MPC Members Say Nigeria’s High Unemployment Rate Undesirable, Worrisome

Three of the seven members of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC), including the chairman and CBN Governor, Godwin Emefiele, at their last meeting between September 25 and 26, 2017, called attention to the nation’s high rate of unemployment rate,
According to their personal comments released at the weekend, they urged collaboration between the fiscal and monetary authorities to bring it down such that the improvements already seen in recent economic data would begin to make sense across the land.

According to Emefiele, improvements in productive activities saw GDP turning positive from -2.3% at the depth of the recession in Q3 2016, noting that “output gap remains considerably negative as real GDP stayed below its potential.”
Despite the continued deceleration in inflation rate from the peak of 18.7% in January 2017 and relative stability and convergence continued, he lamented that macroeconomic indices like unemployment and nominal interest rates, “remain at undesirable levels,” a situation he blamed essentially on “the structural imbalances and associated rigidities, which characterise the Nigerian economy (which) resonate the urgent need for diversification.

“The inevitability of diversification is even more exigent at this time given the planned medium-term phase-out of hydrocarbon fuels by major industrialised economies and the weak shortterm global demand,” he stressed.
Describing unemployment rate in the country as worrisome, Dahiru Hassan Bulami, another MPC member, described it as a critical area of concern, just like inflation and interest rates, despite the positive developments in the economy, calling attention to the wide gap between inflation at 16.01% and the 14% MPR (Monetary Policy Rate).

“In my opinion, unemployment is an important area that requires sound policies both from the monetary and fiscal authorities, to reduce the level of unemployment, which would help spur growth in the economy. What can be done to reduce unemployment in Nigeria by the monetary authority?
“In the past, Ministries, Departments, Agencies and Banks, would visit institutions to interview potential graduates for employment positions. The situation has however changed as unemployment exists among primary and secondary school leavers as well as graduates. It is disheartening that many graduates with First Class and Second Class honours are roaming the streets without jobs. Unemployment refers to a situation where an able-bodied individual with the requisite qualification, and who wants to work, does not have a job.”
The CBN, he said, “has a responsibility to assist in reversing the situation through putting in policies that would facilitate or support economic growth. What can we do to increase employment and livelihood among the youths?”

He tasked the CBN on the “need to intervene in the various sectors of the economy that have a high propensity of employment generation such as: agriculture, small and medium scale entrepreneurship, establishing Silicon Valley centres etc.
“Credits should also be extended to those who have participated in the various centres for entrepreneurship development, in the country. This should be in the form of seed money.”
While seeking support for the private sector as the largest employer oflabour in Nigeria to thrive, Bulami urged government to provide an environment for the private sector to thrive, so as to create job opportunities.

“It is true that graduates do not see themselves going to the farm, and as such, the private sector should be supported to provide employment for our teaming graduates,” he stressed further, calling attention also to the need guarantee power/electricity for at least six hours a day at constant and adequate voltage power, which would go a long way in assisting the private sector.

“For example, those in the welding and hairdressing heavily depend on electricity for their businesses to run. The entrepreneurships centres all over the country could serve as job creation centres through the provision of seed money to trainees on their successful completion.”
He called for a lowering of the MPR to bring down the prime lending rate, thereby making loanable funds relatively cheaper and inducing investors to borrow and invest and in the process generating more employment opportunities, raising the level of income, output, resulting in economic growth.

“However, to lower the MPR, CBN has to study this in relation to the inflation dynamics, monetary conditions, real economic activities, as well as inflation risks in the economy.”
He called for credit targeting to the agricultural sector, calling attention to the history of intervention schemes introduced in the past and the fact that some could destabilize the system.
“What went wrong with the previous interventions? How can they be sharpened or modelled to contribute towards the effective growth and stabilisation of the economy? How can the loopholes in the past schemes be blocked to make them more effective because unemployment is worrisome? Policy makers practically want low interest rates so as to make credit available to economic agents. This means that Deposit Money Banks should be encouraged to direct credit to sectors with high job generation ability. The Central Bank should design an incentive scheme that would encourage banks to lend direct to job creation areas such as agriculture,” he stressed.

A member, Abdul-Ganiyu Garba, warned that despite Nigeria’s exit from technical recession, its macroeconomic challenge remains overwhelming, as it is still a long way from recovery to 2014 level, just as unemployment rate remains high at a time public debt is at N2.01tr, while Federal Government deficit stood at N1.9tr in the first eight months, and debt service at N1.58tr is 2.4x the spending on capital project.

As if these were not enough horrible news, he said maximum lending rate rose to 31.2%, prime lending rates, 17.69% and widening interest rate spread to 26.95%; which are not helped by “a very active revolving door of liquidity – pumping in and mopping out.”
Issues that needs resolution at the moment, he continued, are: “The unresolved issues: A forward looking medium to long term strategic macroeconomic management framework for Nigeria as the context for policy analysis and choice; continuing malfunctions in the credit market which tends to allocate credit to sectors with traditionally high NPLs, low output and employment elasticities as well as a tendency to restrict access and to charge maximum rates on credit to sectors and economic agents with traditionally lower NPLs and higher output and employment elasticities; the dominance of rent havens in both the real and financial sectors, and the public space; prevalence of present hedonistic and backward looking orientation; and efficient and effective use of existing Nigerian capacity in all aspect of the political economy.”

http://investdata.com.ng/2017/12/mpc-members-say-nigerias-high-unemployment-rate-undesirableworrisome/#more

Whether you are looking to buy and resell gold and silver or looking to diversify your portfolio then this is the place for you. At MintBuilder you can buy physical gold and silver at very competitive rates using different payment options. As an example, at the time of writing this, MintBuilder's 2.5g gold bars were ~$50 cheaper than the same product on Amazon!

Alternatively, you can also join up with a MintBuilder wholesale team and start to earn commissions paid in either gold, silver, cash or ...! These commissions range from $250-$10,000 a week! That's not a typo, $10,000 a week!

Click here for more http://www.MintBuilder.com/266254.

If you like what you see but are worried about how to go about it, check out this youtube channel

https://www.youtube.com/watch?v=C_W8fif2yC0&feature=em-uploademail.

You can contact me for more information. Whatsapp +2348186540455

Cheers!

Profit Taking Slows Down, Volatility Lingers, Amidst Hope For Improved Economic Data


Market Update for December 12, 2017

Profit booking on the floor of the Nigerian Stock Exchange on Tuesday slowed down, while volatility continued, halting two days of bear market as highly capitalized stocks appreciated marginally in value, ahead of the release of the November inflation figure. This was just as investors continue repositioning in fundamentally sound equities of stocks with good management and corporate governance that have remained attractive to foreign and institutional investors as the year winds down. The improvement in numbers presented by consumer, industrial and banking stocks have so far supported their share prices, pointing to the possibility of higher payout in 2018.
Trading opened on the downside in the morning and rallied little at midday to hit an intraday high of 39,104.09, reducing the loss momentum and crossing into the green region from a low of 38,836.25 before pulling back to close the day at 38,924.63, which was nonetheless higher than its 38,913.99 opening level.

Market technical for the day was mixed as NSE Index resisted further decline on a huge transaction volume. Volume index for the day stood at 0.96 with selling pressure of 67% and buying volume, 33% of the total transaction to short live bear transition on a mixed sentiments.
The breakout of oil price to the current high of $65.62 per barrel on Tuesday after a major pipeline was shut, due to cracks, a situation that would further push up government’s revenue, while enhancing the nation’s foreign reserves, despite the 1.8m barrels per day production cap set by the Organisation of Petroleum Exporting Countries (OPEC).

Meanwhile, the All-Share index inched up by 10.64 basis points to close at 38,924.63, from the 39,913.99 points, representing a 0.03% growth, in the same direction, market capitalisation climbed up by N3.71bn to N13.56tr, from previous day’s N13.55tr, representing a 0.03% value gain. The upturn recorded resulted from value gain in medium and high cap stocks like Dangote Cement, Nigerian Breweries, Guaranty Trust Bank, Guinness Nigeria, FBNH, Dangote Sugar and Dangote Flour, which impacted positively on the ASI’s year-to-date returns, to 44.84%, just as YTD growth in market capitalisation fell to N4.31tr, representing a 46.61% rise over the year’s opening value.
Market breadth for the day was negative as the number of decliners outpaced advancers in the ratio of 23:21 on a relatively huge traded volume that was higher than Monday’s level.

Transactions in terms of volume and value were up by 31.97% and 444.92% respectively to 462.67m shares worth N26.81bn from previous day’s 350.6m units valued at N4.92bn. The day’s activity was driven mainly by Dangote Cement and others like FBNH, Diamond Bank, FCMB and AXA Mansard, which topped the volume chart.
Best performing price at the end of the day were UBN and Diamond Bank that topped the advancers table, gaining 10.01% and 7.14% respectively to close at N7.91 and N1.50 on positive market forces.
On the flipside, FCMB and Fidelity Bank shed 4.69% to close at N1.22 and N2.26 respectively on market forces and profit taking,

TODAY’S OUTLOOK

Being the mid-week, volatility will continue as traders take profit and reposition, while at the same time smart money continue their accumulation of shares in value stocks ahead of 2018 earnings reporting season and Santa Claus rally amidst the improving and positive economic data especially as inflation figure for November is expected before the week runs out. The positive outlook for emerging market in 2018 as a result of high commodities price is a major attraction as currencies and exchange of these developing markets are relatively stable. This is in addition to undervalued assets in these exchanges.

Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile 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 on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which will be available this Friday.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2017/12/profit-taking-slows-volatility-lingers-amidst-hope-improved-economic-data/

Volatility Continues As In Investors Position In Value Stocks, Amidst Profit Taking Activities


Market Update for December 11, 2017

It was indeed another volatile Monday on Nigeria’s stock market as profit booking by traders and investors extended to its second day to start the week.
Moreso, technicals were weak, confirming the sell market at this point, but the price patterns were mixed as players also take the opportunity of the current pullback to reposition and accumulate stocks with steady earnings growth and surprises that had given insight of what should be expected at the end of the year.

The day started out with a little upside in the morning that failed to consolidate in the mid-morning, before pulling back in an orderly fashion. At the end of the day, the market’s benchmark index closed lower after hitting intraday high of 39,292.21 basis points and low of 38,891.25, breaking the 39,000 psychological line in search of another support level not far from the former resistance level of 38,241.57.
Data analysis by experts at the weekend’s INVEST 2018 traders & investors summit revealed subtle opportunities between the performance of companies and the ongoing economic recovery, and the need for investors to stay with value enhancing stocks to generate good returns to protect their capital. This they agreed, is important, especially as the Central Bank of Nigeria (CBN) continues its intervention which is impacting positively on the foreign exchange window of the inter-bank market, inspiring confidence among foreign investors, leading to more forex inflows that further supports the market and economic recovery.

Also, the recent release of additional N750bn from the 2017 budget for capital projects is also expected to have positive impact if the infrastructural projects are executed faithfully to further expand Nigeria’s economy in 2018. Being a pre-election year, 2018 offers great opportunities and uncertainties, but the ability to navigate and the type of equities you position in will determine your level of profit.
Monday’s trading volume index stood at 0.75 with selling pressure of 94% and buying volume, 6% of the total transaction to keep the bear running on profit taking.

Meanwhile, the composite NSE All-Share index shed all of 343.54 basis points to close at 38,913.99, from the 39,257.53 points, representing a 0.88% decline, just as market capitalisation fell by N119.65bn to N13.55tr, from previous day’s N13.67tr, representing a 0.88% value loss. The two-day downturn resulted from price depreciation in low, medium and high cap stocks that impacted negatively on the ASI’s year-to-date returns, as it dropped to 44.80%, just as YTD growth in market capitalisation fell to N4.31tr, representing a 46.56% rise over the year’s opening value.

Market breadth for the day was negative as the number of decliners outpaced advancers in the ratio of 28:14 on a relatively high traded volume that was lower than previous day’s level.
Transactions in terms of volume and value were down by 33.86% and 4.01% respectively to 350.6m shares worth N4.92bn from previous day’s 530.08m units valued at N5.12bn. The day’s activity was driven by FBNH, Zenith Bank, Diamond Bank, Access Bank and Transcorp, which topped the volume chart.

At the end trading, Mobil and National Salt topped the advancers table, gaining 9.47% and 4.99% respectively to close at N174.96 and N18.74 on positive market forces.
On the flipside, Learn Africa and UBA shed 5% to close at N0.95 and N10.45 respectively on market forces and profit taking, ahead of C&I Leasing 4.83% loss to close at N1.37 each, on market forces.

TODAY’S OUTLOOK

Market volatility will continue as traders take profit from the recent rally, while at the same time smart money continue their accumulation of shares ahead of 2018 earnings reporting season and Santa Claus rally amidst the improving and positive economic data. As foreign fund managers look to emerging market in 2018 as developed markets seem overvalued already.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile 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 on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which will be available this Friday.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2017/12/volatility-continues-investors-position-value-stocks-amidst-profit-taking-activities/

If you want to know which platform is best to use to trade crypto, I will recommend you use Binance https://www.binance.com/?ref=12607231

Registration is free and it is open to Nigerians.

I am also part of a group that teaches the fundamentals of trading. So if you are interested in getting one or two videos, just let me know on whatsapp +2348186540455

PROFIT TAKING: NSE INDEX SLIPS, AS INVESTORS PREPARE TO POSITION IN STRONG LOW VALUE STOCKS





MARKET UPDATE FOR DECEMBER 13, 2017

The stock market on Wednesday had a very volatile and mixed session, wiping out much more than previous day’s marginal gains as profit taking resumed full throttle especially in blue chip stocks that had performed well in price appreciation recently.
At the end of the day, there were more red than green across the board in a corrective wave that is preparing for the last few days of the year’s final rally in extension of Wave 5 at a time current downtrend is looking for support to propel the expected yearend rally ahead of the January effect and full year earnings reporting season in 2018 Q1.

The day started out with a little pop to the upside on the index and then had a major pullback, trying to retest the former resistance level that is becoming a support level in the current correction season on profit booking. The market closed lower after touching intraday high of 38,945.09 and low 38,514.43, but could not breakdown the last resistance level but today market forces and sentiment will determine a full breakdown or reversal.

The day’s market technicals was weak as selling pressure stood at 95%, with volume index of 0.67 and buying volume of 5% of the total transaction to continue the bear transition. Money flow index revealed funds are leaving the market as profit taking has persisted for days now. The reversal of this trend is imminent as traders and investors take advantage of the pullback to position for earnings season.

Meanwhile, the Nigerian Stock Exchange (NSE) composite index shed 389.99 basis points to close at 38,534.64, from the 39,924.63 points, representing a 1.00% decline, just as market capitalisation was down by N135.82bn to N13.42tr, from previous day’s N13.56tr, also representing a 1.00% value loss. The resumed downturn was due to losses recorded in high cap stocks like Unilever, Lafarge Africa, Dangote Cement, NB, Guaranty Trust Bank, Zenith Bank, FBNH, Stanbic IBTC and Presco. This impacted negatively on the ASI’s year-to-date returns, which reduced to 43.39%, just as YTD growth in market capitalisation stood at N4.22tr, representing a 45.56% rise over the year’s opening value.

Wednesday’s market breadth was negative as the number of decliners outnumbered advancers in the ratio of 27:19 on a relatively high traded volume that was lower than previous day’s level.
Market activities in terms of volume and value were down by 29.98% and 83.59% respectively to 323.95m shares worth N4.40bn from previous day’s 462.67m units valued at N26.81bn. Transactions was majorly driven by banking stocks despite the losses recorded by first tier banks, trades in Sterling Bank, FBNH, Diamond Bank, Guaranty Trust Bank and UBA topped the volume chart.
At the end of the day trading Berger Paints and FCMB topped the advancer’s log, gaining 4.93% and 4.92% respectively to close at N8.09 and N1.28 on positive market forces and sentiments, Presco and Cadbury shed 4.98% and 4.95% to close at N65.00 and N15.54 respectively on market forces and profit taking,

TODAY’S OUTLOOK

The ongoing volatility will continue as traders take profit and seek information to reposition, especially as inflation figure for November is expected before the week runs out and full year earnings season approaches. The positive outlook for emerging market in 2018 as a result of high commodity prices is a major attraction as currencies of these developing markets remain relatively stable. It begins to make much more sense for investors when you add the undervalued nature of assets on these exchanges.

Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile 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 on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which will be available this Friday.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2017/12/profit-taking-nse-index-slips-investors-prepare-position-strong-low-value-stocks/

PROFIT TAKING SPIKES PANIC SELLING, EVEN AS MARKET FUNDAMENTALS REMAIN UNCHANGED



MARKET UPDATE FOR DECEMBER 14, 2017

It was a difficult trading session on the Nigeria Stock Exchange on Thursday, as market indicators declined further on a highly volatile mode to consolidate the losing streak that almost wiped out all of the gains recorded month-to-date, due to massive profit taking in blue chip stocks that almost triggered panic among retail investors. Considering what the market had done in terms of performance year-to-date especially, profit taking is not unexpected also given that it is an integral aspect of stock trading and investing.

Trading activities for the day started out with a little pop to the downside, reaching intraday lows of 37.840.14, breaking down the psychological line of 38,000 and strong support level of 38,241.45 from the day’s high of 38,539.91 on below recently traded market average volume. The index had actually formed bear wedge, despite reducing the losing streak to close the day at 37,933.70 which was also lower than the day’s opening figure.
As the corrective wave 4 extended to breakdown the former resistance level that had turned strong support, expect a reversal at 37,374.88 if the index does not hold at 37,709.20 to usher in wave 5 extension that will be supported with the positive earnings reporting season sentiments in the New Year.

Yes, institutional money flow index is looking down to show that money is leaving the market which is as a result of profit taking, investors should not activate their panic mode just yet, since there is no negative news in the market. The banks for some time now have been carrying these high level of Non-Performing Loans (NPL) and prices had rallied, dividend had always been paid, which supported the sector’s above 70% return year-to-date, even as some of these banking stocks are still undervalued.

Technically, the market’s traded volume was low, while at the same time selling pressure adjusted down from the previous day’s 95% to 87%, with volume index of 0.60 and buying volume of 13% of the total transaction to continue the bear run. Many indicators are signaling a sell market as revealed by market breadth for the day. The possibility of reversal at this point is high as traders and investors take advantage of the pullback to position for dividend in 2018.

Meanwhile, the All Share Index shed all of 600.94 basis points to close at 37,933.70, from the opening 38,534.64 points, representing a 1.56% decline, while market capitalisation was up by N76.92bn as a result of the 5.3bn additional shares added to those outstanding for International Brewery due to its recently concluded merger scheme involving International Brewery, Intafact Beverages and Pabod Breweries Ltd. This raised market capitalization to N13.5tr, from previous day’s N13.42tr, representing a 0.57% increase. The continued downturn was attributed to losses suffered by all classes of stocks like Dangote Sugar, Dangote Flour, Lafarge Africa, Dangote Cement, NB, ETI, UBA, Access Bank, UBN, Zenith Bank, FBNH, Presco and Guinness Nigeria .
This in turn impacted negatively on the year-to-date return of the All-Share index, reducing it to 41.15%, just as YTD growth in market capitalisation stood at N4.25 trillion, representing a growth of 45.97% above the year’s opening value.

Market breadth was negative as the number of decliners widened, outpacing advancers in the ratio of 32:10 on a low traded volume that was lower than the mid-week level.
Activities in terms of volume and value were mixed as volume dropped by 10.698% to 289.3m units from previous day’s 323.95m shares, while value was up 41.43% from N4.4bn in the previous day to N6.22bn. Transactions was dominated by banking stocks again as FBNH, FCMB, Zenith Bank, Fidelity Bank and Diamond Bank topped the volume chart.

At the end of the day’s trading Seplat and Caverton topped the advancer’s log, gaining 7.73% and 3.97% respectively to close at N540.05 and N1.37 on positive market sentiments. On the other hand, Flourmills and UBN shed 9.71% and 5.00% to close at N30.47 and N7.60 respectively on market forces and profit taking,

TODAY’S OUTLOOK

The ongoing volatility will continue being the last trading day of the week that will usher in the last full trading of the year as traders take profit and seek information to reposition, especially as inflation figure for November is expected before the week runs out and full year earnings season approaches. The positive outlook for emerging market in 2018 as a result of high commodity prices is a major attraction as currencies of these developing markets remain relatively stable. It begins to make much more sense for investors when you add the undervalued nature of assets on these exchanges. November inflation figure is expected to hit the market today.

Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile 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 on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which will be available this Friday.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2017/12/profit-taking-spikes-panic-selling-even-market-fundamentals-remain-unchanged/

FG LIED ABOUT GOVS’ $1BN DONATION TO ANTI-BOKO HARAM WAR, SAYS FAYOSE

Governor Ayodele Fayose of Ekiti State on Friday debunked claims by Chairman of the Governor’s Forum, Alhaji Abdullazeez Yari of Zamfara State at the meeting of the National Economic Council (NEC) on Thursday that his colleagues approved the contribution of $1bn from the Excess Crude Account (ECA) in support of Military Operations in the North East.

Taking to his personal twitter handle on Friday morning he said decision to withdraw from the ECA “was solely the idea of the federal government, which they used the National Executive Council meeting to achieve.”
He wondered reasons for the withdrawal, “since they said they have defeated Boko Haram, what else do they need a whopping sum of $1 billion (over N360bn) for; if not to fund President Buhari’s re-election in 2019?

“For posterity sake, I wish to place it on record that I was not among the governors, who approved the withdrawal of $1bn, almost half of our savings in the Excess Crude Account, which belongs to the three tiers of government to fight an already defeated Boko Haram.
“N360bn is equivalent to what the Federation Account Allocation Committee share to the FG, 36 States and 774 LGs monthly. Nigerians deserve proper explanations from the FG on the rationale behind spending such huge sum of money to fight an already defeated Boko Haram.”
Continuing, he also wondered how “the Federal Government alone spend almost half of the Excess Crude money that belongs to the three tiers of government (i.e. Federal Government, States and Local Councils)?

“The APC promised to wipe out Boko Haram within six months, now it is 31 months and what the APC government is wiping out is the economy of Nigeria and the means of livelihood of the people,” he stressed.
Also writing on twitter on the same topic hours earlier, former Minister of Aviation, Chief Femi Fani-Kayode noted: “This is a lie.
“The $1 billion will be used by Buhari and his APC to fight the 2019 presidential election and part of it will be shared between party leaders and the cabal.

“Buhari is not only the father of corruption in Nigeria, he is also the father of the barbaric Fulani herdsmen, the father of religious bigotry and radical Islam, the father of “born to rule” northern supremacy and Fulani hegemony and the father of genocide and ethnic cleansing,” he stressed.

http://investdata.com.ng/2017/12/fg-lied-govs-1bn-donation-anti-boko-haram-war-says-fayose/#more

INVESTDATA PRICE & EARNINGS TRACKING FOR WEEK ENDED DECEMBER 15, 2017


http://investdata.com.ng/2017/12/investdata-price-earnings-tracking-week-ended-december-15-2017/#more

2017 Third Quarter Top Performing Stocks By EPS

http://investdata.com.ng/2017/12/2017-third-quarter-top-performing-stocks-eps/#more

WHAT NEXT FOR NIGERIA’S STOCK MARKET AS 2018 COMES TO A CLOSE?

What should investors look out for in the next major earnings reporting season, which comes out within the first quarter (January to March) 2018, especially with improved company and market fundamentals as reflected in the numbers emanating from quoted companies and reactions to such from market forces in form of price performance and traded volume that had shown increased activities and demand for stocks, when compared to the situation in the three previous years of down market.

Investdata Research shows that traders are interested in market reactions to earnings during earnings seasons, but the momentum of this reaction depends on the numbers posted and the period. Markets react faster and longer to full-year scorecards than quarterly reports, due to rewards that accompany such in the form of cash dividend or bonus shares, which are of interest to most investors. The behavioral pattern of investors and the market at this point is what traders benefit from, while trading earnings season. It is juicier when companies releasing numbers that beat market expectation when accompanied with good payouts.

Ahead of the 2018 earnings season, many sectors have so far shown potentials of higher payout due to impressive numbers released so far especially the direct beneficiaries of the Central Bank of Nigeria (CBN) intervention in the foreign exchange market that resulted in stable exchange rate regime, impacting positively on stocks in the manufacturing, banking, agriculture and healthcare sectors, among others.
While seeking to position for robust returns in 2018, investors should go back to the performance of stocks in question in previous quarters to review the pattern within their current financial year. In other words, you should be asking questions like: What has the earnings trend been like in the last two or three quarters? What were the last full-year’s Earnings Per Share (EPS) and dividend payout like? Such information would give insights into what to expect from the particular company.

Please note that companies with consistent incremental performances are most suitable for investment purposes, given their probability of better last quarter performances. You might choose to dwell on the reasons for the inconsistent performance patterns, including the fact that some companies do have cyclical sales trends for which reason the quarterly performances are bound to vary sharply. Take note of such stocks and act accordingly.

Add up the three quarter earnings that you now have, to see what the average performances would be. Or, better still, find the average of the last four quarters, that is, add the three quarters of current year and the fourth for previous year, then divide your answer by four to get the average. This is important to project what the dividend possibilities are. To do this right, you might now need to consider previous year’s performances to see any similar trend or divergence. Companies with identical trends with previous years’ performance level are easier to predict than those with divergent trends. In cases of divergence, find out what the issues are so as to take advantages or cut your loss swiftly.
The industry wherein the companies you are researching on operate is key. For example, manufacturing companies tend to release audited reports to the market faster than banks and insurance stocks. Equities like Vitafoam, Forte Oil, United Capital, and Nestle as well as in some cases, Cadbury are known to be among early fliers in the market every year, as their results often hit the market between four to eight weeks after the end of the financial year. The reason is not far-fetched: Such companies do not present their financials to a primary regulator for approval before being released to the market, unlike banks and their insurance cousins particularly whose financials go through the CBN or National Insurance Commission (NAICOM). Over the last three financial years, most insurance companies have had to grapple with challenges posed by the new international accounting standards, which the banks had to contend with long before now.

Summarily, note the period to expect the audited result with the release of the third quarter results and position right.
Please note also that quarterly results alone will not determine equity prices even in the very short-term. As a result, learn to keep tab on the prevailing market situation to measure the probable impact of full year earnings performances on stock prices.
In other words, positive earnings in a bullish market will most probably lead to further rally, while positive earning in a down market may not impact much. Negative earning in an uptrend won’t move price up in as much as the decline is not sharp.
The current 10% price circuit will boost returns faster as the market reacts to earnings reports, leading to early equilibrium price level in response to earnings surprises.

The implication of this is that positive results may not experience a bull-run for more than a week after which profit takers would besiege the market to slow down price activities. It is the same for negative earning.
The best every investor must learn to do at this point is: Be technical-analysis compliant for the best of short-term market play, while anticipating quarterly and full-year audited reports that will commence in January 2018.

Investors who may not be desirous of technical analysis skill could be shooting themselves in the foot, because they might be buying at the end of an initial rally in response to positive earnings as profit takers dump stocks, while traders re-enter when audited report are near for equities projected to likely pay final dividends by effectively combing fundamental and technical analysis.

Earnings release date and expected market reaction is important when trading earnings season.

http://investdata.com.ng/2017/12/next-nigerias-stock-market-2018-comes-close/#more

Cement War: BUA’s Stealing, Illegally Mining Our Limestone- Dangote


• It’s A Lie, You Can’t Intimidate Us Like You Did To Ibeto, Others, BUA Warns

Photo Caption: Acting Chief Executive, Dangote Cement Plc, Engr. Joseph Makoju; Group Executive Director, Strategy, Capital Projects and Portfolio Development, Dangote Industries Limited, Devakumar Edwin; and Mining Consultant to Dangote Industries Limited, Taslim Jimoh, at a press briefing to debunk the claims by BUA Group on allegation of Dangote Cement sabotaging operations of BUA Cement in Edo and Kogi State, in Lagos on Sunday, December 17, 2017.

The verbal war between Alhaji Aliko Dangote’s Dangote Cement Plc and his fellow billionaire businessman from Kano- Alhaji Abdulsamad Rabiu of BUA Group continued Sunday, over control of the nation’s lucrative multi-billion cement business.
Both groups are at war over vast deposits of limestone, the major raw material for cement production.
While Dangote Group has its Dangote Cement Plc listed and actually accounting for about a third of the market capitalization of the Nigerian Stock Exchange (NSE), BUA is not visible on the bourse, except for its relatively small-sized Sokoto Cement, trading under the name, Cement Company of Northern Nigeria (CCNN).

A statement from Dangote Group, which fired the first salvo on Sunday evening, accused BUA of engaging in illegal mining of limestone deposits in its Mining Lease No. 2541, located in the boundary town of Oguda/Ubo in Okene Kogi State.
The statement quoted Dangote’s Executive Director, Devakumar Edwin, an Indian, as frowning at the media war, which he said was instigated by BUA against his group, “over a matter which is already pending before the Federal High Court, Benin Division.”
In a counter statement few hours later, also on Sunday, the management of BUA Group accused Dangote of “desperation in its continued attempt to disregard the judicial process and scheme a viable competitor out of business as has been their legendary antecedent.
While agreeing that the case is already before the court and urging that all parties follow the process in resolving the issue, BUA warned: “We will not be cowed or intimidated and will continue to seek redress through the proper legal channels.”

It regretted: “The antecedents of Dangote Plc in trying to outmuscle competition is not in doubt,” and that “various cases abound within and outside the cement industry – one of which was their taking over of the limestone deposits of another competing entity in the south-south region of Nigeria until they ceded him 25% of their company. This was in turn resold to them for hundreds of millions of dollars.
“Or is it the case of Ibeto whose business was almost driven under but for the prompt intervention of the then late President Umaru Musa Yar’Adua. Or is it the case of Polo House Jetty Tincan previously owned by his uncle, Usman Dantata, whose License was revoked by NPA and reallocated to Dangote on the same day in order to prevent a sugar refinery to be sited there by a competitor.”

For the records, BUA stressed that its operations are in Obu, Okpella, Edo State and not Okene Kogi.”
Dangote Group had in its statement quoted Edwin as arguing that: “Dangote Group validly acquired its interest and mining title in the disputed Mining Lease No. 2541 from AICO Ado Ibrahim & Company Ltd sometime in 2014. AICO itself had applied to the Mining Cadastre Office and Ministry of Mines and Steel Development for the said Mining Lease No. 2541 located in a boundary town of Oguda/Ubo in Okene Kogi State in 2007. The Ministry in exercise of its power under the Nigerian Minerals and Mining Act, 2007 granted and issued to AICO ML. No. 2541 for the renewable period of 25 years effective from 1st February 2008 and to expire on 31 January, 2033. Thus AICO by virtue of the said grant, became vested with the legal title over ML. No. 2541. In 2014, the Dangote Group approached AICO and indicated interest in acquiring AICO’s stake in ML No. 2541. In 2014, AICO in exercise of its right under the Mining Act, applied to the Ministry for the transfer of its title in the ML No. 2541 to Dangote Group. AICO and Dangote Group equally paid all the transfer and statutory fees demanded by the Ministry.”

He further explained that:” By a letter dated 05 February 2016, the Ministry wrote to the Managing Director of the Dangote Group to convey the approval of the Ministry for the Transfer/Assignment of ML No. 2541 from AICO to Dangote Group with effect from 03 February 2016. Following the successful transfer of ML. NO. 2541 to Dangote Group, the Group became the holder of the Mining Lease No. 2541.”
He said even BUA in its process in Court acknowledged that these illegal mining leases which it claimed were granted in 1997 were temporary mining leases.

Edwin also recalled that the then Minister for Solid Minerals under Olusegun Obasanjo’s regime, Dr Oby Ezekwesili sometime in 2006 waded into the dispute and invited the managements of Edo Cement Company Limited and AICO Ado Ibrahim & Company Limited for a meeting and that in the course of the meeting the then Minister again queried the legality of Mining Lease Nos 18912 and 18913 and the power of the Governor of Edo State to grant such mining leases.

“At the end of the Meeting, the Minister declared the Edo Cement’s Mining Leases Nos. 18912 and 18913 illegal and declared the mining site open for interested investors. Given that AICO’s then existing Mining Lease No. 17825 was yet to be renewed even though application for renewal was pending, AICO in 2007 (under the Mining Act, 2007) applied for the fresh Mining Lease No. 2541 and the Ministry granted it in 2008 without any objection from Edo Cement Company” Edwin said AICO, who sold the right to Dangote, continued its mining operations in the Mining Lease No. 2541 undisturbed until BUA Group acquired Edo Cement Company Limited and resuscitated the dispute again.
Edwin further revealed that it was the attempt by BUA to encroach on AICO’s mining title in Mining Lease No. 2541 that prompted AICO to write to the Ministry in 2015 complaining of BUA’s encroachment.
He said: “The Ministry after investigation in the same 2015 by the letter dated 21 January 2015 wrote to the Chairman of BUA Group directing BUA to stop mining within the ML. No. 2541. It was this same letter from the Ministry that prompted BUA to file a Suit at the Federal High Court Benin in 2016.”

Edwin said: “It is therefore appalling that BUA Group in the midst of these overwhelming facts will still want the public to believe that Dangote Group is after its business when in actual fact BUA has been the one mining illegally in Dangote Mining Lease and attacking its officials without any justification… The crocodile tears being shed by BUA in its cry for help and open letter to the President is most laughable and a total distraction from BUA’s continuous illegal activities within Dangote’s ML 2541 aimed at depleting and exhausting the limestone reserves in order to sabotage Dangote Group’s legitimate investment.”
BUA however further stressed that besides its mining operations being limited to Obu-Okpella, Edo State for which licenses ML18912 & 18913 were issued and revalidate by the same ministry in a publica, it had “been owned, operated and fulfilled by BUA and its predecessors-in-title since 1976 as it is also a notorious fact that we have exercised total control and possession over the mining area covered by the above mining leases since 1976 when we operated under the name of Bendel Cement Company Limited.

“We are thus wont to excuse Edwin’s claims to a lack of basic knowledge and understanding of the geography of Nigeria but he will be better served if he seeks professional opinion in critically understanding the geography of Nigeria or he should otherwise refer to documents from the boundary commission which clearly delineates boundaries within Nigeria.”
Being an international company listed on the NSE, BUA warned why Dangote Cement is so averse to letting the rule of the law and judicial process take its course, when the court ordered all parties to maintain Status Quo.

“This includes BUA’s current ownership of our mines in Edo State. But the management of Dangote Group Dangote, as has been their strategy in the past to other companies in competition with them, is still seeking to out-muscle competition through backdoor means rather than let the court decide. If anyone is not satisfied, they should write to the courts as an independent arbiter for an interpretation of “maintaining status quo”: rather than spread misinformation in the court of public opinion.”

http://investdata.com.ng/2017/12/cement-war-bua-stealing-illegally-mining-limestone-dangote/#more

VITAFOAM: WILL REBOUNDING EARNINGS SUPPORT HIGHER PAYOUT?WHAT NEXT FOR NIGERIA’S

Vitafoam Nigerian Plc recently presented its unaudited nine-month earnings report to the investing community slightly earlier than that of the corresponding period in 2016, the highpoint of which was the growth in top and bottom-lines as the company came out of loss. This reality is yet to influence its share price, due to its relatively low dividend payout history and unstable earnings performance over time.
Investors and analysts expect that the company’s post-merger numbers arising from its expansion outside Nigeria, and the introduction of new products would further boost its earnings capacity, helped particularly by earnings from its foreign operations, considering the exchange rate. There is also revenue from its domestic operations as the company continues to penetrate new markets. Expectations are that with Vitafoam bouncing back to profit, dividend payment would likely range between 15 kobo and 18 kobo.

In the Q3 result under consideration, Vitafoam recorded an increase in turnover, indicating the effects of market penetration and new segments through introduction of new products, following the merger which is ensuring that the company is able to effectively withstand competition from the growing number of cottage companies in it sector resulting in enhanced sales. The high cost of financing its operations and increase in income tax left a deep cut in its profit as reflected in its profit margin for the period.

The company’s successfully repositioning of its furniture business, while venturing into spare parts production and strategic repackaging of the insulation business for enhanced value creation have all started yielding results as expected. This therefore means that investors should wait and expect better reward with its full year result expected in the market any moment from now. The low profit margin however suggests the need for better and enhanced cost management, while plugging loopholes if shareholders must reap the benefit of the ongoing revenue growth trajectory, through improved profitability.

Statistics for the third quarter ended June 30, 2017 revealed improvement in all financial indices for the period under consideration, with sales revenue growing by 34.32% above the comparable period. This came with a profit of N134 million as against a loss of N159 million in the corresponding period of 2016, which translated to Earnings Per Share (EPS) of 0.13 kobo, as against the 15 kobo loss per share in the 2016 Q3, while Return on Equity (ROE) came to 4.11%, as against -4.53% in 2016.
As noted earlier, the company’s profit margin is poor by all standards at 0.91%, even when compared to the negative 1.45% in the corresponding period of 2016, just as Book Value stood at N3.13 from N3.27, as a result of the increase in profit and retained earnings.


Source: Company Financial & Investdata Research

Looking at the company’s earnings movement since the begin of the last financial year ended September 30, 2017, the numbers have been unstable but on the strength of its Q3 numbers the expected full year earnings per share is projected to be in the region of 25 kobo and dividend possibility of 15 to 18 kobo as mentioned earlier. Being the first full year report, the numbers and payout (if impressive) and dividend is recommended, it might usher investors into the 2018 market and elicit positive reactions.

Technical View



The price action of Vitafoam shows an uptrend movement that started since March on positive sentiments, aided by the 12 kobo dividend payout, which was confirmed by the impressive Q1 results that was sustained till June. It remained trendy in the rectangle chart pattern with resistance price of N3.07 and support of N2.63. On the expectation of it full year financials the possibility of break out or down is high, depending however on the actual numbers.
The chart reveals a high possibility of the uptrend continuing to breakout the next resistant level of N3.07.
On a daily time frame, the stock is strong as it is trading above it year open and 50 day moving average. Despite the possibility of pullbacks as result of profit taking, the stock has the momentum to retrace up.

Analysts Opinion/Recommendation
The equity is good for dividend investors as it guarantees annual returns. Also, traders may enjoy the likely rally if full year financials beat expectations as money market interest rate continues to crash ahead of the Federal Government’s green bond and the first Monetary Policy Committee (MPC) meeting of 2018, holding in January. Note also that monetary policy easing has technically commenced in a bid by the authorities to bring down cost of funds and drive the expected growth in 2018 and beyond.
But the management of Vitafoam should continue with its strategic business plans of repositioning its subsidiaries to boost performance, while utilising modern research and development exposures for cutting costs and enhance profitability.

History
Vitafoam Nigeria is a leading manufacturer of flexible foam, reconstituted foam and other household products. It has the largest foam manufacturing and distribution network which facilitates just-in-time delivery of products throughout Nigeria, with off-shore operations in Ghana and Sierra Leone.
The company was established on August 4, 1962 by British vita and Unilever and listed on the NSE in 1978. Vitafoam is currently Nigeria’s most prominent and leading producer of Polyether, foam products, furniture, upholstery products and adhesives. In 2010, it became a major shareholder of Vono Products and established two sister companies; Vitapur Nigeria (an insulations products manufacturing company) in the Oil & Gas industry and Vitablom (a fibre processing and soft furnishing company). Finally in 2012, it established its youngest subsidiary- Vitavisco for production and sales of Visco elastic foam and latex products.


Source: Company Financial & Investdata Research

2016 Performances Analysis
In the period under review, sales revenue witnessed a drop, while operating and finance expenses continued to grow, push the company into red for the year, with cost of sales pointing in the northward direction at a time the business environment was very challenging and purchasing power of Nigerians was weak.
Despite all of these, and its red account for the year Vitafoam was forced to pay a dividend from its retained earnings just to keep shareholders smiling, for the first time in almost 10 years, with a dividend of 12 kobo per share which reflected the seeming loss position for the period,
Turnover was down comparable to the N17.19 billion recorded in 2015, while loss after tax stood at N32.03million
The price performance for the year moved down to reflect the performance pattern, but reversed up in 2017 on the strength of it improving numbers for the period and positive general market performance.

http://investdata.com.ng/2017/12/vitafoam-will-rebounding-earnings-support-higher-payout/#more

Read about your analysis on today's Daily Independent newspaper

MARKET UPDATE FOR DECEMBER 18, 2017


VOLATILITY TO CONTINUES AS INVESTORS, TRADERS TAKE PROFIT, REPOSITION FOR 2018 EARNINGS SEASON

The nation’s stock market recorded another decline on Monday, reversing previous session’s gains on a continued volatility to start the trading week on a huge volume of trades driven by large capitalized stocks, particularly the increased activity in Dangote Cement over the past one year and six months. This should ordinary attract the attention of discerning long-term and dividend income investors, especially as improvements in profit level and expansion of capacity within and outside Nigeria continue. This is a pointer to the fact that investors have seen value, considering that institutional players and foreign investors entrance into the company.

The November inflation figure released on Monday by the National Bureau of Statistics (NBS) was flat as expected at 15.90%, from 15.91% in October due to relatively high price of food and other core products/services for the period ahead of the ongoing yuletide season. Also noticeable in the inflation data is the fact that it has been declining marginally over the past 10 months helped by the Central Bank of Nigeria’s continued intervention in the foreign exchange segment of the inter-bank market, which has kept the impact of imported inflation in check, despite the infrastructural problem-induced cost of production, which had not made the decline very meaningful. This has consolidated the positive economic data released so far that confirm the economy is still on the path of recovery and growth that will sustain the market volatility till 2018.

Monday’s market technicals was mixed with breadth at its equilibrium, volume on the increased and index declining on a selling pressure of 86% and buying volume of 14% on a volume index of 0.42 of the total day transaction. This is outside the one cross deal involving 549.97m shares of Dangote Cement at N225.68 each.

Trading for the day started on a losing note, which was reversed by the mid-morning to rally and pullback to close lower after touching intraday high of 38,486.26 and low of 37,871.65.
Meanwhile, the composite NSE All-Share Index shed 478.12 basis points to close at 37,957.96 from the opening 38,436.08 points, representing a 1.24% decline. Similarly, market capitalisation was down by N170.15bn to close at N13.51tr from an opening value of N13.68tr, representing 1.24% value loss in investors’ position.

The downturn recorded was as a result of losses suffered by high cap stocks like Dangote Cement, Access Bank, Zenith Bank, Flour Mills, Dangote Sugar and Stanbic IBTC.
This impacted negatively on the year-to-date return of the All-Share index, reducing it to 41.24%, just as YTD growth in market capitalisation reduced to N4.21tr, representing a growth of 45.63% above the year’s opening value.

Market breadth for the day was flat as the number of decliners and advancers were equal in the ratio of 19:19 on a huge traded volume that was higher than last Friday level.
Activities in terms of volume and value were up by 76.86% and 1295.09% respectively to 752.11m shares worth N127.93bn from previous day’s 425.26m units valued at N9.17bn. Transactions were driven by activities in Dangote Cement, Guaranty Trust Bank, Zenith Bank, FBNH, and UBA topped the volume chart.

Best performing stocks at the end of the day’s trading were Presco and Vitafoam that topped the advancer’s log, gaining 8.81% and 5% respectively to close at N72.00 and N2.94 each on positive market sentiments, just as Vitafoam’s full year result is expected any moment from now. On the other hand, Cadbury and Eterna shed 5.89% and 5.00% to close at N13.90 and N3.99 respectively on profit taking.

TODAY’S OUTLOOK

Ahead of today’s trading, expect volatility to continue being the last full trading week of the year that will usher in the year 2018, as traders take profit and seek information to reposition, especially with positive inflation figure for November. Add this to the declining interest rate in the money market that is expected to result in more private sector lending, just as full-year earnings season is in view. The positive outlook for emerging markets in 2018 as a result of high commodity prices is a major attraction as currencies of these developing markets remain relatively stable.
All of these factors begin to make much more sense to investors when you add the undervalued nature of assets on these exchanges.

Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile 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 on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which is out already.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

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/2017/12/market-update-for-december-18-2017.html

BUDGIT CALLS NASS ATTENTION TO N73.3BN ‘SUSPICIOUS’ APPROPRIATIONS IN 2018 BUDGET

BudgIT, a civic tech organisation promoting increased standards of transparency, citizen engagement & accountability in Nigeria’s public finance, on Monday said it had discovered “suspicious and frivolous items’ buried in the 2018 Appropriation Act now under consideration at the National Assembly.
The sum of all such suspicious items already discovered is about N73.3bn tucked in the budgets of the State House (Presidency), Ministries of Power, Works and Housing, as well as its Industry, Trade and Investment counterpart, DSS, Office of the National Security Adviser, among others.

One of such suspicious items, to which BudgIT drew the attention of the National Assembly on its twitter handle is a vague N22.6bn voted for “Research and Development” by the Federal Ministry of Industry, Trade and Investment headquarters.
It also seeks to know beneficiaries of a N19.3bn Export Expansion Grant (EEG) appropriated also for the same ministry and whether it does not conflict with the mandate of other agencies.
For the Federal Ministry of Power, Works and Housing headquarters, there is a N10bn vote for “Settlement of liability in MDGS (Millennium Development Goals), SDG (State Development Goals (SDGs) and direct mandate projects.
According to BudgIT, “it is important to know the SDGs and Direct Mandate Projects. If there’s an office for SDGs with huge budgets, why is this the role of the Federal Ministry of Power, Works and Housing?

The group also drew the attention of members of the National Assembly to a N5.5bn project titled: “Support for infrastructure, projects and coordination services,” in the Federal Ministry of Agriculture and Rural Development headquarters.
BudgIT expressed worry that “in a pre-election year these suspicious items without detailed definition can be abused,” wondering what such expenditure head means.

The worry becomes even more compounded, BudgIT continued, with a N4.9bn project titled: “Annual routine maintenance of mechanical/electrical installations of the Villa,” in the State House headquarters, wondering that N4.9bn can be voted for ‘routine’ installation as capital project considering how much a university or teaching hospital gets yearly.
Also in the budget for the Federal Ministry of Power, Works and Housing, managed by Babatunde Fashola, a former two-term governor of Lagos State, is a N4bn project titled: “Building maintenance works for other MDAs in Abuja.”

BudgIT is worried that the same MDAs have made provisions for building maintenance in their respective budgets and as such the amount could have been buried there with plans to exhume and appropriated for other undeclared purposes.
There is also N2.21bn for “Social Media Mining Suite” for the Directorate of State Security Service (DSS); while the Office of the National Security Adviser provided N1.14bn for “Cleaning & Fumigation Services.

“We need to be sure that this has to do with refuse,” BudgIT tweeted, stressing: “This is outrageous.”
Also for the State House, Abuja, is a N907.1m provision for “phased replacement of vehicles, spares and tyres in the Presidential, CVU/Police escort and State House operational fleet.”
Wondering how such can be classified as capital project, BudgIT tweeted: “N907.1m for cars and spare parts again? Every year, Nigeria budgets for new cars and State House has budget for maintenance of vehicles.”
In the budget of the Nigerian Electricity Regulatory Commission (NERC) is a N750m provision for “Floor and wall partitioning of new head office building, just as Investdata wonders how much it cost to erect the building.

Investdata recalls that on May 18, 2017, Vice President Yemi Osinbajo in his capacity as Acting President, signed an executive order directing Federal Government MDAs to immediately give preference to goods from local manufacturers, contractors and service providers over those imported.
Specifically, the order requires that “Made-in-Nigeria products shall be given preference in the procurement of the following items and at least 40% of the procurement expenditure” on certain items in all such MDAs.
Such items include uniforms and footwear of military and para-military organisations, as well as the National Youth Service Corps; food and beverages; furniture and fittings; stationery; and motor vehicles. Others are pharmaceuticals; construction materials; as well as information and communication technology.

Heads of all MDAs of the FGN were subsequently given 90 days from the date of the order to, among others, “propose policies to ensure that the Federal Government’s procurement of goods and services maximises the use of goods manufactured in Nigeria and services provided by Nigerian citizens doing business as sole proprietors, firms, or companies held wholly by them or in the majority.”

Such findings were to be submitted to the Minister of Industry, Trade & Investment, who shall within 180 days from the date of the order, in consultation with the Director-General of the Bureau for Public Procurement, “submit to the President, a report on the Made-in-Nigeria initiative that includes (such) findings… (including) specific recommendations to strengthen the implementation of Local Content Laws and local content procurement preference policies and programmes.”

It is not known if such an Executive Order aimed at encouraging domestic manufacturers and boosting the nation’s economy is already being effected. It is also not known whether Nigeria’s pride in vehicle manufacturing- Innosons would be considered in all of these huge appropriations.

http://investdata.com.ng/2017/12/budgit-calls-nass-attention-n73-3bn-suspicious-appropriations-2018-budget/

PORTFOLIO REBALANCING TAKES CENTRE STAGE AS INVESTORS, TRADERS POSITION FOR YEAR-END


MARKET UPDATE FOR DECEMBER 19


Trading on the Nigerian Stock Exchange on Tuesday continued its downside trend on a strong selling pressure. It must be noted that the losing momentum in the index slowed down, even as profit booking persisted amidst the yuletide season, sustaining the volatility wave ahead of the year-end rally induced by portfolio managers and the 2018 earnings reporting season.
The session opened lower, before slipping in a three-wave decline to continue the correction by midday and then bounced in the afternoon to reduce the day’s loss. The benchmark index closed near the lows for the day at 37,783.73 from intraday high of 37,960.63, on a negative market breadth and huge volume traded which was driven principally by conglomerate- Transnational Corporation of Nigeria (Transcorp), with mixed sentiment of buying trades of 57%, while selling position of the stock was 43%.

The day’s market technicals was weak with negative breadth, volume declined marginally and index on the southward direction as selling pressure stood at 100% and volume index, 1.33 of the total day transaction.
Meanwhile, the NSE All-Share Index shed 174.20 basis points to close at 37,783.76 from the opening 37,957.91 points, representing a 0.46% decline. Similarly, market capitalisation was down by N61.97 to close at N13.45tr from an opening value of N13.51tr, representing 0.46% value depreciation in investors’ portfolios.

The sustained downturn resulted from value losses recorded by low, medium and high cap stocks like Nigerian Breweries, Dangote Cement, Zenith Bank, Flour Mills, Dangote Sugar, GTBank, UBN and ETI. This further impacted negatively on the NSE’s year-to-date return, reducing it to 40.59%, just as YTD growth in market capitalisation dropped to N4.2tr, representing a growth of 45.41% above the year’s opening value.
Market breadth for the day was negative as the number of decliners outnumbered advancers in the ratio of 26:15 on a huge traded volume that was lower than Monday’s level.

Activities in terms of volume and value were down by 13.32% and 99.58% respectively to 649.63m shares worth N5.43m from previous day’s 752.11m units, valued at N127.93bn. Transactions were driven by activities in Transcorp, FBNH, Zenith Bank, GTBank, and Thomas Wyatt topped the volume chart.
At the end of the day’s trading session, Livestock Feeds and Unilever topped the advancer’s log, gaining 4.88% and 4.45% respectively to close at N0.86 and N41.99 each on market forces. On the other hand, C & I Leasing and Dangote Sugar shed 5% and 4.99% to close at N1.33 and N20.57 respectively on profit taking and market forces.

TODAY’S OUTLOOK

Ahead of mid-week’s trading, expect volatility to continue as traders position in the mix of profit taking in expectation of yearend rally as fund manager balance trade and account for the year in order to target and earn their management fee. Add this to the declining interest rate in the money market which is likely to trigger circular flow of fund again into the equity market. The positive outlook for emerging markets in 2018 as a result of high commodity prices is a major attraction as currencies of these developing markets remain relatively stable.
All of these factors begin to make much more sense to investors when you add the undervalued nature of assets on these exchanges.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile 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 on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which is out already.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://www.google.com/url?hl=en&q=http://investdata.com.ng/2017/12/portfolio-rebalancing-takes-centre-stage-investors-traders-position-year-end/&source=gmail&ust=1513854194486000&usg=AFQjCNGOnSbXLB5IXwKevu-i8jv7fcZyog

VOLATILITY MAY LINGER, AS TRADERS POSITION IN WINNING TRADE, AMIDST PORTFOLIO BALANCING

The stock market on Wednesday had a turn-around to the upside, halting two sessions of down markets on strong volatile mood as smart money and fund managers position for end of the quarter and year to meet set targets and earn their portfolio management and advisory services fees. The recent market correction resulting from profit taking in preparation for the festive season has also created a buying opportunity for discerning investors and traders alike, ahead of the 2017 full-year and 2018 first quarter earnings reporting seasons, as end of wave 4 comes close to usher in a 5-wave extension at the end of Wednesday’s trading session. The mixed technicals at the end of mid-week trading are yet to give clear direction until Thursday’s market open to confirm direction.

The Nigerian Stock Exchange (NSE) composite All-Share Index (ASI) opened lower and slipped downward between the mid-morning and midday, retracing up by the afternoon to hit intraday highs of 37,933.86 from a low of 37,661.17 on a low volume traded, but positive market breadth to close near the highs for the day.

The selling pressure in the two previous days turned to a buying position of 100% on Wednesday as volume index stood at 0.43 of the day’s total transactions to reverse the two-day bear transition.
Trading closed with the benchmark Index gaining 150.10 basis points at 37,933.86 from the opening 37,783.76 points, representing a 0.4% growth, just as market capitalisation went up by N53.39bn to close at N13.5tr from an opening value of N13.45tr, representing also 0.40% value gain in investors’ position.

Mid-week’s upturn was as a result of price appreciation recorded by low, medium and high cap stocks like Dangote Cement, Zenith Bank, GTBank, UBA, Stanbic IBTC, Unilever, Seplat and FBNH. This impacted positively on the NSE’s year-to-date return, lifting it to 41.15%, just as YTD growth in market capitalisation stood at N4.21tr, representing a growth of 45.95% above the year’s opening value.
Market breadth for the day was positive as the number of advancers slightly outweighed decliners in the ratio of 23:22 on a below-average traded volume that was lower than previous day’s level.

Activities in terms of volume and value were down by 68% and 37.58% respectively to 207.89m shares worth N3.39bn from previous day’s 649.63m units, valued at N5.43bn. Transactions were driven by activities in Sterling Bank, Guaranty Trust Bank, Diamond Bank, UBA and Fidelity Bank topped the volume chart.

The best performing stocks at the end of the day were Champion Breweries, Linkage Assurance and Seplat that topped the advancer’s table, gaining 5% apiece to close at N2.10, N0.63 and N567.05 each on market forces. On the other hand, Flour Mills and PZ shed 4.99% and 4.98% to close at N28.36 and N21.38 respectively on market forces and profit booking.

TODAY’S OUTLOOK

The ongoing volatility is expected to continue as traders take advantage of pullback to position and accumulate more in wining trades amidst profit taking in expectation of year-end rally as fund manager balance trade and account for the year in order to meet target and earn their management fee. Add this to the declining interest rate in the money market which is likely to trigger circular flow of fund again into the equity market. The positive outlook for emerging markets in 2018 as a result of high commodity prices is a major attraction as currencies of these developing markets remain relatively stable.

All of these factors begin to make much more sense to investors when you add the undervalued nature of assets on these exchanges.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile 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 on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which is out already.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and TV. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.
We in investdata wish all our esteemed clients, supporter, Resource Persons, Participants at our summits, one on one coaching class students and followers in the social media Happy Christmas and profitable new year. Also bring to your notice that closing down partially on Friday December 22, 2017 to resume second week of January. But our news and update continue on the site. For urgent attendance call 08111811223or 08028164085

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2017/12/volatility-may-linger-traders-position-winning-trade-amidst-portfolio-balancing/

INVESTORS TAKE ADVANTAGE OF PULL-BACKS, POSITION FOR 2017 YEAR-END, 2018 EARNINGS SEASON

Market Update for December 21

Trading on the Nigeria Stock Exchange had an up-market on Thursday to consolidate mid-week reversal move on a strong volatile retracement to finish the session higher on a good and positive technicals that signaled traders taking position for end of the year rally after the market had pullback before now. With the increasing number of institutional and foreign players in the market ahead of full year earnings reporting season, the possibility for down market is slim due to change in market holding structure of less retail players that will be selling to meet personal needs for the new year. On this note January effect will be subject to market forces, as volatility continue in 2018 but let the numbers posted for third quarter guide your positioning for dividend income as higher payout is likely to come with 2017 full year earnings reports.

Trading started with a disappointing gap down and continued through the mid-morning to midday but retraced up in the afternoon, holding resistance and thereafter had a 5-wave advance move that kept the market in the rising channel near its first resistance level of 38,436.83. NSE All Share index intraday movement hit the highs of 38,350.64 from lows of 37,790.07 on a strong volume and positive market breadth.
The two trading sessions of 100% buying pressure revealed increasing demand for stocks as volume index stood at 0.87 of the day’s total transactions to continue the two-day bull run.

Meanwhile, at the end of trading, the composite index NSEASI gained 416.78 basis points at 38,350.64 from the opening 37,933.86 points, representing a 1.10% growth, just as market capitalisation went up by N148.38 billion to close at N13.65 trillion from an opening value of N13.50 trillion, representing also 1.10% value appreciation.
The sustained upturn was due to value gains recorded by medium and high cap stocks like ETI, Dangote Cement, Access Bank, UBA, Dangote Flour, Seplat and FBNH. This further impacted positively on the NSE’s year-to-date return, lifting it to 42.70%, just as YTD growth in market capitalisation stood at N4.4tr, representing a growth of 47.59% above the year’s opening value.
Market breadth for the day was positive as advancers outnumbered decliners in the ratio of 23:13 on a high traded volume that was higher than previous day’s level.

Activities in terms of volume and value were mixed as volume was up by 106.54% to 429.38 million share from the previous day 207.89 million units while value decline by 55.46% to N1.51 billion from previous day’ position of N3.39 billion. Transactions were driven by activities in Aiico, Transcorp, Fidelity Bank, FCMB and UBA topped the volume chart.
Berger Paints and Redstar Express were the top performing stocks for the day with gains of 4.94% and 4.92% respectively to close at N8.49 and N5.12 each on market forces. On the other hand, Dangote Sugar and Total Nigeria shed 5.75% and 4.78% to close at N19.34 and N219 respectively on profit taking.

TODAY’S OUTLOOK

Being the last trading of the week ahead of long holiday, expected volatility to continue as traders accumulate more value stocks that has high upside potentials despite profit taking as fund manager balance trade and account for the last quarter and year in order to meet target and earn their management fee. Add this to positive economic data that had continue to inspire confidence in the market and economy. The positive outlook for emerging markets in 2018 as a result of high commodity prices is a major attraction as currencies of these developing markets remain relatively stable.

All of these factors begin to make much more sense to investors when you add the undervalued nature of assets on these exchanges.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile 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 on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which is out already.
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and TV. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

We in investdata wish all our esteemed clients, supporter, Resource Persons, Participants at our summits, one on one coaching class students and followers in the social media Happy Christmas and profitable new year. Also bring to your notice that closing down partially on Friday December 22, 2017 to resume second week of January. But our news and update continue on the site. For urgent attendance call 08111811223or 08028164085

Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2017/12/investors-take-advantage-pull-backs-position-2017-year-end-2018-earnings-season/

Again, Dangote, BUA Make Counterclaims Over Ownership Of Okpella Mining Sites

While the public eagerly await the court ruling on the dispute over ownership of Mining Lease No 2541 in Obu, Okpella, in Edo State between Dangote Industries Ltd and BUA Group, both conglomerates again continued their verbal war with each asserting their claims and counters.
Dangote Group in a statement on Thursday night, which it said was to further re-assured its shareholders, the regulators and members of the public that it is the true owner, faulted “BUA’s fraudulent claim that the Dangote Group is trying to monopolize the cement business in the Country.”

It said “BUA has willfully, deliberately and mischievously concealed the fact that it has at least 12 Mining/Quarry Leases within and around the area in question as opposed to this sole Mining Lease No 2541 owned by the Dangote Group.”
However, in its response Friday morning, BUA management accused Dangote Group of furthering “its cycle of misinformation over the mining dispute… through falsehoods and bigger lies,” stressing that Dangote Group is playing “to the gallery.”
BUA Group said “without equivocation that it has never laid claim to ML2541 as our operations covered by ML18912 and ML18913 are in Obu, Okpella, Edo State and not Okene, Kogi State where Dangote’s license 2541 is sited.”

Electronic copies of supporting documents seen by Investdata News, show that Mining Leases No. 19912 was granted to Bendel Cement Company Limited, located at KM 34, Auchi-Okene Road, Okpella, PMB 033, Auchi, Edo State, upon “that parcel of land measuring 73.342 hectares at Obu-Okpella, Etsako Local Government Area of Edo State; as well as ML 18913 measuring 80.343 hectares also in Obu-Okpella, both for a term of 21 years from October 24, 1997.
The documents dated June 17, 1998, was validated by the Ministry of Solid Minerals Development taskforce for revalidation of mining leases, licences and permits, published in the Thisday newspaper edition of Tuesday, February 7, 2006, titled: “outcome of the revalidation, titled “outcome of the revalidation exercise conducted between 31st October and 30th November, 2005.”

Therein, ML18913 and ML18912 were listed on the said publication against the name: Edo Cement Company Limited.
Another document also showed that Bua International Ltd, on June 15, 2017, paid N1,299.00 as royalty on 43,300 tons of limestone for the month of March 2007, and another N1.302m to the Federal Ministry of Mines and Steel Development Fees in respect of ML785, ML18912, ML18913 and 9559QLS, “being April 2017, royalty for limestone from the sites at 62, Jattu Road, Auch Edo State branch of UBA Plc on May 10, 2017.

Meanwhile, according to documents also cited by Investdata News, Dangote Group’s mining lease was issued by the Ministry of Mines and Steel Development’s Cadastre Office, Abuja as No. 2541ML, granted to AICO Ado Ibrahim & Co. Ltd. The lease was for mining marble at Okene, Kogi State and granted with effect from February 1, 2008, for 25 years (Until January 31, 2033), after which it is renewable.

Another document available to Investdata News is the minutes of Interstate Boundary Technical Committee meeting on Edo/Kogi Interstate Boundary of February 28, 2006, chaired by Malam Yahaya Abdulkarim, then Minister of State for Works, with members such as Prof. A.E. Ekoko, Commissioner, Interstate Boundaries, National Boundaries Commission (NBC), and 13 others, asides others including M.J. Esewe, Surveyor-General of Edo State, O. Ofiare, his deputy and G.O Osayunde, the Secretary of the State Boundary Committee, J.F.O. Bamsa, Kogi State Surveyor General and J.O. Ipenida, Secretary of the State Boundary Committee, as well as five others.

The meeting (also attended by the Surveyor-General of the Federation, I.A.A Adewola, who presented a digitalized map of the Edo/Kogi Interstate Boundary highlighting the sectors in dispute), resolved among others, “that in the Obu Marble site- Okpella/Okene Sector, the alignment of the boundary line should follow the Edo State claim line.”
With all of these proofs, BUA in its statement wonders how Dangote Group can “claim to be in possession when even their predecessor-in-title, AICO, was issued its license 10 years after BUA’s licenses was issued and two years after the completion and commencement of production at our over $1billion Obu Cement Factory?”

It noted that AICO had instituted a suit at the Federal High Court, Lokoja claiming to assert its title to ML2541, and then went ahead to transfer its title to Dangote, adding that “Dangote further applied to the courts to assert his rights to ML2541.”
BUA further wondered how a party claiming to be in possession “ask the courts to assert his rights to his license?”
The group restated its earlier call that anyone faulting “the court’s pronouncement to preserve status quo should write to the courts for an interpretation. The court made a pronouncement and Dangote’s lawyers cannot deny knowledge of that. The onus is not on us, as they have wrongly alleged to provide an order of the court but rather they should seek an interpretation from the courts if they so wish.

But Dangote, in its own statement said: “There is no Status Quo Order made by any Court that allows BUA to continue mining over the disputed Mining Lease area. In fact, there is no Status Quo Order at all. It is critical for us to point out that there is currently pending, a Motion for Interlocutory Injunction dated 27 April 2016 seeking to restrain the BUA Group from continuing with its illegal mining activities on the Mining Lease Area but in spite of having been served with this application and contrary to all tenets of the law which forbid a party served with an Interlocutory Injunction Motion from taking any step in respect of the subject matter of the Suit, the BUA Group has in utter disdain to the Court continued with its illegal mining activities.”

In response, BUA Group recalled a December 5, 2017 court session, when “counsel of BUA raised the issue of the encroachment by the Ministry and Dangote in its Mining areas covered by ML18912 and ML18913 at the courts.
“When this matter was raised, counsel to Dangote and the Minister of Mines promptly apologized and they were thereafter cautioned by the courts that once a matter is before a court, no party should take any step that will affect the subject matter of the court.”
Also, while Dangote accused BUA of using the media to cause confusion, BUA said it has become “aware that Dangote Group will stop at nothing to keep pushing these false narratives as well as keep distracting from the core issue at hand, we once again enjoin Dangote Group and their cohorts to await respectfully, the outcome of the judicial process.”

It also noted that Dangote applied for a Mining Lease over the same area in 2013 and was rejected by the Ministry on the sole ground that it overlaps ML. 2541 and at the time belonged to AICO.
“If BUA had title that dates back to 1998, is there any conceivable reason why it will apply for the same title over the same area in 2013” the statement queried.

Dangote, while debunking the claim by BUA that it is trying to monopolize the cement business stated that: “It is misleading for BUA to falsely accuse Dangote of undermining its operations and attempting to create a monopoly in the Cement Industry in Nigeria, as we have always coexisted peacefully with other competitors in Obajana and Ibese.”

http://investdata.com.ng/2017/12/dangote-bua-make-counterclaims-ownership-mining-lease/#more

ARE YOU READY FOR 2018 INVESTMENT YEAR?

Knowledge is power. Information is liberating. Education is the premise of progress, in every society, in every family... Kofi Annan

Knowledge and action is really what differentiate you from other people. Just as food is good, energise, grow and keep the body healthy so also is knowledge for your mind.

Furthermore, knowledge is what keeps our mind in good shape, it helps remove prejudice, bias and lower risk when taking decision inclusive of investment decisions which is why they always say that it is what we don't know that affects us.

Similarly in stock, it is knowledge that helps you understand the current trends, models and systems that will help you get the best ROI and reduce the risk. Because things are changing fast and it is only through knowledge that you can change adapt fast.

If you look indepth, knowledge about the market that was valid yesterday is no longer valid today which is why I get took my time to package my INVEST SUMMIT into a home study pack so that you can have what it takes to subdue 2018 investment and not make the same mistakes I did in the past.

In the pack you will find:

1• How to generate a consistent income trading stocks on your own via phone and laptop

2• The power of trading quarterly and full year earnings reporting season

3• Our rules-based approach to trading stocks.

4• How our buy & sell signal setup works

5• How to take advantage of best market timing strategies to positon before Major market earnings reporting season.

6• How to quickly and accurately “predict” the next market reaction and move

7• Learn why trading less is making more and how to make use of trend identification, resistant and support to double your returns

8.Learn how to follow the institutional money flow.

9. How to use stock market to buy and sell and much more



Price for Cds:
N20,000 for request outside Lagos State
N15,000 for request within Lagos State

We are also offering 10% discount for purchase between now and 5th January, 2018 to appreciate our clients, subscribers and followers this festive period.

Happy Trading,
Ambrose Omordion

Action is very key. If you acquire all the knowledge in the world without putting it into practice then, you are not different from someone who does not know at all. However, you really want to take the action but you don't know where to start from. No time get started by ordering INVEST 2018 TRADERS Summit Pack. Call 08028164085,08032055467 NOW.

https://investdataltd..com.ng/2017/12/are-you-ready-for-2018-investment-year.html

INVESTORS 2018 TRADERS SUMMIT HOME STUDY PACK IS NOW AVAILABLE ON CDs AT 10% DISCOUNT


Investors Home Study Pack comes in nine training CDs


In the pack you will find:

1• How to generate a consistent income trading stocks on your own via phone and laptop

2• The power of trading quarterly and full year earnings reporting season

3• Our rules-based approach to trading stocks.

4• How our buy & sell signal setup works

5• How to take advantage of best market timing strategies to positon before Major market earnings reporting season.

6• How to quickly and accurately “predict” the next market reaction and move

7• Learn why trading less is making more and how to make use of trend identification, resistant and support to double your returns

8.Learn how to follow the institutional money flow.

9. How to use stock market to buy and sell and much more



Price for complete CD pack:
N20,000 for request outside Lagos State
N15,000 for request within Lagos State

To order your INVEST 2018 TRADERS Summit Pack. Call 08028164085,08032055467 NOW.

Season Greetings from Investdata Ltd

https://investdataltd..com.ng/2017/12/season-greetings-from-investdata-ltd.html

AHEAD OF ELECTION YEAR: EQUITY ANALYSTS URGE INVESTORS TO FOCUS ON VALUE STOCKS, PROTECT CAPITAL

Experts and analysts in Nigeria’s equity market say despite the huge gains recorded so far as shown by the upward movement of the Nigerian Stock Exchange’s Composite All-Share index, there are still subtle opportunities between the performance of companies and the ongoing economic recovery that can be exploited in the coming weeks and months by discerning investors to guaranty juicy returns on their investments.

The experts, who spoke at the INVEST 2018 traders & investors summit in Lagos, challenged investors to stay with value enhancing stocks and ensure they generate good returns, while at the same time protecting their capital.
This they agreed, has become necessary, considering the opportunities presented by the 2018 Appropriation Bill submitted to the National Assembly by President Muhammadu Buhari, wherein the Federal Government is proposing to spend N8.6tr; just as the uncertainties surrounding the period, being a pre-election year.

Specifically, the analysts noted that the uncertainties around 2018 has to do with the politics of the general elections in February 2019, when Nigerians would go to the polls to elect their leaders at the state and federal levels, considering how messy such period have been in the past both in Nigeria and elsewhere, including the advanced economies. Nigeria’s is made worse, they continued, by the fact that going by data from the NSE, the market is dominated by foreign and institutional players, whose stock in trade has always been to dump shares without notification, should the political environment become charged and inspire fear of the unknown. For such investors, the norm is “safety first.”

According to Temitope Babalola, Head, Economy Desk, at Proshare Nigeria Ltd, an investment, market and economy portal, although the emerging positive economic data in Nigeria are good, they do not measure returns but activities that produce the returns in all the assets classes. It is the economic data such as inflation, Purchasing Managers’ Index, Consumer confidence index and GDP, among others that signal where the economy is heading, to guide investment decisions.
“Growth remains largely fragile, (following which there is) the possibility of the lingering fragile growth leading to economic stagnation,” he warned.
He also drew attention that with 2018 budget which is the pre-election bill, warning that politics would take the front row, “while economics takes the back seat,” a factor investors and traders must watch.

Babalola, who spoke on why investors should factor in budget 2018 to their decisions next year, drew attention to the fact that although GDP grew by 1.4% in Q3, most of the sectors that were resilient in the past are still negative, including the non-oil sectors like ICT, real estate and manufacturing. He added that with Nigeria’s oil production at 2.03 million barrels of oil per day, up from 1.64mbpd and 1.87mbpd in the corresponding quarter of 2016 and 2017Q2 respectively, which has now come under threat, he continued, with the decision of the Organisation of Petroleum Exporting Countries (OPEC) to peg Nigeria’s output at 1.8mbpd. That decision alone, he continued, cuts Nigeria’s revenue projection by about N530bn, leaving the authorities with the option of either increasing the oil price benchmark in the budget, or raising the country’s deficit level.

For Alhaji Kassimu Kurfi, a Chartered Accountant and chief executive of APT Funds & Securities Ltd, another facilitator, Nigeria’s stock market has so far benefited immensely from the Central Bank of Nigeria (CBN) introduction of the Investors & Exporters’ foreign exchange market window thereby stabilizing the exchange rate of the Naira by making forex available. This, he continued, has improved forex particularly via portfolio investments inflow into the market and the economy at large.
At a time like this in our politico-economic history, he urged participants (Investors) to go for fundamentally sound stocks and avoid penny stocks, especially with the new pricing rule of the NSE that would allow stock prices to go lower than the former flow of 50 kobo, to as low as one kobo beginning from January 28, 2018.
He listed stocks that have stagnated at current 50k per value to include: most insurance stocks like African Alliance and Guinea Insurance; FTN Coca, Tantalizer, Daar Communications; DN Tyre & Rubber; Academy Press, ABC Transports, RT Briscoe, Afromedia, Japaul Oil; e-Tranzact; Omatek; Chams; First Alluminium; Thomas Wyatt; and Courtville. Another category of stocks that have had their price oscillating between 50k and N1.00 only, include: Wema Bank, Unity Bank, WAPIC Insurance, Livestock Feeds and AIICO Insurance, among others.

He identified other stocks that sell for between N1, but below N5 and risk falling into the 1 kobo quagmire, unless their boards and managements take measures to boost their performance as: Fidson Healthcare, African Prudential, United Capital, FCMB, Fidelity Bank among others.
The majority of stocks on the NSE are those selling above N5, but below N99.00, such as Unilever, Guinness, 7-Up Bottling Company, Okomu Oil Palm and Presco; just as he identified champion stocks that sell above N100 per share, like Nestle, Dangote Cement, Sepat Petroleum Development Company, Nigerian Breweries, Total and Mobil Oil (Double One).

Convener of the summit and Chief Research Officer of Investdata Consulting Ltd, Ambrose Omordion, took participants through how to invest with earnings released date, noting that while markets reaction to full year earnings reports is long, knowing when funds are leaving the market or individual stocks is key.


On his part, Engr. Mike Ekwueme, also a facilitator took participants through the economic model that combines both Fundamental and Technical Analysis when picking stocks, while Rasheed Momoh of TRW Stockbrokers Ltd demonstrated how participants can identity emerging trends before majority of market participants, using different chart patterns and thereby enhance their returns.

https://investdataltd..com.ng/2018/01/equity-analysts-urge-investors-to-focus.html

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED DECEMBER 22, 2017
https://investdataltd..com.ng/2018/01/investdata-price-earnings-tracking-for.html

2017 FULL YEAR BEST PERFORMING STOCKS ON EARNINGS REACTION

Looking closer to the market reaction to earnings reports released for Q3 2017 will give an insight into what to expect of the full year earnings reports when they are presented to the Nigerian Stock Exchange (NSE) in 2018, considering the economy recovery as the monetary and fiscal authorities try to complement each other at this point.
It must be noted that the market situation today and performance of 2016 are different, given that the factors on ground in the market currently are very much positive because the economy has finally come out of recession and continuing on the path of recovery and growth. These factors have equally reflected on the market and companies fundamentals.

The Nigerian stock market is truly becoming a barometer to measure actually activities in the economy, as some analysts have argued, judging from the fact that it was the first to go into recession long before the Nigerian economy began to exhibit the traits, closing negative for three consecutive years. The market’s indicators also turned green month-on-month long before the National Bureau of Statistics (NBS) confirmed Nigeria’s positive GDP growth in the second quarter of 2017. The market also has confirmed the inflow of domestic and foreign capital seeking for best returns.
Investdata Research believes that price movement of equities at the time earnings reports were released to the market should guide investors and traders to know what to expect when the full-year numbers eventually come seeing how the market responded in Q3.

What you discover as market reaction when the full year earnings reports start pouring in beginning from first quarter of 2017 (between January and March) may surprise.
The table below shows how market reacted to positive numbers and negative reaction days as the stock’s price declined when the companies presented their 2016 full-year score-cards. The best performing stocks are those that gained the most on their earnings reaction days.

SECURITIES
Sector
Released Date
5-Day %Change
FIDELITY
Financial
4/7/2017
25.00
MOBILE
Oil/Gas
3/30/2017
22.03
NASCON
Consumer Goods
4/5/2017
21.41
NESTLE
Consumer Goods
3/2/2017
21.23
DANGOTE FLOUR
Consumer Goods
4/5/2017
17.92
CAP
Industrial Goods
3/29/2017
15.75
CONOIL
Oil/Gas
6/21/2017
15.74
UACN
Conglomerates
3/31/2017
15.38
ASL
Services
5/3/2017
14.25
NB
Consumer Goods
2/20/2017
13.04
DANGOTE SUGAR
Consumer Goods
3/31/2017
12.56
NAHCO
Services
4/5/2017
12.27
CONTINENTAL RE
Insurance
3/14/2017
12.26
BETA GLASS
Industrial Goods
3/3/2017
10.00
TRANSCORP
Conglomerates
3/1/2017
8.69
LAFARG AFR
Industrial Goods
2/22/2017
7.92
MANSARD
Insurance
3/30/2017
5.63
NEM
Insurance
3/31/2017
5.00
UBN
Financial
3/31/2017
4.80
STERLING BANK
Financial
3/30/2017
4.29
C&I Leasing
Services
3/3/2017
4.00
CHAMPION
Consumer Goods
3/27/2017
2.92
FBNH
Financial
4/27/2017
2.57
CADBURY
Consumer Goods
3/21/2017
1.74
CUSTODIA
Insurance
3/28/2017
0.63

As revealed by the table above, Fidelity Bank ranked first with a huge gain of 25.6% on its earnings reaction for five trading sessions, which means it gained over 5% daily on the average within its first five days; followed by Mobil Oil with a gain of 22.03%, and ahead of National Salt’s 21.41%. Other top gainers within the period under review were: Nestle, Dangote Flour and CAP. Notice also that on the list, Consumer Goods manufacturing stocks occupied the top five position, except for Fidelity Bank and Mobil. This should give the investing community an insight into where to look for best numbers in the coming earnings season, even as the banking industry remains a honey-pot for discerning investors, especially helped by improved liquidity in the system, powered by the recovery mode of the economy.
SECURITIES
Sector
Released Date
5Day% Ch
FO
Oil/Gas
1/31/2017
-18.96
DIAMOND BANK
Financial
4/4/2017
-13.19
MAY&BAKER
Healthcare
3/31/2017
-12.00
LIVESTOCK
Agribusiness
2/28/2017
-11.76
DANGOTE CEMENT
Industrial Goods
2/28/2017
-11.68
NPF
Financial
3/3/2017
-7.09
AFRICAN PRU
Other Financial
2/23/2017
-6.51
FIDSON
Healthcare
3/30/2017
-5.00
CCNN
Industrial Goods
3/27/2017
-4.89
UCAP
Other Financial
2/16/2017
-4.86
CAVATON
Services
3/31/2017
-4.30
TRANSNATION WIDE
Services
3/29/2017
-4.00
GSK
Healthcare
2/28/2017
-3.31
FCMB
Financial
2/28/2017
-3.20
UBA
Financial
3/24/2017
-2.71
STANBIC
Financial
3/22/2017
-2.70
ZENITH
Financial
2/27/2017
-2.57
TOTAL
Oil/Gas
3/15/2017
-2.54
ACCESS BANK
Financial
3/6/2017
-1.91
GUARANTY
Financial
3/8/2017
-1.73
UNILEVER
Consumer Goods
3/23/2017
-0.93
SEPLAT
Oil/Gas
3/31/2017
-0.28

The worst performed in earnings reaction days for the period was Forte Oil that topped the table with 18,96 percent, next was Diamond Bank with 13.19 percent followed by May & Baker, Livestock Feed and Dangote Cement.
Let the tables above guide you this period that prices are relatively high on the strength of liquidity and confidence as you position for expected earnings to know how to set your target if the reports are positive or negative when the market react to it. It is important to set target as every investment is against expectation, if not met exit on time to cut loss and protect your capital.

The improving nation forex reserve a plus for the market and economy in 2018.
Nigeria’s external reserves recorded one of its most significant jumps this year, when it soared by a princely $2.834bn or 8.11% in just three weeks, when it closed December 21, 2017 at $37.78bn, from $34.945bn at the end of November 2017, according to data available on the website of the Central Bank of Nigeria (CBN) on Friday.
Month-on-Month, the nation’s reserves level soared by $3.35bn or 9.73% from $34.429bn on November 21, 2017; while Year-to-Date (YTD), it rose $11.936bn or 46.18% from $25.843bn on December 31, 2016.
Year-on-Year, Nigeria’s reserves level jumped $12.47bn or 49.27% from $25.309bn on December 21, 2016.

Data gleaned from the CBN’s website, month-on-month, by Investdata Research showed that the last time the nation’s reserves rose higher was in February, when it stood at $29.646bn on February 28, 2017, after climbing by $3.803bn or 14.72% from $25.843bn at the end of January.
Investdata Research also note that the reserves growth slowed down in March and was flat in the following month, before dropping in May and June, first to $30.329bn from $30.864bn in the preceding month; and then $30.288bn in June.

Growth thereafter commenced slowly between July and November, before attaining its new peak, which according to Mrs. Patience Oniha, Director-General of Nigeria’s Debt Management Office (DMO), may have resulted from sources besides the regular inflow of funds from portfolio investments and earnings from crude oil and other non-oil export proceeds, which are warehoused by the CBN.

Addressing Nigeria’s capital market community on Wednesday in Lagos, at the listing of the $3bn Eurobond and $300m Diaspora bond for trading on the Nigerian Stock Exchange (NSE), Mrs. Oniha said the latest borrowing from the international capital markets would besides helping the Federal Government restructure its mix of foreign and domestic debts, reducing debt servicing costs, also “supports Nigeria’s foreign reserves and the private sector.

https://investdataltd..com.ng/2018/01/2017-full-year-best-performing-stocks.html

MARKET UPDATE FOR JANUARY 2, 2018

SUSTAINED VOLATILITY AS INVESTORS TAKE PROFIT, REPOSITION FOR EARNINGS SEASON

The first trading session of 2018 was highly volatile, closing positive after opening with sharp gap down that lasted till midday, recording almost 549 basis points’ decline before it rallied back by the afternoon on the strength of price appreciation of some stocks, as traders and investors began taking position ahead of early filer reports likely to hit the market this month. This was especially the case for companies billed to file their third quarter earnings for March year end accounts, while December full-year accounts are underway, especially from Forte Oil, Nigerian Breweries, United Capital and Nestle, which results are expected to be in the market latest in February, given that their accounts do not require approval by a primary regulator like the banks and their insurance cousins.

The January effects may not be much this year as market structure had changed with more foreign investors playing the market heavily, controlling over 62% of transactions, leaving the remaining for Pension Fund Administrators and domestic institutional players, while retail investors are seemingly left with the crumbs and having minimal impact to affect the market’s direction. The sale of their shares to meet personal financial obligations, including school fees and house rent at this time of the New Year would therefore have minimal effects, following which the positive disposition of the market is likely to be sustain on a continued volatility in expectation of quarterly and full year scorecards for listed companies.

Market technicals for the day was mixed as market breadth was positive on a decline volume that signal accumulation of smart money in the market after a downside in the morning and rallied back above the opening figure to touch intraday highs of 38,264.7 from lows of 37,678.34 but retraced back above 38,000 psychological line to keep the positive uptrend momentum.
The continued appreciation of the Naira and oil price remaining above $60 per barrel on Tuesday in the international market, well above the 2018 budget benchmark of $45pb, meaning there is already surplus to fast-track some projects that will boost the recovery and growth recorded so far.This is a plus that would further push up government’s revenue, while enhancing the nation’s foreign reserves, despite the 1.8m barrels per day production cap set by the Organisation of Petroleum Exporting Countries (OPEC).

Meanwhile, the Nigerian Stock Exchange’s All-Share index inched up by 21.60 basis points to close at 38,264.79, from the 38,243.09 points, representing a 0.06% growth, just as market capitalisation moved in the same direction, climbing up by N7.69bn to close at N13.7tr, from previous day’s N13.69tr, representing a 0.06% value growth. The upturn recorded resulted from appreciation in the prices of stocks such as: Nigerian Breweries, PZ, UBA, Dangote Sugar, Zenith Bank, Access Bank, CAP, Fidelity Bank Fidson, Nascon, International Brewery and Honeywell Flour Mills. These impacted positively on the ASI’s year-to-date returns, to 0.06%, just as Year-to-Date growth in market capitalisation stood at N7.69bn, representing a 0.06% rise over the year’s opening value.
Market breadth for the day was positive as the number of advancers outpaced decliners in the ratio of 27:13 on a relatively low traded volume that was lower than last trading day of 2017 level.
Transactions in terms of volume and value were down by 55.72% and 74.12% respectively to 248m shares worth N1.74bn from previous day’s 561m units valued at N6.89 billion. The day’s activity was driven mainly by shares of Transnational Corporation of Nigeria (Transcorp), Zenith Bank, Skye Bank, FCMB and Access Bank, which topped the volume chart.

Biggest gainers for the day were FCMB and Chemical & Allied Products which topped the advancers table, chalking 6.76% and 5% respectively to close at N1.58 and N35.70 on positive market forces.
On the flipside, NEM Insurance and Ecobank Transnational Incorporated shed 4.82% and 4.29% to close at N1.56 and N16.27 respectively on profit taking activities of investors.

TODAY’S OUTLOOK

Being the mid-week and second trading day of 2018, expect volatility to continue on Wednesday as traders take profit and reposition for the weeks and months ahead. Meanwhile, smart money could continue their accumulation of shares in value stocks ahead of the 2018 earnings reporting season. The positive outlook for emerging market in the New Year as a result of high commodities price is a major attraction as currencies and exchange of these developing markets are relatively stable. This is in addition to undervalued assets in these exchanges.
We advise investors to allow numbers guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile 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 on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which includes 15 stocks picks for 2018 are available now to guide your positioning as trading for the year just started.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

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/2018/01/market-update-for-january-2-2018.html

2018: OPTIMISM, OPPORTUNITIES, UNCERTAINTIES, MIXED SIGNALS FOR TRADERS, INVESTORS


2017 STOCK MARKET REVIEW AND OUTLOOK FOR 2018
The chart above highlights the monthly changes in the NSE ASI for 2017, with up months represented by green and down periods, red. January and February were down while March to July were up markets, while there were corrections in August and September before the rebound in October, November and December on highly volatile months and days to close the year in green.

The year 2017 was remarkable for bull ascendency as predicted by Investdata during its annual Traders and Investors Summit tagged INVEST 2017, which held on December 3, 2016, after putting into consideration the preceding three straight years of down market induced by multiples of factors. These included the crisis of market confidence, the fact that Nigeria was deep into economic recession, even as politicians were busy passing the bulk instead of fashioning a blue-print to give the economy some form of direction, which was made worse by the delay in appointing economic managers. There was also the factor of low commodity prices in the international market which affected government revenue.

The nation’s stock market at the beginning of the year 2017 was flat but bottomed out in April on the strength of better-than-expected 2016 full-year and 2017 Q1 earnings reports. The effect of this was enhanced by a review of the Central Bank of Nigeria (CBN) Foreign Exchange policy, leading to the introduction of Investors & Exporters window that boosted FX liquidity, resulting in a relatively stable exchange rate regime which impacted positively on the nation’s manufacturing sector and economic activities.
The ensuing rally was supported by low valuation, rising crude oil prices that helped to boost external reserves and government revenue at a time the Muhammadu Buhari administration unveiled its Economic Recovery & Growth Plan (ERGP). This was meant principally to structure the government’s economic diversification efforts, which highlighted the administration’s focus on infrastructure development and agriculture to ensure self-sufficiency in food production and create employment for the country’s teeming youth population, while further driving recovery and growth.
The positive economic data and companies’ numbers were sustained during the year, reflecting on the prevailing economic expansion that strengthened the market and economic fundamentals that affected domestic and international investor confidence which boosted demand for equities.
The impact of the improving liquidity in the fx market continued as a result of the CBN’s sustained intervention, helped by the Executive Order on improving the Ease of doing business signed by the then Acting President Yemi Osinbajo.

Despite the tightened monetary policy of the CBN during the year, inflation figures continued a slow decline, with expansionary manufacturing sector as shown by the Purchasing Managers’ Index (PMI), which remained above 50 points to signal increasing activities in the sector, regardless of the unclear implementation style of the budget and execution of it ERPG agenda by government.
Meanwhile, it was an activity packed year for regulators of the market as the improved confidence triggered a flurry of primary market activities as over 15 companies approached the market with right issues that were successful, just as three companies had their shares listed on the bourse by way of introduction.

Nigeria’s market also witnessed many regulatory actions against market infractions, the most popular among which was the suspension of Oando Plc’s shares on the Nigerian Stock Exchange (NSE) and the appointment of forensic auditors led by Akintola William Deloitte; as well as Partnership investment Company over unauthorized sale of clients’ shares, in a bid to boost market confidence beyond 2017.

The development and growth of the Nigerian capital market during the year were driven mainly by technology to promote transparency that kept both domestic and international investors’ as trading and investing were made simple with the use of online trading platforms. This allows investors trade from the comfort of their homes and offices, with access to real-time market information that enables them take quick investment decisions as more market operators created online portal for their clients to trade directly on their own. This helped to significantly increase the number of traders in the market as more people sought to create more streams of income, especially those seeking to be financially independent through the stock trading and investing.

Helped by interplay of all these factors, Nigeria’s NSE All Share Index, at the end of trading for the year on Friday, December 29, 2017, gained 11,368.57 points to recover more than two years of losses, closing at 38,243.19, after opening at 26,874.62 basis points, representing 42.30% growth. The market however tasted a peak of 39,656.53 and low of 24,547.37 within the year under consideration.

The bullish range and galloping prices were in line of expectations to rank the nation stock market among the best five performing exchange in the world and Africa as it created wealth for players in the year under consideration, despite the negative start on the first trading day and month of the year under review, characterized by the January effect scenario and fear of unimpressive 2016 full-year earnings, which however surprised all. This changed market sentiments, giving insight into the 2017 rally, which supported the better than expected quarterly earnings reports and positive macroeconomic indices, thereby attracting more investors and traders to the market as reflected in the transaction volume and value, as many low, medium and high cap stocks recorded 52-week and new highs.

The market uptrend lasted for 10 months after the first two months of the year that was down and side-trended in August/September with oscillating movement that was attributed to profit taking after five months of bullish run.

A review of the market’s sectoral indices indicated that only the NSE AseM of the 11 indexes closed the year down, shedding 8.60%, while others closed the year up.



The NSE Banking topped the sectorial indexes’ performance chart chalking all of 73.32% in 2017; followed by the NSE Pension index which reflected the power of consistent dividend paying stocks on equity price performance.
As stipulated by the National Pension Commission (Pencom), investment of the nation’s huge pension assets in the stock market must be in companies that had consistently paid dividend for five years and most of the stocks that meet this condition are mostly blue chips of which players in the banking sector account for more than 40%. Next was NSE Premium index that has two banking and one industrial goods stocks. Others followed as revealed by the chart above.

Price appreciation of equities in 2017 was attributed to other factors including growth in the global economy, relatively stable currencies in developed economics and market resulting from crude oil price recovery at the beginning of the year due to supply cut, the flood in the U.S. There was also the unrest in the Middle East which influenced oil production and price in the year under review. CBN intervention in the fx market impacted the economy positively, despite the delayed budget passage by the National Assembly, the government’s poor implementation style, tight monetary policy, high interest rate and high unemployment rate. Available data shows that market liquidity was boosted by the dominant foreign and institutional players. It is a long established norm that markets dependent on foreign funds tends to move in the direction dictated by such fund owners as they move in and out of the market at any given time. Knowing the danger of foreign investor dominance in any stock market, local investors and traders should plan their trades for any eventuality in 2018.

Where Stocks Are Headed

We would like to share our top trading and investment themes in 2018 and where market sectors, stocks, domestic and global economies are headed in the first half of 2018 and beyond as discussed during Investdata’s December 9, 2017 INVEST 2018 SUMMIT where experts challenged investors to stay with value enhancing stocks to generate good returns, while at the same time protecting their capital.
This they agreed, has become necessary, considering the opportunities presented by the 2018 Appropriation Bill submitted to the National Assembly by President Muhammadu Buhari, taking note of uncertainties surrounding the period, being a pre-election year. Also fifteen trade-able stocks with high upside potential were recommended at the summit, meaning if you are ready to make money in 2018 trading or investing, get the home study pack.
The possibility of continued volatility and uptrend in the first three months of 2018 is high.


Best Performing Stocks in 2017
SECURITIES
SECTOR
OPEN
CLOSE
% Change
DANGOTE SUGAR
Consumer Goods
6.11
20.00
227.33
INT'L BREWERIES
Consumer Goods
18.50
54.50
194.59
FIDELITY
Financial
0.84
2.46
192.86
FIDSON HEALTHCARE
Healthcare
1.28
3.70
189.06
DANGOTE FLOUR MILLS
Consumer Goods
4.25
12.15
185.88
STANBIC IBTC HOLDINGS
Financial
15.00
41.50
176.67
MAY & BAKER
Healthcare
0.94
2.60
176.60
FBNHOLDINGS
Financial
3.35
8.80
162.69
C&I LEASING
Services
0.50
1.29
158.00
AIRLINE SERVICES AND LOGISTICS
Services
2.50
5.95
138.00
UBA
Financial
4.50
10.30
128.89
NASCON ALLIED INDUSTRIES PLC
Consumer Goods
8.50
18.50
117.65
NESTLE NIGERIA
Consumer Goods
810.00
1555.99
92.10
CEMENT CO. OF NORTHERN NIG.
Industrial Goods
5.00
9.50
90.00
ACCESS
Financial
5.87
10.45
78.02
ZENITH INT'L PLC
Financial
14.75
25.46
72.61
PRESCO
Agribusiness
40.10
68.50
70.82
DIAMOND
Financial
0.88
1.50
70.45
TRANSNATIONAL CORPORATION
Conglomerates
0.87
1.48
70.11
OKOMU OIL PALM
Agribusiness
40.17
67.69
68.51
ECOBANK TRANSNATIONAL INC
Financial
10.28
17.00
65.37
GUARANTY
Financial
24.70
40.75
64.98
SEPLAT
Oil/Gas
379.99
626.22
64.80
HONEYWELL FLOUR
Consumer Goods
1.30
2.10
61.54
BETA GLASS
Industrial Goods
32.00
51.31
60.34
NEM INSURANCE
Insurance
1.05
1.66
58.10
FLOUR MILLS
Consumer Goods
18.49
29.00
56.84
CADBURY NIGERIA
Consumer Goods
10.29
15.67
52.28


In the year under review, 65 stocks recorded gains, 12 of which share prices rose by more than 100%, compared to just three equities that recorded triple-digit price appreciation in 2016. Also, more than 30 stocks recorded two-digit capital growth for the same period to create value for investors. The top five gainers were: Dangote Sugar Refinery’s 227.33%; International Brewery had 194.59%; while Fidelity Bank, Fidson Healthcare and Dangote Flour recorded capital growth of 192.86%, 189.06% and 185.88% respectively.
A further breakdown showed that the consumer Goods and banking stocks dominated the best performance table for the year 2017, a situation that may likely continue in the New Year with other stocks that had performed well within the period, on the strength of improving companies, market and economy fundamentals


Worst Performing Stocks in 2017
SECURITIES
SECTOR
OPEN
CLOSE
% Change
FORTE OIL PLC
Oil/Gas
84.43
43.48
-48.50
UNIVERSITY PRESS
Services
4.24
2.28
-46.23
MRS OIL NIGERIA
Oil/Gas
43.24
27.46
-36.49
MOBIL OIL NIG.
Oil/Gas
279.00
194.60
-30.25
JULIUS BERGER
Construction
38.58
28.00
-27.42
CONOIL
Oil/Gas
37.48
28.00
-25.29
TOTAL NIGERIA
Oil/Gas
299.00
229.95
-23.09
TRANS-NATIONWIDE
Services
1.00
0.78
-22.00
7-UP BOTTLING
Consumer Goods
129.00
101.97
-20.95
NIGERIA ENAMELWARE
Industrial Goods
29.33
23.23
-20.80


On the flip side, more than 40 stocks were on the year’s laggards’ table, dominated by petroleum stocks. The top five are: Forte Oil, which lost 48.5% of its opening price for the year; University Press, 46.23%; while MRS Oil, Mobil Oil and Julius Berger were down by 36.49%, 30.25% and 27.42% respectively.

The year ended with stocks on the Nigeria bourse still relatively undervalued on the strength of strong numbers, even as data by the National Bureau of Statistics (NBS) showed that Nigeria’s economy grew by 1.4% in Q3 2017 from 0.72% (revised) in the preceding quarter, amidst expectations that Q4 could even be better. It is expected that the CBN in the New Year would review its monetary policy stance as part of greater collaboration in 2018 to boost economic activity and export. The return of foreign portfolio investors due to the nation’s rising reserves level as the Organisation of Petroleum Exporting Countries (OPEC) extended its supply cut to 2018, as government revenue improves, helping implementation of the year’s budget, which we hope would be enacted in good time.

In the New Year, investors should keep their gaze on stocks in industries such as: Consumer goods, industrial goods, hospitality, energy, agriculture, financial and services that have recorded earnings uptrend in the last financial year and still have strong earnings power that could further drive their prices.

The global economy is likely to continue its expansion through 2018 but the pace of growth is likely to moderate on the downside amidst risks to current pace for different reasons across US, Europe and Middle east, as Britain exit from Eurozone and policy change in US continue.
Investors should be optimistic in the New Year, but be ready to navigate between the opportunities and uncertainties in 2018 as our detailed outlook for 2018 that will be publish next week and the outcome of the INVEST 2018 TRADERS & INVESTORS SUMMIT revealed a mixed signal for the year.


Dream it! Wish it! Do it! Enjoy it! Don’t Miss out

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
http://investdata.com.ng/2018/01/2018-optimism-opportunities-uncertainties-mixed-signals-traders-investors/

INVESTDATA PRICE & EARNINGS TRACKING FOR YEAR ENDED DECEMBER 29, 2017

https://investdataltd..com.ng/2018/01/investdata-price-earnings-tracking-for_4.html

SEC EXTENDS FORBEARANCE FOR MULTIPLE SHARE SUBSCRIPTION TO MARCH






Photo Caption: Director, External Relations, Securities and Exchange Commission Mr. Henry Rowlands, Coordinating Director Operations, SEC, Ms Mary Uduk and Acting Director General SEC Dr. Abdul Zubair during a Press Briefing on the ongoing Capital Market initiatives in Abuja Tuesday.

Acting Director General of Securities and Exchange Commission (SEC), Dr. Abdul Zubair, on Tuesday announced a three-month extension of the deadline for investors with multiple subscription to consolidate such into a single account.

Addressing newsmen in his Abuja office, he said the forbearance now ends on March 31, 2018, he said, explained that “investors that bought shares of the same company during public offers, using different names, are allowed till 31st March, 2018 to continue to approach their Stockbrokers or Registrars, to regularize their shareholdings, in line with SEC Rules on customer identification.”
At the expiration of the deadline, all such unregulaised shares, he warned “shall be transferred, on trust, to the Capital Market Development Fund”.

Zubair disclosed further that in line with approved rules of the Commission; all Registrars have been directed to stop the issuance of dividend paper warrants with effect from January 1, 2018.
Consequently, he said, all paper dividend warrants issued up till December 31, 2017 remain valid and should be honoured by banks and registrars.
Also, with the expiration of the free electronic dividend registration deadline on December 31, 2017, the SEC urged investors who did not take advantage of the window to continue the enrollment, at the cost of N150 only.

Such investors, he advised, “should continue to approach their banks or registrars, as usual, to seamlessly mandate their bank accounts for the collection of their dividends electronically, including unclaimed dividends, not exceeding 12 years of issue; as the N150 would not be demanded from them at the point of registration.

“For the avoidance of doubt, the N150 fee would not be demanded from the investors at the point of registration and/or submission of completed e-Dividend Mandate Forms.”
Commenting, Director External Relations of the SEC, Henry Rowlands said the commission consulted with other stakeholders to ensure that the process is seamless; adding that investors should entertain no fear of being charged until their registration is approved.

He however explained that, “Where the investor’s account is not funded, the parties have agreed that such an enrolment request will be disapproved because the account is not funded and the investor will be alerted accordingly”

http://investdata.com.ng/2018/01/sec-extends-forbearance-multiple-share-subscription-march/

VOLATILITY CONTINUES AS NSE STRUGGLES FOR DIRECTION AS TRADERS BOOK PROFIT




Market Update for January 3

Trading on the floor of the Nigerian Stock Exchange on Wednesday remained very volatile, reversing previous day’s up market on the strength of losses suffered by highly capitalized stocks during the afternoon session as profit takers sold down their stake in Dangote Cement, Mobil Oil and Nigerian Breweries.

Trading started with upside gap up which lasted till midday before gradually pulling back by the afternoon after touching an intraday high of 38,543.28 to close lower than its opening point at 38,187.28 due to market sentiments for high cap stocks that recently rallied.
Market technicals was strong as volume increased, just as there was positive market breadth, indicating that players are taking position ahead of quarterly and full year numbers that are underway, especially the March accounts, where stocks like 7-Up, Honeywell Flour, Flourmills and International Brewery are expected to release their third quarter results this month. Numbers from the consumer goods sector before now have been impressive, following which the market has continued to take position ahead of their full year numbers.

This 2017 extended volatility in the market is giving insight into what should be expected in the major earnings reporting season kicking off any moment from now with Q3 numbers ushering in the earnings season, which would last from February to April. Within this period, discerning and smart investors would be rewarded with good returns on their investment at a time when dividend yields of more companies are expected to outperform returns on Treasury Bills and other fixed income securities. These are investors who recorded return on their investment above 21% per annum (or 5.25% for 90days).

This is why funds might flow out of other investment windows for quick returns from the few value stocks that have strong numbers to support dividend payout, despite the oscillation right now in the market. There is need for the Federal Government to enhance the positive macro-economic fundamentals which have so far reflected in the companies by taking necessary steps hasten the recovery process to boost growth and development.
Meanwhile, at the close of mid-week’s session, the Nigerian Stock Exchange’s composite All-Share index shed 77.51 points to close at 38,187.28, after opening at 38,264.87, representing a decline of 0.20% on above average traded volume.

Similarly, market capitalisation lost N27.58bn to close at N13.59tr having opened at N13.6tr.
This pushed its Year-to-Date returns into negative territory at 0.06%, just like market capitalisation for the same period was down by N18bn from its opening value.
Market breadth for mid-week remained positive and stronger as the number of advancers outpaced decliners in the ratio of 37:11 to continue the two day positive breadth, just as the number of advancers increased on a high buy volume.

Transaction volume and value for the day climbed by 137.87% and 18.80% respectively to 589.58m shares worth N2.12bn, from the previous day’s 248.17m units valued at N1.74bn. This was boosted by transactions in financial services sector and conglomerate stocks, especially in Skye Bank, Diamond Bank, FCMB, Fidelity Bank and Transcorp, which topped the activity chart as most traded equities by volume.

The benchmark index and few sectorial indices closed red, including the NSE Industrial and NSE Oil/Gas, while others closed green except for the NSE AseM that was flat.
Also, at the end of the day’s transactions, Diamond Bank led the advancers table with 9.55% to close at N1.72 per share, followed by FCMB with 9.49% to close at N1.73 each, while Double One (11) led the decliners table with a loss of 9.15% to close at N176.80; followed by Neimeth with 8.00% to close at N0.69. The top gainers were due to positive market forces and sentiments ahead of their full year earnings reports and low price attraction, while top losers were profit booking by traders to reposition.

TODAY OUTLOOK

This volatility trend may continue in today’s session but in the early hour of trading the market may struggle for direction as traders are likely to book profit from stocks hitting new highs, while repositioning for earnings reporting season will also continue as quarterly numbers of the companies reveal stronger numbers that support dividend payment.
However, we would like to reiterate that investors should go for value equities, especially during this season that dividend payment is approaching.

We advise investors to allow numbers guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile 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 on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which includes 15 stocks picks for 2018 are available now to guide your positioning as trading for the year just started.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2018/01/volatility-continues-nse-struggles-direction-traders-book-profit/

MARKET UPDATE FOR JANUARY 4, 2018

EARLY POSITIONING AHEAD OF EARNINGS SEASON, POSITIVE ECONOMIC DATA BUOY INDICATORS


Nigerian Stock Exchange (NSE) basic indicators got a significant boost, the first for the year, on Thursday, helped by the nation’s upbeat economic data, which lifted equity on the bourse as investors and traders continued to reposition in value stocks, while companies with expected quarterly earnings are trending up, thereby supporting the ongoing rally. This resulted to breakout of many resistance levels of stocks in the New Year.
\
The continued volatility, change in market holding structure, increasing volume of trades and increasingly positive market breadth revealed rising demand for stocks by investors.
Thursday’s trading session was nonetheless a very volatile, closing higher to reverse the previous down market on the strength of heavy accumulation of positions in all classes of stocks, whether low, medium or high caps, ahead of the upcoming major earnings reporting season.
The day’s trading started out on a gap up that was sustained during the mid-morning but pullback in the midday as profit takers sold down in high value stocks to reduce the day gaining momentum, but retraced up again by the afternoon, hitting intraday highs of 38,848.31 basis points from a low of 38,182.94 before closing at 38,676.12 for the day.

The Purchasing Managers Index (PMI) at 59.3 points in December as released by the Central Bank of Nigeria (CBN) showed great level of activity for the period, revealing a consistent expansionary manufacturing sector over a 10-month period. It was helped by an equally robust foreign exchange market that continued to influence the sector and economy positively, beginning from April when the apex bank introduced Investors and Exporters FX (IEFX) window that supported the ongoing growth momentum and positive macro-economic indices significantly propelled Nigeria’s exit from recession in 2017Q2 when GDP grew by 0.72% (revised).

In other news, the Minister of State for Petroleum Resources told a public hearing on the fuel scarcity by the Senate Committee on Petroleum Resources (Downstream) on Wednesday that the Nigerian National Petroleum Corporation (NNPC) has so far incurred a cumulative loss of N85.5bn on importing petrol in three months, representing a pseudo subsidy, selling at the current N145 per litre. It was also learnt that petrol could go for as much as N175, being the market determined price, since its landing cost is now N171/litre, which resulted in the stoppage of importation by independent marketers. Already, arising from the current crude oil price of $67 per barrel, Saudi Arabia, the biggest member of the Organisation of Petroleum Exporting Countries (OPEC), as well as the United Arab Emirates (UAE) have increased the pump price of petro in their domains, just as Ghana.
Meanwhile, market technicals for the day was strong and positive as funds flows into the market as revealed by institutional money flow index at the close of Thursday’s trading session, just as buying pressure stood at 74%, compared to previous day’s 100% selling position, which signaled positive sentiments for stocks despite the profit taking activities. Volume index stood at 1.52 points, while selling pressure was 24% of the day total transaction.

At the close of trading, Composite NSE All-Share index gained 488.84 points to close at 38,676.12, after opening at 38,187.28, representing a growth of 1.28% on huge traded volume that was higher than previous day’s level. Similarly, market capitalisation for the day was up N173.96bn to close at N13.76tr, having opened at N13.59tr.
The upturn, due to value gain in low, medium and high cap stocks impacted the NSE’s Year-to-Date returns, turning it 1.13% green, from its previous day negative territory, just as market capitalisation for the same period was up by N154.06bn, representing 1.13% growth from its opening value.
The ASI and other sectorial indices closed higher, except for the NSE Consumer Goods and NSE Lotus Islamic that closed red, while the NSE AseM remained flat.

Market breadth for day remained positive and stronger as the number of advancers widened, outnumbering decliners in the ratio of 46:6 to continue its third-day of positive breadth, halting previous day bear market on a strong buying pressure.
Market activity in volume and value for the day were up by 39.95% and 83.23% respectively as investors and traders exchanged 825.13m shares worth N3.88bn, from the previous day’s 589.58m units valued at N2.12bn, boosted by transactions in financial services and conglomerate stocks. Especially, trading was heaviest in shares of Diamond Bank, FCMB, Skye Bank, Sterling Bank and Transnational Corporation of Nigeria (Transcorp), which topped the activity chart as most traded stocks by volume.

Best performing stocks as seen on the day’s top advancers’ table were: Dangote Flour, which notched 10.12% to close at N14.04 each; followed by May & Baker’s 10% gain to close at N2.75 per share; while NEM Insurance led the decliners table after shedding 4.85% to close at N1.57; ahead of Custodian and Allied Plc’s 4.77% at N3.79. The top gainers were propelled by positive earnings and market expectations of their full-year earnings reports and possibility of higher dividend payout, while the laggards were plagued by the profit taking activities of traders.

TODAY OUTLOOK

The ongoing volatility will continue in today’s session but profit booking amidst the ongoing rally is imminent as stocks breakout of their resistance levels, while repositioning for earnings reporting season will also continue as quarterly score-cards of companies already reveal stronger numbers that support dividend payment.

However, we would like to reiterate that investors should go for value equities, especially during this season that dividend payment is approaching.
We advise investors to allow numbers guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile 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 on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which includes 15 stocks picks for 2018 are available now to guide your positioning as trading for the year just started.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

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/2018/01/market-update-for-january-4-2018.html