value gain in investors' positions.

Price appreciation in the shares of Gunness, Nestle, 7-Up, National Salt, Dangote Flour, Access Bank, GTBank, PZ, Nahco and Vitafoam, positively impacted the ASI's year-to-date returns on investment, lifting it to 41.93%. Market capitalisation over the same period improved by N4tr, representing a 42.18% growth on the year’s opening value.
It was not all positive during the day, as market breadth turned negative with the decliners outnumbering advancers in the ratio of 23:21 on above-average traded volume to sustain the seven days of bull run. Trading activities in terms of volume and value were up by 50.61% and 20.32% respectively at 328.65m shares, worth N6.1bn, from the previous day’s 218.22m units, valued at N5.07bn.

Transactions in the shares of Jaiz Bank, FCMB, FBNH, Dangote Flour and Access Bank topped the volume chart during the session.
At the end of trading activities also, Guinness Nigeria topped the advancers’ table, gaining 10.23% to close at N87.95 each on market forces and sector influenced performance. Jaiz Bank followed with a 10% gain to close at N0.88 per share, on market forcesand improved numbers.
On the flipside, Champion Brewery led the decliners’ table after dropping 9.97% to close at N2.53 per share on market forces. Next was Livestock that lost 5%, closing at N0.95 per unit on profit booking.

TODAY’S OUTLOOK
As trading activities opens 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 with attention in consumer goods, Financial services, Agribusiness and Healthcare.
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 as improving economic. fundamentals will have positive impact on the companies scorecards if the recovery move to growth.

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 or 08111811223.


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

http://investdataltd..com/2017/08/market-update-for-august-9-2017.html

MARKET UPDATE FOR AUGUST 10, 2017



VOLATILITY CONTINUES ON NIGERIAN BOURSE AS INVESTORS TAKE PROFIT, RESHUFFLE PORTFOLIO


The Nigerian stock market on Thursday succumbed to selling pressure as profit takers cashed out their gains from the recent bull-run to halt the month-to-date seven-day rally. This is expected in any recovering market, because profit booking is is an integral part of equities trading.
During the session, the benchmark Nigerian Stock Exchange (NSE) All-Share index and other sectorial indexes gapped down slightly in the early hour of the session and then struggled to rebound. It however came down again at midday, before finishing the day lower on a high volume traded as banking and petroleum marketing stocks suffered pullbacks, a situation that has made these sectors more attractive for taking position as portfolio reshuffling continues. This is especially the situation, considering that results of interim dividend paying banking stocks started hitting the market, beginning with Zenith Bank's half-year audited scorecard which beat market and analysts' expectations.

Also the likely rebound of crude oil may impact the oil companies that are into crude lifting business.
As the market looks forward to more positive economic data like the inflation figure for July, which likely to follow the five-month trend of gradual but steady decline. There is also the second quarter GDP that will confirm the real health status of the Nigerian economy as regard the recovery so far from recession which started last year. This data are expected to add impetus to the positive sentiment for the market and the economy at large.

Back to the stock market, volume traded index for yesterday was 1.03; with buying position of 45% and selling volume, 55% of total transaction that supported selling pressure as mentioned in our review on Thursday that profit takers are gradually cashing out. But reversal is imminent as more earnings reports from the interim dividend paying stocks are expected.
Meanwhile, the composite NSE All-Share index shed 41.17basis points to close at 38,102.85, after opening at 37,144.02 points, representing a 0.11% drop on higher volume traded when compared to that of previous session. In the same vain, market capitalisation for the day fell by N14.19bn to close at N13.13bn, from the opening value of N13.15bn, representing a 0.11% value loss as investors’ took profit.

The downturn was impacted by losses suffered by medium and high cap stocks like Forte Oil, National Salt, Total Nigeria, Oando, Dangote Sugar,Zenith Bank, Ecobank Transnational Incorporated, Access Bank and Gauranty Trust Bank. The drop expectedly influenced the ASI's year-to-date return negatively, reducing it to 41.78%, just as market capitalisation over the same period improved by N3.9bn, representing a 42.07% growth on the year’s opening value.
Market breadth for the day remained negative with the decliners outnumbering advancers in the ratio of 27:20 on a high volume to halt the seven-day up market. Trading activities in terms of volume and value were mixed. While volume was up by 10.53% to 362.67m shares, from the previous day’s 328.65m units,value was marginally down by 8.2% to N5.6bn from the previous day's N6.1bn.
Transactions in the shares of Access Bank, Zenith Bank, FCMB, Diamond Bank and Guaranty Trust Bank topped the volume chart during the session.

At the end of trading activities, Unilever Nigeria topped the advancers’ table, gaining 5% to close at N43.05 each on market forces and impressive Q2 numbers. BOC Gas followed with a 4.94% gain to close at N3.61 per share on market forces.
On the flipside, Forte Oil led the decliners’ table after dropping 9.71% to close at N53.76 per share on profit taking; ahead of petroleum products marketing sector peer- Oandowhich lost 5%, closing at N7.22 per unit on profit booking.

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. Dangote Sugar's share price will be adjusted today for the 50 kobo interim dividend, while market reaction to Zenith Bank's impressive numbers, particularly the offer of 25 kobo interim dividend from its N2.40 earnings per share is expected to continue.

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 as improving economic fundamentals will have positive impact on the companies’ scorecards if the recovery move to growth.
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-10-2017.html

CBN Licences 150 New Bureaux De Change

In line with its determination to sustain interventions in the foreign exchange segment of the nation’s inter-bank market, the Central Bank of Nigeria (CBN), on Wednesday released a list of 3,389 approved Bureaux De Change (BDCs) operators as at August 8th, 2017.
This represents an increase by 150, the number of those allowed to trade in forex within the country, since April 24 this year when the CBN last released the updated list of BDCs.
About two years ago, the number stood at 1,400 which is expected to put more pressure on Nigeria’s foreign reserves, considering the total amount of dollars that the CBN sells to BDCs will significantly increase at $40,000 per week.
Despite concerns in some quarters over the pressure that this will put on the nation’s foreign reserves, the apex bank has defended its decision to continue to approve BDCs that are ready to comply with regulations, contending that this was necessary in order to increase liquidity in the foreign exchange market as well as ensure naira stability.
The decision by the CBN to stop dollar sales to BDCs in January 2016 proved a costly mistake as the Naira took a plunge from N265/$1 to N283/$1 on the parallel market at the time.

http://investdata.com.ng/2017/08/cbn-licences-150-new-bureaux-de-change/

Naira Exchange Rate Liberalization Key To Nigeria’s Growth Outlook- UBS

Despite the improvement in its creditworthiness on the back of higher commodity prices, stronger economic outlook, Michael Bolliger, Head of Emerging Market Asset Allocation at UBS Wealth Management’s Chief Investment Office says Nigeria’s growth outlook would be determined by “a successful continuation of the Naira’s exchange rate liberalization.”
“We expect Nigeria, Africa’s largest economy, to recover from recession this year although it is unlikely that growth rates will return to previous highs,” he noted.
According to a new report by UBS Wealth Management’s Chief Investment Office, on Africa’s sovereign credit prospects, which is an important benchmark used to evaluate the risk of investing in a country, Nigeria has seen several credit rating downgrades in recent quarters. The recent recovery in energy prices and the potential for further moderate upside, it noted, should bode well for the sovereign’s creditworthiness.

Meanwhile, the report noted that Africa’s encouraging economic prospects is expected to end years of deteriorating credit ratings on the continent.
The report concludes that after years of deterioration, the credit outlook of many African sovereign issuers is stabilizing or improving.
African nations have been hit by a range of issues in recent years, including the end of the commodity super cycle, depreciating exchange rates and mounting public debt ratios. This situation particularly affected energy exporters, such as Nigeria.

According to the report’s findings, macroeconomic prospects in the region are beginning to improve, following which the International Monetary Fund (IMF) forecasts real GDP growth to almost double this year in Sub-Saharan Africa, reaching 2.6% percent, while fiscal and current account deficits are expected to have peaked at 4.5 percent and 4 percent last year, respectively. Key drivers supporting the outlook include rising global growth and trade, a modest recovery in energy and base metal prices, more competitive exchange rates for African currencies, and structural reforms in a range of countries.
For Ali Janoudi, Head of Central and Eastern Europe, Middle East and Africa, France and Belgium International at UBS Wealth Management: “The modest energy price recovery over the past 18 months has supported the growth potential of many African economies, but especially Nigeria. The more optimistic outlook for sub-Saharan Africa should also affect Nigeria’s economy going forward as the region embarks on a new phase of development.”

http://investdata.com.ng/2017/08/naira-exchange-rate-liberalization-key-nigerias-growth-outlook-ubs/#more

AGAIN, ZENITH BANK BEATS EXPECTATION ON STRONG EARNINGS POWER

Zenith Bank, on Friday, released its half-year audited result, which once again demonstratedits high level of corporate governance byconsistently making its numbers available to the investing community earlier than the 2016 numbers to enable investors plan their investment, while equally keeping to the post-listing obligation of the Nigerian Stock Exchange (NSE).
The bankhas consistently grown its quarterly and yearly earnings over a decade in its bid to create value for stakeholders with a dividend policy of growth to reward investors. In the last three years, it has regularly paid interim dividend supported by the growth in profit over the period. It had declared an interim dividend of 25 kobo in line with market expectations, despite the growth in Interest Expense, Impairment Charge and Operating expenses that weighed down its earnings.
The bank’s profitability for the period were boosted by growth in fee and commission income on the back its bouquet of electronic products, collection services and mainly foreign exchange trading Income and, to a smaller extent, Treasury Bills' trading income. This suggest that the improvement in FX liquidity brought about by Central Bank of Nigeria’s intervention may have accounted for the growth in the FX income line, given that most of the gains were earned in Q2.

Its half year position after huge provision for bad loans shows the solid state of the bank with profitability and investment ratios looking up, pointers to what should be expected at the end of the current financial year. The loan loss provision increased by 198% to N42.4bn, from N14.23bn in 2016, while Cost of Risk (CoR) increased significantly to 3.6%, compared to our 1.5% estimate for FY 2016. The management would likely provide answer to this at the conference call with investors soon. It may however not be unconnected with its exposure to domestic operators in the oil and gas companies like Seplat, as well as telecommunications operator- Etisalat. We expect that this will boost the bank's bottom line when recovered, helped by Nigeria's improving economic fundamentals, declining inflation rate and expected increase in oil demand which will help in enhance loan recovery.
In absolute numbers, Zenith Bank posted robust 77.1% increase in Gross EarningstoN380.44bn, from N214.81bn in the corresponding half-year of 2016. Profit after tax growth was even more significant, soaring by 112.4% to N75.32bn, from the restated 2016 profit position of N35.47 billion.

Despite the high operational cost and impairment charge for credit losses, the profit margin remained above 15% international standard at 19.30% for Q2. Net assets jumped to N703.50 billion from N620.74 billion last year. Consequently, Earnings Per Share for the period went north to 240 kobo from 113 kobo in 2016, representing a 112.39% growth and was a replica of the price in 2.50x, which lower than the 3.54x recorded last year. The second quarter book value for the period stood at N22.91.
Operating Expenses grew significantly, up 33% y/y. A higher growth in total operating Income however brought about by significant growth in FX income, resulted in a reduction in Cost to Income ratio which fell to 47.7% relative to 57.5% in H1 2016.Overall, PBT was 71% higherto N92.18 billion from N53.91 billion in 2016. The bank’s annualised Return on Equity (ROE) of 21.2% compares with our estimate of 18.40% for FY 2016

AUDITED HALF YEAR
COY
2016
2017

(N)
(N)
% Chg
Date Released
August 11, 2016
August 10, 2017

Price as@ Released Date
15.60
24.00
53.84
Gross Earnings
214,812,000,000
380,440,000,000
77.1

Profit After Tax
35,467,000,000
75,317,000,000
112.4

Shareholders' Fund
620,739,000,000
719,333,000,000
15.88

ESTIMATED RATIOS
Earnings Per Share
1.13
2.40
112.4

PE Ratio
3.54
2.50
16.17

Earnings Yield
7.06'
10.00
-13.8

Book Value
19.77
22.91
13.62

Price To Book Value
1.24
0.95
-23.39

ROE (%)
5.71
10.47
-30.0

Dividend( Interim )
0.25
0.25

Profit Margin
16.51
19.80
19.93
Year End
Dec
Dec





Source: NSE, Company Report and Investdata Research
Valuation

We are optimistic about the bank’s performance in the rest of the year and expect earnings from the corporate and Investment Banking business to continue to support profit.
Consequently, we project an EPS of N5.20 for full year and a final dividend of N1.95. Thus,Zenith Bank is fairly priced at N32, with a trailing P/E: 3.10x and Q2 price to book value of 0.95.

Investors with medium and long-term goal, who desire to preserve capital, should look the way of this stock. Its Q2 result had confirmed our earlier upgraded guidance after studying the first quarter scorecards that indicative of strong performance that continues to deliver on expectations. As the bank’s Book Value reveal a fair value situation at it trades slightly above its book value of N22.91. On dividend equalization policy of the bank with growth in payout, we expect a much higher dividend at the end of the year and put a Buy rating on Zenith Bank despite the profit taking after the release of impressive numbers as many traders had factored in 25 kobo dividend before it announced.


Technical View


The bank’s price action for one year has formed a symmetrical triangle that supports continuation or reversal of the current trend; it is trending up within the triangle on a positive sentiment for Q1 impressive numbers. RSI is reading 50.63 and money flow index is looking up to signal that funds are still entering the bank.
The bank’s price action for two years had formed a bullish chart pattern called invert head and shoulder that supports continuation of uptrend, meaning that reversal of the current pullback is imminent, it is trending ability above ADX of 20 at 48. RSI is reading 66.28 and money flow index is looking DOWN to signal that funds are leaving.

ZENITH INT'L PLC
Share Holding Structure
Jim Ovia
9.38%
Stanbic Nominees Nig. Ltd
16.28%
Nigerian Citizens & Associations
74.34%


Other Statistics
Shares Outstanding (MN)
31,396,493,786
Opening Price (2017)
N14.75
Closing Price at August 11, 2017
N23.74
Date Listed
21/10/2004
Year End
31st Dec.

Source: NSE, Company Report and Investdata Research
The bank’s conservative nature and prudence is paying off in its efforts to build a world-class bank with steady growth in terms of profitability, dividend payout and impacting the economy through its social responsibilities. Also, the bank has demonstrated its doggedness at all levels of operations that have continually supported and driven profit to keep it among the top banks in Africa and in Nigerian, in terms of market capitalisation, earnings, deposit, total assets and net assets. The bank’s branch networks within and outside the country with professionalism in service delivery at all level have shown in the released financials for the last Four years. Its innovations through the bank ICT platforms have contributed to making all the figures in green. Investors, on the other hand, have equally followed the outstanding performances of the bank over time, taking strategic positions which continue to reveal value in the bank’s stock in creating wealth as investors smile to the banks on biannual bases.
Similarly, over the years, its Book Value has grown in the same direction from N16.22 in 2013 to N22.44, investor confidence supported its price as valuation tools placed the bank's stock at N30.

ZENITH BANK FOUR YEARS FINANCIAL PERFORMANCE
2013
2014
2015
2016
Date Released
March 11, 2014
March 05, 2015
March 15, 2016
Feb 27, 2017
Price @ Released Date
21.40
19.00
13.30
14.73
Gross Earnings
351,470,000,000
403,536,000,000
432,343,000,000
507,997,000,000
Profit After Tax
95,318,000,000
99,455,000,000
105,663,000,000
129,652,000,000
Shareholders' Fund
509,251,000,000
552,638,000,000
594,353,000,000
704,465,000,000
Dividend
1.75
1.75
1.80
2.02


Zenith Bank Performance (2013-2016)

Looking at the bank’s performance in the past four years as revealed by the numbers in the table above and below, the figures showed that the bank has consistently, during the period under review, heightened its performance as reflected in its profitability and investment ratios for the period.
Its gross income during the period grew by 44.54% from N351.47bn in 2013 to N507bn, while the earnings power rose by 36.02% to N129.65bn from N95.32bn posted in 2013. Zenith Bank’s performance within the period has supported its share price. Profitability level has remained in an uptrend direction as surprises continue to hit the market, being the first Nigerian bank to record N100bn profit mark. It also ranked number one in net assets and among the top two in terms of profit margin, service delivery and risk management in its industry today.

Within this period, the risk and cost management of the bank have improved tremendously, leading to enhanced value creation to all its shareholders and other stakeholders. The nature and complexity of the risks in its business requires strong and robust risk management structure to provide adequate oversight at all levels. Earnings per share remained strong and steady at 415 kobo regardless of over regulation in the industry and the unfriendly economic situation till date with high Monetary Policy Rate (MPR), tight liquidity, ascending inflation rate, dwindling discretionary income and falling naira value at the exchange market.

The EPS rose from 304 kobo in 2013 to 317 kobo in the following year which was sustained in 2015 and 2016, despite the industry headwinds during the years.
As we have mentioned earlier in this piece, the bank’s 2016 full-year EPS of N4.13 beat analysts and market expectations as rating agencies continued to downgrade Nigerian banks due to the inherent countryrisk , as a result of contraction in the economy. The improvement in bank’s Earnings Yield from 14.19% in 2013 to 28.03% attests to its quarterly and yearly earnings growth.

ZENITH BANK- ESTIMATED RATIOS
2013
2014
2015
2016
Earnings Per Share
3.04
3.17
3.37
4.13
PE Ratio
7.05
6.00
3.95
3.57
Earnings Yield (%)
14.19
16.67
25.30
28.03
Book Value
16.22
17.60
18.93
22.44
ROE (%)
19.00
18.00
17.78
18.40
Profit Margin (%)
27.12
24.66
24.43
25.52
Year End
Dec
Dec
Dec
Dec

https://investdataltd..com.ng/2017/08/again-zenith-bank-beats-expectation-on.html

.

MARKET VOLATILITY, PORTFOLIO REBALANCING CONTINUE, AS INVESTORS AWAIT MORE ECONOMIC DATA


Nigeria’s stock market kicked off the week with continuation of its volatility by gapping up in the early hours of Monday’s trading session to touch another high of 38.241.67 before yielding to selling pressure in the afternoon, following which the benchmark All-Share Index dropped to 37,949.49 on profit booking by traders to close the day lower on high volume of trade, which brought the indicator below the psychological line of 38,000. It therefore formed a new resistant level around the 38,241.67 point.

Any likely breakout of this level will usher in another rally. However, it would depend on market sentiments or,release of more positive economic news, going by the fact that Monday’s selling pressure was high as revealed by the volume traded index of 0.97; with buying position of 1% and selling volume of 99% of total transaction, this supports the down market.
While Monday’s cash out of gains from the recent bull rally across all classes of stocks on the exchange, losses suffered by medium and high cap equities impacted negatively on the benchmark index as portfolio reshuffling and rebalancing continued in the absence of any bad news in the market to set investors on panic mode.

Meanwhile, the international markets Monday recovered from last week panic that sent many stock exchanges down, even as they continued cautious trading.
Back home, at the close of trading the composite NSEASI shed 247.64 basis points to close at 37,950.96, after opening at 38,198.60 points, representing a 0.65% decline on high volume traded when compared to the previous sessions. Similarly, market capitalisation was down by N85.36bn to close at N13.08tr, from the opening value of N13.17tr, representing 0.65% value loss in investors’ portfolio.

The downturn in the share price of Total Nigeria, Flour Mills,Oando, UBA, Dangote Cement, Dangote sugar, Guinness Nigeria, National Salt, Zenith Bank and Guaranty Trust Bank reduced the ASI's year-to-date returns to 41.21%. Market capitalisationimproved by N3.92tr, representing a 41.63% growth on the year’s opening value.
Market breadth for day was negative as the decliners outweighed advancers in the ratio of 27:18 on high volume of trades to reverse last Friday gain. Trading activities in terms of volume and value dropped by 10.61% and 32.96% respectively at 316.12m shares, worth N4.22bn, from the previous day’s 353.65m units, valued at N6.3bn.

Transactions in the shares of Access Bank, Guaranty Trust Bank, FBNH, Fidelity Bank and Zenith Bank topped the volume chart during the session.
At the end of trading activities for the day, Fidson Healthcare topped the advancers’ table, gaining 4.67% to close at N3.13 each on market forces, sector influence and improving company fundamentals. AG Leventies followed with a 4.35% gain to close at N0.72 per share, on market forces.
On the flipside, C & I Leasing fell the most after dropping 9.26% to close at N0.98 per share on profiting taking; ahead of Med-view Airline that lost 5.00%, closing at N1.52 per unit on market forces.

TODAY’S OUTLOOK
As trading activities opens this morning, expect volatility to continue amidst profit taking and portfolio reshuffling on the strength of Q2 numbers, even as July inflation figures are expected today ahead of Nigeria’s second quarter GDP data.

However, investors need not panic of yesterday pullback due to profit booking if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
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.
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.

https://investdataltd..com.ng/2017/08/market-update-for-august-14-2017.html

CORPORATE ACTIONS FOR JULY 14 - AUGUST 25, 2017

https://investdataltd..com.ng/2017/08/corporate-actions-for-july-14-august-25.html

MARKET UPDATE FOR AUGUST 15, 2017

VOLATILITY LINGERS, AMID PROFIT TAKING, PORTFOLIO REALIGNMENT ON Q2 NUMBERS, ECONOMIC DATA

Nigeria’s stock market got a hit on Tuesday to continue its volatility with all the indices gapping down sharply as investorsintensified profit booking and late reaction to the global political tensions with North Korea withdrawing its threat to drop missile inUS territory.
The market was up slightly in the first hour, but came down sharply by midday and afternoon, looking likean intra-day bottom was in view. An important resistance could not be taken out, while the intraday pullback was held near the trading session lows to close the day lower on high volume. The intraday high and low of the index were 37,954.43 and 37,007.13 respectively.
Going by these realities, INVESTDATA Research believes investors and traders should play the market with knowledge to protect funds and maximize profit, even as we note that doing this entails good money management when trading and investing.

However, cutting loss in good time is necessary, but different from panicking. As we continue to stress, every investment or position taking in a stock is against expectation. If the factors that attracted you into a position are intact, just as the positive drivers of the general market, you don’t need to panic. But where the factors or fundamentals are disintegrating or vanishing,beat a hasty retreat immediately to protect your capital, while you study the situation.

However, Tuesday’s selling pressure was high as revealed by the volume traded index of 1.18; with buying position of 9% and selling volume of 91% of total transaction, thereby supporting the down market, even as we note some accumulation in few stocks by smart money.

The closing numbers on the Nigerian bourse was the direct opposite of what happened in markets around the world which closed higher to sustain the recovery from last week’s panic caused by North Korea’s withdrawal of its threat to drop missile in the US.Despite cautious trading as earnings reporting season remain light.

Meanwhile, theNigeria’s benchmark All-Share index fell 854.36 basis points to close at 37,950.96, as against the 37,950.96 points it opened, representing a 2.25% decline on high volume traded when compared to the previous sessions. Similarly, market capitalisation was down by N294.48bn to close at N12.9tr, from an opening value of N13.13tr, representing 2.25% value loss in investors’ portfolio.
The ASI was depressed following profit taking leading to a fall in the share prices of Guaranty Trust Bank, which incidentally presented its audited half-year financials to the Exchange after trading (READ Stanbic IBTC, UBA, Dangote Cement, Lafarge Africa, Dangote sugar, Guinness Nigeria, National Salt, Zenith Bank and Access Bank.

The audited financials for half-year are expected anytime soon from the trio of Stanbic IBTC, UBA and Access Bank. Losses sustained by these stocks helped to reduce the ASI's year-to-date returns to 38.04%, just as market capitalisation growth dropped to N3.54 trillion, representing a 38.28% improvement on the year’s opening value.

Market breadth for day remained negative with the number of decliners increasing to outweigh advancers in the ratio of 35:11 on high volume of trades that continued a two-day down market. Trading activities in terms of volume and value were however up by 23.88% and 28.69% respectively at 391.63mshares, worth N5.44bn,as against previous day’s 316.12m units, valued at N4.22bn.
Also, transactions in the shares of Access Bank, Zenith Bank, UBA, FBNH and Guaranty Trust Banktopped the volume chart during the session.

According to the result presented by Guaranty Trust Bank after the close of the market, the directors proposed an interim dividend of 30 kobo, a situation the market would expectedly react to from this morning.
Meanwhile, at the close of trading activities for the day, GSKtopped the advancers’ table, gaining 5% to close at N21.00 each on market forces.Berger Paintsfollowed with a 5% gain at N7.14% per share, on market forces.
On the flipside, Morison Industries fell the most after dropping 8.16% to close at N0.90 per share on market forces; ahead of PZ that lost 5.00%, closing at N25.65 per unit on profit taking despite the expected full earnings report.

TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue amidst profit taking and portfolio reshuffling on the strength of Q2 numbers, especially with the impressive numbers emanating from the nation’s first tier banks which are giving insightsinto what should be expected at the end of the year if the economic recovery becomes a reality despite the slow and unclear implementation of the 2017 budget by the government. Evenso, the July inflation figures are expected today ahead of Nigeria’s second quarter GDP data.

However, investors need not panic of yesterday pullback due to profit booking if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
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.
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. By investing and trading knowledgeable
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 or 08111811223.


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


Technical Position of Banking Stocks as at August 15, 2017
Bank
Buying Position (%)Pressure
Selling Volume (%)Pressure
Access Bank
100
0
Zenith Bank
53
47
UBA
44
56
Stanbic IBTC
0
100
FCMB
100
0
Guaranty Trust Bank
56
44
FBNH
6
94
ETI
100
0
Fidelity Bank
0
100

To make real money in the stock market you do not necessarily need to know why share prices rise or fall. All that is important to know are two basic things: When to buy and when to sell.
If you can quantitatively measure the buying and selling pressure of a stock then you will know in advance whether the price is likely to move north or south, up or down. That would tell you whether to take a buy or sell position.

In other words, if you get a reading on the buying pressure and selling pressure for a stock, you can successfully assess whether a stock is likely to go up or go down in price. There are numerous ways to measure the buying and selling pressure of a stock.
The table above presents the buying and selling position of banking stocks on the Nigerian Stock Exchange (NSE) on Tuesday.

https://investdataltd..com.ng/2017/08/market-update-for-august-15-2017.html

INVESTDATA PRICE AND EARNINGS TRACKING FOR THE WEEK ENDED AUGUST 11, 2017

https://investdataltd..com.ng/2017/08/investdata-price-and-earnings-tracking.html

NESTLE PLC: CONSUMER LOYALTY, ECONOMICcRECOVERY, MANAGEMENT DRIVE PROFIT

The management of Nigerian Stock Exchange’s highest priced equity and leading player in the fast moving consumer goods segment of the economy, recently released its half-year earnings report in keeping to corporate governance best practice.

The company's strong numbers and improved profitability ratios in the preceding quarter were sustained in the earnings report under consideration, a situation that has been linked to improved consumer purchasing power,following the decline in inflation rate, helped by the sustained intervention by the Central Bank of Nigeria (CBN) in the foreign exchange market which continues to impact positively on the economic fundamentals that has boosted production capacity in many manufacturing companies, which now has better access to imported raw materials.

The commitment of Nestle's management to deliver value to consumers, customers and other stakeholders, while expanding its market within and outside Nigeria with products innovation, added to effective cost management,all of which have supported performance, as numbers posted were impressive and above market expectation. This however, had influenced the company’s shares price positively due to its shareholding structure and foreign investors’ interest in the stock.
The company’s multiple lines of nutritional products that target a wide range of the market segments from infancy to old age have boosted performance as revealed by the half-year numbers, as well as its risk management strategy in recent years.The company's Q2 earnings report is the basis for valuation in the market, compared to the 2016 numbers which revealed that the market price had moved to N955.50 from N850 in the same period.

Nestle Nigeria recorded a 2988.41% growth in earnings to N16.55bn from N535.82min the corresponding second quarter of 2016, as it reclaimed the market along the country’s northern axis, helped by the gradual return of peace to the troubled region and neighbouring countries across the borders. These have also impacted sales revenue, lifting it to N121.92bn from N80.44bn in 2016.Profitfor the period was seriously influenced by finance income from fixed deposit and decline inforeign exchange loss from N13.13bn in 2016 to N5.17bn. This reduced finance cost from N14.13bn in 2016 to N2.24bn. On the other hand, Net Assets improved by 9.44% to N39.5bn, from N35.18bn in 2016
NESTLE NIGERIA
Unaudited Half Year Result For June 30, 2017
COY
2016
2017
% Chg
(N)
(N)
Date Released
29-July 16
28-July-2017

Price at Released Date
852.13
955.50
12.13
Turnover
80,442,697,000
121,919,736,000
51.57
Profit After Tax
535,809,000
16,547,986,000
2988.41
Shareholders' Fund
35,180,463,000
39,503,479,000
9.44
Dividend
nil
nil

ESTIMATED RATIOS
Earnings Per Share
0.68
20.88
2970.59
PE Ratio(x)
315.15
11.44
-96.37
Earnings Yield
0.08
2.18
2625
Book Value
44.38
49.84
12.30
Price to Book
19.20
19.17
-0.16
ROE
1.52
41.89
2655.92
Profit Margin
0.67
13.57
1925.37
Year End
Dec
Dec

Source: NSE,Company Financial &Investdata Research
Recommendations
The company’s shareholding structure and relatively small number of shares outstanding, as well as the leadership role it plays in its industry and consistent reward to investors on improving performance have remained very strong factors in the sustenance of its share price. Nestle Nigeria's strong performance came at a time its sector’s performance had attracted market attention due to impressive numbers posted by many companies in the industry and general market. The recovery of the nation's economy has impacted the manufacturing sector and indeed others positively as investment in the sector had hit its three year high with over N34 trillion.
Meanwhile, as projected in Q1, the company's Q2 2017 scorecard beat market expectation with better than envisaged performance as profit improved exceptionally, regardless of the prevailing higher operating cost, but the recovery in the macro-economic environment supported the impressive numbers that might equally support interim dividend at the end of Q3.

Summary and valuation
Nestle Nigeria’s 2017 full year earnings projection is revisedto N25.12 billion from the early estimate of N18.56 billion, representing a 217.17% increase from the 2016 N7.92billion.
Its Q2 trailing Price/Earnings Ratio at 11.44, down from 314.36x in 2016 as a result of growth in earnings, is expected to decline to 8.69x at the end of 2017 financial year despite the galloping of its share price to five year high of N1216 on Q2 strong numbers. Thehalf year profit margin still weak at 13.57%, compared to 0.67% in 2016, since is still below the minimum global standard of 15%.
We recommend HOLD for long term investment horizon, and the only buying now is to hedge against risk as foreign and institutional investors are accumulate the company shares. Not too long, one of the major shareholders increased its stake by 2.58% when the recession in 2016 push its share price to as low as N560.

Technical View
Nestle price action breakout of it four years falling channel after various attempts to rebound within the channel that fail before broke down the major strong support level of N615 to a lower low of N570 and retrace up on a positive sentiment for its financials that beat market expectation and rally up to breakout of the channel in early May 2017 still on positive sentiment on the recent numbers. The stock is currently trading above its 100 and 200-Day moving average at N1208. Currently, MACD is bullish for the last 19 trading sessions. RSI is reading 82.86 lofty overbought region and at the same signaling sell for traders that enter lower, while other technical indicators like OS and MACD are signaling buy, while RSI and CCI are saying sell.
The trending momentum and direction is strong as ADX is above 20 at 33.34 and money flow index is looking up, indicating that funds are entering the stock. Watch trend.


Nestle Nigeria PLC
Share Holding Structure
Nigerians/Others
26.60%
Nestle S.A., Switzerland
66.06%
Stanbic IBTC Nominees
7.34
Other Statistics

Shares Outstanding (MN)
792,656,252
Open Price (2017)
N810
Current Price as at (August 11 2017)
N1208
Date Listed
20th April, 1979
Year End
31st December

Source: NSE, Company Financial &Investdata Research

Management
The impact of strategic plans of the board and management are yielding results already as internal cost management is reducing the impact of the operational cost and FX market-afflicted cost pressure. This is despite the cost of expansion and production drive of the management to deliver value to all stakeholders.

Five-Year Financial Analysis
The company's consistent release of its financials over the years has helped the market and analysts to predict and forecast its performance and release dates. This has added to its valuation status as it is sure in portfolio management effectiveness. The market price as at release date on the other hand is experiencing decline after two years of trending up in the five years under consideration. The price moved from N981.00 in 2012 to an all-time high of N1,071.00 in 2013, closing at N570 per share when the 2016 audited result hit the market recently from N820 in 2014 to N680 in 2015.

Looking at the company’s performance critically for the last five years, it is evident that there has been a stable up-trend performance with positive numbers that reveal the competence of the successive management, regardless of challenging business environment but was hard hit in 2016.
The company's top line for the period was up by 55.86% to N181.91bn from N116.71bn in 2012; while profit level for the same period was down 62.54% to N7.92bn, from N21.14bn recorded in 2012. This was after recording a high of N23.74bn in 2015 where the highest reward was given to shareholders in the form of the N29 dividend per share. This is just as earnings remained almost flat in three of those years under consideration before the decline in 2016 that reduced it to N10 each. Within the same period, the economy has experienced mixed movement of progress and retrogression to the current situation.

Meanwhile, shareholders’ fund stands at N30.88bn from the N34.19bn posted in 2012 after recording a high of N40.59bn in 2013. Dividend grew through the period from N20 per share in 2012 to N29 per share in 2015 before it dropped to N10 in 2016. Note that dividend reward grew more than the revenue and earnings for that same period which is not too good. Such high payout ratio does not support future payments and expansion.
NESTLE NIGERIA

FIVE YEARS FINANCIAL PERFORMANCE

YEAR
2012
2013
2014
2015
2016
Ticker
000(N)
000(N)
000(N)
000(N)
000(N)
Date Released
20-Feb-13
26-Feb-14
25-Feb-15
16-Mar-16
2-Mar-17
Price At Released
981.00
1071.00
820.00
680.00
570.00
Turnover
116,707,394
133,084,076
143,329,000
151,271,526
181,910,977
PAT
21,137,275
22,238,279
22,236,000
23,736,777
7,924,968
Net Assets
34,185,562
40,594,801
35,939,640
38,007,074
30,878,075
DIVIDEND
20.00
24.00
27.50.
29.00
10.00
BONUS

Source: Company Financial &Investdata Research
Five-Year Estimated Ratios
Earnings power of Nestle within (2012 to 2016) seems to be strong enough to have supported its share price for that same period with the help of its shareholding structure and relatively small number of shares in issue. The drop in earnings from N26.67 in 2012 and N29.95 in 2015 to N10.00 in 2016 has increased investors waiting periods over the years as PE ratio stood at 57.01x from low of 22.71x in 2015 and previous years from 2012.

As observed, this is because of the sharp drop in earnings while market price relatively remained high. The Book Value of the equity over the years revealed a very high premium on the stock as a result of consistent dividend and strong numbers with that of 2016 at N38.95 as against the market price of N570 when the report was released. Long term investors have over the years recouped their investment, and they continue to enjoy relative capital protection in this stock.
NESTLE NIGERIA

FIVE YEARS ESTIMATED RATIOS

YEAR
2012

2013
2014
2015
2016
EPS(N)
26.67
28.06
28.05
29.95
10.00
PE Ratio
36.79
38.17
35.49
22.71
57.01
Earnings Yield
2.72
2.62
3.68
4.40
1.75
Book Value
43.13
51.21
45.34
47.95
38.95
Return on Equity (%)
62.00
55.00
48.00
62.00
25.67
Profit Margin (%)
18.11
16.71
15.51
15.69
4.36
Year End
Dec
Dec
Dec
Dec
Dec
Source: NSE,Company Financial &Investdata Research

https://investdataltd..com.ng/2017/08/nestle-plc-consumer-loyalty.html

MARKET UPDATE FOR AUGUST 16, 2017

INDICATORS DIP FURTHER, AMIDST HOPEFOR POSITIVE ECONOMIC DATA, FINANCIALS

Trading activities on the floor of the Nigeria Stock Exchange on Wednesday maintained its volatility and negative slant for the third straight session this week as profit taking by traders continued, as panic selling set, resulting in the decline suffered by the indicators week-to-date.
This is even as the global markets continued its rebound on positive economic data and reduced tension in the North Korea missile test threats.

The market opened lower in the early hour of the session, falling sharply by midday before trying to retrace up in afternoon. The intra-day movement broke out the two support levels at 37,000 and 36,458.13. An important resistance could not be taken out, as the day closed lower at 36,102.38 on a low volume traded.
The selling pressure remained high as revealed by the volume traded index of 0.69; with buying position of 9% and selling volume of 91% of total transaction to support the down market. Also, the negative sentiments on first tier banks impressive numbers shows there is an element of correction in the recent rally as at this moment waiting for another trigger in form of positive news from government and the economy to reverse this trend.

Meanwhile, the composite NSE All-Share Index shed 994.22 basis points to close at 36,102.38, as against the 37,950.96 points it opened, representing a 2.68% decline on a low volume traded when compared to the previous sessions. Similarly, market capitalisation was down by N342.68bn to close at N12.4tr, from an opening value of N12.90tr, representing 2.68% value loss in investors’ position.
The downturn in the share prices of medium and high cap stocks during the day further reduced the ASI's year-to-date returns to 34.34%, just as market capitalisation gain stood at N3.2tr, representing 34.57% rise above the year’s opening value.

Market breadth for the day remained negative with the number of decliners outnumbering advancers in the ratio of 31:10 on a lowvolume of trades that continued a three-day bear transition.
Trading activities in terms of volume and value were down by 42.61% and 6.43% respectively at 224.77m shares, worth N5.09bn, as against previous day’s 391.63m units, valued at N5.44bn.
Also, transactions in the shares of FBNH, Access Bank, Guaranty Trust Bank, Jaiz Bank and Zenith Bank topped the volume chart during the session.

Atthe close of trading activities for the day, C & I Leasing topped the advancers’ table, gaining 5.15% to close at N1.02 each on market forces.Vitafoamfollowed with a 4.43% gain at N2.83 per share, on impressive Q3 numbers ahead of it September full year end.
On the flipside, Jaiz Bank lost 5% to close at N0.76 per share on profit taking; ahead of Access Bank's 4.93% drop, closing at N9.93 per unit on profit taking despite the expected half year earnings report.

TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue amidst profit taking and portfolio reshuffling on the strength of Q2 numbers, especially with the impressive numbers emanating from the nation’s first tier banks which are giving insights into what should be expected at the end of the year if the much desired economic recovery becomes a reality despite the slow and unclear implementation of the 2017 budget by the government. Evenso, the July inflation figures and Nigeria’s second quarter GDP data are being awaited from the Nigeria's National Bureau of Statistics (NBS).

However, investors need not panic following yesterday's pullback due to profit booking if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
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.
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.

MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
http://investdataltd..com/2017/08/market-update-for-august-16-2017.html

MARKET UPDATE FOR AUGUST 17, 2017

AS MARKET AWAITS ACCESS BANK, UBA RESULTS, INVESTORS’ REPOSITIONING SUSTAIN VOLATILITY

Nigeria’s equity market had a fairly narrow trading session on Thursday to continue its volatility, opening the day’s session down in the morning hours, before rising after the index tested support below the psychological line of 36,000, following which it bounced, and then meandered most of the day back and forth into the afternoon session, holding support. In all of this, the index was not able to get through resistance, even as it made a great new afternoon intraday high, to reverse the three day pullback on Dangote Cement’s value gain to close the day. This was backed up in the last ten minutes to put a support for the session, closing the session with the index 214.20 points in positive territory. After recording a high of 36,364.81 and low of 35,871.31 in the course of the day’s trading.

A notable situation during the session was that selling pressure resulting from profit booking is beginning to subside as revealed by the volume traded index of 0.68; while buying position stood at 90% and selling volume, 10% of total transaction which supported the up market, depending on sentiments on Friday to continue previous day’sreversal.
Also, the recent price correction in first tier banks have started to attract buying positions as mark down date draws near, considering the impressive numbers which show that there is an element of correction in the recent rally.

Efforts of the Central Bank of Nigeria (CBN) to support the current economic recovery, especially the sustained intervention in the foreign exchange segment of the inter-bank market that has significantly impacted positively on the economy. The intervention in the power and aviation sectorsbegins to yieldresults, with the Nigeria’s power generation rose above 6000 megawatts recently.
Meanwhile, the benchmark NSEAll-Share Indexnotched 214.20 basis points to close at 36,316.58, compared to the 36,102.38 pointsopening level, representing a 0.59% growth on a low volume traded,even while being marginally higher when compared to the previous sessions. Similarly, market capitalisation was up by N73.85bnto close at N12.52tr, from an opening value of N12.4tr, representing 0.59% value gain in investors’ portfolio after three days of losses.
Thursday’s upturn in the share prices of Dangote Cement, Flourmills, Zenith Bank, Total Nigeria, National Salt, Dangote Sugar, FBNH and Fidson Healthcare boosted the ASI's year-to-date returns to 35.13%, just as market capitalisationnotched N3.27trwithin the period, representing 35.37% above the year’s opening value.

Market breadth for the day remained negative with the number of decliners outweighing advancers in the ratio of 28:15 on a lowvolume of trades to halt the three-day down market.
Trading activities in terms of volume and value were up marginally by 0.16% and 7.66% respectively at 225.14mshares, worth N5.48bn, as against previous day’s 224.77munits, valued at N5.09bn.
Also, transactions in the shares of Custodian Allied Insurance, Zenith Bank, Guaranty Trust Bank, FBNH and FCMB topped the volume chart during the session.

At the close of trading activities for the day, Fidson Healthcaretopped the advancers’ log, gaining 5.00% to close at N3.15 each on market forces; followed by sub-sector peer- May & Baker with a 4.98% gain at N2.95 per share, on expectations.
On the flipside, Eterna lost 6.01% to close at N3.44 per share on profit taking; ahead of Double One’s (Mobil Oil) 5% drop, closing at N225.06per unit on profit taking and weak earnings report.
Note: Today (Friday) is the last date to qualify for Zenith Bank and Custodian Allied Insurance interim dividend of 25 kobo and 10 Kobo respectively.

TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue amidst profit taking and repositioning in some stocks on the strength of Q2 numbers, especially with the impressive numbers emanating from the nation’s first tier banks which are giving insights into what should be expected at the end of the year if the much desired economic recovery becomes a reality despite the slow and unclear implementation of the 2017 budget by the government. Evenso, the July inflation figures and Nigeria’s second quarter GDP data are being awaited from the Nigeria's National Bureau of Statistics (NBS).

However, investors need not panic if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
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.
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.

https://investdataltd..com.ng/2017/08/market-update-for-august-17-2017.html

HIGH POWER SHORT TERM TRADING STRATEGY WORKSHOP

At our last Investdata Training workshop tagged “High Power Short Term Trading Strategy Workshop“ that was held on July 15th, 2017 at the Ostra Hall & Hotel, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.
Experts gathered to share common interest in promoting investment portfolio profitable to investors. Some of the sub topics addressed in the workshop are;

• The Toolbox of Successful Traders & Technical Analysis- Mr Meshach Ukpoma, FX Analyst/Trader

• Outlook and Implications of the 2017 Budget & Petroleum Industry Governance Bill (PIGB) on Nigeria’s Stock Market and Economy- Abiola Rasaq, Group Head Investor Relations, UBA

• A Strategic Outlook; The Fusion of Fundamental & Technical Analysis- Ambrose Omordion, Chief Research Officer Investdata Consulting Ltd

• Understanding Market Timing to Manage Risk, Using Technical Analysis - Mr. Abdul-Rasheed Momoh, Head, Capital Markets, TRW Stockbrokers Limited

• Taiwo Steven… Took us through the Mathematics of Investing Profitably in the Stock Market.

At the end of the section, attendees were given copies of the home study pack to equip them with technical knowhow when it comes to investing in the Nigeria Stock Market and understanding the trends relating to investment in a bear or bullish economy.

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 +2348032055467.

Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy.



https://www.youtube.com/watch?v=Gw7WQDrjP8o

LAFARGE AFRICA REBOUNDS IN Q2, MOVES TO SUSTAIN 2017 POSITIVE PERFORMANCE

A few weeks ago, cement manufacturer giant, Lafarge Africa Plc presented an un-audited score card, which revealed yet another inconsistence in performance, a situation that has so far reflected on its share price over the years, especially against the backdrop of Nigeria’s economic situation, which in line with the decision of its major competition led to the merger of its sister companies in Nigeria, as well as the South African operation of its parent company. All of these have kept investors thinking: What is next.

It must however be noted that the company, in all of these, the company has remained consistent in releasing the timely release of its earnings reports, in line with the post-listing requirements of the Nigerian Stock Exchange (NSE), while keeping to its high level of good corporate governance.
The management of Lafarge Africa in the half year financial performance statistics under consideration swam above waters as it announced positive figures as against the negative earnings reported in the corresponding period of 2016.

Total revenue from sales increased by 44.23% from N107.36bnin the first half of 2016 to N154.84bn, while profit before tax stood at N18.16bn, compared with the loss before tax of N30.18bn in 2016, with net profit of N19.73bnas against the N30.246bnloss in 2016. Judging by the comparison as shown in the table below, it will be safe to conclude that the company largely improved on its profitability in the first half of 2017
Assets elements grew across board, beginning with the Non-Current Assets valued at N465.67bn, which was higher than the N409.606bn reported in 2016; just as Current Assets improved to N141.82bn from N82.93bn.

Looking at the company efficiency ratio, the management in the first six months of 2017 has done well, judging from the Total Assets turnover for the period at 25.49%, which is 16.93% above the 21.80% turnover estimated in 2016. At similar rate, the total sales for the period were 81.53% of the total equity appreciably above the 76.72% yielded in 2016. At 3.2x, equity multiplier implies that 31.2% of the company’s assets is financed by shareholders’ equity, while 48.8% is financed by debt. See the table below for other key financial statistics.
LAFARGE AFRICA PLC
HALF-YEAR REPORT
COY
2016
2017

(N)
(N)
% Chg
Date Released
July 20, 2016
July 20, 2017

Price As At Released Date
62.94
52.00
-17.36
Turnover
107,364,799,000
4,839,943,000
44.23
Profit After Tax
-30,248,243,000
19,732,391,000
165.24
Shareholders' Fund
39,948,574,000
189,917,453,000
35.71
ESTIMATED RATIOS
Earnings Per Share
-6.64
3.60
154.22
PE Ratio
-2.37
3.61
252.32
Earnings Yield
-10.55
6.92
165.92
Book Value
30.72
34.65
12.79
Price To Book
2.05
1.50
-26.83
ROE (%)
-21.61
10.39
148.08
Profit Margin
-28.17
12.74
145.23
Year End
December
December

All investment ratios above are good when compared with those of the same period of 2016, especially given that the comparison is done between positive and negative figures. Meanwhile, the current earnings is N3.60 per share of Lafarge. Total Comprehensive Income per share doubled to N6.34. The estimated earnings per share is 6.58% of the current market price at release date. Conversely, the price is 3.80% of the earnings, in other words, the P/E-Ratio is 3.61x, which is lower than the N52 per share market valuation of Lafarge as at the time the result was unveiled. We have estimated the Book Value of every unit of its shares at N34.65.
In conclusion, profit margin for the period is still below international standard of 15% at 12.74% despite moving from negative 28.17% last year.

Price action for Lafarge in the last one year has continued to trend downwards, making lower lows to a strong support level of N34.16 in March 2017 before rebounding on positive sentiments for the full year 2016 financials. This momentum has remained as it continues to trend up by forming a rising channel.

Lafarge Africa closed below the upper band by 16.9%. Bollinger Bands are 20% narrower than normal. The narrow width of the bands suggests low volatility as compared to Wapco’s normal range. Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. However, a short-term retracement inside the bands is likely, as other indicators like RSI current value is at 61.13, while MACD has been bullish in the last 33 trading days. CCI and OS are indicating sell, while RSI and MACD are signaling buy.

Findings/Recommendations
The company seems to be going through a growth period, given the above figures and ratio interpretations. Competition in the sector looks tight and the company may not be healthy, going by its unnecessarily debt element. We are of the opinion that the company stands reasonable chances of posting impressive figures when its nine-month results are released. If this becomes a reality, investors will definitely revalue its share price. We therefore expect such moves to balloon the company’s share price to three digits region.

The management of Lafarge Africa must however struggle hard for more market share in its operational regions with competition and an operating environment that is not ready yet to drive down cost pressure. Efforts should be made to reduce all costs,even as heightened cautiousness should be adopted while assessing debt instruments. Investors on the other hand should hold the equity’s shares with expectation that the management will unveil more positive financials at the end of both the nine-month and full year.

The need for government at all levels to close the infrastructure gap necessary to support development of the agric, manufacturing and housing sectors are even more pertinent today than at any points in our national history. This demand will drive market share and profit, especially if there is a change in the poor implementation so far witnessed in the 2017 budget, especially now that President Muhammadu Buhari returned to the country on Saturday, August 19, 2017, after 105 days on medical vacation in London for an undisclosed ailment.

We have recommended a HOLD before now, but on the strength of the company's latest numbers we upgrade to BUY position for new entrants, particularly given that the stock is still undervalued.
Lafarge Africa PLC
Share Holding Structure
Foreign
70.00%
Odua Group of Companies
5.14%
Nigerian Citizens & Associations
24.86%
Other Statistics
Shares Outstanding (MN)
5,480,734,000
Opening Price (2016)
N96.80
Closing Price (2016)
N40.95
Closing Price as at August 18, 2017
N59.00
Date Listed
16/02/1979
Year End
Dec 31st

2016 Performances Analysis
The year 2016 was a bad year for the company as it struggled with loss positions on quarterly basis to reflect the impact of huge debt that was complicated by combination of Nigeria’s economy that was deep in recession and is only now just emerging from the woods, shortage of foreign exchange that negatively impacted cost of operation during the period. These reflected in its share price which it declined by more than 100% as negative sentiments hit the stock.

Despite, the losses witness on quarterly basis, the full year earnings came in positive on the strength of tax credits, following which the company was able to reward shareholders with dividend, regardless of the decline in payout which is an indication of the declined profitlevel for the year.
Please note that the N1.08 dividend reward stands relatively strong, when compared to the selling price and the company’s position, which largely accounted for the renewed investor confidence and sentiments for the equity.

Five-Year Financial Analysis.
Looking at the company's scorecard, performance had been mixed and inconsistent in growing its numbers for the years under review. The regular release of its financials in compliance with the post-listing requirement made the company's corporate governance strong such that investors could forecast and plan their investment.

Sales revenue of the company for the period under review grew consistently from N87.97bn in the 2012financial year to peak at N267.23bnthree years later in 2015, before declining to N219.71bn by last year to reflect the company’s struggles amidst the harsh economic environment as a result of the recession, representing an increase of 149.76%. Also, bottom-line for the period wasunstable, rising by 14.89% to N16.9bn from N14.71bn in 2012 after hittinga profit level in excess of N60bnin 2013.
Shareholder’s fund for the period was up by 264.17% from N68.36bnin 2012 to N248.95bn in 2016 to reflect the company’s investment in expansion and power infrastructure to boost production.
In the past five year, Lafarge Africa has consistently rewarded shareholders with dividend, despite the undulating numbers posted. A total dividend of N12.18 per share, was distributed excluding the bonus of one new ordinary share for 10 in 2015


Estimated Performance Ratios
The company’s earnings power for the five-year period declined by 37.17% to N3.08 from N4.90 in 2012, after the said earnings per share had recorded all high of N20.31 in 2013 on N3.30 dividend. The company’s earnings trend had been up and down before sliding to lower low in 2016, due to increased investment in its capacity building and harsh business environment.

The company recorded a Price Earnings ratio of 12.26x in 2016, reducing investors’ waiting period from a high of 13.58x (times) in 2015to a low of 5.37x in 2013. On the other hand, the said earnings per share was same as 8.16% of its price at the released date.

Book Value as at 2016 financial was N45.42, the second highest so far in the company's existence after N56.98 in 2013. This is however relatively fair, compared to its market value. The growing Net Asset and robust retained earnings would further boost the company's business to earn more.
The estimated ratio also reveals that Lafarge Africa’s profit margin for the last three years have been inconsistent at below the internationally accepted 15% benchmark. This is not too healthy, as management is expected to reduce cost and in the process support profitability.


LARFARGE AFRICA PLC- ESTIAMATED RATIOS

2012
2013
2014
2015
2016
Earnings Per Share
4.90
20.31
7.68
5.90
3.08
PE Ratio
8.28
5.37
11.59
13.58
12.26
Earnings Yield
12.07
18.61
8.63
7.36
8.16
Book Value
22.77
56.98
39,87
38.67
45.42
Price To Book
1.78
1.91
2.23
2.09
0.83
ROE
21.52
35.64
19.26
15.42
6.79
Profit Margin
16.72
29.58
12.97
10.16
7.69
Year End
Dec
Dec
Dec
Dec
Dec
https://investdataltd..com.ng/2017/08/lafarge-africa-rebounds-in-q2-moves-to.html

MARKET UPDATE FOR WEEK ENDED AUGUST 18 AND OUTLOOK FOR AUGUST 21-25, 2017



VOLATILITY STILL, AS PROFIT TAKING, FOR Q3, MONTH-END PORTFOLIO REBALANCING, ECONOMIC DATA


Trading on the floor of the Nigerian Stock Exchange last week was mixed, halting five consecutive weeks of bull-run to close lower on the strength of intense profit booking and portfolio rebalancing by market players in three straight days. So intense was the volatility and profit taking that the market did not react to the positive earnings from two first tier banks Zenith Bank and Guaranty Trust Bank, both of which had rallied since April after the Q2 numbers have been factored into their share prices.
At the same time the market was under selling pressure until the last two trading days of the week when investors took advantage of the correction to reposition in interim dividend stocks that reversed the downward trend.

Volume index on the local bourse for the week was 0.93, with buying position at 44% and 56% selling volume of the total transactions as mixed sentiment as the market witnessed improving demand for banking stocks, while Industrial and Consumer Goods suffered losses duty to profit taking in the subsectors. The recent pullback is one of dynamism in a recovering market after weeks of price rally that was supported by strong half-year corporate earnings, strong liquidity in the import and export window of the foreign exchange market that had attracted inflow into the economy at a time most stocks on the exchange remained undervalued as revealed by the NSE’s Price Earnings Ratio of 9.37x, which is also another driving factor that is attracting inflow as the exchange rate remains relatively stable.

The fear of whether there would be sustained inflow of U.S Dollar into the Nigerian stock market is gradually fading, which would be complemented by inflows from other players like the banks, oil companies and exporters will help to keep the naira stable, just as fear over President Muhammadu Buhari’s health seems to have abated following his return to the country on Saturday from London. Expectation is that the Central Bank of Nigeria (CBN) would intensify efforts to stabilize and thereafter work towards a single exchange rate regime to attract more direct and foreign portfolio investors. Data by Bloomberg reveals a net inflow of $22m to Exchange Traded Fund (ETF) between January and August 4, 2017.

Meanwhile, the composite NSE All-Share Index for the week shed 1278.04 points to close at 36,920.56 points, from 38,198.60 points, with strong resistant above the psychological line of 36,000 after touching low of 35,871.31 within the week. This represented a 3.35% decline on high transaction volume.
Similarly, market capitalisation for the period closed lower at N12.73trfrom an opening value of N13.17tr, representing a 3.35% value loss in investors’ portfolio.

Top performing stocks for the week were a mix of low, medium and high cap stocks, as market players cashed out gains from weeks of rallying by the market to rebalance their portfolios ahead of month end and onset of the Q3 earnings season.

Despite the mixed performance during the week, market breadth remained negative as the downturn in share prices reducedyear-to-date return of the NSE All-Share-Index (ASI)to 37.38%, just as market capitalisation stood at N3.48tr, representing a 37.62% gain from the year’s opening value.
Market breadth for the period was negative with number of decliners outpacing advancers in the ratio of 43:28 on a high volume of trades to short-live the five-week period of bull transition, despite the reversal on Thursday and Friday of the week under review.

International markets were mixed over the past week despite the eased tension after North Korea yielded to pressure to prevent its missile testing near the U.S boundary, even as equity prices rebounded on impressive economic data, while oil price continued to oscillate.

Germany‘s DAX and Britain’s FTSE 100 were higher for the period, while Japan’s Nikkei and U.S market indexes droppedlower, despite the positive economic data, as Conference Board’s leading index increased by 0.3% in July, after a 0.6% increase in June which suggests that the economy may experience further improvement in the second half of the year. The news comes despite growing turmoil in the white house, where President Donald Trump’s political isolation puts at risk his agenda to invest in infrastructure and reform the nation’s banking sector, among other things.
In Europe, the Eurozone’s economy reported 2.2% growth in Q2, beating economist and analysts’ expectations, which showed that the recovery was on track. In Asia, Japan’s economy extended its longest streak of uninterrupted growth in over a decade, although economists are still waiting for inflation to reach the BOJ’s 2% target rate.

Back home, the All-Share Index opened the week on a negative note, losing 0.65% as investors and traders took profit from the gains recorded in earlier weeks, a trend that was maintained in three trading sessions when the bourse posted 2.25% and 2.68% losses respectively, before Thursday’s rebound that was sustained on Friday when the market gained 0.59% and 1.66% respectively to reduce the week loss to 3.35%.

The NSE’s benchmark and sectoral indexes closed lower during the week, with the NSE Industrial Good and Consumer Goods recording the highest setbacks of 6.02% and 2.47% respectively, even as the NSE ASeM closed flat.
The week’s transaction, measured by aggregate volume and value, were down by 33.09% and 23.78% respectively as 1.39bn shares changed hands for N25.04bn, as against previous week’s 1.52bn units, valued at N28.9bn.

At the end of last week’s trading, Fidson Healthcaretopped the advancers’ table, chalking 9.70% to close at N3.28 per share on the back of market forces and impressive Q2 numbers; followed by Continental Reinsurance’s 6.56% gain at N1.30each also on impressive Q2 numbers. The decliners’ table on the other hand was led by Cement Company of Northern Nigeria (CCNN), which lost 13.71% to close at N9.22 on market forces, ahead of the 12.73% slideby NEM Insurance, which closed at N0.96 per share, due to profit taking.

Market Outlook
The market this week is expected to continue its volatility due to profit taking and portfolio rebalancing on the strength of the Q2 numbers ahead of end the month that usher in the last month of Q3 especially as inflation data for July and second quarter GDP figures are being awaited. As one of the emerging markets, INVESTDATA expects the Nigerian economy and equities market to continue attracting inflow of funds as factors, given the undervalued nature of stocks and helped by the nation’s improving macroeconomic fundamentals.

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/market-update-for-week-ended-august-18.html

Labour Minister Applauds Elumelu’s Job Creation Initiatives

Photo Caption: Chairman, Transcorp Hotels Plc Olorogun O’tega Emerhor, Minister of Labour and Employment, Chris Ngige and Chairman, Transnationa...

Dr. Chris Ngige, former Governor of Anambra State, now Minister of Labour and Employment, was full of praise for Tony Elumelu, former group managing director of United Bank for Africa, now chairman of the banking group, as well as Transnational Corporation of Nigeria (Transcorp), among others, for his various ventures and initiatives that have continued to create jobs as a strategy for poverty alleviation in Nigeria and across Africa.

Ngige, who spoke during the 30th Anniversary celebration of Transcorp Hilton Hotel Abuja, explained: “I am here because Tony Elumelu creates jobs. I take interest in those who create jobs and Tony is one of them.”
According to the minister, the Labour statistics show that between 1500 and 2000 people are employed at the Transcorp Hilton alone, stressing that “social intervention is about attending to those who are vulnerable, those who can’t afford to eat three, two or even one square meal a day. Social intervention is what Tony Elumelu does.”



He also praised Elumelu’s continued investment in power generation through Transcorp Power Limited, as well as the steps he took at UBA to retain employees through the recession when other companies chose to retrench.
At a time when other institutions were laying off, UBA promoted 3000 staff in one day, he added, just as he acknowledged Elumelu’s efforts at doing a lot to create jobs, calling for more of such.

Reacting, Elumelu urged the Minister to: “Help us create the right enabling environment and we will.”
He also added that improving lives and transforming Africa was the motivating factor when Heirs Holdings acquired controlling stake in Transcorp Plc, just as job creation remains one of many ways he continues to push this agenda. The conglomerate’s subsidiary, Transcorp Power Limited is now Nigeria’s largest power generator, in line with its commitment to power Nigeria’s industries, hospitals, schools and create a truly enabling environment for Nigeria’s entrepreneurs to thrive. 


A statement by the group explained that Elumelu’s commitment to poverty alleviation is perfectly expressed in his theory of called Africapitalism, which he continues to champion based on the belief that Africa’s private sector can, and must play a leading role in the continents development.
The statement added that Africapitalism is visible through the entities under Tony Elumelu’s Heirs Holdings Group, including Transcorp which currently has over 3,000 Nigerian’s in its employ, UBA with over 14,000 Nigerian staff and the Tony Elumelu Foundation that has so far empowered 3000 Africans through its flagship entrepreneurship Programme.



http://investdata.com.ng/2017/07/labour-minister-applauds-elumelus-job-creation-initiatives/

BUHARI’S RETURN FAILS TO INSPIRE INVESTORS AS NSE INDICATORS CONTINUE SOUTH

MARKET UPDATE FOR AUGUST 21, 2017

The week started with a volatile Monday on the Nigeria Stock Exchange (NSE) as the benchmark index witnessed some upside down actions, starting out with a side range, after which there was a slight drop in the morning hours, before a mid-day reversal when it started to rally. That was however before the NSE’s most capitalized equity- Dangote Cement (accounting for over 30% of market capitalisation) suffered a set-back, pulling back the index and thereafter came on again by afternoon to finish lower at the close of the day’s trading.

For some, the setback suffered by the indicators is a sign that investors and traders are not enthusiastic and have therefore not factored last Saturday’s return of President Muhammadu Buhari to the country after almost 105 days medical leave which began on May 7, 2017 into the mix. Reason, it was learnt, is that many are simply not expecting any significant changes in the fundamentals of an economy that continues to stand on a single leg- the monetary side or Central Bank of Nigeria (CBN) initiatives (particularly the foreign exchange market interventions). Issues that require urgent attention are by no means worrisome, beginning with a budget whose implementation remains a cause for concern to many, at a time when the Nigeria Extractive Industry Transparency Initiative (NEITI) says the nation’s three tiers of government are struggling to keep pace with implementation of the year’s spending plan, based on data it made provided in a new report on Monday. Also, given that the 2017 budget is expected to flag off implementation of the Economic Recovery and Growth Plan (ERGP) launched by this administration some months ago begins with this year’s budget, the government’s medium to long-term economic strategy may have been plunged into troubled waters.

The intraday market range broke out the psychological line of 37,000 to touch an intra-day high of 37,050 and low of 36,550.28 points before resting at 36,584.44 on a high volume with improved market breadth. The market came under high selling pressure as revealed by the day’s volume traded index of 1.09. Buying position stood at 93% selling volume of total transaction which was a reversal of previous day’s positive sentiments that supported the buy market.
Trading statistic on Monday revealed that foreign players transacted 3.5m units of Dangote Cement at N215 per share and Guaranty Trust Bank’s 29m units at N40.65 each. This suggest that foreign exchange is still flowing into the market on the strength of half-year corporate earnings that beat market and analyst expectations. This is seen as a signal to what is ahead if the government changes its poor implementation style and in the process supports the much desired economic recovery that is now being propelled by the monetary authority.

Ahead of the meeting of the Organisation of Petroleum Exporting Countries (OPEC) and as energy firms cut drilling rigs the most since January, U.S inventories fell about 13% from March highs to 466.5m barrels recently. Reduction in rig counts and falling inventory suggest that the market may be tightening, a situation that may also further support Friday’s oil rebound.

Meanwhile, the composite NSE All-Share index shed 336.12 basis points to close on Monday at 36,584.44 point, compared to the 36,920.56 points opening level, representing a 0.91% decline on a high volume traded, when compared to previous sessions. Similarly, market capitalisation went down by N115.85bn to close at N12.61tr, from an opening value of N12.73tr, representing a 0.91% value loss in investors’ portfolio.

The downturn in the share prices of Dangote Cement, Zenith Bank, UBA, Lafarge Africa, Dangote Sugar, FBNH, Nestle, CCNN and Stanbic IBTC, on Monday pulled back the ASI’s year-to-date returns to 36.13%, just as market capitalisation stood at N3.37tr within the period, representing 36.43% above the year’s opening value.

Market breadth for the day remained positive with the number of advancers outweighing decliners in the ratio of 27:16 on a high volume of trades to halt the two-day bull transition.
Trading activities in terms of volume and value were up by 55.68% and 30.35% respectively at 368.38m shares, worth N6.27bn, as against previous day’s 236.62m units, valued at N4.81bn.
Also, transactions in the shares of AIICO, Guaranty Trust Bank, Zenith Bank, UnityCapital and UBA topped the volume chart during the day, just as Flour Mills topped the advancers’ log, gaining 8.73% to close at N31.00 each on market forces. It was followed by Transcorp with a 5.97% gain at N1.42 per share, as investors continue reacting to its impressive 2017 Q2 numbers and the prospects of government becoming more serious in the ongoing power reforms.
On the flipside, Vitafoam lost 5% to close at N2.66 per share on profit taking; ahead of the 4.88% slide in the price of AXA Mansard Insurance to close at N1.95 per unit on profit taking and failure of its directors to pay interim dividend.

TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue amidst profit taking and accumulation of interim dividend paying stocks ahead of their half year results, especially with the two first tier banks numbers giving insights into what should be expected. As investors also take advantage of correction to position for the rest of the year, if the much desired economic recovery becomes a reality despite the slow and unclear implementation of the 2017 budget by the government. Even so, the July inflation figures and Nigeria’s second quarter GDP data are being awaited from the Nigeria’s National Bureau of Statistics (NBS) to officially confirm economic state and direction.

However, investors need not panic if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
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.

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/buharis-return-fails-to-inspire.html

Equities Investment Leads, As Nigeria’s Q2 Capital Import Grows 95% To $1.792bn

At 14.2%, Nigeria Has One Of World’s Highest Jobless Rate- NBS
When FG’s Savings Bond Becomes New Normal For Equity Traders
2016 Recap and 2017 Market Outlook
Data by the National Bureau of Statistics (NBS), on Tuesday, showed that capital imported into Nigeria in the form of Foreign Direct Investment (FDI), Other Investments and Portfolio Investment in the second quarter of this year stood at $1.792bn, almost double that of the preceding quarter.

In a document titled the NBS Q2 2017 Capital Importation Report, the bureau said the Q2 figure was $884.1m or 95.02% more than the $1.042bn reported in the corresponding second quarter of 2016, helped by the rise in share capital investment, which is closely related to Equity Investment (FDI and Portfolio) that was largely responsible for the huge growth in capital importation for the period.

The highest amount of capital for the period stood at $616.5m recorded in May, followed by the $612.6m in the following month; and $4563.3m in May.
“The main driver of the quarterly growth in capital importation in the second quarter was Portfolio Investments, which increased by 145.7%, followed by Other Investments, which grew by 95.02%, and then Foreign Direct Investment (FDI), which increased by 29.8% over the previous quarter,” the NBS noted.
Specifically, Portfolio Investment stood at $770.5m during the three month period, accounting for 43% of total; followed by Other Investments at $747.5m, or 41.7%; and the $274.4m FDI, which accounted for the remaining 15.3% during the quarter.

Year-on-year, Portfolio Investments increased by 128.4% from $337.3m in the corresponding period of 2016; just as Other Investments climbed 43.6% up from $520.6m; while FDI grew by 48.9% from $184.3m
A further breakdown revealed that Equity investments accounted for the lion’s share of total FDI, as it accounted for 99.9% or $274.1m of the total, Just as it rose 30.5% over the preceding quarter, while Other Capital accounted for the remaining $300,000 or 0.1%, after falling by 76.6% within the period.
Equities also accounted for $614.05m or 79.7%, the largest chunk of Portfolio Investments; while Money Market Instruments gulped $98.6m or 12.8%; and Bonds, the remaining $57.9m or 7.5%.
For Other Investments, loans remained the sole inflow as in previous quarters, accounting for 100% as the other components did not report any figures for the period.

During the period also, share capital imported stood at $932.58m, representing a rise of 548.5% over the previous quarter, just as it climbed 168% above the second quarter of 2016.
The amount, the highest since 2015 Q3, according to the NBS, represented a significant increase relative to recent quarters.
The sector that attracted the second highest value of capital imported was the oil and gas, which accounted for $19.39m or 10.6% of total, representing 88.4% over preceding quarter, but 5% down from the corresponding second quarter of 2016. It was followed by the services sector’ $145.56 or 8.1%; and production/manufacturing sector, $141.42m or 7.9%.

Lagos continued to account for the bulk of capital importation in the review period with 97.07% or $1.739bn related to its being home of the Nigerian Stock Exchange (NSE), apart from its position as the nation’s commercial and financial capital. Akwa Ibom followed as in previous quarter with $34.08m or 1.92% of total, representing an 85.6% increase over the amount recorded in the preceding quarter; ahead of Abuja’s $16.64m or 0.93%; while Oyo State trailed with $1.83m or 0.1%.

The NBS report further revealed that the bulk of the imported capital in the review period flowed from the United Kingdom, which accounted for $696.7m or 38.87% of the total, just as it represented 107.9% rise over the 2016 Q2 figure.
“Since 2010, the UK has accounted for the highest value of capital importation in all but two quarters (both in the second half of 2015),”the report added.
Inflow from the United States placed it second, accounted for $287.82m, representing 16.06% of total; followed by Belgium with 15.7%; and Singapore, 8.67%.
Banks through which the highest share of capital was imported were those with foreign parentage namely, Stanbic IBTC, Citi Bank and Standard Chartered Bank, which accounted for $1.267bn or 70.7% of total capital imported during the period, while the other 22 banks in the country were left with the balance.
Stanbic IBTC accounted for $589.84m or 32.91% of the total, most of which came in June ($302.949m) and May ($243.997m) a significant increase over the previous quarter’s $342.7 or 9.12% share. It was followed by Citi Bank Nigeria’s $342.7m or 19.12% attracted in April ($228.688m) and May ($114.049m), which also represented an improvement over the previous 5.12% in 2017Q1; while Standard Chartered Bank pooled 18.7%, the bulk ($220.851m) of which was in June, which was down from the previous 25.4% of total, even as it represented $103.7m more than what it imported in the preceding quarter.

Among Nigerian institutions, Zenith Bank took the lead, accounting for a total of $170.231m or 9.5% of total; Ecobank Nigeria (subsidiary of Lome, Togo based Ecobank Transnational Incorporated) recorded a total of $173.036m or 9.65%; while Access Bank followed from afar with $47.549m or 2.65%; among others.
Besides equity investments and oil and gas, telecommunications sector followed with $174.18m; ahead of the servicing sector’s $145.56m; production, $141.42m; the banking sector attracted $89.8m; financing, $57.31m; while agriculture pooled $23.71m.

http://investdata.com.ng/2017/08/equities-investment-leads-nigerias-q2-capital-import-grows-95-1-792bn/#more

Why You Should Invest In Gold Now

Having had a steep rally from $1200 per ounce to a year-high of $1295.25, the precious metal has thus seen a correction trend downwards to $1263 (resistance now turned support).
Trend analysis:
Using Fibonacci extension to project the profit taking level for the uptrend 1122.62 low reached on 15/12/2016 and high of 1263.63 reached on 27/02/2017 at 1287.10 which was reached and slightly breached to reaching an high of 1295.28 per ounce.
Gold
We expected profit taking to drive a corrective move downward to 1263 a resistance now turned support and also testing the Moving Averages now acting as dynamic support trendline (see chart below)
Currently the price of Gold is hovering around 1265 after it reached 1263 projected end of the corrective wave.
Gold2

Expectations
Buying Gold around 1263 – 1265 zone with stop placed at 1250 and take profit level at 1301
Happy Trading day
Trade Idea: Going Short on USD/JPY could be good right now
USD/JPY has thus seen 250 pips rally in the week, the currency pair reached a week high of 111.77 after having opened with a strong gap on the upside. Price momentum failed to close above 111.60 (support now turned resistance).
A bearish Doji candle formed at yesterday’s trading session to also close around the 61.8% Fibonacci retracement level at 111.05
Gold3

Short at this level with stop placed above 50% Fibonacci retracement level at 112, while TP with 107.15

Adeshina Adetunji, CFTe
Technical Analyst/Strategist
+2349092133294, +23480-3227-6111
Skype: adeshina.adetunji

http://investdata.com.ng/2017/04/invest-gold-now/

10 Retirement stocks To Buy and Hold

It’s true that successful retirement at any time is a function of how prepared you are through your personal finance strategies adopted to facilitate your financial freedom while playing the financial markets anywhere in the world.
You must as of necessity, understand the big picture of the economy and stock market dynamics to succeed and grow your wealth, by getting involved in a second layer of saving for the raining day, the first being the compulsory contribution through a Retirement Savings Account kept and managed by your Pension Fund Administrator (PFA).

A second layer of saving by actively playing the financial market backed by knowledge is a sure way to guaranty your retirement, just as it could help you determine to retire early and engage in other fields of endeavour. It would also give a great measure of comfort, where you are forced by circumstances beyond your control, including workplace intrigues to give up your paid employment.
The top wealthy men of today who had made fortunes in equity investment are those that recognized the long term nature of the stock market early enough and also know the appropriate keys with which to play the game profitably. The big picture gives an idea of how various facets of the economy work together to influence the market and the share prices of quoted companies.
A blooming economy will have a strong and promising stock market which is the leading indicator or barometer that reveals a country’s economic health and indeed, its prosperity.

An economy consists of the socio-political and business environments that influence business activities which in turn, drive a nation’s development and growth. The economy is sub-divided into market, sector, industry and company. It also has economic cycles that go through a boom to gloom. The boom stages are the early, middle and late expansion periods; while the gloomy stages are the early and late periods of contraction.
For us to retire well and depend on dividend income from our retirement stocks, we must identify the stage our economy is presently and which sector, industry and company can do well in all these stages by remaining in business and posting good earnings that can support dividend payout in the future.
We have to look at the nature of the company’s products and services, and try to determine whether the demand for them is inelastic in nature, such that increase in prices will not have much effect on the demand for them. Is such a company with a clear and simply business model that you understand; do you adjudge the management team good enough; and finally is there are discernible succession plan in place?
Other factors that help identify quality companies are consistent earnings growth, a profit margin that is above 15%, low debt level, improved cash flow and good dividend payout ratio.

These suggest that planning one’s financial freedom through equity investment is very possible if you buy the right stocks for your retirement.
These 10 stocks selected below have shown, in the belief of INVESTDATA Research, strength in their earnings power on quarterly/yearly basis, good dividend yield and consistent growth in dividend payout. Also, the nature of their products or services and business model support their future performance.

They are:
1. Nestle Nigeria Plc
2. GTBank
3. Zenith Bank
4. Total Nigeria Plc
5. Presco Plc
6. Nigeria Breweries
7. Mobil Oil
8. Access Bank
9. UBA
10. Dangote Cement

These companies have exhibited in their sectors, qualities of operators with all, or most of factors listed above for consideration when selecting retirement stocks.
They are good and top set of stocks you can plan your saving and retirement with, because their services or products are essential to living.
Look forward to the financial formula that will help you achieve your financial freedom now and at retirement.

http://investdata.com.ng/2017/03/10-retirement-stocks-buy-hold/

NSE SEEKS DIRECTION, AWAITS FG’S ECONOMIC RECOVERY BOOST

MARKET UPDATE FOR AUGUST 23, 2017

Nigeria’s stock market continued its volatility on Wednesday but closed positive, as technicals remained mix. The day began with a big gap up and then a pullback to support, which could not pull through, before bouncing back up to break through the resistance level again at the 37,000 psychological line after more than triple test of this level in the previous trading days as the market searched for direction. The index tried to rebound in the afternoon and indeed achieved a new nominal-session high above resistance at 37,059.21.

Market sentiment at the mid-week trading session was mixed as revealed by the volume traded index of 0.51. Buying position for the day stood at 68%,while selling volume was 32% of total transaction to maintain positive trend from previous day’s position as Access Bank released its half year earnings report with a 25 kobo interim dividend (just like last year) that met investing public expectation, as UBA, Stanbic IBTC and Fidelity Bank are underway with impressive numbers as recent scorecards have revealed.

Stock markets around the world were mixed despite the sustained reboundof oil price in the international market ahead ofthe meeting of Organisation of Petroleum Exporting Countries (OPEC) meeting and as U.S inventories had fallen consistently for eight weeks.
Meanwhile, the composite NSE All-Share index gained 96.73 basis points to close at 37,059.21 point, compared to the 36,962.48 points opening level, representing a 0.26% growth on a low volume traded, but higher than previous sessions when compared. Similarly, market capitalisation was up by N34.20bnto close at N12.77tr, from an opening value of N12.74tr, representing a 0.26% appreciation in investors’ position.

The upturn in the share prices of first tier banks and consumers goods like Nigeria Breweries and Dangote Sugar that impacted positively on the ASI’s year-to-date returns to 37.84%, just as market capitalisation stood at N3.50trwithin the period, representing 38.04% above the year’s opening value.
Market breadth for the day was negative as decliners outnumbered advancers in the ratio of 21:17 on a low volume of trades to continue the two day bull transition.
Trading activities in terms of volume and value were up by 8.17% and 50.68% respectively at 264.29 million shares, worth N5.53bn, as against previous day’s 244.32m units, valued at N3.67bn.
Also, transactions in the shares of Zenith Bank, UBA, Guaranty Trust Bank, Access Bank and FBNHtopped the volume chart.

At the end of the day’s trading session, Caverton topped the advancers’ table, gaining 9.52% to close at N1.10 each on market forces and positive Q2 numbers It was followed by Ucap with a 5.00% gain at N3.10 per share, on market forces.
On the flipside, Skye Bank lost 7.45% to close at N0.62 per share on profit taking and market forces; ahead of the 4.99% slide in the price of 7-Up Bottling Company to close at N92.00 per unit on profit taking and unimpressive Q1 numbers.

TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue amidst profit taking and accumulation of interim dividend paying stocks ahead of their half year results, especially with the two first tier banks numbers giving insights into what should be expected. As investors also take advantage of correction to position for the rest of the year, if the much desired economic recovery becomes a reality despite the slow and unclear implementation of the 2017 budget by the government. Even so, the July inflation figures and Nigeria’s second quarter GDP data are being awaited from the Nigeria’s National Bureau of Statistics (NBS) to officially confirm economic state and direction.

However, investors need not panic if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
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.
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. By investing and trading knowledgeable
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 or 08111811223.

MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2017/08/nse-seeks-direction-awaits-fgs-economic.html

MARKET UPDATE FOR AUGUST 24, 2017

It was yet another negative trading session on the floor of the Nigerian Stock Exchange on Thursday. The day opened with a big gap down as the index bounced back to resistance, but could not get through, following which it pulled back down, but was unable to get through support either. Basically, with a triple test of support, the market tried to bounce by afternoon. Selling pressure was higher than buying,despite the impressive half-year earnings reports of first tier banks with interim dividend. The profit booking at this point indicates that traders had factored in these numbers posted into the share prices of the banks. This state is not likely to endure as the strong numbers from the banks will attract attention before the closures of their books and afterwards. This is particularly important as many of the banks are still selling at a discount to Book Value with high margin of safety.

Another high point of Thursday’s trading session was the scooping shares of Guaranty Trust Bank, Zenith Bank and Nestle Nigeria by investors. While 71m units of GTBank worth N2.89bn were exchange (mostly crossed deals) at N41 each as foreign funds exchanged shares in off-market deals; followed by 14m shares of Zenith Bank that changed hands at N23 per share; while 250,000 shares of Nestle were crossed at N1,220.
The negative market sentiment on Thursday was revealed by the volume traded index of 0.72 as buying position for the day stood at 7%, while selling volume was 93% of total transaction to reversed the positive trend of the previous day’s on low volume and negative market breadth. This was despite the impressive numbers half-year numbers posted by Ecobank Transnational Incorporated (READ) and United Bank for Africa (READ). UBA announced a 20 kobo interim dividend (just like last year) which seemed in line with investing public expectation, while corporate earnings from Stanbic IBTC and Fidelity Bank are still being expected.

Meanwhile, the benchmark NSE All Share Index shed 483.35 basis points to close at 36,575.86 point, from its 37,059.21 points opening level, representing a 1.30% decline on a low volume traded, when compared to the previous day. Similarly, market capitalisation dropped by N166.6bn to close at N12.61tr, from an opening value of N12.77tr, also representing a 1.3% value loss in investors’ portfolios, following losses suffered by high cap stocks. As a result, the ASI’s year-to-date returns dropped to 36.10%, just as market capitalisation stood at N3.36tr within the period, representing 36.33% above the year’s opening value.

Market breadth for the day remained negative as decliners outweighed advancers in the ratio of 21:18 on a low volume of trades to short-lived the two day up market.
Trading activities in terms of volume and value were down marginally by 9.89% and 0.72% respectively at 238.16m shares, worth N5.49bn, as against previous day’s 264.29m units, valued at N5.53bn.
Also, transactions in the shares of Guaranty Trust Bank, Access Bank, UBA, Zenith Bank and FBNH topped the volume chart.
At the end of the day’s trading session, UBN topped the advancers’ table, gaining 5.08% to close at N6.00 each on market forces and positive Q2 numbers, despite the proposed primary activity by way of right issue. It was followed by Neimeth with a 5.06% gain at N0.83 per share, on market forces.
On the flipside, petroleum marketing giant- MRS lost 5.02% to close at N29.07per share on profit taking and sectorial trend as many stocks in the industry suffered losses, ahead of Custodian Allied Insurance that slide 5.00% to close at N3.42 per unit on profit taking after mark down for 10 kobo dividend.

TODAY’S OUTLOOK
Being the last trading day of the week, expect further volatility to continue today amidst profit taking and accumulation of interim dividend paying stocks as half year results continue to hit the market. As investors also take advantage of correction to position for the rest of the year, if the much desired economic recovery becomes a reality despite the slow and unclear implementation of the 2017 budget by the government. Even so, the July inflation figures and Nigeria’s second quarter GDP data are being awaited from the Nigeria’s National Bureau of Statistics (NBS) to officially confirm economic state and direction.

However, investors need not panic if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
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.
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.

https://investdataltd..com.ng/2017/08/nigeria-stock-exchange-trading-remains.html

S’Leone Mudslides: UBA, Elumelu Foundation Donate $0.5m To Victims

Nigeria’s former President, Chief Olusegun Obasanjo, UBA Group Chairman and Founder, The Tony Elumelu Foundation, Tony O. Elumelu and President of Sierra Leone, His Excellency President Ernest Koroma during their visit to survivors of the mudslides at the Connaught Hospital in Freetown and the donation of $0.5m by Elumelu on Wednesday.

Tony Elumelu, Chairman of United Bank for Africa, Transnational Corporation of Nigeria and Heirs Holdings, was on Wednesday in Free Town, capital of Sierra Leone to commiserate with the people and government following the devastating mudslides and floods that claimed hundreds of lives on August 14, following which many more are still missing.
Elumelu, Chairman of the Tony Elumelu Foundation, visited in company of former President of Nigeria Olusegun Obasanjo and Sierra Leonean President Ernest Koroma visited some of the survivors at the Connaught Hospital in Freetown, following which he made a donation of USD$250,000 on behalf of the Tony Elumelu Foundation and another USD$250,000 on behalf of staff, management and Directors of United Bank for Africa as emergency aid grants for victims of the mudslides later on at the country’s Statehouse.
UBA Group has a full-fledged subsidiary in the former British colony.
The donation, according to a statement by the UBA Group and TEF “will support the victims, some of whom are in hospital needing food, clothing and medicine,” in addition to assisting in ongoing recovery efforts and the construction of permanent settlements for the displaced persons.
Elumelu who called for more global and African private sector contributions to the ongoing rehabilitation and relief efforts, said “the little token we are giving is what it is, little, but symbolic. At a time like this, the world must come together to support the victims of this unfortunate disaster. It is not a situation that one prays to be in, but in the event that it does happen, we should all rally to support one another.”
He the world cannot afford to allow a disaster of such high magnitude go unnoticed, especially as over 600 persons have perished and many hundreds more are still missing.
“We must turn the global spotlight on Africa. The world must stand with Africa just as in the past, Africa has stood with the world,” he added.
The UBA Chairman reassured Sierra Leoneans of UBA’s steadfast support, just as it is poised to continue playing “its role in helping small and medium scale enterprises, and women, especially from the affected areas, to enable them rebuild their economic lives.”
Responding, President Koroma commended Elumelu, saying: “In you we have a brother and someone we can rely on.” He praised the consistency of the Founder of the Tony Elumelu Foundation (TEF). “You have always provided us with support. United Bank for Africa (UBA) was here immediately after the war to provide us with banking services to support our rebuilding efforts. Again, during our fight against Ebola, you were here through the United Bank for Africa (UBA) and the Tony Elumelu Foundation (TEF) and provided us with great support. And now again, you have come to support us.”
The Sierra Leonean mudlslides is the third catastrophe to devastate the West African country in the past two decades.

http://investdata.com.ng/2017/08/sleone-mudslides-uba-elumelu-foundation-donate-0-5m-victims/#more

NAICOM Executives Visit Nigerian Stock Exchange For Closing Gong

From left, Oscar Onyema, Chief Executive Officer, The Nigerian Stock Exchange (NSE) presents a gong to Mohammed Kari, Commissioner for Insurance/Chief Executive, National Insurance Commission (NAICOM) at the Closing Gong Ceremony at the Exchange on Thursday in Lagos.

http://investdata.com.ng/2017/08/naicom-executives-visit-nigerian-stock-exchange-closing-gong/#more

Daar Communications Remains In Red, As Half-Year Net Loss Hits N1.286bn

Almost one month after the end of the regulatory filing period for its half-year unaudited financials, the board of electronic media giant- Daar Communications Plc, on Friday presented its score-card, with numbers still in murky waters, with revenue sliding by 18.8%.
The company which is yet to offer shareholders cash dividend since its eight billion ordinary shares were listed on the bourse on Friday, September 26, 2008, reported a N400m drop in half-year revenue from N2.127bn to N1.727bn; which remained lower than its cost of sales of N2.198bn, as against the prior half-year’s N2.334bn; resulting in gross loss of N471.134m, which was significantly higher than the previous N207.036m. Other income however jumped to N2.17m from N761,000 in the previous half year.
Distribution cost rose to N34.281m from N24.926m; administrative expense rose from N697.077m to N719.986m; just as finance costs dropped to N39.648m from N56.159m.

These swelled loss before tax to N1.262bn from N984.437m; just as tax expense dropped to N23.905m from N41.368m; resulting in profit after tax of N1.286bn, representing Loss Per Share of 16 kob; from N1.025bn or 13 kobo LPS, further pointing to a need by the board to rethink the company’s management and funding structure once and for all for a possible new direction.
A further breakdown of the figure showed that the company’s television arm- African Independent Television earned N1.466bn, down from N1.853bn in the preceding half year; followed by Raypower Radio- N208.426m, slightly more than the previous N206.969m; while the pay TV is yet to earn revenue.

The period ended with retained losses of N7.416bn, up from N6.129bn, after opened the year at N6.129bn, compared with N3.99bn previously.
Daar Communications issued a 1:2 bonus for the year ended December 31, 2012, for which the annual general meeting held on November 2014.

http://investdata.com.ng/2017/08/daar-communications-remains-red-half-year-net-loss-hits-n1-286bn/#more

Simple Strategies For Making Money In Stock Market

We believe in INVESTDATA that making money in stocks does not require a Doctoral Degree or your being a professor in science or mathematics, but through simply understanding market dynamics at any given time.
To become a winner in equity trading and investing, you must first have the right perspective of the market as a place, whether brick and mortal, where buyers and seller meet. Secondly you must know how to pick the direction of stocks, just as how to apply the right strategy in the different market situations, and finally, you should know how to keep your emotions under control when the market is going against your trades or position.

In making real money from stocks using technical analysis, you don’t need to know why a stock price is rising or falling, you just need to know two things: When to buy and when to sell. If you can quantitatively measure the buying and selling pressure of a stock then you will know in advance whether the price of a stock is likely to go up or down. And you will then know if you should take a buy or sell position. In other words, if you get a reading on the buying and selling pressures for a stock or the general market, you can successfully assess whether a stock is likely to be bullish or bearish in price movement.

There are many ways to measure the buying and selling pressure on a stock. We want to teach you several methods if you sign up for our one on one coaching classes by texting YES to 08032055467. That way you can use all of them or just work with the methods you are most comfortable with. Remember comfort and ease are what our team at Investdata are offering you, as can be seen from our Buy and Sell Signal Setup for subscribers.
As a trader or investor in the stock market, let your technical tools guide your decision to know the support and resistance levels of any stock to reposition or exit any position. See the Support and Resistant table below

http://investdata.com.ng/2017/08/simple-strategies-making-money-stock-market/

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED AUGUST 25, 2017

http://investdataltd..com/2017/08/investdata-price-earnings-tracking-for_28.html

UBA SURPASSES MARKET EXPECTATION, FORE-SHADOWS HIGHER DIVIDEND PROSPECTS





The management of United Bank for Africa released it audited 2017 half year earnings report to the market last week In line with its post-listing requirement, earlier than that of 2016, thereby allowing investors forecast and plan their investment.The bank’s re-engineering and continued expansion across the continent as Africa’s global bank continues to yield bountiful results as revealed by its diversified revenue base, soaring profitability ratios and growing balance sheet all of which have helped to support UBA’s repositioning into an African financial powerhouse. The commitment of its board and management to creating value for its shareholders and banking public through improved service delivery, new products and services that are people oriented to support strong assets quality. All of these translate to improved top and bottom-line, translating to good dividend payout that reflects on its share price even as it remains toast of Nigeria’s investing community.

UBA Plc’s numbers for the period under review show an impressive performance as its top and bottom lines were northward. Gross earnings rose 34.8% from N165.58bn in 2016 to N222.72bn on the back of a 44% growth in interest income due to improved yields on the loan book and high yields from money market instruments,just as Interest expense growth was slower at 24% due to the higher Interest rate environment. Higher growth in Interest Income relative to expense resulted in a 58% growth in Net Interest Income. Consequently, Net Interest Margins (NIMs) improved to 7.3% better than full year 2016 NIM of 6.7%. But the fees and commission Income remained relatively flat for the period under consideration, while profit before tax rose by 56.2% to N42.34bn from N27.11bn in 2016.

Other Income (Net trading Income and foreign exchange Income) was up 47%, mainly driven by a 238% increase in foreign exchange trading income while Net Fair value gain on derivatives was down significantly. Operating expenses grew significantly, up 27% while total operating income notched 39%. This resulted in an improvement in cost-to-income ratio to 58.6% outside loan loss provision from 62.4% in 2016. Growth in operating expenses as revealed by the numbers were driven partly by higher personnel cost, due to the promotion of 3,000 staff, inflationary pressure and the impact of Naira devaluation. Loan loss expenses increased 38% and Cost of Risk (CoR) increased slightly to 1.2%.
The recent cancelation of UBA’s 2,080,140, 955 shares further boosted Earning Per Share to124 koboin Q2 is a replica of the price in 1.94x, which is higher than the 1.54x recorded in 2016. The quarter’sBook Value grew by 25.71% to N14.13 from N11.24. The bank’s Price to Book ratio is 0.68 against 0.41 in the corresponding period 2016.
UNITED BANK FOR AFRICA PLC
HALF YEAR AUDITED
COY
2016
2017

(N)
(N)
% Chg
Date Released
August 25, 2016
August 24, 2017

Price as@ Released Date
4.59
9.60
109.15
Gross Earnings
165,580,000,000
222,718,000,000
35.00
Profit After Tax
27,107,000,000
42,339,000,000
56.00
Shareholders' Fund
407,901,000,000
483,131,000,000
18.44
ESTIMATED RATIOS
Earnings Per Share
0.75
1.24
65.33
PE Ratio
1.54
1.94
25.97
Earnings Yield
16.28
12.90
-21.00
Book Value
11.24
14.13
25.71
Price To Book
0.41
0.68
65.85
ROE (%)
6.65
8.76
31.73
Profit Margin
16.37
19.01
16.13
Year End
Dec
Dec





SOURCES: COMPANY DATA & INVESTDATA RESEARCH

The decision of UBA’s management toopen shop in six more Africa countriesis expected to further grow offshore contribution to top and bottom-lines above 40% very soon, while reengineering of itsNigerian operations for improved profitabilitythat would enable it compete strongly with the younger new generation banks and overtake them in no distant time if this tempo is sustained.

Technical View

UBA price action has formed a bullish channel for more than a year and is recently forming a pennant within the channel that supports continuation of trend. The positive sentiments on its strong financials and high buying pressure as the stock is trading above 100 DMA and RSI is reading 72.51 which is at overbought region. Signaling sell for traders as pullback is imminent due to profit taking.

All the momentum indicators indicate sell except for MACD that is saying buy at the current price.

Valuation
The bank’s share price is considered attractive at trailing 1.94x of earnings. Its recent financial results and upgrade to full year 2017 guidance are indicative of strong performance that continues to deliver on expectations, even as the shares trade at Price/Book ratio of 0.68x and Profit Margin of 19.01%. Meanwhile, the Book Value reveals an underpriced situation, tradingbelow its Book Value of N14.13 per share, following which each unit of UBA is fairly priced at N18.00.

Analysts Opinion/Recommendations
Since theKennedy Uzoka-led management came on boardits impressive performance and stronger numbers had supported the rally so far in the year, especially since early-March 2017when it broke out the trend line. With the numbers reported in this Q2 result, the bank full year EPS is projected to be in the region of 252 kobo. As summarised in the table above, the bank’s investment ratios are strong and attractive for discerning investors to look its way. We have placed a POSITIVE rating on the stock of UBA, BUY.




UNITED BANK FOR AFRICA
Share Holding Structure
Stanbic Nominees Nig. Ltd.
10.10%
UBA Staff Investment Trust Scheme
5.70%
Pioneer Investment Mgt Ltd.
5.02%
Tony Elumelu
5.70%
Nigerians & Other Institutions
73.48%
Other Statistics
Shares Outstanding (MN)
34,199,385,367
Opening Price (2016)
N3.35
Closing Price 2016
N4.25
Closing Price as at August 25
N9.70
Date Listed
1970
Year End
31ST DECEMBER


Management to drive positive scorecard
The bank’s managementhas so far demonstrated commitment to repositioning it for enhanced profitability, following which the board has for the third consecutive year offered a 20 kobo interim dividend.
Moreso, UBA was very proactive with its balance sheet deployment in the review period. The bank’s defensive strategy has remained very effective, ensuring that the backlash of some regulatory policy changes is mitigated. The Naira, Nigeria’s pressured local currency is a major disincentive for UBA to sustain this venture, but its offshore earnings through its operating network has also supported bottom-line.

Performance in Four Years (2013-2016)
The bank’s numbers in the period under considerationhas remained resilient, despite the tight economic conditions especially since the crash in oil prices and the resultant pressure on disposable income of many households, which may have been the major restraining factor for creation of risk assets.
Gross earnings for the period grew by 45% to N383.65bn from N264.69bn in 2013, even as profit for the period was stable despite the over regulation in the industry with banks having to make different set of provisions in line with Prudential Guidelines. Bottom line for same period was up by 55% to N72.26bn from N46.6bn in 2013.

Return on Capital Employed and Assets for the four-year period were 19.8%, 1.8%, 18.1%, 1.7%, 17.9%, 2.2%, 16.13% and 2.06% in the four years respectively from 2013 2014 2015 2016. Return on Equity was 16.13% in FY-2016, down from 18.84% in FY-2015 while Return on Assets experienced a marginal decline for the same period to 2.06% from 2.17% year on year. It also grew Net Assets for the period by 90.64% from N235.04bn in 2013 to N448.09bn.
FOUR YEARS FINANCIAL PERFORMANCE
2013
2014
2015
2016
Date Released
March 27, 2014
March 26, 2015
March 14, 2016
March 24, 2016
Price @ Released Date
9.45
4.03
3.50
5.39
Gross Earnings
264,687,000,000
290,019,000,000
314,830,000,000
383,647,000,000
Profit After Tax
46,601,000,000
47,907,000,000
59,654,000,000
72,264,000,000
Shareholders' Fund
235,036,000,000
265,406,000,000
332,621,000,000
448,069,000,000
Dividend
0.50
0.10
0.60
0.75
SOURCES: COMPANY DATA & INVESTDATA RESEARCH

Ratio Analysis
The bank has sustained upward earnings trend that supported price performance as the EPS moved from N1.41 in 2013 to N1.99 in 2016, just as Price to Earnings Ratio remained unstable due to the up and down movement in equity prices.
In arriving at our fair value price for the stock, we focused on its historical financial performance and our expectations for full year 2017, which was calculated using the Price to Book Value method of valuation as well as the Dividend Discount Model comprising our expected dividend estimate for the bank and to adjust for the risk of investing in the Nigerian Financial Services sector. We have placed a POSITIVE rating on the stock of UBA.

UBA- ESTIMATED RATIOS
2013
2014
2015
2016
Earnings Per Share
1.41
1.45
1.64
1.99
PE Ratio
4.95
2.77
2.13
2.71
Earnings Yield (%)
20.18
36.04
46.98
36.95
Book Value
7.13
8.05
9.17
12.35
Price to Book
0.98
0.50
0.38
0.44
ROE (%)
19.83
18.05
17.93
16.13
Profit Margin (%)
17.61
16.71
18.95
18.84
Year End
Dec
Dec
Dec
Dec
SOURCES: COMPANY DATA & INVESTDATA RESEARCH

https://investdataltd..com.ng/2017/08/uba-surpasses-market-expectation-fore.html

CORPORATE ACTION JULY 14 TO SEPTEMBER 11, 2017


https://investdataltd..com.ng/2017/08/corporate-action-july-14-to-september.html