UNITED CAPITAL: MIXED Q3 NUMBERS IN ABSENCE OF EXTRA-ORDINARY INCOMES

United Capital Plc, Nigeria’s only listed Investment banking giant recently released its nine-month earnings report for the period ended September 30, 2017, with mixed performance with the top line looking north and bottom-line pointing the opposite direction- south, despite the relative improvement in the economy and the investment environment that had impacted positively on returns so far in the year.

The company’s performance on quarterly basis have been below the numbers posted in 2016 which had kept its price performance moving relatively sideways after the May rally.
United Capital has done well in its core operational areas of investment banking, trusteeship, asset management and securities trading as shown by the investment and trading income for the period under review. These were aggressively driven by robust technology, marketing and product innovation to deliver satisfactory services in an efficient manner, while ensuring cost is under serious management, to boost profitability.

The company’s under performance since the beginning of the current financial year, when compared to 2016 had reflected in the scorecard, with gross earnings managing to inch up by 9.67% to N6.24bn from N5.69bn in 2016. This was significantly boosted by returns on investment and net income from securities’ trading which is the core service area of the company. But profitability level for the period was down by 30.43% to N3.27bn from N4.7bn in 2016 on the back of an absence of extraordinary income that contributed about 33% in 2016.

In addition to the absence of extra-ordinary income, the total expenses for the period was up by 35.55% and was essentially due to the 38.4% increase in operating cost and overhead by 30.3%.
This was despite the high risk in the financial market environment, especially in a recovering economy where the effect of recession continues to linger, added to the fact that the highest spender- government is not judiciously implementing 2017 budget because its revenue projections are lagging behind.

The unstable performance in UCap’s financials so far in the year has kept its share prices trading at N3.04 each, which is about 24.39% above it price of N2.46 at the release of its report in 2016.
The stock is currently trading above its book value by 19.69%, which indicates unfairly priced situation that calls for discernment at this point on the part of investors.
The company’s book value currently stands at N2.54 and Price to Earnings Ratio is 1.87x, which means investors' waiting period has increased from the 1.09x in the corresponding period of 2016.



SOURCES: COMPANY DATA & INVESTDATA RESEARCH

Valuation/Recommendations
The company’s oscillating earnings is a major source of concern to stakeholders, especially the decline in return on equity which shows that for every 100 kobo provided by shareholders, 22 kobo was returned as profit, down from 36 kobo in the corresponding period of 2016, even when there was an improvement in the nation’s economic fundamentals in support of investment. However, the company’s current Book Value at N2.54 per share and profit margin of 52.47% is good, but investors expect equalization dividend to support price on the strength of its Price-Earnings-Ratio of 1.87x, which is relatively okay in the market, just as Dividend Yield at 16.45% is attractive, as it is above the nation’s current inflation rate of 16.05%.

The company has consistently paid dividend since 2013 and on the strength of its numbers for Q3, the chances for another dividend payout at the end of the year is high. The management's commitment to deliver outstanding services to drive performance will support price in the long run. Based on this reality, we advise investors in the stock to BUY for long and if you are there for dividend income, increase your stake as the year winds down gradually.
The possibility that the director would offer dividend of between 35 to 45 kobo is high.

Technical View



UCAP’s price action on daily time frame has formed a symmetrical triangle chart pattern that supports continuation of trend in upward or downward direction depending on market sentiments, especially after this stock had side-trended for five months. Traders should wait for a breakout of the blue trend line before buying, as well as reversal to first support level at N2.88 each and second support price of N2.48. The strength of the trend is weak given that ADX is below 20 points
History

United Capital Plc was established in 2002 and listed on the exchange in 2013 to provide financial services through its investment banking, Trustees, Asset Management and Stockbroking divisions. The company's capacity building and technology–driven business has supported its status as a one-stop Investment shop.

It was then fully owned by United Bank for Africa Plc before being quoted on the NSE, thereby becoming a publicly owned company with its own shareholders. Its excellent service delivery in helping governments, corporate organisations and individuals to achieve their financial goals in the financial market continues to support its strong performance.

Its 17 years of active participation in helping to deepen the Nigerian Financial Market has afforded the company opportunities to participate in various offers, including financing of projects, financial advisory service, packaging of Initial Public Offerings, Right Issues, Debentures, as well as corporate and government bonds

Performance Analysis
The company's performance for the four-year period (2013 to 2016) reveals that the management has surpassed forecast and projection it gave while company was being listed on the exchange, given its consistent growth in earnings and rewards to shareholders.
Within the period, for example, United Capital Plc has consistently grown gross earnings and other profitability ratios.

Gross income for the period grew by 96.94% from N4.57bn to N9bn in 2016, also profitability level moved significantly, from N1.76bn in 2013 to N6.91bn, a 292.61% increase. This is very much in line with the commitment of management to grow earnings and manage cost as reflected in its profit margin for the review period, as it remains above the 15% international standard.
Net assets currently stand at N14.23bn from N8.38bn in 2013, revealing an uptrend in the last four years.

The company has paid a total dividend of N1.30 per share since it became a quoted, a function of its strong earnings position for this period, but the recent two-year improvement in payout calls for more inputs to sustain the tempo by consistently growing earnings power.


SOURCES: COMPANY DATA & INVESTDATA RESEARCH

Estimated Performance Ratios
Performance ratios for the period under review shows that the amount earned per share was significantly better at 115 kobo, than the 29 kobo in 2013 when it became a public company, after which it increased yearly from 31 kobo in 2014; to 43 kobo in 2015. This is a reflection of the stable and up-trending earning power in an unstable-risk financial market. This shows how resilient the company has remained over the years.

Price Earnings ratio is okay and attractive at the current estimate of 3.20x from a high of 8.68x in 2013. The last full year EPS is a yield of just 31.23% of the market price as of the release date. This simply signifies an improvement in the stock's valuation by the market as against the posted numbers.

The Book Value moved from N1.40 in four years to N2.37 as the share price equally moved from the price of N1.30 as of listing date to N3.82. The enhanced Book Value for the period resulted from the company improving upon and retaining some of it its earnings which moved from N6.72bn in 2013 to N13.25bn, which supported shareholders’ funds tremendously. Putting this ratio and the market price of the stock side-by-side, signals opportunity for medium and long term investors. Also, the company’s profit margin over the years has improved as management effectively controlled cost to boost profit.

https://investdataltd..com.ng/2017/10/united-capital-mixed-q3-numbers-in.html

TECHNICAL POSITION OF NIGERIA STOCK EXCHANGE SECTORIAL INDEXES

Nigeria’s stock market after six weeks of correction broke-out the downtrend line with strong technicals that supports another rally, at a time investors positive sentiments continue to wax strong with buying pressure on the increase ahead of earnings season that had commenced as numbers have started trickling in already.

The Q3 numbers released so far are mixed in performance and yet to give a clear direction as to what investors should expect from the sectors wherefrom these numbers emanated, in addition to expected economic data like the September inflation and Q3 GDP figures.
The weekly technical chart appears stronger to support recovery with the increase in volume and price movers in the week under review, as volume index in the period at 2.14 and buying position of 96%, and 4% selling volume for the week’s transaction continue previous week’s up market.
Activities last week showed that some sectors had rebounded while others are still struggling, just as volume breakout are becoming stronger, with some sectors trading above their 20 and 50-day moving average.

From a technical perspective, the market’s short term rally is underway with earnings reporting season having kicked off already and speculators are trading the expected numbers while positioning ahead of the earnings reports. While trading earnings, market players should understand how to use resistant and support levels to boost their returns and manage risk.

NSEASI WEEKLY TIME FRAME



The index weekly time frame has sustained its up-trending on a positive sentiments despite profit booking. The increasing momentum from traders and investors as repositioning for quarterly earnings reports and end of the year seasonality changes.
The recent rebound remains strong as trending ability on weekly and daily time frame are still strong with ADX above 20 for the period at 38.24 and 26.14 respectively.
Traders should watch out for a breakout of resistant level of 37,088.45 as more speculators have return to trade Q3 earnings reporting season, while trading with caution ahead of economic data from the National Bureau of Statistics (NBS). Any move down to 35,488.81 if the numbers are below expectations.

Looking at technical indicators, the NSEASI closed below the upper band by 25.8%, while MACD has been bearish in the four trading sessions, just as the RSI is reading 67.11 relatively on overbought region. Money flow index on a weekly time frame is turning up, while daily, it is looking up to indicate that funds are entering the market. The momentum indicators like RSI, CCI and MACD are signaling SELL while SO indicates BUY. The index is trading above it 20 and 50 day moving average

NSE Banking Index



The banking index is trading above its 20 and 50-day moving average with strong positive sentiments ahead of the sector’s Q3 financials, which has increased the demand for banking stocks as volume index stand at 1.04 with buying position of 100%, and 0% selling volume for the week’s transaction to continue its four weeks rally despite profit taking. The sector’s trending ability on a weekly and daily time frame are strong since ADX is above 20 at 50.21 and 24.42 respectively.

Traders should position on a breakout of the double top that is currently being formed, as it is a reversal chart pattern that supports pullbacks, despite the expected return of speculators to trade the Q3 earnings season that had kicked off. The first resistance level is at 463.35 and the second at 471.28 point, any move down to 444.27 and 435.17 respectively.

Looking at technical indicators, the NSE BNK index closed below the upper band by 18.8%; MACD is bearish; RSI is reading 71.54, on overbought region; Money flow index on a weekly time frame is turning up, while daily, it is looking up to indicate that funds are entering the sector. The momentum indicators like RSI, CCI and MACD are signaling SELL, while SO is saying buy.

NSE Consumer Goods Index



NSE Consumer Goods index has formed a FLAG chart pattern that supports continuation of trend, after it had experienced a divergence when OBV was trending up and the index action moving down. A breakout of the flag will confirm a major rally in the short term if the numbers from the industry beat market estimate. The index still remain relatively strong as it is trading above the 20 to 50 day moving average as at last week Friday. The sector’s volume index of 0.78 with buying position of 68%, and 32% selling volume for the week’s transaction to continue a two-week uptrend despite profit taking from the industry. The sustainability of earnings in Q3 will further drive prices of stocks in the sector. As the year changing personality in terms of companies that had turn from a bearish situation at the beginning of the year but now bullish to lead the market are in this industry.
Traders should watch out for breakout levels of equities in this sector on this rebound. The first resistance level is at 966.27 and the second at 974.18 point, any move down to 921.28 and 935.82 respectively.

The NSE’s Consumer Goods index trending ability on weekly and daily time frame is strong since ADX trading above 20 at 43.12 and 22.46 respectively. Looking at technical indicators, the NSECONSGOODS closed below the upper band by 31.3%. MACD is bullish, while RSI is reading 65.25 almost at overbought region. The momentum indicators like RSI, SO, MACD and CCO are signaling sell.

NSE Industrial Goods Index



NSE Insurance index had rebounded to breakout the downtrend line. The weekly chart reveals the sector index is trading above 20 and 50-day moving average as at last Friday. In the last two weeks strength has returned as reflected on the improving volume and with the prices of some stocks in the sector rallying high. The sector’s volume index stood at 0.48, buying position of 86%, and 14% selling volume for the week’s transaction to continue the previous week’s bull transition.
Traders should take position with the breakout of yellow line on improving volume, confirm strength of rallying which more impetus will be added when numbers surpasses estimates. The first resistance level is at 2176.28 and the second at 2225.18 point, any move down to 1964.87 and 1,926.14 respectively.

The sector’s index trending ability on a weekly and daily time frame are strong since ADX is trading above 20 at 26.15 and 21.48 respectively. Looking at technical indicators, NSE INDUSTRIAL closed below the upper band at 36.7%. MACD is bearish, while RSI is reading 59.85 relatively strong. Momentum indicators like RSI, MACD and CCO are signaling sell, while SO signaled buy.

http://investdataltd..com/2017/10/technical-position-of-nigeria-stock.html

PEG RATIO REVEALED VALUE STOCKS IN NIGERIA BANKING INDUSTRY


It is a common saying that an investment is made against future expectation therefrom. In plain language, the price we are ready to pay for an investment today (stock, land, car, house, etc) is based on how much value we intend to extract therefrom in a short, medium or long timeframe. Such expectation is however not guess work, as it comes with careful analysis of the investment’s past and present situation, so as to project the future value.
In the case of a company we look at its growth trend and capacity to drive earnings power and thereby supporting price which makes the difference, apart from dividend payment which PEG analysis metric do not put into consideration.

Nigeria’s banking stocks recently suffered pull-back as a result of corrections and profit taking in the sector by investors, after it had led bull-run since the beginning of the year to surpass the NSE’s benchmark index as the market and economy continued to recover. Importantly, the decline in inflation rate from 18.55% in January 2017 to 16.01% in August and the exit of the nation’s economy officially from recession as shown in its Q2 GDP growth of 0.55% for the period, have not reflected in banks non-performing loans that continues to remain high. This has dimmed the otherwise positive quarterly earnings from the sector which is trending up, especially for first tier banks, a situation that continues to offer some form of confidence to investors, especially given that many of the first tier banks will beat expectations of the market and analysts.

Despite the strong apathy for credit risk assets, banks within the first half of the year recorded an average growth of 37.6% in interest income which was supported by a high yield environment as the government continued to crowd the financial market with securities at a relatively higher interest rate.
We however expect the banks to continue benefiting from attractive yields on fixed income, as a result of which we project an average growth of 29.0% YoY in interest income across the banks in 9M’17.
In recent times, the CBN phased out the one-year OMO (Open Market Operation) bills which moderated yields in the fixed income space, with yields on 364-days bills down by 400bps in the last one month. However, we believe the impact will be negligible on the Q3’17 performance, given that the easing started in the last month of the third-quarter. Should the Central Bank of Nigeria successfully sustain its ongoing effort, the impact on interest income may become significant from Q1’18. Also banks with strong FX liquidity would continue enjoying derivative income in Q3’17. For non-interest income, we expect UBA, ZENITHBANK and ACCESS to continue to report strong numbers from derivative transactions, given their strong dollar liquidity on the back of their recent Eurobonds Issuance in the last few months. Also, with the overall improvement in FX supply both at the interbank and Investors & Exporters (I&E) window, we expect a spike in income from trade related transactions to consequently boost non-interest income for the period.

Majority of economic data and indices released so far point to an economy recovering from recession, which is expected to impact banking stocks at a time many of the banks remain undervalued, a situation that has continued to attract local and international investors to the sector, given its role as an agent of economic growth and development, which cannot be overemphasized, especially as the sector remains the engine room of any economy.
The table below shows the position of Nigeria bank stocks- weather overvalued or underpriced. PEG ratio >1 (more than 1) implies that the stock is overvalued, which simply means that the bank’s future earnings is not going to grow much and the stock may undergo a correction in price at some point.
PEG ratio =1 implies that the stock is fairly valued, given the expected growth rate.
PEG ratio of <1 (less than) means the stock is undervalued, as the market is currently underestimating its growth.
Negative PEG ratio: This could be the case where the current earnings are negative, or the future earnings are going to decline



Source: NSE, Company Reports and Investdata Research
Given that many of Nigeria’s banking stocks remain undervalued, investors should be guided, by the bank’s consistency in growing earnings on quarterly basis, in releasing numbers and growing dividend. Also important to this discussion is the trending pattern of individual stocks.

https://investdataltd..com.ng/2017/10/peg-ratio-revealed-value-stocks-in.html

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED OCTOBER 13, 2017

https://investdataltd..com.ng/2017/10/investdata-price-earnings-tracking-for.html

MARKET UPDATE FOR WEEK ENDED OCTOBER 13 AND OUTLOOK FOR 16-20





Nigeria’s stock market over the past week had a volatile and mixed performance to close higher on an uptrend that supports buying opportunity as demand for stocks were in the increase with the earnings reporting season entering its peak, ahead of the release of September inflation and Q3 GDP data from the National Bureau of Statistics (NBS).
The increasing buying pressure reflected on the volume traded for the period under review, which is likely to continue in this new week judging from the fact that technicals had given a buy signal for some sectors and individual stocks, especially the stocks that will beat Q3 earnings expectations.
The improvement in market breadth in the past two weeks has strengthened the up trending ability and direction which confirms the recovery in the market on positive sentiments.

The improved speculative activities of traders are becoming noticeable in the buying pressure that supported the recent breakout that ushered in the uptrend with profit booking at intervals may slow down the rally which would depend on earnings surprises in the financials expected from the first tier banks, consumer goods, industrial, services and agribusiness would keep the trend up in the short term.
The weekly volume index was 1.02, with buying position at 93% and 7% selling volume of the total transaction as volatility continued. The composite NSE All Share Index gained 527.24 points to close at 36,848.17points on Friday, from the week’s opening figure of 36,320.93 points, representing a 1.45% growth on a high volume of transactions. The index hit an intra-week high of 36,888.70 and low of 36,320.30 basis points. A breakout of this new resistant level at 36,888.70 will trigger another momentum that will surpass the year-to-date resistant point of 38,221.17 with expectation of strong numbers that will further boost market fundamentals that will drive prices as the year winds down with hope of impressive numbers that will impact equity prices positively. Similarly, market capitalisation for the period closed higher at N12.68tr from an opening value of N12.5tr, representing a 1.45% value gained in investors’ portfolios to reduce losses suffered recently and keep the two weeks bull transition.

Top performing stocks that dominated the advancers log for the week were low and medium caps stocks that had pulled back before now and are now attracting attention on the strength of their strong fundamentals and technical, thereby revealing buy opportunities in these stocks ahead of their second and third quarter earnings reports.
The upturn experienced during the period was as a result of improving speculative activities of traders and smart money willing to play the quarterly earnings reporting season that has already kicked off. The continued repositioning in low, medium and high cap stocks, has impacted the NSEASI’s year-to-date return to 37.11%, just as market capitalisation for the period increased to N3.45tr, representing a 37.42% gain from the year’s opening value.

Market breadth remained positive as the advancers outnumbered decliners in the ratio of 41:23 on a high volume of trades which reflect that investors and traders’ are repositioning ahead of earnings.
Stock markets across the world were mixed to close the past week higher, despite the pullback signaled in the developed market like the U.S where cautious trading and profit booking continues on the rise, regardless of the earnings reporting that had kicked off. Many players in that market are expecting tax cuts and December rate hike to underpin future results, amidst uncertainty surrounding North Korea and other geopolitical issues that remain major concerns to investors.
Back home, NSE’s benchmark Index opened the week on a positive note, gaining 1.41% which was short-lived on the second trading session when there was a marginal loss of 0.15%, continuing at the midweek’s session with a 0.34% slip. The trend was reversed on Thursday, as the indicators closed north with a gain of 0.22%, which was sustained on Friday, with the indicators recording a relatively higher gain of 0.32%, bringing total gained for the week to 1.45%, to continue the previous week’s up market.

Cumulatively, the week ended with the All-Share Index and sectoral indices closing higher, except for the NSE AseM which was flat to close the week, an indication that the positive sentiment that pushed prices up has touch all the represented sectors on the exchange.
The week’s activities, measured by aggregate volume and value, were mixed as volume was up marginally by 4.70% while investors crossed 1.56bn shares as against previous week’s 1.49bn units, while value for the period dropped by 10.66% at N13.5bn from the previous week N15.11bn.
During the week AXA Mansard Insurance topped the advancers’ table, gaining 25.50% to close at N2.51 per share on the back of market forces and expectation of Q3 numbers with possibility of interim dividend, followed by CCNN’s 20.10% notch to close at N9.88 each on market sentiments and expectations for its Q3 numbers. The decliners’ table on the other hand was led by University Press, which closed 13.62% lower at N2.22 on market forces; while AG Leventis followed with 11.29% drop to close at N0.55 per share.
During the week also, Cutix announced it dividend payout of 18 kobo, while the full suspension placed on the shares of Thomas Wyatt and Africa Alliance Insurance were lifted up. The companies are among those suspended for failing to meet the NSE’s post-listing requirement on the submission of quarterly and full-year financials.

Market Outlook
As the market opens this week, expect volatility to persist owing to positioning, profit taking and more earnings reports that would hit the market, expected to trigger more speculative activities that has kicked off ahead of September inflation and Q3 GDP figure in the amidst of year-end seasonality.
As we move into the middle of the earnings season more numbers are likely to be released but one thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market 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.

Investing in the stock market is in phases. You must know this in order to manage your trading and investment 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 in this recovery market.
The workshop materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 or 08111811223.

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Plan to attend Invest 2018 and learn from industry experts the strategies that are working in today's market for starting or growing your trading business and for investing in the stock market, as well as strategies to fast track your success…
When you attend this summit you’ll find out how you can start a stock trading or grow your investment in a smart way - so that it is easy to manage and generate increasing earnings whilst you spent less time at work.
You will also learn what really works in stock market investing - strategies that even beginners and experienced traders/ investors can use.

In the Nigeria stock market today, it is no longer about how long you have been in the market, how close you are to MDs and stockbroking firms, being particularly smart or working hard - the most important thing is doing it yourself through your phone and laptop by knowing the right strategies via knowledge and understanding how to effectively combine economic, company fundamentals and technical tools for profitable investing.
And once you know these strategies even someone of average intelligence and average resources can achieve outstanding results relatively fast.

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

N.B: At this event you'll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.

https://investdataltd..com.ng/2017/10/market-update-for-week-ended-october-13.html

can you advise on 6 stocks for a newbie based on capital appreciation and dividend payments

CORPORATE ACTION FROM 3 JULY TO 27 OCTOBER 2017
https://investdataltd..com.ng/2017/10/corporate-action-from-3-july-to-27.html

MARKET UPDATE FOR OCTOBER 16, 2017



INVESTORS, TRADERS RETURN AHEAD Q3, YEAR-END POSITIONING, ECONOMIC DATA INFLOW

The nation’s stock market had a positive, even if volatile Monday to start the week in consolidation of the three trading sessions of up market as earnings speculation trading which had commenced earlier entered top gear with hope of more numbers hitting the bourse in the coming days.
The first banking sector earnings report was made available by the directors of United Bank for Africa Plc during the session, giving an insight into the kind of third quarter reports that traders and investors should expect from its peers, especially the first tier stocks.

The day opened slightly up before having back and forth movement by the mid-morning trading as it searched for intraday direction until midday when highly capitalized stocks appreciated in value amidst continued positioning ahead of their nine-month numbers. As a result of this, there was an increased demand for banking, consumer goods, agribusiness and Industrial goods stocks during the session. There was a breakout of the recent resistant level of 36,888.48 to intraday high of 36,972.27, from a low of 36,847.15 to close the day higher on a mixed sentiment as profit taking at interval by traders remain strong.

Market traded volume was low with a stronger buying pressure as revealed by the volume index for the day that stood at 0.86, while buying position was at 66% and 34% selling volume of transactions. This continued previous day’s up market.
The continued Central Bank of Nigeria (CBN) intervention in the foreign exchange market continues to impact positively on the inflationary numbers since the month of February, as well as the strong backward integration in the nation’s manufacturing sector to further boost numbers from the consumer goods sector. Already, market players expect Q2 and Q3 earnings from companies in that sector.

Also important is the nation’s sustained growth in external reserves amidst the continued CBN FX intervention, which is a plus for the market as the price of oil keeps rising, a situation expected to boost government revenue and enhance implementation of the 2017 budget. As part of the spending plan in this fiscal year, the Federal Government plan to infuse 50% of the capital projects for 2017 Appropriation Act into that of 2018, at a time dwindling revenue is making a mess of its infrastructure fixing plans. The planned infusion would make the 2018 budget the nation’s all-time biggest, but implementation style and disbursement strategies of the government has made Nigerians and the economy not to feel the impact of huge spending plan so far.

Meanwhile, the composite NSE All-Share index gained a marginal 123.10 basis points to close at 36,971.27 from an opening figure of 36,848.17 basis points, which represented 0.33% rise, just as market capitalisation for the day went up N42.27bn to close at N12.73tr, from the previous session’s N12.68tr, representing a 0.33% appreciation in investors’ worth. The upturn in the share prices of blue chip stocks like Zenith Bank, Stanbic IBTC, ETI, National Salt, Flourmills, Presco, Guaranty Trust Bank and Dangote Cement, impacted positively on the ASI’s year-to-date return which stood at 37.57%, just as market capitalisation has grown by N3.5tr YTD, representing a 37.62% rise above the year’s opening value.
Market breadth for the day was positive as the number of advancers outpaced decliners in the ratio of 24:15 on a low volume traded that was higher than previous day’s level to continue Friday up market.

Market activities for the day, in terms of volume and value, were up by 37.18% and 24.10% respectively to 214.96 million shares worth N2.73 billion, up from previous day’s 156.70 million units valued at N2.20 billion.
Transactions in the shares of Transcrop, UBA, Guaranty Trust Bank, FBN Holdings and FBNH topped the volume chart.
As noted earlier, UBA announced it third quarter earnings report which came positive and impressive, with top and bottom line in the northward direction.
At the close of the day’s trading, C&I Leasing topped the advancers’ table, chalking 9.55% to close at N1.95 per share on market sentiment, followed by Fidelity Bank and Nahco with 5.00% respectively to close at N1.47 and N3.57 per share on market forces ahead of Q3 numbers. On the flipside, Learn Africa lost 5.00% to close at N076 on market forces/sentiments, followed by Medview Air which shed 4.40% to close at N1.52 per unit on market forces.

TODAY’S OUTLOOK
As the market opens this morning, expect volatility to persist owing to positioning ahead of more earnings releases and economic data.
One thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market 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. 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 materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 or 08111811223.

Attention! Attention!! Attention!!!

INVEST 2018 FINANICAL SUCCESS

Attend Invest 2018 Traders and Investors Financial Success Summit, where top investment tips for 2018 and beyond will be shared by stock market experts and professional Traders.
You may have had a few ideas as to what we are going to suggest, maybe Bitcoin, or the changes in the market in terms of companies whose shares are about to take off or the healthcare company with a new blockbuster product. It is much more than these…
I truly believe the best investment you can make if you want to check whether 2018 would be a great year for you financially, is to invest in education and I have a way for you to do that through the Investdata Buy and Sell Signal setup.

Plan to attend Invest 2018 and learn from industry experts the strategies that are working in today's market for starting or growing your trading business and for investing in the stock market, as well as strategies to fast track your success…
When you attend this summit you’ll find out how you can start a stock trading or grow your investment in a smart way - so that it is easy to manage and generate increasing earnings whilst you spent less time at work.

You will also learn what really works in stock market investing - strategies that even beginners and experienced traders/ investors can use.
In the Nigeria stock market today, it is no longer about how long you have been in the market, how close you are to MDs and stockbroking firms, being particularly smart or working hard - the most important thing is doing it yourself through your phone and laptop by knowing the right strategies via knowledge and understanding how to effectively combine economic, company fundamentals and technical tools for profitable investing.
And once you know these strategies even someone of average intelligence and average resources can achieve outstanding results relatively fast.

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

N.B: At this event you'll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.

https://investdataltd..com.ng/2017/10/market-update-for-october-16-2017.html

Breaking! Nigeria’s Inflation Rate Records 8th Consecutive Fall To 15.98% In Sept- NBS

Nigeria’s National Bureau of Statistics (NBS), on Tuesday, published the data for inflation and Consumer Price Index (CPI), showing a decline for the eighth consecutive marginal decline to 15.98% from 16.01% in August.
There was a further rise in food inflation, even as core inflation slowed down in the period under review.
More details later…

http://investdata.com.ng/2017/10/breaking-nigerias-inflation-rate-records-8th-consecutive-fall-15-98-sept-nbs/#more

TRUMP BLOWS OWN TRUMPET, SAYS U.S. BETTER SINCE HIS 2016 ELECTION

U.S President Donald Trump, on Monday took to his personal twitter handle- @realDonaldTrump.
This time, it was to count the gains his November 8, 2016 election has brought to America and Americans.
According to him, “the U.S. has gained more than 5.2 trillion dollars in stock market value since Election Day!”
Since the Election Day, he also noted, the U.S. stock market has risen by over 25%, just as “unemployment is at a 17-year low and companies are coming back to U.S.”

http://investdata.com.ng/2017/10/trump-blows-trumpet-says-u-s-better-since-2016-election/#more

MARKET UPDATE FOR OCTOBER 17, 2017


TRADERS AGAIN TAKE PROFIT, AMIDST WAIT FOR MORE Q3, GDP NUMBERS

Trading on the floor of the Nigeria Stock Exchange (NSE) on Tuesday continued its volatility to close on a negative note, after losing almost all its gain in the previous three trading sessions, on the strength of profit taking by traders which is expected in any earnings reporting season, especially when the growing number of market players are short-term investors, including retails players.
The down market coincided with the release of September inflation rate by the National Bureau of Statistics (NBS) which dropped slightly for the eighth consecutive month to 15.98% from 16.01% in August. The marginal decline in the month, which coincides with the harvest period, is of concern to investors, suggesting that the celebrated success in agricultural sector is still shaky, meaning that either there is poor harvest or infrastructure like roads to transport farm produce to markets in the city centre. This has often led to waste of farm produce, most of which rot before arriving the markets, such that the little that make it there become expensive due to high cost of transportation, and other operational costs that are built-in.

The situation could have been worse, if not for the sustained intervention by the Central Bank of Nigeria (CBN) in the foreign exchange segment of the inter-bank market, without which there could have been imported inflation induced by FX scarcity.
This is where the fiscal authorities should come in, especially through a rethink of the current implementation of the 2017 budget, by seeking other more viable means of funding road and railway reconstruction across the country particularly to ensure real and sustained economic growth.
Tuesday’s trading session started with the benchmark All-Share index moving downside, before moving back and forth, reaching support and holding twice between the mid-morning and midday, as profit taking in highly capitalized stocks like Dangote Cement, NB, Guaranty Trust Bank, Mobil Oil and other low caps recorded cash gains.
Market traded volume was low with a stronger selling pressure as revealed by the volume index for the day that stood at 0.85, while buying position was at 0% and 100% selling volume of transactions to halt the bull transition.

Meanwhile, the NSE All-Share index shed 301.66 basis points to close at 36,669.61 from an opening figure of 36,971.27 basis points, which represented 0.81% decline, just as market capitalisation went down N103.84bn to close at N12.62tr, from the previous session’s N12.72tr, representing a 0.81% value loss in investors’ portfolios. The downturn in the share prices of low, medium and high caps stocks were impacted by the expected profit booking by traders, which had a negative influence on the ASI’s year-to-date return, dragging it to 36.45%, just as market capitalisation notched N3.4tr YTD, representing a 36.50% rise above the year’s opening value.
Market breadth was marginally positive as the number of advancers outnumbered decliners in the ratio of 22:21 on a low volume traded that was lower than previous day’s level to halt Monday bull market.

Market activities for the day, in terms of volume and value, were mixed as the volume was down marginally by 1.44% to 211.87m shares from previous day’s 214.96m units while value was up by 73.63% to N4.74bn from N2.73bn on Monday.
Transactions in the shares of Fidelity Bank, Zenith Bank, GTBank, Access Bank and UBA topped the volume chart.
At the close of the day’s trading, International Breweries topped the advancers’ table, chalking 5.72% to close at N44.31 per share on market sentiments and Q2 earnings expectation, followed by Jaiz Bank with 4.42% to close at N0.68 per share on market forces. On the flipside, Redstar Express lost 9.16% to close at N4.96 on profit taking followed by Neimeth which shed 8.17% to close at N0.62 per unit on profit booking.

TODAY’S OUTLOOK
As the market opens this morning, expect volatility to continue in the midst of positioning and profit taking ahead of more earnings releases.
One thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market 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. 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 materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 or 08111811223.

Attention! Attention!! Attention!!!

INVEST 2018 FINANICAL SUCCESS

Attend Invest 2018 Traders and Investors Financial Success Summit, where top investment tips for 2018 and beyond will be shared by stock market experts and professional Traders.
You may have had a few ideas as to what we are going to suggest, maybe Bitcoin, or the changes in the market in terms of companies whose shares are about to take off or the healthcare company with a new blockbuster product. It is much more than these…
I truly believe the best investment you can make if you want to check whether 2018 would be a great year for you financially, is to invest in education and I have a way for you to do that through the Investdata Buy and Sell Signal setup.

Plan to attend Invest 2018 and learn from industry experts the strategies that are working in today's market for starting or growing your trading business and for investing in the stock market, as well as strategies to fast track your success…
When you attend this summit you’ll find out how you can start a stock trading or grow your investment in a smart way - so that it is easy to manage and generate increasing earnings whilst you spent less time at work.

You will also learn what really works in stock market investing - strategies that even beginners and experienced traders/ investors can use.
In the Nigeria stock market today, it is no longer about how long you have been in the market, how close you are to MDs and stockbroking firms, being particularly smart or working hard - the most important thing is doing it yourself through your phone and laptop by knowing the right strategies via knowledge and understanding how to effectively combine economic, company fundamentals and technical tools for profitable investing.
And once you know these strategies even someone of average intelligence and average resources can achieve outstanding results relatively fast. To register for the coming summit Kindly call or send yes to 08032055467 or 08111811223.

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

N.B: At this event you'll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.

https://investdataltd..com.ng/2017/10/market-update-for-october-17-2017.html

MARKET UPDATE FOR OCTOBER 18, 2017

CAUTION AMONG INVESTORS STILL, AS MORE Q3 COME BELONG EXPECTATION


The nation’s stock market struggled on Wednesday, searching for direction as Q3 earnings numbers continued to trickle in to the market, even as scorecards so far released have come with mixed performance, while the ones that even came with seemingly impressive numbers are yet to receive positive market acknowledgement in terms of upward price movements.
Guaranty Trust Bank Plc, Nigeria’s biggest banking stock (by market capitalization) released its numbers for the nine-month ended September 30, 2017, which analysts agree were below market expectation also at the midweek. This reality is expected to reflect on its price performance as the market open this morning. The earnings report came with marginal decline in Topline, while bottom line moved slightly up as the bank needed to make far less provisioning for loan loss during the period.

The trading session opened with the market index sliding down marginally in the early hours of the day, before continuing its back and forth movement till mid-day where it turned green, before slipping marginally into the red towards the last minutes of the afternoon trade, as profit booking continued in low, medium and high caps stocks.
Market traded volume was low with a stronger selling pressure as revealed by the volume index for the day that stood at 0.80, while buying position was at 11% and 89% selling volume of transactions to continue the down market just as market breadth turned negative.

It is gladdening to note the World Bank’s statement that it is with the Federal Government on the same page in terms of the need to step up the nation’s revenue drive that will support national economic growth and development, just as it commended the Central Bank of Nigeria (CBN) for its consistent intervention that had stimulated and driven the recovery so far. This has continued to attract foreign direct and portfolio investors into the economy at a time the exchange rate has remain relatively stable to allow investors plan their investment.

Meanwhile, the composite NSE All-Share Index shed 28.09 basis points to close at 36,641.52 from an opening figure of 36,669.61 basis points, which represented 0.08% decline, just as market capitalisation went down N9.67bn to close at N12.61tr, from the previous session’s N12.62tr, representing a 0.08% value loss in investors’ portfolios.
The downturn in the share prices of Zenith Bank, Access Bank, UBA, Total Nigeria, Flour Mills, Fidson Healthcare, FBNH and Dangote Sugar impacted negatively on the ASI’s year-to-date return, pulling it down to 36.34%, just as market capitalisation notched N3.37tr YTD, representing a 36.40% rise above the year’s opening value.

Market breadth on Wednesday was negative as the number of decliners outpaced advancers in the ratio of 21:13 on a volume traded that was lower than previous day’s level to halt Monday’s bull market.
Market activities for the day, in terms of volume and value, were down by 4.96% and 37.66% respectively to 198.63m shares value at N2.94bn from the previous day’s 211.96m units valued at N4.74bn.
Transactions in the shares of Guaranty Trust Bank, Zenith Bank, Access Bank, Dangote Sugar and Guinness topped the volume chart.

At the close of the day’s trading, Cutix topped the advancers’ table, chalking 9.09%, to close at N2.20 per share following the offer of 18 kobo dividend by its directors and market forces. It was followed by GSK’s 4.99% to close at N23.15 per share, also on market forces and expectations of its Q3 numbers.
On the flipside, Nahco Aviance lost 5.56% to close at N3.40 on profit taking activities, followed by Law Union & Rock Insurance, which shed 4.94% to close at N0.77 per unit on profit booking.
Also, the share price of Oando was placed on full suspension on the orders of the Securities & Exchange Commission (SEC), preparatory to a forensic audit.

TODAY’S OUTLOOK
As the market opens this morning, expect volatility to continue in the midst of positioning and profit taking ahead of more earnings releases.
One thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market 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. 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 materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 or 08111811223.

Attention! Attention!! Attention!!!

INVEST 2018 FINANICAL SUCCESS
If you are still asking yourself why Trade Stock? We have all the answers for you in this upcoming summit! INVEST 2018 TRADERS & INVESTORS FINANICAL SUCCESS
Are you a Forex Trader or Real Estate Investor?
You need to see the advantages of trading STOCKs - Day and weekly compared to any other market.
Have you ever traded Stocks?
In the coming INVEST 2018 you will learn:
· How to generate a consistent income trading stocks on your own via phone and laptop
· The power of trading full year earnings reporting season
· Our rules-based approach to trading stocks.
· How our buy & sell signal setup works
· How to take advantage of best market timing strategies to positon before Major market earnings reporting season.
· How to quickly and accurately "predict" the next market reaction
· Learn why trading less is making more
· Learn how to make use of trend identification, resistant and support to double your returns
· Learn how to follow the institutional money flow and much more
Learn how to identify opportunity in different sectors as the government is budgeting almost N8 trillion for 2018, which if implemented will faster the economic recovery.
Discover how you can unleash your Income Potential Trading stocks.

Discover why trading and investing in stock is the way to go.
Trading and investing are not Rocket science - it is just a blend of discipline, patience and market knowledge in fundamental and technical analysis to pick the right stock and sell at the right time.
Is this the summit that will pays for your vacation trip, puts your kids through college and some income in your pocket?
Maybe or Maybe not...but you will be kicking yourself everyday on the way to that work place everyday if you miss this!
"70% of success in life is SHOWING UP!"
We'll take care of the rest if the 30%....
This summit is the perfect opportunity to learn from the best industry experts and to get the personal attention in the exclusive Q&A session after presentations!
Saturday December 9, 2017
To register for the coming summit Kindly call or send yes to 08032055467 or 08111811223.

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

N.B: At this event you'll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.
If you are looking for a way to make money in the market as a Full-time or Part-time trader, this is your opportunity.
Dream it! Wish it! Do it! Enjoy it!


https://investdataltd..com.ng/2017/10/market-update-for-october-1

Only 10% Of Nigeria’s 263 Stockbrokerage Firms Have Functional Online Trading Portals- Report

Proshare NG, an online finance, investment and economic news portal, has published the third edition of its online trading portals ranking report, focusing also on FX trading portals like MERIFX, Eagles Global Market, HFTM, unlike the previous editions released in H1 and H2 2016 that dwelt on trading portals owned by Capital Market Operators trading on the floor of the Nigerian Stock Exchange.
The result of the online trading ranking portal survey was carried out between July 4 and August 15, 2017 and reflected that of the 275 responses received from users, 38.18% were in favour of Meritrade; 22.18%, for Mytradebook; 20.36%, Easytrade; 7.64%, APTetrade; 3.27%, MorganCapital i-Trade; 1.09%, TRW e-Trader; 0.73% each in favour of InvestNow and CityTrade; and 0.36% for Stanbic IBTC’s e-Trade, Afrinvestor and LeadTrader respectively.
However, no response was obtained in favour of Bancorp e-Trade, WSTC e-Trader, GTI Online Trader, Cordros TradeButton and CapEx Trade trading poratls.
A statement by Proshare Ng listed criteria used for the ranking to included technology and services, with Easytrade emerging tops, based on Speed of Execution; while Meritrade and Myreadebook emerged 2nd and 3rd respectively.
Based on accessibility on mobile; Meritrade emerged first position, followed by Mytradebook and EasyTrade on the second and third respectively.
On customer service and expectation, Meritrade again placed first position, while EasyTrade and Mytradebook emerged 2nd and 3rd respectively, while based on customer service responsiveness Meritrade, EasyTrade and Mytradebook also emerged 1st, 2nd and 3rd respectively in that order.
A look at the FX Trading portals ranking showed MERIFX emerged on first position on all categories while FXTM emerged 2nd as responses were only received in relation to the two FX trading portals.

http://investdata.com.ng/2017/10/10-nigerias-263-stockbrokerage-firms-functional-online-trading-portals/#more

GTBank Nets N125.577bn Q3 Profit, As Customer Loans, Deposits Fall

GTBank 2017 Q3 graph courtesy TRW Stockbrokers Ltd.

Directors of Guaranty Trust Bank Plc, on Wednesday presented its un-audited financials for the nine-month ended September 30, 2017, which showed that the period was not as smooth sailing as before, especially with the drop, though marginal, in gross earnings, customer loans, as well as deposit base, the life-blood all commercial banks.
The result also showed that the bank’s saving grace was the huge decline in loan impairment charges, which fell to N8.356bn, from prior nine-month’s N57.083bn as restated as well as the non-provision for the toxic Etisalat loan, both of which ensured it did not suffer a sharp drop in profit before and after tax.

Gross earnings income fell from N329.283bn in the corresponding period of 2016, to N309.913bn, boosted by interest income of N248.27bn, which jumped from N181.909bn, helped by interest from customer loans and advances of N153.688bn, up from N140.779bn; as well as from investment securities available for sale, which grew from N27.457bn to N66.357bn. Interest expense climbed from N49.161bn to N58.703bn, the bulk of which was the N44.14bn interest paid on customer deposits, which rose from N36.892bn; following which net interest income climbed from N132.748bn to N189.566bn.
Net interest income after loan impairment charges was N181.209bn, up from N75.665bn.
Fee and commission income dropped to N39.676bn from N50.41bn, due to the significant decline in electronic business (e-business) income from N23.18bn to N9.138bn; just as credit related fees and commission dropped from N8.66bn to N7.03bn; as commission on foreign exchange deals rose to N4.821bn from N3.272bn. GTBank also earned N2.077bn from transfers related charges, down from N3.702bn; and account maintenance charges from N6.311bn to N7.542bn.
Fee and commission expense fell from N2.275bn to N1.699bn, resulting in net fee and commission income N37.977bn, as against preceding nine-month’s N48.134bn.

Net gains on financial instruments classified as held for trading jumped to N9.938bn from N3.013bn; other income suffered a slump also, falling from N93.95bn in the third quarter of 2016, to N12.027bn, as foreign exchange revaluation gain fell to just N11.669bn from N93.639bn.
In a review of the result, analysts at FBN Capital (FBNQuest) noted that “the year-on-year decline in earnings was driven by a 73% year-on-year reduction in non-interest income due to negative base effects in the prior year (GT Bank’s 9M 2016 earnings were boosted by foreign exchange revaluation gains of N93.6bn vs. N11.7bn 9M 2017).”
Personnel expenses rose to N24.629bn from N21.772bn; operating lease expenses increased N1.45bn from N1.324bn; depreciation and amortization increased to N11.26bn from N10.961bn; just as other operating expenses rose from N48.713bn to N53.021bn, the bulk of which was the N13.066bn one-off Asset Management Corporation of Nigeria (AMCON) levy, which rose from N11.388bn; followed by outsourcing services of N6.323bn, up from N6.005bn; and the deposit insurance premium of N5.826bn from N4.582bn.
Profit before tax came to N150.032bn from N137.991bn; income tax expense increased to N20.909bn from N24.454bn; following which net profit stood at N125.577bn, up from N117.081bn, which translated to Earnings Per Share stood at N4.44, as against the previous N4.14.
Total assets rose to N3.212tr from N3.116tr, even as customer loans and advances dropped from N1.589tr from N1.428tr; derivative financial assets also dropped from N1.042tr to N696.129bn; while restricted deposits and other assets increased to N437.268bn as against N371.995bn in the prior nine months.

Total liabilities rose marginally to N2.631tr from N2.611tr, as customer deposits dropped to N1.891tr from N1.986tr, even as other liabilities climbed to N252.281bn from N115.682bn.
Shareholders’ fund for the period rose from N504.902bn to N581.908bn
While rating GTBank shares Neutral, FBN Quest noted that “despite the year-on-year decline in earnings, we expect the market to focus on the broad positives, particularly the year-on-year decreases in opex and loan loss provisions. Notwithstanding, the weakness in non-interest income and the q/q decline in funding income will concern investors.
“Although the bank’s shares have gained 65% ytd (vs. a 36% year-to-date return on the NSE ASI), we expect a slight positive reaction from the market,” the report added.

http://investdata.com.ng/2017/10/gtbank-nets-n125-577bn-q3-profit-customer-loans-deposits-fall/#more

Past History Of Failures Must Not Define Africa’s Future- Osinbajo

Vice President Yemi Osinbajo, at the weekend in Lagos challenged young entrepreneurs of Africa not to give in to the failures of the past by leaders across the length and breadth of the continent, but seek a future that is not defined by history of everything that is evil and even unpalatable.
Addressing the 2017 class of the Tony Elumelu Foundation Entrepreneurship Forum from Africa’s 54 countries as a special guest, he said: “Our political history in Africa would appear dominated by wars, famine, coups d’etat, corrupt governments, dictators and failed or failing states. Our economic history would also largely be of large scale poverty, infant mortality, maternal mortality, mortality in literacy, disease and misery.”
Osinbajo who spoke on the Tyranny of history, urged the 1000 beneficiaries of the $10,000 each seed fund annual for a 10-year period, not to allow such history subdue their faith or conscript their vision the society.

Such history, he continued is capable of stopping us from dreaming big, and that such history should be consigned to the past stressing that “our future is not determined by history or the past unless we allow it. The history of Africa does not determine its future. The days you live here are much greater and better than the past.”
He charged the participants and indeed budding African entrepreneurs to pursue their dreams with single mindedness, which is indeed more powerful than facts.
“Courage and persistence can triumph even over experience; no matter whose experience it is.
“The third is that hope and imagination are more potent than history. Because your history is not necessarily your destiny.”
Based on the headstart, the Vice President predicted that the 2017 cohorts of the programme “will be the wealthiest and most successful people in a few short years.

“I have always known that this group of individuals, this generation of young people will do the exceptional,” recalling his speech at the Financial Times Africa Summit, on the theme ‘What Makes Africa Work,’ expressing confidence that the answers to that question were the young entrepreneurs from the TEF programme.
“Indeed, you are right here with us – a thousand reasons why Africa will work,”
he told the participants who cut across agriculture, ICT, Hospitality, Fashion, Energy, Manufacturing, Entertainment, and many other fields.
“The breadth and depth of talent and innovation on display in the current and previous Tony Elumelu Entrepreneurship cohorts have shown there is indeed hope,” Osinbajo enthused.

http://investdata.com.ng/2017/10/past-history-failures-must-not-define-africas-future-osinbajo/

SEC Suspension: We’ll State Our Position Soon, Says Oando Plc

The management of Oando Plc, on Wednesday said it is reviewing the directive by Nigeria’s Securities & Exchange Commission (SEC), based on which the Nigerian Stock Exchange (NSE) placed its shares on suspension earlier that day.
A statement signed by the SEC management, said the decision followed a comprehensive review of the two petitions by Alhaji Dahiru Barau Mangal and Ansbury Incorporated which initially sought to stop the company’s annual general meeting (AGM) in Uyo, for which a waiver was given.

However, in a statement signed by Ayotola Jagun, its Chief Compliance Officer & Company Secretary, Oando Plc while expressing commitment to acting in the best interests of all its shareholders, said it “is currently reviewing subsequent correspondence received today October 18, 2017 from the NSE and SEC and will provide a full statement of the Company’s position as soon as possible.”
The review showed among others, that Oando, which is also listed on the JSE Stock Exchange, Johannesburg, South Africa, breached provisions of Nigeria’s Investments & Securities Act (ISA) 2007 and the SEC Code of Corporate Governance for Public Companies.
To ensure the independence and transparency of the exercise, the commission said “the Forensic Audit shall be conducted by a consortium of experts made up of auditors, lawyers, stockbrokers and Registrars.”
The statement added that it was in its bid to further ensure that the interests of all shareholders of Oando Plc are preserved during the course of the exercise that it “directed the Nigerian Stock Exchange to place the shares of Oando Plc on technical suspension.
“However in view of the fact that it is not technologically feasible for the Exchange to effect a technical suspension except after 48 hours, the Commission directed as follows:

“Effective for forty-eight (48) hours from today, 18 October 2017 to 20 October 2017, The Nigerian Stock Exchange should implement a full suspension in the trading of the shares of Oando Plc; and
“Effective from 20 October 2017 and until further directive, The Exchange should implement a technical suspension in the shares of Oando Plc.”
Specifically, the SEC management, according to the statement, found evidence of suspected insider dealing, “related party transactions not conducted at arm’s length (and) discrepancies in the shareholding structure of Oando Plc,” among others.
In line with its primary role as apex regulator of the Nigerian Capital Market to regulate the market and protect the investing public, the Commission noted “that the above findings are weighty and therefore needs to be further investigated.
“After due consideration, the Commission believes that it is necessary to conduct a forensic audit into the affairs of Oando Plc. This is pursuant to the statutory duties of the Commission as provided in section 13(k), (n), (r) and (aa) of the ISA 2017.

http://investdata.com.ng/2017/10/sec-suspension-well-state-position-soon-says-oando-plc/#more

INVESTDATA QUESTION AND ANSWER FORUM


https://www.youtube.com/watch?v=kM1VEcjDfxA&feature=youtu.be

TUNE IN LIVE AT INVESTDATA EDUCATIONAL QUESTION AND ANSWER SESSION @ RAINBOW FM 94.1 FM


Tune in and be a part of the Investdata educational programme with Ambrose Omordion airing on Rainbow 94.1 FM every Friday @ 2:30pm to 3:30pm GMT+1, call in to ask any question on stock trading and investment

https://investdataltd..com.ng/2017/10/tune-in-live-at-investdata-question-and.html

INVESTDATA 2018 TRADERS & INVESTORS FINANCIAL SUCCESS


If you are still asking yourself why Trade Stock? We have all the answers for you in this upcoming summit! INVEST 2018 TRADERS & INVESTORS FINANCIAL SUCCESS
Are you a Forex Trader or Real Estate Investor?
You need to see the advantages of trading STOCKs - Day and weekly compared to any other market.
Have you ever traded Stocks?
In the coming INVEST 2018 you will learn:
· How to generate a consistent income trading stocks on your own via phone and laptop
· The power of trading full year earnings reporting season
· Our rules-based approach to trading stocks.
· How our buy & sell signal setup works
· How to take advantage of best market timing strategies to positon before Major market earnings reporting season.
· How to quickly and accurately "predict" the next market reaction
· Learn why trading less is making more
· Learn how to make use of trend identification, resistant and support to double your returns
· Learn how to follow the institutional money flow and much more
. Learn how to identify opportunity in different sectors as the government is budgeting almost N8 trillion for 2018, which if implemented will faster the economic recovery.
. Discover how you can unleash your Income Potential Trading stocks.
. Discover why trading and investing in stock is the way to go.

Trading and investing are not Rocket science - it is just a blend of discipline, patience and market knowledge in fundamental and technical analysis to pick the right stock and sell at the right time.
Is this the summit that will pays for your vacation trip, puts your kids through college and some income in your pocket?
Maybe or Maybe not...but you will be kicking yourself everyday on the way to that work place everyday if you miss this!
"70% of success in life is SHOWING UP!"
We'll take care of the rest if the 30%....
This summit is the perfect opportunity to learn from the best industry experts and to get the personal attention in the exclusive Q&A session after presentations!
Saturday December 9, 2017
To register for the coming summit Kindly call or send yes to 08032055467 or 08111811223.

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

N.B: At this event you'll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.
If you are looking for a way to make money in the market as a Full-time or Part-time trader, this is your opportunity.
Dream it! Wish it! Do it! Enjoy it!

https://investdataltd..com.ng/2017/10/investdata-2018-traders-investors.html

MARKET UPDATE FOR OCTOBER 19, 2017



DANGCEM, ZENITH Q3 NUMBERS INSPIRE CAUTION, AS NIGERIAN BOURSE IN SEARCH OF DIRECTION

It was yet another highly volatile trading session on the Nigerian Stock Exchange on Thursday, just as activities were mixed following which the benchmark All-Share index gyrated in a north and south movement and finally closed the day marginally higher. There was however an improved buying pressure, despite the low volume traded with a flat market breadth that revealed indecision on the part of market players which slowed down the profit taking as more earnings hit the market with impressive numbers.

The day started out with a slight movement down to the support level in the mid-morning, before rallying at midday, as demand for healthcare, consumer goods and banking stocks increased after Dangote Cement and Zenith Bank released their Q3 earnings reports that beat expectations. Dangote Cement and Zenith Bank reported Q3 Earnings Per Share (EPS) of N11.30 and N4.11 respectively, improving from the 2016 levels of N8.13 and N3.03 each. The market is however yet to react to these numbers which we believe investors will do after digesting the numbers and putting the figures in proper perspective.

Thursday’s market traded volume was low with a stronger buying pressure as revealed by the volume index for the day that stood at 0.58, while buying position was at 66% and 34% selling volume of the day’s transaction. This halted previous day’s down market as the bourse continues its search for direction in the midst of mixed technicals and increasing number of corporate earnings being released ahead of Q3 GDP figures.
Meanwhile, Nigeria’s external reserves is rising steadily, amidst the sustained intervention in the foreign exchange segment of the inter-bank market by the Central Bank of Nigeria (CBN), a situation that continues to inspire investor confidence in the economy, just as crude oil price in the international market keeps rising. This is expected to boost government revenue and enhance implementation of the 2017 budget, if the needful is done by managers of the economy. We however note the Federal Government’s decision to roll part of this year’s capital spending plan into the 2018 budget, as contained in its 2018 to 2020 Medium-Term Financing Framework to the National Assembly.

At the close of Thursday’s trading, the All-Share Index survived by the whiskers, barely crawling 4.13 basis points up to close at 36,645.65 from 36,641.52 points, which represented 0.01% growth. Market capitalisation similarly inched N1.43bn up to close at N12.61tr, from the previous session’s N12.61tr, representing a 0.01% value gain.
The upturn in the share prices of Dangote Sugar, International Breweries, Nestle, Dangote Flour, Cadbury, GSK, Fidson, Stanbic IBTC, Cutix, NEM and Eterna impacted marginally on the ASI’s year-to-date return, to move up to 36.36%, just as market capitalisation notched N3.37trillion YTD, representing a 36.40% rise above the year’s opening value.
Market breadth for the day was slightly flat as the number of decliners surpassed that of advancers in the ratio of 20:19 on a volume traded that was lower than previous day’s level to halt two trading sessions of bear transition.

Market activities for the day, in terms of volume and value, were down by 33.05% and 41.89% respectively to 140.88 million shares value at N1.72 billion from the previous day’s 198.63 million units valued at N2.94 billion
Transactions in the shares of UBA, Sterling Bank, Guaranty Trust Bank, Zenith Bank and Skye Bank topped the volume chart.

At the close of Thursday’s trading, Cutix topped the advancers’ table, chalking 7.73%, to close at N2.37 per share, as investors continue to relish its offer of 18 kobo dividend per share, besides the activities of market forces. It was followed by International Breweries 4.99%, which announced some progress in its ongoing merger of sister companies in its bid to position amidst competition for market share in the Nigerian beer, stout and malt market. Interbrew closed at N46.52 per share, also amidst high hopes for its Q2 numbers.

On the flipside, AXA Mansard Insurance lost 4.84% to close at N2.36 on profit taking activities, followed by C & I Leasing, which shed 4.74% to close at N1.81 per unit on profit booking.
Also, during the trading session, Wema Bank and Great Nigeria Insurance made their Q3 earnings available to the market.

TODAY’S OUTLOOK
As the market opens this morning, volatility may continue in the midst of positioning and profit taking, being the last trading day of the week, just as more earnings releases are expected to hit the market.
One thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.

Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market 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. 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 materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 or 08111811223.

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Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

N.B: At this event you'll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.
If you are looking for a way to make money in the market as a Full-time or Part-time trader, this is your opportunity.
Dream it! Wish it! Do it! Enjoy it!

https://investdataltd..com.ng/2017/10/market-update-for-october-19-2017.html

LAFARGE AFRICA REBOUNDS WITH N1.09BN Q3 PROFIT, SEEKS SEC APPROVAL FOR N131.7BN RIGHTS


• AshakaCem Holds Court-Ordered Meeting For Lafarge Merger Monday

Building materials making giant, Lafarge African Plc, on Friday, reported that it got out of the woods in the third quarter of 2017, while continuously being hampered by the soaring cost of sales and administration, added to the finance costs, hence the need to quickly seek for fresh capital via rights issues for which an application has been made to the Securities & Exchange Commission (SEC) for approval.
According to the result, the group earned N223.66bn from sales revenue, representing a growth of N62.617bn or 38.88% from N161.043bn in the nine-month of 2016, boosted by N177.07bn from sale of cement, up from N125.164bn; followed by income from aggregate and concrete, which fetched N42.632bn, up from N33.035bn. This was just as the company’s major business occurred in Nigeria from where N155.61bn or 69.57% was generated, while the remaining N66.057bn came from its South African operations.

Cost of sales rose 15.96% from N142.933bn in the nine-month of 2016 to N165.757bn, pushed by the N103.879bn variable costs, which increased from N87.507bn; comprising the distribution variable cost of N41.715bn, up from N32.43bn. Fuel and power cost dropped from N33.794bn to N32.237bn; while raw materials and consumables got N29.926bn, up from N21.282bn.
Production fixed cost stood at N24.139bn from N21.642bn; N14.467bn maintenance costs, as against N12.414bn; just as depreciation rose from N12.139bn to N15.915bn; leaving gross income therefore stood at N57.311bn, up from N18.11bn.
Selling and marketing expenses dropped from N3.898bn to N2.985bn, buoyed by ‘other selling and marketing expenses’ of N2.48bn, down from N3.61bn. Advertising expenses fell to N287.038m from N189.575m, just as campaign and innovation expenses rose to N216.111m from N99.024m.

Administrative expenses increased to N29.436bn from N16.307bn, with administrative expenses alone accounting for N21.938bn from N13.44bn; while technical fee for the period, representing the industrial franchise agreement with Lafarge S.A., the ultimate parent company of the group, came to N7.089bn from N2.402bn. COT and other bank charges dropped to N269.812m from N315.68m.These left operating income at N26.4191bn from just N2.096bn in 2016.
Net other operating expenses dropped drastically to N7.088bn from N30.876bn, the lion’s share of which was the net foreign exchange loss of N9.921bn, a significant improvement over the previous N31.448bn; just as gains on disposal of property, plant and equipment jumped from N205.858m to N2.416bn.

Net finance and investment income grew to N928.432m from N518.888m, comprising N532.022m interest income on bank accounts, a rise from N345.509m; and other finance income was far better at N396.41m, after rising from N42.847m.
Finance cost of N18.321bn, up from N8.192bn in the corresponding period of 2016, the lion’s share of which was the N17.949bn interest on borrowings, compared to N8.192bn in the 2016 nine-month.
Income before tax therefore stood at N1.09bn, from a loss of N40.367bn.
Exchange gain for the period was flat at N12.548bn from N12.657bn, resulting in total comprehensive income for the period of N13.653bn, compared to the loss of N24.744bn, which translated to Earnings Per Share of 10 kobo, compared to the preceding third quarter’s 827 kobo.
While the wait for the SEC approval continues, the company noted that on September 27, 2017, its board provided details of the rights issue earlier approved by shareholders, including that the offer size is N131.7bn from 3.098bn new shares offered to existing shareholders at the ratio of five new units for every nine currently held, at the price of N42.50 each, a discount to the current N56 per unit.

Proceeds of the offer expected to open by second week in November, 2017, would help the company refinance its debt, including to its parent firm LafargeHolcim, expected to partly convert its quasi-equity to equity; in addition to the issuance of a N25bn Commercial Papers on Monday under a N60bn programme, according to Reuters International.
Reuters quoted Bruno Bayet, Chief Finance Officer- Lafarge Africa Plc, as saying: “We have returned to profits and … now we are investing in energy for next year that would further improve the performance.”
Bayet said the company had gained market share in Nigeria though volumes fell 18.6%. Nigeria exited recession in the second quarter but growth remains fragile.
He said the short-term focus is on Nigeria and growth in South Africa was disappointing, leading to a management change.

http://investdata.com.ng/2017/10/lafarge-nets-marginal-n1-09bn-q3-loss-seeks-sec-approval-n131-7bn-rights/#more

The National Bureau of Statistics (NBS) says the Nigeria earned a total of N246.303bn from Value Added Tax (VAT) in the second quarter of 2017, an amount it said represented a N59.275bn or 31.69% rise over the N187.028bn reported in the corresponding period of last year.
The figure, according to the report titled: “A sectoral distribution of Value Added Tax (Q2 2017) also represented an increase of 20.28% over the N204.77bn in the first quarter of this year.
A sectoral distribution of amount showed that non-import VAT (local), at N137.786bn, was the most significant contributor, representing 56% of the total, just as it represented 0.09% over the N126.642bn reported in the preceding quarter and the N126.061bn of the corresponding period of 2016.

VAT paid on non-import (foreign) grew the most within the period, rising to N59.831bn, an increase of N34.4bn or 135.26% from N25.431bn, just as it was better than the N31.719bn of the preceding quarter by N28.112bn or 46.98%.
VAT on import duty collected by the Nigeria Customs Service (NCS) stood at N48.684bn, up from N46.408bn in the first quarter; and N35.534bn in the corresponding second quarter of last year.
Collection on services rendered by banks and financial institutions fell to N5.672bn from N6.229bn in the 2016Q2, or the N7.174bn reported in March.

Professional services yielded N21.637bn VAT, representing an equally marginal rise from N20.64bn in the second quarter of 2016 and N20.817bn reported in the first quarter; followed by N14.939bn from oil producing activities, which increased by N5.295bn or 54.9% from N9.644bn year-on-year; and N5.013bn or 50.5% from N9.925bn within the first three months of this year.
Commercial trading contributed N12.484bn to the VAT pool, a drop from N13.15bn in the 2016Q2 and N12.898bn in March; ahead of the N8.741bn by state ministries and parastatals, up from N8.686bn in the 2016Q2; just as it was lower than the N11.211bn recorded in the preceding second quarter.

Contributions from Federal Ministries and Parastatals were lower, adding N7.354bn to total VAT revenue, a significant 31.45% decline from N10.726bn recorded Year-on-Year. The 2017Q2 figure was however N5.011bn or 87.68% higher than the N5.714bn reported in the first quarter of this year.

http://investdata.com.ng/2017/10/nigeria-earned-n246-303bn-vat-revenue-2017q2-says-nbs/#more

ADESINA TO FUND YOUNG FARMERS, AGRIPRENEURS WITH $0.25M WORLD FOOD PRIZE MONEY

President of African Development Bank (AfDB) Dr. Akinwunmi Adesina says he would devote his $250,000 2017 World Food Prize money to funding young African farmers, agripreneurs.
President of the World Food Prize Foundation, Ambassador Kenneth Quinn, paid tribute to Adesina, “whose breakthrough achievements have impacted millions of farmers and those living in rural poverty in Nigeria and throughout Africa, and whose leadership holds great promise for uplifting millions and millions more across that continent.”

Accompanied by Olusegun Obasanjo and John Mahama, former Presidents of Nigeria and Ghana respectively, receive the award – the world’s highest recognition for food and agriculture, with his wife Grace and his two children, Rotimi and Segun. Representatives of the Nigerian Government, Purdue University, his alma mater, friends, associates and Bank staff were among the well-wishers who came in out in large numbers to celebrate the African agriculture icon, known as “Africa’s Norman Borlaug.”

“And so, even though I don’t have the cash in my hand, I hereby commit my $250,000 as a cash prize for the World Food Prize award to set up a fund fully dedicated to providing financing for the youth of Africa in agriculture to feed Africa. “We will arise and feed Africa. The day is coming very soon when all its children will be well-fed, when millions of small-holder farmers will be able to send their kids to school,” Adesina said.

This, he said, would give birth to “a new song across Africa: “Thank God our lives are better at last.”
Speaking at the ceremony, the Vice-President of the United States of America, Michael Pence, commended the Laureate in a speech read on his behalf by Mark Green, Administrator of the United States Agency for International Development (USAID). “As our global food system is stretched, and the need to feed more people grows, agricultural transformation will require persistence from leaders like you in driving change and capitalizing on public- and private-sector expertise,” Pence said.

The Vice-President described Adesina’s devotion to the cause of fighting global hunger as admirable, and deeply needed, and on behalf of President Donald Trump, extended heartfelt congratulations.
“The United States is and remains committed to food security, and we will continue to work with leaders like you to find innovative ways to end global hunger,” he said.
A statement by the AfDB noted that under Adesina’s leadership, the bank “is accelerating agricultural development through its Feed Africa Strategy with planned investment of US $24 billion over the next 10 years.

“The World Food Prize also recognizes Adesina’s work over the past two decades with the Rockefeller Foundation, at the Alliance for a Green Revolution in Africa (AGRA), and as Nigeria’s Minister of Agriculture of Agriculture and Rural Development.”


http://investdata.com.ng/2017/10/adesina-fund-young-farmers-agripreneurs-0-25m-world-food-prize-money/#more

STOCKS PULLBACK AMIDST IMPRESSIVE Q3 CORPORATE EARNINGS, PROFIT TAKING.

Last week was a very busy one on the Nigerian Stock Exchange (NSE), with over 15 corporate earnings reports hitting the market, many of which were impressive numbers to which the market is yet to react in the form of price performance. The rush to present quarterly financials is based on the fact that figures for third quarter earnings are statutorily expected to hit the market before end of October 31, 2017, in line with the post-listing requirements of the NSE.

The delayed response by the market may not be unconnected with the fact that this is a season of mixed sentiments as revealed by the low volume of trades, when compared to the previous week.
It is however expected that this earnings which beat market expectations will attract increased demand as investors and analysts interpret these numbers, given the importance attached to third quarter earnings score-cards, as they foretell the possible outlook for any company in equity investment and fiscal financial year as the year winds down. By third quarter, investors would have started to form opinions about whether or not to expect returns in the form of dividend/bonus shares at all, or whether the payout would be same as last year or higher, and of course capital appreciation at the full year earnings season in March of following year.

For the NSE, March is the most significant earnings reporting season because most companies have December year-end and therefore influence demand for stocks especially as factors such as the improving economic data, liquidity in the forex market and others like the hope of Nigeria reclassification into the Morgan Stanley Capital International (MSCI) emerging market index next month. This is likely to attract more foreign fund managers to look the way of Nigeria, while supporting market thereby enhancing the recovery, pushing the NSE’s benchmark All-Share index to breakout a 52-week high.

That notwithstanding, the current sentiment in the market may likely reverse up as the earnings reporting season enters its peak after the profit taking the forced share prices down in the wait for third quarter earnings reports.
Traders should know the position of stocks relative to their industry fundamental data and behavioral patterns before executing any trade at this point when the market is foot dragging in response to the positive numbers released so far.

UBA
United Bank for Africa had trended down for four years now. From a N10.56 high on June 14, 2013 after its house-keeping leading to the cleaning of cobwebs in the form of non-performing loans from its books to start afresh, the group has so far been able to sustain. This was despite different attempts at rebound that failed, before touching the low of N2.77 in February 2016, followed by a rebound to breakout the yellow down trend line in December 2016 when it formed a bullish channel on the strength of its improving profitability as well as fundamentals that attracted positive sentiment for the bank since the beginning of this year 2017. Price action has now improved into a rising channel pattern with first support level at N8.64 and second at N8.42 as it is set to offer a low risk trade entry point. But with Friday’s candlestick formation pattern, reversal of the trend is imminent as the bank’s robust balance sheet and earnings power is expected to drive price and payout.


ACCESS BANK
Access Bank’s price action was in a falling channel for a period of four years with different attempts at rebound within the channel from a high of N12.88 on February 8, 2013, before following the general market direction to a low of N3.60 on April 22, 2016, despite the bank’s strong fundamentals and impressive numbers posted within period. It rebounded on the back of positive sentiments by the investing community, arising from the bank’s high margin of safety to form a rising channel even as its share price continued to gallop on a bullish trend and strong numbers.

The recent pullback from a resistance level of N10.89 as a result of profit taking and general market decline to first find support at N9.30 and second at N8.70, it offered a low risk trade entry during the last pullback. The bank’s price action was again within the rising channel, forming a symmetrical triangle that supports continuation of trend or reversal, especially now that their financials are expected in the market within the next eight days. The trending ability and direction for daily and weekly is mixed as ADX is trading below 20 and above 50 respectively, MFI is looking down to indicate that funds are exiting the stock, while RSI is reading 55.33, an indication of relative strength, which however calls for caution among traders while investors can take position for the long-term.


ZENITH BANK
Zenith Bank’s trendy nature a situation that has made it a trader-friendly stock, hit its highest in the last last days of 2013, at N27, which has remained its resistance level for four years after dropping to an all-time low of N10.35 on April 15, 2016 with good trending movement, being a volatile stock that made money for traders. With its outstanding performance, the bank continues to grow earnings on quarterly and yearly basis, a situation that supports price oscillation, creating room for accumulation.

It bounced back to N25.45 in June 6, 2014 and N25.48 in April the following year, before finally rebounding on April 22, 2016, with price action forming a rising channel pattern. This broke-out of the yellow resistant trend line in July 21, 2017 on a positive market sentiment to 52 week high of N26.99 before pulling back on profit taking and rebounded again to N26.55 recently to form a double top that support reversal of trend. This has been helped by the bank’s profitability and investment ratios that remain attractive to drive future rally on positive sentiment on its strong numbers. Trending momentum and ability on daily and weekly time frame are strong as ADX is above 20 on both time frames. MFI is strongly looking up to indicate funds entering the stock, as RSI is reading 68.34.


TRANSCORP
Transcorp posted a four-year high at N7.60 per unit in 2014, before it slumped to N0.72 in March 2017 after various attempts to rebound that failed. it reversed from the down trend to kick-off recovery as buyers interest were on it low price, as well as ongoing reforms in Nigeria’s power sector where it plays, after posting negative earnings in recent years that pushed down it share price. The company is expanding its generation capacity to increase quantum of power released to the National Grid and power supply across the country which has started yielding result as reflected in the nine-month result recently released to the market.

The stock finally bottomed out at N1.34 in October 2017 to enter an uptrend as it broke out the yellow down trend line. This positive sentiment is driven by positive earnings as shown in the Q3 numbers and indeed the expected 2017 full-year report.
Price action has formed a cup and handle that supports an uptrend with first resistant level at N1.66 and second level at N1.78, as RSI is reading 58.25, which is RELATIVELY strong.


GUARANTY TRUST BANK
Guaranty Trust Bank’s price action has formed a double top chart pattern that supports reversal of uptrend after touching five-year high of N42 before pulling back to N38 and thereafter retracing up to N42 last week, indicating resistant level that slowed down the rally as shown in the bank’s financials released recently, which was below market expectation and might affect the positive sentiment the bank had enjoyed before now.

Pullback could reach N38 or below, which may offer a low risk buy opportunity, as Q3 earnings reporting season continues on Monday. The stock had steadily rallied from N14.10 in 2012 to a high of N31.31 on June 20, 2014, before pulling back to form a double top on April 2, 2105, at N31.88 per share and down trending to a low of N13.99 in April 2016 and then a rise that since then has been sustained till N42, despite pullbacks within the rising channel due to its strong numbers and leadership in cost management in its industry. RSI is reading 68.98 which indicate overbought region. MFI is still looking up to show that funds are entering the stock despite all momentum indicators are signaling sell.

DANGOTE CEMENT
Dangote Cement rallied to test an all-time high of N250 in June 27, 2014, from where it entered a steep downtrend that continued into the second quarter of 2017, touching low of N122.90 in February 2016 before retracing back to breakout the symmetrical triangle pattern formed earlier by the price action at N203 per share, to continue the uptrend to 52 week high at N245 before pulling back. The possibility of breakout of the resistant level at N250 is high. Traders should wait for a pullback before jumping in to take position while investors should accumulate. RSI is reading 58.81 which signal strength but MACD is bearish. At the same time MFI is looking down to show funds are leaving the stock, but with the positive Q3 earnings position, reversal is imminent. Watch Out.

https://investdataltd..com.ng/2017/10/stocks-pullback-amidst-impressive-q3.html

Investdata Price & Earnings Tracking For Week Ended October 20, 2017

http://investdata.com.ng/2017/10/investdata-price-earnings-tracking-week-ended-october-20-2017/

MARKET UPDATE FOR OCTOBER 23, 2017


NSE INDICATORS REMAIN RED AMIDST CAUTION, UNCERTAINTY AMONG INVESTORS

Nigeria’s stock market suffered another loss on Monday to kick start the last full week of October and the peak of the third quarter earnings reporting season, which has so far failed to fuel stock prices despite financials that beat expectations which may not be divorced from the fact that many market players lack the funds needed to trade the season.
This reflected in the decline in participation by domestic players who hold 34.94% stake in the market, whereas foreign investors’ stake has risen in September to 65.06%. We all know foreign investors are selective and play in few stocks, besides the fact that they do not just increase their position or sell down until proper analysis of the latest numbers are carried out.
This is why we believe value investors and traders in strong and fundamentally sound companies should not rush for the exit door in panic, but adjust their waiting period and keep their eyes on technical indicators and tools to know when to accumulate more or exit position for protection of their capital.

Trading started on the downside, breaking down the intraday psychological line of 36,000 point before retracing back from the day low of 35,825.05 before closing lower36,411.73 as sentiment turned positive by midday with the candlestick formation signaling reversal of trend which market forces today will confirm.
Despite the fact that it was a loss across board, there are gradual increase in demand for stocks as volume traded increased as revealed by the stronger buying pressure with volume index of 1.05 for the day, while buying position was at 76% and 24% selling volume of the day’s transaction, to continue the bear transition while the market awaits fresh funds and higher demand for equity to change the current momentum.

Also, more impressive earnings were presented to investors from Fidelity Bank National Salt, Africa Prudential, Caverton and others on Monday.
Meanwhile, the composite NSE All-Share Index shed 175.58 basis points up to close at 36,411.73 from 36,587.31 points, which represented a 0.48% decline. In the same direction, market capitalisation lost N60.43bn to close at N12.53tr, from the previous session’s N12.59tr, representing 0.48% depreciation in investors’ position.
The downturn in the share prices of Lafarge Africa , Presco, , Dangote Sugar, Nascon, Guiness, NB, Nestle, Stanbic IBTC and Cutix impacted negatively on the ASI’s year-to-date return, which reduced to 35.49%, just as market capitalisation notched N3.29tr YTD, representing a 35.54% rise above the year’s opening value.
Market breadth for the day was negative with the number of decliners exceeding advancers in the ratio of 25:16 on a volume traded that was higher than previous day’s level to continue the down market.

Market activities for the day, in terms of volume and value, were up by 137.96% and 43.35% respectively to 253.54m shares, valued at N2.7bn from the previous day’s 106.52m units valued at N1.9bn.
Transactions in the shares of Access Bank, FBNH, Transcorp, Fidelity Bank and Zenith Bank topped the volume chart.
At the close of Monday’s trading, International Breweries topped the advancers’ log, chalking 10.23%, to close at N56.23 per share, on merger agreement recently reached by shareholders, which is now awaiting the approval of the Securities & Exchange Commission (SEC) to complete the deal.
It was followed by Redstar Express 4.84%, which announced its primary market activities by way of right issue, closed at N4.98 per share, besides the high hopes for its Q2 numbers.
On the flipside, Lafarge Africa lost 9.75% to close at N50.54 on profit taking activities and its seeming unimpressive numbers that showed a high gearing situation, followed by Cutix, which shed 9.62% to close at N2.35 per unit on profit booking after the markdown for dividend.
Also, during the trading session, Seplat and RT Briesco made their Q3 earnings available to the market.

TODAY’S OUTLOOK
As the market opens this morning, volatility may continue in the midst of repositioning and profit taking, being the peak week for earnings reporting season, as more companies are expected to release their quarterly results.
One thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market 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. 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 materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 or 08111811223.


Attention! Attention!! Attention!!!
INVEST 2018 FINANICAL SUCCESS
If you are still asking yourself why Trade Stock? We have all the answers for you in this upcoming summit! INVEST 2018 TRADERS & INVESTORS FINANICAL SUCCESS

Are you a Bitcoin, Forex Trader or Real Estate Investor?
You need to see the advantages of trading STOCKs - Daily or weekly compared to any other market.
Have you ever traded Stocks?

In the coming INVEST 2018 you will learn:
· How to generate a consistent income trading stocks on your own via phone and laptop
· The power of trading quarterly and full year earnings reporting season
· Our rules-based approach to trading stocks.
· How our buy & sell signal setup works
· How to take advantage of best market timing strategies to positon before Major market earnings reporting season.
· How to quickly and accurately "predict" the next market reaction
· Learn why trading less is making more
· Learn how to make use of trend identification, resistant and support to double your returns
· Learn how to follow the institutional money flow and much more

Also, it is an opportunity to know you can identify opportunities in different sectors, especially with the Federal Government's plan to spend almost N8 trillion for 2018, which if implemented will quicken ongoing economic recovery.

Discover how you can unleash your Income Potential Trading stocks.
You will also discover why trading and investing in stock is the way to go.
Trading or investing is no Rocket science - it just requires a blend of discipline, patience and knowledge of market and economic fundamental and technical analysis to pick the right stock and sell at the right time.
Is this the summit that will pays for your vacation trip, puts your kids through college and some income in your pocket?
Maybe or Maybe not...but you will be kicking yourself everyday on the way to that work place everyday if you miss this!
"70% of success in life is SHOWING UP and taking steps"
We'll take care of the rest if the 30%....

This summit is the perfect opportunity to learn from the best industry experts and to get the personal attention in the exclusive Q&A session after presentations!
Saturday December 9, 2017
To register for the coming summit Kindly call or send yes to 08032055467 or 08111811223.

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

N.B: At this event you'll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.
If you are looking for a way to make money in the market as a Full-time or Part-time trader, this is your opportunity.

Dream it! Wish it! Do it! Enjoy it!

https://investdataltd..com.ng/2017/10/market-update-for-october-23-2017.html

MARKET UPDATE FOR WEEK ENDED OCTOBER 20 AND OUTLOOK FOR 23-27


INVESTORS SEEK CLEARER PICTURE OF ECONOMY, MARKET, AMIDST HOPE FOR MORE FINANCIALS
Trading activities on the Nigeria Stock Exchange (NSE) last week remained highly volatile and bearish, halting two weeks of bull transition, despite the positive economic data and increasing number of good corporate earnings released to the market during the period. This may not be unconnected to the mixed sentiments as traders and investors positioning amidst persistent profit taking, irrespective of the impressive Q3 numbers, especially from blue chips companies.

The positive Purchasing Managers Index (PMI) for the month September that was above 55 points confirmed the increasingly high productivity level in the real/manufacturing sector, added to the slow decline in inflation rate, relative stability in the Naira’s exchange rate and the 0.55% growth in the nation’s Q2 GDP rate that announce the exit of out of nation economy from recession. The corporate score-cards released have also confirmed the economic recovery and growth in the numbers been posted for the nine months of the year.

However, the ongoing geopolitical agitations, increasing attack by insurgents in the name of herdsmen, and the seemingly sluggish implementation style of the 2017 budget, despite the increasing inflow of foreign investment, among others, have remained sources of grave concern to investors. This is coming despite the sustained intervention of the Central Bank of Nigeria (CBN) in the investors and exporters window of the foreign exchange market, coupled with the improving external reserves which stood at $33.36bn on October 19, 2017 according to data available on the apex bank’s website. There is, more than ever before, the need for complementary fiscal policies to enable the CBN’s intervention achieve better results, while the economy grows at a faster rate.

Market breadth for the period under review turned negative to weaken the market’s trending ability and direction, thereby slowing down market recovery on mixed sentiments, amidst continued speculative activities and profit taking by traders and investors that dominated the week’s activities. The week also came under selling pressure that pulled back the weak rally, despite pockets of surprises in the financials released during the period.
Nevertheless, investors and traders should focus on stocks with strong earnings and are trending in the up direction on the quarterly and yearly timeframe.
The weekly volume index was 0.57, with buying position at 1% and 99% selling volume of the total transaction as volatility continued.

The composite NSE All Share Index shed 260.86 points to close at 36,587.31 points on Friday, from the week’s opening figure of 36,848.17 points, representing a 0.71% decline on a low volume of transactions. The index hit an intra-week high of 37,041.52 and low of 36,583.21 basis points. There was a breakout of the psychological line of 37,000 but was sustained to close under. Similarly, market capitalisation for the period closed at N12.59tr from the opening value of N12.68tr, representing a 0.71% value loss in investors’ portfolios.

Top performing stocks that dominated the advancers log for the week were low and medium cap stocks that had suffered decline before now, in addition to those attracting attention on the strength of their strong fundamentals and technical positions, thereby revealing buy opportunities in these stocks ahead of their second and third quarter earnings reports.
The downturn experienced during the period was as a result of profit booking on the part of speculators and smart money that are playing the quarterly earnings reporting season no at its peak. Losses suffered by low, medium and high cap stocks have impacted negatively on the NSEASI’s year-to-date return to 36.14%, just as market capitalisation for the period increased to N3.37tr, representing a 36.34% gain from the year’s opening value.Market breadth was negative as the decliners outnumbered advancers in the ratio of 34:23 on a low volume of trades which reflect that investors and traders’ wait and see the numbers before jumping into any new position.

The international stock markets were mixed over the week, after oil prices rallied and slowed down with some commodity traders expressing belief that end of the year heating period may keep the commodity’s price oscillating around the current range, before breaking out $60 in Q12018 as production cuts agreement continues to subsist.
Germany‘s DAX and Britain’s FTSE100 were lower for the week, while Japan’s Nikkei and US market indexes were up for the period, The U.S. market indexes over the period were higher, entering into record territory as the Dow Jones Industrial Average surpassed the 23,000 psychological line, despite the slower-than expected growth in the manufacturing sector. Many investors remain concerned over the market valuation that had reached 25.68x price to earnings multiple on Friday. This is the highest level since 2008 economic crises and well above the 15.68x average.
In Europe, investors have expressed concern over the slow pace of talks between Britain and the European Union ahead of Brexit.In Asia, Japan’s Nikkei 225 matched its longest winning streak ever as investors continued to buy into the country’s robust momentum.

Back home, NSE’s benchmark Index opened the week on a positive note, gaining 0.33% which was short-lived on the second trading session when it lost 0.81%, continuing at the midweek’s session with a 0.08% drop. The trend was reversed on Thursday, as the indicators closed marginally north with a gain of 0.01%, which was reversed on Friday, with the indicators recording a loss of 0.16%, bringing a total loss for the week to 0.71%, halting two preceding weeks of up market.
Cumulatively, the week ended with the All-Share Index and sectoral indices closing lower, except for the NSE Banking and NSE Pension that closed marginally higher by 0.03% and 0.02% respectively.
The week’s activities, measured by aggregate volume and value, were mixed as volume was down by 44.37% to 872.89m shares as against previous week’s 1.56bn units, while value for the period inched up by 3.85% at N14.02bn from the previous week’s N13.50 billion.

During the week International Breweries topped the advancers’ table, gaining 21.77% to close at N51.01 per share on the back of the ongoing plans to merge with its sister companies and position properly for the stiff competition in the Nigerian beer and malt market, as well as expectations for Q2 numbers. It was followed by GSK’s 14.29% notch to close at N24.00 each on market sentiments and expectations of its Q3 numbers. The decliners’ table on the other hand was led by Redstar Express, which closed 13.00% lower at N4.75 on profit taking; while AXA Mansard Insurance followed with 10.36% drop to close at N2.25 per share on profit booking by traders.
During the week also, the share price of Cutix was adjusted for dividend of 18 kobo recommended by its directors, all the earnings released during the week are already computed in the Investdata price and earnings tracking. Also notification of UACN’s the rights issue was made available to the market.

Market Outlook
As the market opens on Monday, expect volatility to continue as positioning, profit taking and more earnings reports hit the market, which would trigger more speculative activities ahead of the publication of Q3 GDP figure amidst year-end seasonality.
As we move into the final days of the earnings season, more numbers would likely be released, but one thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market 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.

https://investdataltd..com.ng/2017/10/market-update-for-week-ended-october-20.html

UBA: EARNINGS CAPACITY WAX STRONGER TO SUPPORT PRICE AND DIVIDEND

United Bank for Africa Plc, which prides itself as “Africa’s global bank” continues its re-engineering and just as its name goes, it has continued a strategic expansion across the continent, already seeing impressive results from previous efforts as revealed by the diversification in revenue base. This much has reflected on its earnings, profitability and investment ratios, judging by the recently released nine months scorecard to the investing community. The nine-month score-card, besides giving investors the current state UBA’s financial health and direction to help investors plan their investment, has shown that the bank remains consistent in making it numbers available as at when due.

UBA’s consolidating quarterly earnings performance so far in this current financial year has boosted share price and investor confidence, veritable ingredients that have sustained the uptrend performance in price which recently had become a trendy stock for all class of investors to play in.
Growth in gross earnings and profit after tax for the period shows the healthy state of the bank which is poised to support price and dividend payout expected to ignite a share price rally as have been observed in its price movement from N4.10 between 2016 when the third quarter result was released, to N9.23 as at the released date of the 2017 numbers.
This represented 125.12% price appreciation, meaning that if you have invested in UBA Plc shares with N100,000.00, return on your investment would be N125,000.00, more than your invested capital.

Gross earnings for the 2017 nine-month was N333.91bn, compared to N265.53bn in 2016, representing 23.04% rise, while profit increased to N60.92bn, from N49.51bn in 2016. The impairment charges on financial assets for the period increased to N12.91bn from N9.1bn in 2016, as provision rose by 41.89%, thereby slowing down the bank's profitability.
The improvement in interest and similar income boosted the gross earnings that supported bottom line, as interest expenses for the period dropped by 36% from 39% in the previous year to reflect the group’s cost management efficiency, despite the risk exposure in an economy recovering from recession. Regardless of the over regulation of the industry and tightening of monetary policy by the Central Bank of Nigeria (CBN), banks in the country are enjoying the high interest rate regime which has supported the impressive numbers.

Third quarter Earnings Per Share (EPS) was up by 23.61% to N1.78 from N1.44 in 2016. The up-trend in UBA's financials as mentioned earlier has supported the share price which is currently trading at N9.00 per share as at Friday.
The stock’s price is 65% below the book value, which indicates that it is undervalued and should therefore be attractive to discerning investors, just as Book Value currently stands at N14.81 and Price/Earnings ratio is 1.73x. Investors' waiting period has slightly increased, as a result of growth in share price which is driven by stronger earnings and better future prospect.


Africa’s economy is growing as oil price is bottoming out on global economy improvement and uncertainties that have impacted the continent positively, reflecting on UBA’s quarterly and yearly performance with return on equity growing to 12.00% from 11.00%. Loans/Deposit ratio also improved slightly to 64.42% from 61.75% in 2016. Return on Assets (RoA) stood at 1.62% from 1.50% as other profitability ratios for the period closed green as testimony to real improvement in the bank’s earnings power. The improving customer service delivery, new banking products/services that are innovative and technology driven will further enhance performance by increasing deposits and profitability at the end of the day.

Technical View


UBA's price action has rallied for more than two years to form a rising channel, but recently pulled back on profit taking to create a buying opportunity as positive sentiments on strong financials to support upward reversal which is imminent. The recent strong support level of the bank is N8.55 on a weekly basis.
Traders should watch out for breakout of N9.65 for continuation of the up-trend to first resistance at N10 and second resistant at N10.40 or reversal to first support level at N8.80 and second support price of N8.44. The momentum of the trend is STRONG above ADX of 20.

Forecasts
Our FY 2017 gross earnings forecast for UBA is N386.68bn, representing a 25% improvement, relative to FY 2016, while our net income estimate for FY 2017 is N72bn, which translates to an 18% improvement over the FY 2016 numbers. This yields an EPS of N2.10 and a forward P/E of 2.17X.
The Nigerian banking sector’s high interest rate regime will support the 2017 full year numbers and we expect more loan loss provisions, as inflation rate decline remains slow and as such not making much impact especially given that the cost of living remains high and reflects the current situation and where the economy is coming from.

Our Net Book Value estimate for Q4 is N538.78bn, which brings forward Price to Book Value to 0.96x. We also expect sluggish growth in both customer deposit and loan book for FY-2017, meaning that the lender’s success at the end of the 2017 full year will be determined by the efficiency of balance sheet deployment and the potency of its risk assessment framework.

Analysts Opinion/Recommendations
The share price of UBA Plc is undervalued, judging by our FY 2017 estimates. The stock is currently trading at a 100% discount to our Fair Value estimate of N18. The bank has a book value above current market price which shows a positive intrinsic value and points a better room for future growth.

We are also impressed by the steady rise in the bank’s Book Value position over the past quarters and years. However UBA must be proactive with its Return on Equity (ROE) growth. All considered, we have a BUY recommendation on the shares of UBA Plc.



Positive scorecards will push prices higher
The bank’s management has so far demonstrated commitment to repositioning for enhanced profitability, following which the board has for the third consecutive year paid a 20 kobo interim dividend. Moreso, UBA Plc has been very proactive with its balance sheet deployment in the review period, while its 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 offshore earnings power from its operating network has also supported bottom-line.

Four-Year Performance (2013-2016)
The bank’s numbers in the period under consideration has 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% respectively. 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.


Ratio Analysis
The bank has sustained upward earnings trend that supports price performance as the EPS moved from N1.41 in 2013 to N1.99 in 2016 and 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. The current year’s financial performance is a pointer to what investors should expected as dividend. With the projected 2017 full year EPS of N2.10, final dividend possibility in the range of 60 to 65 kobo is high.
https://investdataltd..com.ng/2017/10/uba-earnings-capacity-wax-stronger-to.html

I had no idea that Investdata also has an outlet here on the Investment section of Nairaland. It is a pleasant discovery. Please keep it up and further promote it for the attention of other investment enthusiasts on Nairaland.

MARKET UPDATE FOR OCTOBER 25, 2017

INVESTORS AWAIT MORE EARNINGS REPORTS, BUT KEEP EYES ON ECONOMIC DATA

The nation’s equity market on Wednesday had a volatile session as usual, but unlike in recent times, it closed positive as more impressive earnings strengthened the momentum to keep the market within the rising channel chart pattern as its trading above the 20 day moving average on a high volume of trade and healthier market breadth. The positive technicals signal the very short term rally in the last few day of the earnings reporting season that comes to an end officially on October 31, which may likely support the current trend if the remaining companies release impressive financials.

The session started with a gap up that was sustained till the end, closing higher, despite the intraday up and down movement that broke out the recent resistant level to a high of 36,754.39 and low of 36,531.62 which was the opening point for the day. Earnings surprises in some companies and expectation from some in the banking, consumer goods, agribusiness and other sectors have triggered demand for some stocks despite the relatively low liquidity in the market at the moment. Strong and improving company fundamentals remain points of attraction as the season and year winds down.

Despite the positive technicals and high volume traded, mixed sentiment was revealed in buying and selling pressure as volume index was 1.37 for the day, while buying position was at 41% and 59% selling volume of the day’s total transaction, to extend the two day bull transition.
The naira appreciated against other currencies of the world supported by improved liquidity in the investors and exporters window of the inter-bank foreign market that continues to enjoy sustained intervention from the Central Bank of Nigeria (CBN) as part of efforts to support economic recovery from recession and thereafter put it on the path of growth.

Meanwhile, the composite NSE All Share Index gained 91.23 basis points up to close at 36,622.85 from 36,531.62 points, which represented a 0.25% growth. Market capitalisation however increased by a higher N100.26bn to close at N12.68tr, as a result of additional shares of added to those outstanding for Guinness Nigeria Plc, following its recent right issue that achieved 120% subscription that has impacted share price movement. It is worthy of note that sustainability or otherwise of this trend will be a function of the company’s earnings performance, the first test of which would be its first quarter result the market is expecting any moment from now. With the additional shares of Guinness Nigeria, the NSE’s market capitalization increased by 0.80% from previous session’s N12.57tr.

The upturn in the share prices of Zenith Bank, UACN, UBA, Seplat Petroleum Development Company, National Salt, Fidson Healthcare, FBNH, Dangote Flour, Dangote Sugar and Honeywell Flour, impacted positively on the ASI’s year-to-date return, which increased to 36.27%, just as market capitalisation has grown by N3.43tr YTD, representing a 37.09% rise above the year’s opening value.
Market breadth for the day remained positive with advancers outnumbering decliners in the ratio of 23:12 on a high traded volume that was higher than previous day’s level to sustain the bourse for its second day of bull run.

Market activities, in terms of volume and value were up by 61.62% and 157% respectively to 323.00 million shares, valued at N4.66 billion from the previous day’s 199.86 million units valued at N1.81 billion.
Transactions in the shares of UBA, Zenith Bank, Access Bank, Fidelity Bank and Guaranty Trust Bank topped the volume chart.

At the close of Wednesday trading, Fidson Healthcare topped the advancers’ log, gaining 9.82%, to close at N3.69 per share, on impressive Q3 earnings surprise, followed by C&I Leasing with 7.60%, which was on market sentiment and expected Q3 numbers.
On the flipside, Cutix again came under attack, following which it lost 9.36% to close at N2.13 on profit taking activities; followed by Forte Oil which shed 4.99% to close at N44.65 per unit on market forces, despite the company’s relatively impressive Q3 number.
Also, during the trading session, ETI, Continental Reinsurance, Multiverse and others released their Q3 earnings available to the market.

TODAY’S OUTLOOK
As the market opens this morning, volatility may continue in the midst of repositioning and profit taking, being the peak week for earnings reporting season, as more companies are expected to release their numbers.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are moving up and down amidst improving company, economic and market fundamentals.

It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases know the cycles in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this seasonality changes as the year winds down, 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 training materials on stock Trading and Investing for Financial Independence series are Available, you can play on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467 or 08111811223.

Best regards

Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

https://investdataltd..com.ng/2017/10/market-update-for-october-25-2017.html

MARKET UPDATE FOR OCTOBER 26, 2017


INVESTORS UNDERTAKE MONTH-END PORTFOLIO RE-BALANCING, CRUNCH EMERGING ECONOMIC, COMPANY DATA

Nigeria’s stock market on Thursday had a sloppy, but mixed session that continued to be highly volatile owing to month-end activities as investors watch out for economic date for direction. The mixed session was also despite the influx of more impressive earnings reports, as market indicators closed lower as traders booked profit after the few day of relatively weak rally, while cashing out capital gains in some stocks that had appreciated so far in this season.
The market, nonetheless, remained within the bullish channel and above 20DMA but on a border line of breaking down the lower line of the channel and the moving average which will be a function of market forces this morning as trading opens. Should the earnings surprises continue and more of better numbers are released the bearish sentiment that reached 61% on Thursday would expectedly change.

Thursday started out with a move down right after the opening session, and then the index bounced around throughout the rest of the session in red, with the magnitude of loss only reducing in the last minutes of the day to end the trading session. The losses suffered by blue chip companies served as the force that slowdown the recovery mode of the market, as the index moved between an intraday high of 36,640.07 and low of 36,438.60 to finished lower than its opening figure.

The market’s technicals were weak and mixed as bearish sentiments approaches 61% to reveal selling pressure while volume index was 1.42 for the day, and buying position at 39% and 61% selling volume of the day’s total transaction, to halt the two day up market on a negative market breadth.
As the earnings reporting season draws to a close, it has been observed that the numbers emanating are beating market expectation, which is a signal of another bullish ascendancy ahead as market players interpret and digest the numbers to rebalance their portfolios and market revaluation, especially with the positive macro-economic data, rising oil price at the international market, which is expected to further boost Nigeria’s external reserve amidst noticeable increase in foreign exchange inflows, on the back of a relative stable exchange rate regime and implementation of Ease of Doing Business to make the country much more investor friendly, despite security challenges in some parts of the country.

It is also noteworthy that the Federal Government, on Thursday approved a Road Tax Fund (RTF), which is primarily aimed at attracting private sector investments into that critical sector of the economy, thereby easing pressure on the annual federal budget. Under the scheme, private companies, either as a single entity, or a group of companies using a Special Purpose Vehicle (SPV) can use tax that would have been paid to government to fix a road with design provided and construction supervised by the Federal Ministry of Power, Works and Housing. The project must also have a five-year guarantee (READ MORE). The Federal Executive Council, also on Thursday, approved the 2018 spending plan, which would be unveiled to the leadership of the National Assembly next Tuesday (October 31, 2017) at a dinner, as part of efforts to enhance understanding and buy-in that would facilitate easy passage of the document, thereby ensuring that it does not linger of the shelves until June, like the current one.

Meanwhile, the All Share Index shed 105.37 basis points to close at 36,517.48 from 36,622.85 points, which represented a 0.29% decline. In the same direction, market capitalisation for the day dropped by N36.47bn to N12.64bn, representing 0.29% value loss from previous session’s N12.68tr.
Price depreciation suffered by medium and high cap stocks like CCNN, PZ, NB, Guaranty Trust Bank, UBA, Forte Oil, International Breweries and Mobil impacted negatively on the ASI’s year-to-date return, as investors begin to react to their seeming lower than expected numbers. These reduced the year-to-date gain of the All-Share index to 35.88%, just as market capitalisation growth dropped to N3.4tr YTD, representing a 36.68% rise above the year’s opening value.

Market breadth for the day turned negative as the number of decliners outnumbered advancers in the ratio of 27:19 on a high traded volume that was higher than previous day’s level to short-live two day of bull run on the exchange.
Market activities, in terms of volume and value were mixed as volume rose by 10.47% to 356.81m shares from the previous day 323m units, while value for the day dropped by 9.44% to N4.22bn from N4.66bn a day earlier.
Transactions in the shares of UBA, Fidelity Bank, Custodian Allied Insurance, FCMB and Access Bank topped the volume chart.

At the close of the trading session, National Salt topped the advancers’ table, gaining 10.18%, to close at N16.77 per share, on the back of its impressive Q3 numbers, followed by Dangote Flour Mills with 10.13%, which was on market expectation of the company Q3 earnings report.
On the flipside, Forte Oil, again came under attack on it mixed numbers, losing 5.00% to close at N40.30 on market forces, while NEM Insurance shed 5.00% to close at N1.33 on profit taking; followed by International Breweries, which shed 4.99% to close at N51.78 per unit on profit taking, despite the company’s expected Q2 result even as it seems the market may have started reacting based on the numbers put forward by NB, a major competitor in the sector.

Also, during the trading session, Total Nigeria and NB announced interim dividend of N3.00 and N1.00 respectively, as Stanbic IBTC, FBNH, Dangote Sugar, Cadbury, Julius Berger and Access Bank, among others released their Q3 earnings to the market.

TODAY’S OUTLOOK
As the market opens this morning, volatility may continue in the midst of repositioning and profit taking, being the last trading day of the week at the peak of earnings reporting season, were more companies are expected to release their numbers.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are moving up and down amidst improving company, economic and market fundamentals.


It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases know the cycles in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this seasonality changes as the year winds down, 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 training materials on stock Trading and Investing for Financial Independence series are Available, you can play on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467 or 08111811223.

Attention! Attention!! Attention!!!

INVEST 2018 FINANCIAL SUCCESS
If you are still asking yourself why Trade Stock? We have all the answers for you in this upcoming summit! INVEST 2018 TRADERS & INVESTORS FINANCIAL SUCCESS
Are you a Bitcoin, Forex Trader or Real Estate Investor?
You need to see the advantages of trading STOCKs – Daily or weekly compared to any other market.
Have you ever traded Stocks?

In the coming INVEST 2018 you will learn:
• How to generate a consistent income trading stocks on your own via phone and laptop
• The power of trading quarterly and full year earnings reporting season
• Our rules-based approach to trading stocks.
• How our buy & sell signal setup works
• How to take advantage of best market timing strategies to positon before Major market earnings reporting season.
• How to quickly and accurately “predict” the next market reaction and move
• Learn why trading less is making more
• Learn how to make use of trend identification, resistant and support to double your returns
• Learn how to follow the institutional money flow and much more

Also, it is an opportunity to know you can identify opportunities in different sectors, especially with the Federal Government’s plan to spend almost N8 trillion for 2018, which if implemented will quicken ongoing economic recovery.
Discover how you can unleash your Income Potential Trading stocks.
You will also discover why trading and investing in stock is the way to go.
Trading or investing is no Rocket science – it just requires a blend of discipline, patience and knowledge of market and economic fundamental and technical analysis to pick the right stock and sell at the right time.

Is this the summit that will pays for your vacation trip, puts your kids through college and some income in your pocket?
Maybe or Maybe not…but you will be kicking yourself everyday on the way to that work place everyday if you miss this!
“70% of success in life is SHOWING UP and taking steps”
We’ll take care of the rest if the 30%….

This summit is the perfect opportunity to learn from the best industry experts and to get the personal attention in the exclusive Q&A session after presentations!
Saturday December 9, 2017

To register for the coming summit Kindly call or send yes to 08032055467 or 08111811223.

N.B: At this event you’ll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.
If you are looking for a way to make money in the market as a Full-time or Part-time trader, this is your opportunity.
Dream it! Wish it! Do it! Enjoy it!


Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

https://investdataltd..com.ng/2017/10/market-update-for-october-26-2017.html

I had no idea that Investdata also has an outlet here on the Investment section of Nairaland. It is a pleasant discovery. Please keep it up and further promote it for the attention of other investment enthusiasts on Nairaland.


Thanks for the commenting...@ DonDiego:

Yeah, we are working effortlessly to spread the gospel of financial investment opportunities to investors and all business incline individual and sundries.
You can also follow Investdata on.. twitter, google+, Linkedin, facebook and through our websites (www.investdata.com.ng, investdataonline.com).

Best Reagrds