Investdata Price & Earnings Tracking For the Week Ended January 5, 2018


http://investdata.com.ng/2018/01/investdata-price-earnings-tracking-week-ended-january-5-2018/

2018 Outlook: Superlative Year, But Caution Amidst Political Season, As Portfolio Investors Watch Keenly

The Nigerian Stock Exchange (NSE) is consolidating its superlative gains of 2017 as revealed by closing figures of its benchmark indicators at the end of the first four trading sessions of the week between January 2 and 5, 2018
In the New Year, we expect recovery, growth and expansion of the Nigerian economy to continue through this year and influence the nation’s stock market to new highs, as the macro environment would likely support and boost the ongoing market recovery, despite the meaningful risks associated in stocks investing.

However, the increasing volatility in the market is likely to persist, but market players should target value and enhance it through a dynamic investing and trading approach, especially as 2018 is a pre-election year in Nigeria with its budget being the highest in the history of Nigeria as a nation. There are opportunities and uncertainties to navigate along the way. One of such is the possibility of increased liquidity as politicians and incumbent the governments spend money on campaign and election/re-election activities which in one way or other will trickle down into the stock market by way of increased demand for equities.

As noted earlier, the first trading week of the year has given an insight into what is expected in this first quarter as the volatility of 2017 continues on a bullish trend ahead of the markets major earnings reporting season that will kick off any moment from now with companies having March year –ends like Honeywell Flour Mills expected to present their nine-month score-cards this month. The bullish and recovery environment of 2017 has reflected on prices and although we expect new peaks from here, the pace of return is likely to be significantly higher in the first half of the year before moderating, owing to a likely sell down by foreign investors. This will however depend on the political environment the weeks and months ahead of the 2019 general elections, as the economy and market navigate increasing risks. Investdata believes the combination of higher returns and greater uncertainties make dynamic trading and investing strategies more imperative than ever before as we journey on in 2018.
Valuation for now is a serious concern as many stocks remain undervalued, despite the sustained rally in the market.

Macro-economic Outlook

Along with the political underpinnings of the economy at the moment, we expect Nigeria’s economic expansion to continue but in at a faster pace if the cost of borrowing is reduced by a deliberate easing of the benchmark Monetary Policy Rate (MPR) by the Central Bank of Nigeria’s Monetary Policy Committee (MPR) to further boost capacity, thereby driving sustained growth.
The monetary and fiscal factors supporting expansion and growth must be deliberately made powerful, meaning the fiscal and monetary authorities must focus attention on fixing whatsoever will slow down the ongoing recovery and growth. This, in turn, will make Nigeria’s economy a bright spot among emerging economies at a time policymakers and managers collaborate to drive economic growth that support politics, since without a thriving economy there is no politics.
In addition to a more positive economic data that had been rolled out in 2017, the CBN’s recently released Purchasing Managers’ Index (PMI) for December hit a record high of 59.3 points, compared with 55.9 points in November, indicating an accelerated growth in business activities, employment and inventories within the period.

The PMI measures the nation’s economic health through its manufacturing activities and shows that there was expansion in the Nigerian manufacturing sector for nine consecutive months last year, a situation that was attributed to stability in the foreign exchange market.
Remarkably, the production level index for the manufacturing sector expanded for the tenth consecutive month to 59.3, which points to an increase in production at a faster rate when compared to the 58.5 in the preceding month. The employment level index however staged a rather tepid increase to 53.9 from 53.7 in November.

According to the report, of the 16 subsectors surveyed, 15 recorded growth in activities, especially in areas like petroleum and coal products; and textile, apparel, leather and footwear.
These numbers signal that the economy remains on course for a pickup in growth this year.
The International Monetary Fund (IMF) predicts a 2018 economic growth of 2.1%, citing recovery in oil production on the back of peace in the nation’s troubled Niger Delta region, continued growth in agricultural sector, and higher investment to fix public infrastructure as key drivers as shown by the improved PMI numbers.

We believe sustained stability in the exchange rate of the Naira against major global currencies should provide some level of support for manufacturing output this year, especially if there is a cut in interest rates. Arising from oil production cuts by the Organisation of Petroleum Exporting Countries (OPEC) and challenges being encountered in some member countries, prices have remained above $60 per barrel, which is a plus for Nigeria’s foreign exchange reserves despite a production ceiling of 1.8m barrels per day.
We also expect the global commodity market to generally be range-bound, making it a key area for a more dynamic approach in asset allocation this year.

Inflation

We see inflation rate continuing its southward movement in 2018 after the expected December data that may likely remain flat or inch up to reflect price increase during the festive period.
Importantly, we think the main impact of inflation on asset prices will run through monetary policy, given the expectation that easing in 2018 will boost economic recovery and growth.
We still think the inflation bar is high for policy tightening to continue, irrespectively of the 10-month decline recorded in 2017.

Monetary Policy

We expect monetary policy easing at the beginning of 2018, before full-blown campaign activities by politicians and government begin to boost liquidity once more. The slow approach to easing by CBN’s MPC may limit impact, but when the MPR is cut it will be more significant than what the market is expecting, leading to pressure on bond and money market instrument with funds flowing out into the equity market, especially given the high dividend yield, which would expectedly broaden market volatility.

Politics

The pre-election year expectations and 2018 budget implementation policies/strategies may give room for surprises or dampened confidence that could reverse the positive trends enjoyed so far in the market and economy.
We believe Nigeria’s equity market will adjust appropriately to reflect any situation that is thrown up in the political space at any given time.
Specifically, we have some concerns about the chance of success of the international debt offering in today’s unstable global financial markets. The Federal Government has in recent years grown its domestic debt profile significantly, especially in a year where the prospects of liquidity in the financial system are high with government borrowing to finance infrastructure development and other needs. The government’s decision to flood the market with different type of bonds is already a threat to the capital market.

Conclusion

Investdata believes that Nigeria’s economic recovery will support the stock market as confidence in the whole system will boost savings and investment that will sustain growth, just as there is need to reduce interest rates, given that exchange rate has become relatively stable and expected to boost the real sector and the market to drive productivity and development.
We also expect that the government’s development and social projects would continue driving economic diversification which will boost liquidity and better the purchasing power of Nigerians.
We expect more primary market activities as developmental strategies from the regulators continue to boost confidence in the system, as we see more robust bull market in the first quarter and mixed performance in second half of 2018.
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/2018/01/2018-outlook-superlative-year-caution-political-season/

NSE Index Closes Opening Week Of New Year Positive First Time In Four Years

It was indeed a superlative first week of 2018 on the Nigerian Stock Exchange (NSE) terms of performance, with the composite All-Share index chalking 1.78% to change three-year history of down market in the first trading week of a New Year as revealed by market data, that revealed down market of 13.03%, 5.63% and 2.32% in the opening week of 2015, 2016 and 2017 respectively.
This could be attributed to change in the holding structure of the market with international players and domestic institutional investors controlling the lion’s share of market activities, leaving a very small fraction of the pie to the retail investors. This factor may have paled the usual January effect into seaming insignificance. We may have to wait until the end of the month to see the effect or not of the said January effect.

Besides the continued volatility, the Nigerian equity market continues to bask under euphoria of positive factors such as the improving investor confidence and expectations of better quarterly, full-year numbers in the coming weeks judging by impressive company fundamentals. These factors have so far triggered an increasing demand for stocks by different classes of investors and traders that are positioning for the major earnings reporting season.

At the beginning of the year, asset reclassification or allocation are carried out by fund managers, following which funds are likely to flow into windows that offer quick returns within the shortest time, as Dividend Yield of many companies remain high and better that returns from other investment windows. At the moment, average yield of Nigeria’s equity market remains above 4.18%, while stocks like United Capital, Learn Africa, NPF Micro Finance and Zenith Bank with Dividend Yield above 6.38%, just like many others in the market.
Given the unstable yield or interest in money market funds, funds are likely to flow into the equity market, especially with the season for dividend payment is around the corner and many companies earnings position support a higher payout, depending on the dividend policies of different companies.

Going by the chart above, the NSE All-Share index’s action has formed a rising channel pattern that supports an uptrend, while the yellow lines show that the market is still on a bullish trend to open the year. Based on index movement and momentum behind the trend, the market’s internals remain healthy for now, while market forces in the new week will determine its next direction.
Market technicalities for the period under view were good with buying pressure at 87% and selling positions of 13%, while the week’s volume index was 1.47 of total transaction. The psychological line of 39,000 point was broken to touch highs of 39,113.68 from the low of 37,646.88 basis points. Market breadth was positive and widened to reflect the value gain of equities.

The benchmark index for the week gained 680.07 points to close at 38,923.26 points, from an opening figure of 38,243.19 points, representing a 1.78% growth on a higher volume of transactions that were driven by financial services and conglomerate stocks.
Market capitalisation for the period closed higher at N13.85tr from the opening value of N13.61tr, representing a 1.78% appreciation in investors’ positions, with low cap stocks dominating the advancers’ table. This is due to their high upside potentials and low price attractions, considering the number of quoted companies. During the week, undervalued tier 2 banking stocks recorded strong growth to top the table.
The value gain due to inter market fund movement and market players positioning in the low, medium and high cap stocks ahead of earnings season lifted the NSE ASI’s year-to-date return to 1.78%. Market capitalisation for the period grew by N240.05bn, representing a 1.78% gain from the year’s opening value.
Market breadth for the week was also positive with the advancers’ outnumbering decliners in the ratio of 56:20 on a huge volume of trades that were higher than previous week’s.

The NSE opened the week on Tuesday on a positive note with marginal gain of 0.06% to consolidate the previous trading session’s up market, which was short-lived, following the second trading day’s 0.20% slide. This was reversed on Thursday when the index gained a robust 1.28%, which was sustained on Fri day of the week when the NSE ASI gained 0.64% to bring the week gains to 1.78%. The composite NSE index and sectoral indices closed higher in the period, except for the NSE Lotus and NSE ASeM that fell by 0.82% and 1.44% respectively to close the week.

Market transaction for the week, in terms of volume and value, were up by 34.21% and 59.93% respectively to 2.42bn shares worth N18.81bn from the previous week 1.31bn units valued at N12.64 billion.

The best performing stock for the first trading week of the year were Sterling Bank and FCMB which gained 30.56% and 28.38% respectively to close at N1.41 and N1.90. This was due to low prices attraction as earnings reporting season draws closer.

The worst performing equity for the period was Mobil, which lost 12.64% to close at N170 on profit taking; followed by NEM’s 7.83% slide on profit taking to close at N1.53.

Market Outlook

This week, expect a continuation of the volatility, as more companies notify the exchange of their closed period and board meetings to approve full-year and quarterly earnings reports, profit taking amidst portfolio repositioning ahead of the new year as more positive economic data are released and earnings reporting season draw closer.
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/nse-index-closes-opening-week-new-year-positive-first-time-four-years/

INDICATORS SOAR FURTHER, AS INVESTORS POSITION IN SAFE BETS AHEAD OF EARNINGS SEASON

The nation’s equity market rally extended its momentum on Monday to breakout 52 week resistance level of 39,656.53 basis points, hitting a new four-year high, recording the highest gain so far in the 2018 trading session, setting new intraday highs of 39,851.45 from a low of 38,908.12 on strong positive sentiments and buying pressure to continue its volatility. The market closed positively after consolidating the morning’s big early run-up, which the index consolidated pretty much most of the day as higher cap stocks recorded gains. It was however during the afternoon session it chalked most of the boom to start off the week on a strong note.

Monday’s volatile trading session closed higher to consolidate the three straight days of bull-run on the strength of heavy accumulation of positions in all classes of stocks, whether low, medium or high caps which appreciated to boost the positive market breadth ahead of the upcoming major earnings reporting season. The season kicked off already with vitafoam presenting its full-year earnings report for the period ended September 30, 2017, with the directors proposing a 15 dividend, despite the company’s negative account that had been on for two years (READ MORE).

Market technicals for the day remained positive and strong on the back of dwindling investor interest in Treasury Bills and other money market instruments, supporting the circular flow of funds as institutional money flow index of the market continues to look up, indicating that funds are entering the market. Monday’s equity buying pressure stood at 100%, while selling volume was 0% with volume index of 1.16 points, of the day total transaction.

Nigeria’s external reserves hit $40.4bn on Monday (READ MORE), helped by the rise in oil price to $70 per barrel at the international market, which is a plus for the nation’s market and economic recovery, even as the efforts of the Central Bank of Nigeria (CBN) at ensuring stability of the Naira continues to bear fruit. This huge forex reserve, the highest since 2014, is also despite the CBN’s sustained intervention in the Investors and Exporters’ Window of the inter-bank market which had made the FX market more stable and liquid, attracting inflows to support economic growth and development.

Meanwhile, the All-Share index gained 926.39 points to close at 39,849.65, after opening at 38,923.26, representing a growth of 2.38% on huge traded volume that was lower than Friday’s level. Similarly, market capitalisation for the day was up N327.67bn to close at N14.18 trillion, from an opening value of N13.85tr, which also represented 2.38% appreciation in investors’ portfolios.
The gains recorded in low, medium and high cap stocks like Mobil, Dangote Flour, PZ, Dangote Cement, FBNH, Forte Oil, Zenith Bank, Unilever, UBA, GTBank, NB and Access Bank impacted the NSE’s Year-to-Date returns, pushing it to 4.20%, just as market capitalisation for the same period had accumulated N556.54bn, representing 4.20% growth from its opening value.

The composite index and other sectorial indices closed higher, except for NSE AseM that closed lower.
Market breadth for day remained positive and stronger as the number of advancers outnumbered decliners in the ratio of 37:9, continuing its third-day of up market.

Market activity in volume and value for the day were mixed as volume was down by 19.75% to 604.53m shares from 758.31m units recorded on Friday, while value climbed by 46.65% to N16.17bn, from N11.02bn. Transaction value for the day got a significant boost from transactions in financial services, conglomerate and consumer goods stocks, as trading was heaviest in shares of Transnational Corporation of Nigeria, Nigerian Breweries, Diamond Bank, FCMB and FBNH which topped the activity chart as most traded stocks by volume.

At the end of trading, Conoil and Unity Bank topped the advancers’ table grabbing 10.24% and 9.68% respectively to close at N32.40 and N0.68 each; propelled by market forces, while Vitafoam and C& I Leasing led the decliners table after shedding 4.92% and 4.9% apiece to close at N3.09 and N1.36 respectively. Vitafoam was on profit taking following its unimpressive full-year result that hit the market on Monday.

TODAY OUTLOOK

With the earnings reporting season kicking off with the result by Vitafoam, expect volatility to continue as profit booking amidst the ongoing rally is imminent as stocks are breaking out their resistance levels, while repositioning for earnings reporting season will also continue as quarterly and full year score-cards of companies are expected to be in the market any moment from now.
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/indicators-soar-investors-position-safe-bets-ahead-earnings-season/#more

AS BULL-RUN CONTINUES, IT’S CAUTION AHEAD REPOSITIONING FOR EARNINGS SEASON

Trading on the Nigerian Stock Exchange had a positive finishing on Tuesday as equity prices continued to gallop amidst strong volatility to breakout the psychological line of 40,000 basis points in preparation to hit a new four-year highs on a huge transaction volume. This consolidated the fifth session of 2018 in a row of gains that kicked off the new year’s trading sessions. The technicals for the day remained strong and positive as institutional money index keeps looking up.

The day started out with the composite index inching up slightly in the morning, then oscillating in the mid-morning before rallying up to test intra-day high of 40,485.54, from lows of 39,688.04. The breakout of 40,000 mark was successful to close the day at 40,362.97.
Tuesday’s equity buying pressure stood at 85%, while selling volume was 15% with volume index of 1.43 points of the day total transaction.
As earnings season kicks off this week with Vitafoam releasing it full-year scorecard for 2017 financial year, more Q3 numbers are expected to hit the market in the weeks ahead. Also, most of the big names that report their earnings in February and March will give more momentum to the market as we get into the peak of the full-year reporting period in the last two weeks of March. For a more detailed rundown of the earnings schedule for the upcoming season. Visit our website next week.

The increasing inflow of funds into the economy and market had reflected in the rise of Foreign portfolio inflows of $3.32 billion as a result of the ease of payment, as well as the improving economic fundamentals that has so far reflected in the positive macro-economic data and Nigeria’s rising external reserves, oil production output and oil prices which has further boosted expectation of growth in the economy in 2018. Also these had kept the nation currency appreciating against major global currencies.

This is just as the World Bank in its January 2018 Global Economic Prospect report launched on Tuesday in Washington DC forecasts that Nigeria’s economy could grow by to at least 2.5% this year on the back of improved commodity prices, investments and trade flows, while growth in Sub-Saharan Africa is forecast at 3.1%. Also, Nigeria’s Gross Domestic Product (GDP) is expected to grow by 2.8% come 2019 and 2020.

According to the bank, growth in Sub-Saharan Africa is projected to continue to rise to 3.2 per cent in 2018 and to 3.5 per cent in 2019, on the back of firming commodity prices and gradually strengthening domestic demand.
Meanwhile, the NSE’s benchmark index gained 513.32 points to close at 40,362.97, after opening at 39,849.65, representing a growth of 1.29% on huge traded volume that was higher than previous levels. Similarly, market capitalisation for the day was up N329.67bn to close at N14.36tr, from an opening value of N14.18tr, which also represented 1.29% value gained in investors’ portfolios.

The upturn recorded was boosted by price appreciation across all equity classes that impacted the NSE’s Year-to-Date returns, pushing it to 5.54%, just as market capitalisation for the same period had accumulated N754.36bn year-to-date, representing 5.54% growth from its opening value.
The composite index and other sectorial indices closed higher, except for, NSE Consumer and NSE Lotus that were lower while NSE AseM was flat.

Market breadth for day remained positive and stronger as the number of advancers surpassed decliners in the ratio of 47:7, continuing its four-day bull run in a row.
Market activity in volume and value terms for the day were mixed as volume was up by 27.52% to 770.87m shares from 604.53m units recorded on Monday, while value declined by 51.19% to N7.89bn, from N16.17bn. Transaction value for the day got a significant boost from transactions in financial services and conglomerate sector, as trading was heavy in Diamond Bank, FCMB Zenith Bank, Access Bank and Transcorp which topped the activity chart as most traded stocks by volume.

Best performing stocks for the day were , Dangote Flour and FCMB, which topped the advancers’ table, grabbing 10.00% and 9.05% respectively to close at N16.17 and N2.17 each. The gains were propelled by market forces and expectation of full year earnings reports, while UACN Property and Nahco led the decliners table after shedding 4.72% and 4.67% apiece to close at N3.03 and N4.29 respectively, resulting purely from profit taking activities.

TODAY OUTLOOK

The ongoing volatility will continue this morning as profit booking is underway amidst repositioning for earnings reporting season as quarterly and full year score-cards of companies are expected to be in the market any moment from now.
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/bull-run-continues-caution-ahead-repositioning-earnings-season/

NSE CONSUMER GOODS INDEX SET TO BREAKOUT 4-YEAR RESISTANCE LEVEL

This sectorial index is a component of NSE benchmark Index that measure performance of consumer goods equities with mixed financial year end of March, June, September and December.
The index action shows that the sector is in strong recovery mode from a three-year pullback as a result of the unimpressive numbers, political tension in 2014 pre-election, insecurity in Nigeria’s troubled North-East region as a result of the Boko Haram insurgency which significantly affected sales, uncertainty over the 2015 general election, unstable exchange rate regime, made worse by the unclear policy direction of the Federal Government that came to power on May 29, 2015, beginning with the delay in constituting a cabinet until after six months.

It was only after the nation had sank deep in recession for a full year in 2016 that the government launched its Economic Recovery and Growth Plan (ERGP) in February last year. One of the hardest hit was the consumer goods sector, owing to the shortage in foreign exchange which threw many manufacturing companies in red due to high exchange rate in a contracting economy where productivity was low, inflation was on the rise, amidst a weakening purchasing power among the people.

But the ongoing strong recovery in the economy and sector fundamentals reflected in the numbers emanating from stocks in the industry and their share price performance on the exchange in the last one year. The trading range and momentum trending ability predicts that the upside will continue despite the expected slowdown as a result of profit booking by traders, which provide another opportunity for market players to get on board.

The low, medium and high cap stocks in this sector have enjoyed positive sentiments and strong buying pressure due to improved earnings power of the companies which reveal a likelihood of higher payout at the end of the day, especially for the companies having December and March as their financial year-end.

A multi-year trend decline that started from November 2013, attaining a high of 1,124.81 with different attempts to rebound but failed until it found support in the lows of 560.83 in February 2017, before a rebound that was sustained for six months on improving earnings from the sector. This was before the pullback on profit taking in September to November and reversed in December to form an ascending triangle chart pattern that supported continuation of rally that is about to breakout the next resistance level at 1,027.86 from the current position of 990.47. As it had turned higher this year during the first trading week of 2018.

The sector rallied with the general market in 2017 with bullish index action into the new year forming ascending triangle pattern which supports complete breakout as the uptrend continue ahead of the earnings season. The current third wave into range resistance with bullish index structure predicts consolidation or pullback due to profit taking any moment from now, which will be followed by a strong breakout. There is still upside potential for equities in this sector especially the low priced ones that their earnings are looking up.

Price Action of Stocks in this Index as Presented in the Charts Below.
http://investdata.com.ng/2018/01/nse-consumer-goods-index-set-breakout-4-year-resistance-level/

Institutional Money Flow Clouds Profit Taking Activities, Sustains Nigeria’s Equity Rally

Market Update for January 11

Prices of equities on the Nigerian Stock Exchange (NSE) continued to gallop on Thursday, following which the composite All-Share index marginally broke out its four-year resistance level to new highs on intraday movement amidst volatility that remained strong on huge demand for stocks by the investing public. This revealed sustained inflow of funds into the market as investors increased the rate of their position taking despite continued profit booking.

The continuation or fizzling out of this current volatility and up trending would be a function of market forces at Friday’s trading, being the last session for the week which has been a sell market over a period of time. The inflow of funds in the first month of the year and change in the holding structure of the market has almost wipe off the January effects so far in 2018.
It was a big explosive in opening on Thursday’s trading which lasted through the mid-morning to afternoon, before a pull-back after hitting intraday high of 43,269.41 from its low of 41,813.37 which was a consolidation of the bull rally. The market tested a resistance level and penetrated up before it came down slightly to end the day strong as blue chip stocks broke-out their 52 weeks highs.
Market technicality for the day was strong and positive with institutional money flow index looking up but slightly slow, despite the huge volume as buying pressure stood at 84%, while selling volume was 16%. Volume index of the day’s total transactions was 1.95 points, just as market breadth also remained positive and strong to close the day.

All Share index gained 1,230.38 points to close at 43,041.54 after opening at 41,816.11, representing a growth of 2.93% on huge traded volume that was higher than previous levels. Similarly, market capitalisation for the day was up by N436.1bn, closing at N15.32tr, from an opening value of N14.88tr which also represented 2.93% value gain in the portfolios of market player.

The continued upturn was due to appreciation recorded by low, medium and high cap stocks that impacted positively on the NSE’s Year-to-Date returns, pushing it to 12.55%, just as market capitalisation grabbed N1.71tr year-to-date, representing 12.55% growth from its opening value.
The NSE benchmark and sectorial indices were in green, except for NSE AseM that remains unchanged. Market breadth for day was positive and stronger as the advancers to outpaced decliners in the ratio of 56:10, continuing its six-day bullish transition.

Market activities in volume and value terms for the day were up by 6.75% and 30.67% respectively as investors crossed 1.16bn shares worth N17.37bn, compared to previous day’s 1.09bn units valued at N13.3bn. Transaction volume for the day was significantly boosted by transactions in financial services and conglomerate sectors, as trading was heavy in Transcorp, Diamond Bank, Zenith Bank, FBNH and Access Bank that topped the activity chart as most traded stocks by volume.
Honeywell Flour and CCNN topped the day advancers’ table, gaining 9.97% and 9.96% respectively to close at N3.20 and N12.03 each. The gains were propelled by the ongoing bull-run and expectation earnings reports, while University Press and Meyer led the decliners’ table after shedding 4.71% and 4.48% to close at N2.63 and N0.64 respectively, resulting from profit taking and market forces.

TODAY OUTLOOK

Being the last trading of the week expect mixed performance as volatility and profit taking will continue irrespective of repositioning for earnings reporting season as quarterly and full year score-cards of companies are expected to be in the market any moment from now. The above NSE Daily MACD Chart revealed a bullish crossover that is still indicative of an up market. MACD Signal line crossovers tends to work well with volatile market or stocks that trend often. A bullish crossover occurs when the MACD turns up and crosses above the signal line, while a bearish crossover occurs when the MACD turns down and crosses below the signal line. Once the crossover occurs, you want to make sure both lines gain as much distance apart from each other as possible. This is a good sign that momentum is continuing in the desired direction.
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/institutional-money-flow-clouds-profit-taking-activities-sustains-nigerias-equity-rally/

VITAFOAM: DIVIDEND EQUALISATION POLICY SUPPORT PAYOUT, DESPITE 2017 RED ACCOUNTS


The management of Vitafoam Nigerian Plc recently presented its full year-audited report for the period ended September 30, 2017 to the investing community slightly later than the release date for that of 2016, coming below market expectation as it revealed bigger loss than in the corresponding period. The company’s unstable quarterly recovery during the financial year under review finally resulted in a loss, despite the Q1 earnings per share of 6 kobo that graduated to 25 kobo by second quarter, before sliding to 16 kobo at Q3 and thereafter a 12 kobo Loss per share, making it two consecutive years of red numbers.

Despite these negative numbers the company has continued to reward its shareholders by going into the reserve, a development that is not healthy for the company and shareholders, regardless of the fact that operating cash flow turned N1.61bn positive from a N2.36bn negative position in 2016.
The company’s post-merger, expansion outside Nigeria and the introduction of new products are yet to reflect fully on it earnings capacity due to the high financing cost, despite the relative stability in exchange rates which has boosted the books of many companies in the manufacturing sector. The negative accounts notwithstanding, the company has recommended a higher dividend payout of 15 kobo as projected by INVESTDATA, from 12 kobo in 2016.

A review of the financials showed that sales revenue increased to reflect the results of the successful repositioning of its operations, while venturing into spare parts production and strategic repackaging of the insulation business for enhanced value creation. The negative profit margin however suggests the need for better and enhanced cost management, while plugging loopholes, if shareholders must reap the expected revitalization of the group’s subsidiaries through injection of the single-digit loan recently sourced from the Bank of Industry (BoI) to turnaround its fortune and improve profitability.
The full-year statistics revealed mixed numbers for the period under consideration, with a loss of N127.69m as against the N32.03m recorded in 2016, despite by 30.43% turnover growth to N17.7bn from N13.57bn in 2016, translating to Loss per share (LPS) of 0.12 kobo, up from three kobo in the 2016. Return on Equity (ROE) also came in negative at 3.78%, as against the prior year’s -0.91%.
As mentioned earlier, the Vitafoam's profit margin is poor by all standards at negative 0.72%, even when compared to the negative 0.24% in the corresponding period of 2016, just as Book Value declined to N3.24 from N3.47, as a result of the loss and declining retained earnings.
VITAFOAM NIGERIA PLC.
FULL YEAR 2017
COY
2016
2017
% Chg
(N)
(N)
Date Released
January 2, 2017
January 8, 2018

Price As @ Released Date
2.31
3.25
40.69
Turnover
13,569,873,000
17,695,820,000
30.43
Loss After Tax
-32,032,000
-127,690,000
-498.7
Shareholders' Fund
3,432,488,000
3,373,697,000
-1.75
ESTIMATED RATIOS
Earnings Per Share
-0.03
-0.12
-500.0
PE Ratio
-75.17
-26.53
-135.3
Earnings Yield
-1.23
-3.77
-406.5
Book Value
3.47
3.24
-6.63
Price to Book Value
0.69
1.00
44.93
ROE(%)
-0.91
-3.78
-515.4
Profit Margin
-0.24
-0.72
-104.0
Source: Company Financial & Investdata Research
The unstable performance of the company in the last three financial years has extended to the period ended September 30, 2017, which has also reflected on its price performance and payout for these periods. As the market expects its first quarter score-card this month, just as the impact of the N2bn loan might offer new hope for turnaround for the good of investors in the ongoing 2018 financial year and beyond.

Technical View


The price action of Vitafoam shows an uptrend that started since March at the back of positive sentiments on its quarterly financials and ongoing bull market. It remained trendy in the rising channel chart pattern with resistance price of N3.55 and first support level of N3.09. The chart reveals a high possibility of the uptrend continuing to breakout the next resistant if Q1 is positive and the market remains in this uptrend.
On a daily time frame, the stock is strong, trading above its 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 due to its equalization policy. Also, traders may enjoy a likely rally if Q1 financials beat expectations as inflow into market and the stock continues ahead of this year’s first Monetary Policy Committee meeting of the Central Bank of Nigeria (CBN), which may possibly cut the benchmark Monetary Policy Rate. This may have commenced technically with the authorities seemingly bringing down cost of funds to drive the expected growth in 2018 and after.

But the management of Vitafoam must continue with its strategic business plan to reposition its subsidiaries and boost performance with the loan, while utilising modern research and development exposures to cut costs and enhance profit.

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.

Vitafoam Nigeria PLC
Share Holding Structure
Chief S.O. Bolarinde
12.59%
Other Nigerians and Associates
87.41%
Other Statistics
Shares Outstanding (MN)
1,042,370,053
Opening Price (2017)
2.87
Closing price as @ Sept 30 (2017)
2.57
Current Price as @ Jan 12, 2018
3.39
Date Listed
1978
Year End
30th September
Source: Company Financial & Investdata Research


Five-Year Financial Analysis
In the past five years as shown in the table below, management grew revenue year-on-year to a high of N17.bn in 2017, from 2016 low of N13.57 million after recording N16.71bn, N16.81bn and N17.19bn respectively in 2014, 2013 and 2015. Bottom-line for the period has been undulating, slipping into a loss of N127.69m in 2017, from N32.03m in 2016, even as profit level in 2013 to 2015 remained unstable, rising from N390.23m in 2013 to N529.14m in 2014, before falling to N249.05m in 2015, before slipping into a loss in the five-year period.
The company’s earnings power has been inconsistent due to the high cost headwind in its operations, as finance cost grew by 53.94% from N895.06m 2016 to N1.38bn in 2017, wiping out its profit for the year. Profit margin for three years was poor before falling into negative margin for the two most recent years with 0.24% and 0.72% in 2016.and 2017.

Return on equity for the five years had been up and down, growing by 17% in 2014 from 13.19% in 2013, before nose-diving to 5.04% in 2015 before slipping to negative Return on Equity of 0.91% in 2016 and 3.78% in 2017, an indication of the increased costs and tax during these periods.
In the same direction, shareholders' fund which has been unstable for the period grew from N2.71bn in 2013 to N3.37bn in 2017 after touching a high of N4.95bn in 2015. This also reflected in the up and down movement in Book Value per share that affected the price movement for this same period. The book value was down to N3.24 in 2017 from N5.03 in 2015.

The reverse is the case when the said growth is compared to investors’ response in terms of market price valuation/judgment, as Vitafoam’s unit price on the Nigerian Stock Exchange continued to trend up and down. This was however before the current market rally that propelled vitafoam’s price.
Five Years Financial Figures of Vitafoam Plc

Company Figures

2013
2014
2015
2016
2017

Turnover
16,808,851,000
16,712,922,000
17,185,741,000
13,569,873,000
17,695,873,000

Profit After Tax
390,231,000
529,135,000
249,051,000
-32,032,000
-127,690,000

Net Assets
2,706,450,000
3,029,070,000
4,946,205,000
3,508.458,000
3,373,697,000

Dividend
0.30
0.30
0.25
0.12
0.15

Bonus

1:5










Estimated Ratios





EPS
0.50
0.53
0.25
-0.03
-0.12

Pay Out Ratio
59.88
46.15
100
nil
nil

PE/RATIO
7.62
8.23
21.35
-75.17
-26.53

E/YIELD
13.11
12.14
4.68
-1.33
-3.77

Price to Sales
0.19
0.26
0.93
0.69
0.20

BOOK VALUE
3.80
3.70
5.03
3.37
3.24

ROCE
13.19
17.00
5.04
-0.91
-3.78

PROFIT MARGIN
3.46
3.17
1.45
-0.24
-0.72

YEAR END
September
September
September
September
September

Source: Company Financial & Investdata Research

Estimated Performance Ratios
The company earnings per share for the five-year period has been declining to reflect weak earnings power, even as the additional shares arising from the bonus have weakened the Earnings Per Share (EPS) for the period under review. The amount earned per share moved from 50 kobo in 2013 to a loss of 12 kobo after recording 3 kobo in 2016. The dwindling earnings and increase in share price within the period had elongated investors waiting period to -26.53x at the market value as at released date, after it had recorded a P/E ratio of 7.62 times in 2013. Book value during the period decline to N3.24 from N3.80 in 2013, considering the market price of the stock as at released date.
Other performance ratios remained mixed, but profit margin is still pointing at high cost of operations.

On the strength of the figures posted and dividend declared over the years, the stock is fairly priced at N3.50.

www.investdataonline.com

MARKET UPDATE FOR WEEK ENDED JANUARY 12 AND OUTLOOK FOR JAN 15-19



PROFIT TAKING, VOLATILITY MAY CONTINUE AMIDST PANIC SELLING, REPOSITIONING FOR EARNINGS SEASON,



Equities’ trading for the second week of 2018 on the Nigerian Stock Exchange (NSE) closed higher with prices of industrial goods stocks galloping more sharply than their peers in banking, consumers and petroleum marketing sectors. The traded volume within the period was huge as there has been no such record of 5.02bn shares transactions in the second week of a new year in more than a decade, attributable to more investors swooping in on the NSE which ranked second best performing bourse among emerging market. Add this to the fact that most Nigerian equities remain undervalued, despite the huge price gains of 2017, helped at a time the economy is in a strong recovery mode with the upbeat macro-economic indices that support strong market fundamentals, amidst the improved quarterly earnings reports of most companies, attracted huge inflow of funds into the stock market particularly from foreign portfolio investors, domestic institutional players, fund managers and, of course, smart money.

The extended volatility from 2017 was extremely high in the week under review despite the seeming slow down on the last trading day of the week as a result of the much anticipated profit taking from the recent rally, especially with the market hitting new four-year highs and many stocks continuing to hit new 52-week highs daily, and in the process creating wealth for discerning investors and traders who had positioned ahead of earnings reporting season.

Investors are also positioning, mindful of the two weeks left for companies with March and September year-end to provide their third and first quarter earnings reports respectively to the market.
For Q3 numbers, they include stocks like Honeywell Flour, International Brewery, Seven-up Bottling Company, Flour Mills Nigeria, Redstar Express, University Press and Norther Nigeria Flour Mills, while Vitafoam is expected to provide its Q1 numbers within the remaining two weeks of January.
Bearing these in mind, investors should keep their gaze on these companies as their numbers start pouring in any moment from now. This arises from the fact of the significant gains some have seen throughout 2017 and the fact consumer goods stocks remain among the market’s major drivers, among other economic factors.

Vitafoam has kicked off the earnings season with a dividend of 15 kobo, representing a 25% growth from 12kobo in 2016, despite a loss before and after tax, which should give the investing public an insight into what is likely to happen when the actual numbers begin to emerge on the exchange.
Meanwhile, the composite NSEASI action has remained in a rising channel pattern that supports an uptrend, while the index is still trading above 50 moving average as institutional money flow index is still looking up as at last Friday.

NSE WEEKLY TIME FRAME


The weekly market technicals were strong and good, irrespective of the fact that it closed southward on the last trading day of the week with buying pressure at 84% and selling positions of 16%, while the week’s volume index was 2.93 of total transaction. The market’s psychological line of 43,000 point and four-year resistance level of 43,141.17 were broken, touching new highs of 43,670.57 from the low of 38,908.12 basis points. Market breadth was positive, reflecting appreciation on equity prices.

The All-Share index gained 3,975.64 points to close at 42,898.90 points, from an opening figure of 39,923.26 points, representing a 10.21% growth on a higher volume, which was higher than previous week’s. These transactions were driven by activities especially in financial services and conglomerate sectors. Similarly, market capitalisation for the period closed higher at N14.92tr from the opening value of N13.85tr, representing a 10.21% value gain in investors’ portfolios, with low value stocks topping the advancers’ log.

This was attributed to low valuation and high upside potentials as many stocks are selling below their 2014 prices on the back of the improving numbers emanating from these quoted companies. During the week also, first and second tier banking stocks recorded strong growth before panic selling set in with traders and investors cashing out gains from the market on Friday.
The week’s bullish sentiment was as a result of early positioning by all class of market players in the low, medium and high cap stocks ahead of the earnings season which impacted positively on the NSE ASI’s year-to-date return to 12.17%. Market capitalisation for the period grew by N1.54tr, representing a 12.17% gain from the year’s opening value.

Market breadth for the week was also positive with the advancers’ outweighing decliners in the ratio of 70:6 on a huge volume of trades to sustain two weeks of bull market.

International markets were mixed over the past week, as commodity prices continue to rise, amidst interest rate hike in U.S as government is moving forward to cut taxes, giving that the economy and the stock market have been looking up since the incumbent President came on board. Europe and Asia’s economic growth in the global movement in 2018 is also of major concern as fund managers are moving seriously into emerging and Fortier markets with high potential of return despite the associated risks.

Back home, the composite index NSEASI opened the week on a positive note, gaining 2.38% to consolidate the previous trading session’s up market, which was sustained on the second trading day with a 1.29% notch. This uptrend continued at the mid-week and Thursday with the index gaining a robust 3.60% and 2.93% respectively, but the market gave up on Friday, when the NSE ASI lost 0.33%. This was due to profit booking and panic selling which slashed the week gains to 10.21%.
The benchmark index and all sectoral indices closed higher in the period, except for NSE AseM that was flat.

Market transactions for the week, in terms of volume and value were up by 44.40% and 266.67% respectively to 5.02bn shares worth N68.97bn from the previous week’s 2.42bn units valued at N18.81bn.
The best performing stocks for the week were Honeywell Flour and Skye Bank which gained 39.68% and 37.70% respectively to close at N3.52 and N0.84 per share, due to their low price attractions and earnings report expectation for Honeywell, while Skye Bank’s was due to bullish sentiments in the market and it sector.
The worst performing equity for the period was GSK, which lost 2.71% to close at N21.50 on profit taking; followed by Dangote Sugar 2.65% slide on profit taking to close at N21.27.

Market Outlook
Expect profit taking and volatility to continue in the midst of panic selling and repositioning ahead of earnings reporting season, as more companies notify the exchange of their closed period and board meetings to approve full-year and quarterly earnings reports.
This week, expect the National Bureau of Statistics (NBS) to release Nigeria’s December inflation, as well as transport fare, labour and petroleum products pricing data for same period. Flour Mills right issue kicks off on Monday, just as the NSE management is billed to review of 2017 and outlook for 2018.

However, we would like to reiterate that investors should go for equities with intrinsic value, especially during this season when 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 pick 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
www.investdataonline.com

INVESTDATA PRICE & EARNINGS TRACKING FOR JANUARY 12, 2018

https://investdataltd..com.ng/2018/01/investdata-price-earnings-tracking-for_15.html

Drop In Money Flow May Sustain Volatility, Profit Taking, Amidst Repositioning For Earnings Season


Market Update for January 15

It was another interesting trading session on the Nigerian Stock Exchange (NSE) on Monday. Not only was it mixed to start the week, the session was action-packed until the very last minute, when it turned from deep red to green as closing gong sounded, with the composite NSE All-Share index very firm, just as the technicals finished positive. Market breadth was however flat to reverse the previous d
ay’s negative close arising from bouts of profit taking and panic selling by investors and traders.

The session started with the index going south pre-opening, a situation that was sustained during the mid-morning as the benchmark index tested a low of 42,262.82 before starting a rebound that reduced the loss momentum at midday. It finally crossed to the green side in the afternoon session to retrace up, touching intraday highs of 43,119.44 basis points, and stayed ramped up all the way into the close. The recovery was supported appreciation in the share prices of blue chip stocks during the session.
Buying pressure stood at 100%, just as Volume index for the day’s total transactions was 1.17 points, while market breadth was at par as mentioned earlier.

The NSE’s acclaim as one of the best performing market in the world since 2017, second among emerging markets and currently the year’s best is one factor that will continue to attract attention of international fund managers and portfolio investors, who are keenly observing developments in Africa’s biggest economy. This is especially as its economy is out of recession and strongly on the path of recovery and growth, a situation that continues to be supported by the sustained intervention in the foreign exchange market by the Central Bank of Nigeria (CBN) since April 2017 through the creation of an Investors and Exporters’ Window, helping to sustain the confidence of foreign investors and in the process supporting the relative stability of the Naira against major currencies so far. Add these to the upswing in the price of crude oil above $70 and the equally stable output arising from peace in the nation’s Niger-Delta region, a guarantee of that there would be funds to execute the 2018 budget now before the National Assembly. Both the rising oil price and production output are a plus for Nigeria’s economy; as they give support the nation’s external reserves thereby further boosting confidence in its capacity to meet maturing forex obligations. Inflow into the market continued on Monday, despite the profit booking going on in the market, with foreign investors scooping 14.85m units of Inte
rnational Brewery at N62 per shares to increase their stake in the company.

Meanwhile, the NSE’s benchmark index gained 220.10 points to close at 43,119.00 after opening at 42,898.90, representing a growth of 0.51% on huge traded volume that was lower than previous levels. Similarly, market capitalisation for the day was up by N78.85bn, close at N15.45tr, from an opening value of N14.92tr which also represented 0.51% value gain.
The day’s upturn was driven by appreciation recorded by high cap stocks like Zenith Bank, PZ Cussons, Dangote Cement, Nigerian Breweries, FBNH, GTBANK and International Brewery. All of these impacted positively on the NSE’s Year-to-Date returns, pushing it to 12.75%, just as market capitalisation gained N1.84 trillion year-to-date, representing 13.5% growth from its opening value.
Just like the All-Share Index, the sectorial indices closed higher, except for the NSE Insurance, NSE Consumer, NSE Oil/Gas, NSE Industrial and NSE Lotus, while the NSE AseM continues to remain unchanged. Market breadth for day was at equilibrium with the advancers and decliners were in the ratio of 26:26, to halt the previous day bear market.

Market activities in volume and value terms for the day were down by 47.44% and 55.63% respectively, as investors traded 730.62m shares worth N6.3bn, compared to previous day’s 1.39bn units valued at N14.2bn. Transaction volume for the day was significantly boosted by transactions in financial services and conglomerate sectors, as trading was heavy in Transcorp, Diamond Bank, FCMB, Fidelity Bank and Access Bank that topped the activity chart as most traded by volume.

Best performing stocks at the end of the day were FCMB and Skye Bank that topped the advancers’ log with gain of 9.84% and 8.33% respectively to close at N2.79 and N0.91 each. The gains were propelled by positive market sentiments, while Eterna and UBN led the decliners’ table after shedding 6.82% and 5.00% at N6.15 and N7.98 respectively, resulting purely from profit taking activities.

TODAY OUTLOOK

As trading opens for Tuesday, we expect a mix of volatility, profit taking and repositioning for earnings reporting season as quarterly and full year score-cards of companies are expected to continue. The candlestick pattern at the end of Monday’s trading is very dicey for those seeking to conclude whether the bull is really back or not, since the energy in money flow index is slowing down. MACD crossover is still bullish. as inflation figure for December is expected to be release by NBS any moment from today
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/drop-money-flow-may-sustain-volatility-profit-taking-amidst-repositioning-earnings-season/

Ex U.S Commodities Commission Boss To Speak Thursday On Derivatives Trading At NSE

As part of strategic initiatives to enhance the efficiency of capital market operations in Nigeria, former Chair of the US Commodities Futures Trading Commission (US CFTC), James Stone, will deliver a special lecture on the ‘Pluses and Pitfalls of Derivatives Trading’ jointly organised by the Nigerian Stock Exchange and Coronation Merchant Bank, at the NSE on Thursday January 18, 2018.
The initiative, which is a component of the NSE’s international stakeholders’ engagement strategy that commenced four years ago, will also see Mr. Stone – a former lecturer in Economics at Harvard University and the former Commissioner of Insurance, Massachusetts – interact with leadership of the Lagos bourse and leading figures in Nigeria’s capital market.

Commenting, Oscar Onyema, CEO of the Nigerian Stock Exchange said, “having Mr. Stone, a fellow of the American Society of Arts and Sciences, who was appointed by President Jimmy Carter as Chairman of the Commodity Futures Trading Commission (US CFTC), is an amazing opportunity because of the quality of engagement and insight that will be gained from the interaction”.
He added that: “the Nigerian Exchange is committed to building capacity and enhancing the expertise of operators and other associated parties towards collective efficiency. Therefore, the lecture on ‘Pluses and Pitfalls of Derivatives Trading’ to be delivered by Mr. James Stone will provide enriching perspectives and strengthen the capacity of capital market operators, who create value for investors through their operations on the floor of the Nigeria Stock Exchange”.

Likewise, Coronation Merchant Bank Group, a major player on the Nigerian Stock Exchange whose subsidiary Coronation Asset Management recently listed three Mutual Funds on the exchange – Coronation Money Market Fund, Coronation Fixed Income and Coronation Balanced Fund, noted that “a collaborative approach to capacity building will unlock the inherent value on the exchange”.
According to its Managing Director, Abubakar Jimoh “we are excited about our collaboration with the NSE on this noteworthy initiative, which will have positive effects on capital market operations in Nigeria”. “As a wholesale, financial institution focused on transforming the face of merchant banking in Africa, Coronation Merchant Bank is not only open to innovative collaborations that will bring development to the African financial landscape, but will serve as a catalyst for revitalizing capital market operations across the continent”, added Jimoh.

The Commodities Futures Trading Commission is an independent agency of the US government created in 1974 that regulates in futures and option markets. Mr. Stone, the founder and CEO of Boston-based Plymouth Rock Assurance Corporation, and Chief Executive of The Plymouth Rock Company – the holding company- served as its chairman until 1983 following his appointment in 1979 by President Jimmy Carter.
Born in New York City in 1947, Mr. Stone was educated in the public schools of Pelham, New York, and at Harvard University. In 1969, he received his bachelor’s degree, graduating with the Highest Honors in Economics, and was also elected as a member to Phi Beta Kappa. His academic work was recognized with the Allyn Young Prize for the best undergraduate economics thesis, as well as the Goldsmith Prize for best research paper presented to the Graduate School in Economics. Stone later received his Ph.D. in Economics from Harvard in 1973 and was appointed as a lecturer in Economics by the Harvard faculty to teach courses on the economics of securities markets.

http://investdata.com.ng/2018/01/ex-u-s-commodities-commission-boss-speak-thursday-derivatives-trading-nse/

DANGCEM, GTB HIT NEW ALL-TIME HIGHS, AS NIGERIA’S MARKET BREAKS INTO 5-YEAR RESISTANCE LEVEL

MARKET UPDATE FOR JANUARY 16

Nigeria’s stock market resumed its upswing full-blast on Tuesday after few days of dramatic volatility interesting reactions to the demand and supply pull. The composite index started off with a big gap up that was sustained during the mid-morning into the afternoon session and closed higher, breaking out its five-year resistance level to confirm a new bullish long trend that comes with profit taking here and there till it hits 52,000 mark, to be supported by the oncoming earnings reporting season with strong institutional money flow index turning up again after little slow down as a result of profit booking last Friday. The buying pressure for the rest of Tuesday was extremely sharp at 100% as two highly capitalised stocks: Guaranty Trust Bank and Dangote Cement hit a new all-time high at N51 and N260, just as the NSE Banking index hit new five years highs of 599.28 after touching 601.15 point same day.

The market’s rebound at the beginning of the week follows strong accumulation by smart money as reflected on positive market technical, with volume traded and market breadth remaining strong at 100% positioning and volume index at 1.04 of the day’s total transaction. It was a day of big reversal that consolidated Monday’s move, which looks good.

Funds have continued flowing into Nigeria’s stock market due to its juicy year-to-date return of 15.20%, which is almost at a par with the inflation rate for December 2017 released by the National Bureau of Statistics (NBS) also on Tuesday, showing a drop to 15.37% year-on-year, from 15.90% in November.

Another seeming driver of the latest stock market rally in Nigeria is the low yield on “risk-free” fixed income like Treasury Bills and bonds, which has made otherwise “riskier” but more rewarding asset classes like equities more attractive. This is especially true in the case of shorter maturity as the earnings reporting season beckons for dividend declaration, which would boost yields despite the recent galloping prices. This attractiveness will continue until fixed income yields across the curve tick higher as weekly stock appreciation is above 15%. The New Year’s assets reclassification by fund managers, PFA’s and market operators will support an up market ways through April, with intermittent pullbacks and spikes along the line, due to profit taking and bouts of disappointing numbers, which cannot be ruled out during the earnings season.

Meanwhile, Tuesday’s trading ended with the All Share index gaining 935.72 points to close at 44,054.72 after opening at 43,119.00, representing a growth of 2.17% on high traded volume that was smaller than previous levels. Similarly, market capitalisation for the day rose by N335.22bn, close at N15.78tr, from an opening value of N15.45tr which also represented 2.17% value appreciation.
Value gain across low, medium and high cap stocks impacted positively on the NSE’s YTD returns, pushing it to 15.20%, just as market capitalisation gained N2.17tr, representing 15.97% YTD growth from its opening value.

The benchmark index and all sectorial indices closed in green, except for the NSE Industrial that was 0.41% in red at end of the day. Market breadth was positive and strong with the advancers outnumbering decliners in the ratio of 46:16 to continue the second up market of the week.

Market activities in volume and value terms for the day were mixed as volume was down by 13.3% to 635.4m shares from previous day’s 730.62m shares, while value was up by 21.19% to N7.64bn from Monday’s N6.3bn. Transaction volume for the day was significantly boosted by financial services and conglomerate sectors, as trading was heavy in Access Bank, Transcorp, FBNH, UBA and Fidelity Bank that topped the activity chart as most traded by volume.

FBNH and Sterling Bank topped the advancers’ table for the day with gain of 10.21% and 10.00% respectively to close at N12.85 and N2.20 each. The gains were propelled by positive market forces, while Honeywell and Law Union led the decliners’ table after shedding 5.98% and 4.55% at N3.30 and N0.84 respectively, as a result of profit booking by traders and investors.

TODAY OUTLOOK

We expect volatility, profit taking and repositioning for earnings reporting season as quarterly and full year score-cards of companies are expected to continue, as more positive economic data roll in. The energy behind money flow index has increased, soaring at the end of Tuesday’s trading session to signal that funds are entering the market.

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://investdataltd..com/2018/01/dangcem-gtb-hit-new-all-time-highs-as.html

MARKET UPDATE FOR JANUARY 17, 2018


AHEAD OF EARNINGS SEASON, ROBUST DATA, INVESTORS POSITION IN VALUE STOCKS



Mid-week's trading on the Nigeria Stock Exchange had a bullish outing to extend the rally, despite profit booking by market players to continue its volatility on a huge volume traded. There is also positive sentiments as reflected in the institutional money flow index which continues to look up with stronger energy with the benchmark index heading for a breakout of the 45,000 psychological line to confirm the continuation of its uptrend if market forces remain positive as market opens Thursday morning.



The market closed positive after consolidating the early hour trading run-up, which were much during the afternoon session to close the day. During the session, the market hit an intraday high of 44,901.01 for the first time in the last 5 years from low of 43,956.76.

As the bull rampage continues due to smart money repositioning ahead of earnings season, retail investors and traders should go for value and growth stocks that can support their portfolios when the inevitable wave of correction hits the market, given that the 2017 financial year dividend declaration kicks off very soon.



Market technicals for the day remained positive as many momentum indicators are pointing to a bull market strongly supported by good volume and price performance. The continued improvement in economic data, besides the soaring oil price in the international market and Nigeria's production output have remained a plus for the economy and equity market.

The buying pressure at the end of Wednesday was 98% while selling position was 2% with volume index at 1.58 of the day’s total transaction. The All-Share index gained 830.52 points to close at 44,885.24 after opening at 44,054.72, representing a growth of 1.89% on high traded volume that was higher than previous levels. Similarly, market capitalisation for the day was up by N297.53, closing at N16.08tr, from an opening value of N15.78tr which also represented 1.89% growth in investors position.



The upturn recorded by medium and high cap stocks at the end of the day impacted positively on the NSE’s YTD returns, pushing it to 17.37%, just as market capitalisation gained N2.47tr, representing 18.15% YTD growth from its opening value.

The composite NSEASI and all sectorial indices were higher, except for the NSE Consumer Goods that dropped 0.64% lower, while NSE AseM was flat. Market breadth remained strong and positive with the advancers outnumbering decliners in the ratio of 40:19 to continue the third day of bullish run.



Market activities in volume and value terms for the day were up by 51.20% and 63.96% respectively to 960.75m share worth N12.52bn from the previous day's 635.4m units valued at N7.64bn. Transaction volume for the day was significantly boosted by financial services and conglomerate sectors, as trading was heavy in Transcorp,Sterling Bank, Wema Bank, Diamond Bank and Access Bank that topped the activity chart as most traded by volume.

Best performing stocks' table were topped by CCNN and Diamond Bank, which gained 10.17% and 10.10% respectively to close at N16.14 and N3.16 each. The gains were propelled by positive market sentiments, while National Salt and Cadbury led the worst performing table after losing 4.98% and 4.97% to close at N21.00 and N15.30 respectively, due to profit taking.



TODAY OUTLOOK

We expect profit taking and volatility to continue even as repositioning for quarterly and full year score-cards to hit the market any moment from now as more positive economic data roll in ahead of January's Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting that should hold next week. This is however if the Senate rescinds or suspend its decision not to consider nominations to fill vacant positions by the Executive over its insistence on retaining Ibrahim Magu as chairman of the Economic and Financial Crimes Commission (EFCC), despite his rejection by the lawmakers. The energy behind money flow index has increased without divergence, especially with price and volume looking up.



However, we would like to reiterate that investors should go for equities with intrinsic value, 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-17-2018.html

MARKET UPDATE FOR WEEK ENDED JANUARY 19 AND OUTLOOK FOR JAN 22-26


WHY FUNDAMENTALLY SOUND STOCKS, AMIDST IMMINENT EARNINGS RELEASE, PROFIT TAKING


Equity prices and market indexes continued to galloped higher over the first three trading weeks of the year despite the profit booking and concerns for correction before the 2017 dividend declaration earnings reporting season that will earnestly kick off any moment in February while March year-end account Q3 earnings reports are underway as the first month of 2018 is gradually drawing down. The state of these Q3 numbers will determine if the tested 45,000 psychological line resistance breakout will be sustained or trigger the pullbacks that have been expected from different quarters which they say it will confirm the healthiness of the bullish market. Despite this expected correction, the market had continue to ride on strong wave 3 or 5 extension wave depending on how you are reading the waves with index and volume intact looking up no diversion yet as at last week.

The continued decline of the inflation rate for straight eleven months on the strength of central bank continue intervention in the fx market that had boosted activity in manufacturing sector and agricultural produce long value chain had relatively reduce the hyper movement of farm produces prices and kept prices a beat stable. The relatively low valuations currently in the market despite the ongoing rally was due to strong quarterly numbers that still kept the market P/E ratio below 16.58x that make the market attractive, were many market in Africa and develop markets are having P/E ratios above 20 times of their market earnings. The S&P 500 P/E ratio spiked to 26.17x last week, which is its highest level since the 2007-2008 financial crisis.

The period under review had a strong and positive technicals with high volatility on rallying prices and volume to revealed strong momentum ahead of earnings season expectations irrespective of profit taking and fear of sustainability of the ongoing rally. The weekly buying pressure at 98% and selling volume of 2%, while the period volume index was 2.78 of total transaction. As mentioned earlier, the market index breakout it psychological line of 45,000 point after touching new 52 week highs of 45,162.64 from the low of 42,262.82 basis points. On a positive market breadth that reflects increasing demand for stocks.

The benchmark index gained 2,193.93 points to close at 42,898.90 points, from an opening figure of 42,898.90 points, representing a 5.11% growth on a huge volume, which was marginally higher than previous week’s. These transactions were driven by activities especially in financial services and conglomerate sectors. Similarly, market capitalisation for the period closed higher at N16.15 trillion from the opening value of N14.92 trillion, representing a 5.11% value appreciation in in investors’ portfolios.

The second tier banking stocks during week dominated the topped advancers table as simple triple trading conduction for trading a breakout or uptrend were present with high volatility, rising price and volume occurred as these low cap stocks were rallying. Profit taking at this point is inevitable as prices had rallied high to the level that many company payout for the expected 2017 full year earnings may not support some company’s prices and good dividend yield relative to current prices. But, when compare to other investment window especially the money market remain attractive due to the shorter time advantage of playing dividend income strategy during the earnings season.
The bullish sentiment continue in the week under consideration, as the market indices were hitting new highs due to traders and investors positioning for the expected numbers, with much funds driving low, medium and high cap stocks high which impacted positively on the NSE ASI’s year-to-date return to 17.91%. Market capitalisation for the period grew by N2.84 trillion, representing a 18.70% gain from the year’s opening value.

Market breadth for the week was also positive with the advancers’ outnumbering decliners in the ratio of 40:32 on a huge volume of trades to keep three weeks bull market running.
Stock markets around the world were mixed over the past week, as key influencers like Central banks, oil, crypto-mania, inflation, geopolitical risk which includes North Korea continued threats that had started to shape the global economy outlook in 2018. In the U.S, the gradual rising in inflation, in the mix of Tax cut, high equity valuations and concerns over government shutdown. In addition to recent hike in interest rate, the expected correction since the equity continue new all-time high is inevitable as international funds managers are focusing on emerging and Fortier markets for higher returns despite the risk associated with such returns. In Europe stock markets rose to their highest levels since 2008 amid growing confidence in corporate earnings and the strength of the global economy. In Asia, Japan upgrdaded its assessment of the economy for the first time in seven months amid a rise in consumer spending, its central bank hopes that the increase in spending will translate to a pickup in inflation this year.

Back home, All Share Index opened the week on a positive light, gaining 0.51% to reverse the previous trading session’s down market, which was sustained on the second trading day with a 2.17% notch. This uptrend was consolidated at the third trading day with 1.89% gain but slide down marginally on Thursday with the index losing 0.09% as a result of selling pressure, which rebounded on Friday with 0.55% northward movement, bring the week total gain of 5.11% despite profit taking and panic selling.

The NSE index and all sectoral indices closed in green for the period, except for NSE Consumer Goods that was in red of 1.31% while NSE AseM was flat for the week. the finanical sector topped the index performance chart with 8.50% in just one week
Market activities for the week, in terms of volume and value were down by 0.20% and 33.57% respectively to 5.01 billion shares worth N45.82 billion from the previous week’s 5.02 units valued at N68.97 billion.

At the end of third week trading session of the year, Skye Bank and Unity Bank were the best performing stocks with of gained 53.57% and 48.10% respectively to close at N1.29 and N1.22 per share, due to bullish momentum that is driving both the good and bad, Skye Bank as we speak had not released its 2016 financials not to talk of 2017 quarterly reports to its status, investors should be wary of such investment while Unity Bank is here non there since it share reconstruction that moved it price to N5 but later came back to 0.50 kobo, no dividend all this while despite reducing it share outstanding.

The worst performing equity for the period were Consumer goods due to massive profit taking to dominate the topped decliners, as National Salt lost 13.64% to close at N19.00 on profit taking; followed by AG Levetis 12% slide to close at N0.66, short traders in the stock quickly took profit.

Market Outlook
In this new week, we expect volatility and profit taking to continue in the midst of actual Q3 numbers hitting the market with surprise or disappointing reports. MPC meeting holding this week is still under probability, as the committee members to vote are not compete due to retirement members and newly appointed once are yet to be approved by Senate.
However, we would like to reiterate that investors should go for equities with intrinsic value, especially during this season when 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 pick 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.

UP Coming Seminar, Practical Conference on Technical Analysis for the Novices and Advance Traders. Understanding the momentum behind current equity movement and when to exit using SIMPLE Technical Indicators and Tools to avoid losing capital and profit. Registration is ongoing, Call or text yes to the phone numbers above.

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/fundamentally-sound-stocks-amidst-imminent-earnings-release-profit-taking/

CBN Confirms Suspension Of Jan. MPC Meeting Over Quorum

Insists Nigeria’s Economy Robust, To Maintain Variables

The Central Bank of Nigeria (CBN), on Sunday evening formally confirmed fears of the inability to hold its maiden two-day Monetary Policy Committee (MPC) for the year, which should have opened on Monday, January 22, 2018.
A statement personally signed by CBN Governor and MPC chairman, Godwin Ifeanyi Emefiele, blamed this on the “inability to form a quorum as stipulated in the CBN Act, 2007.”

While assuring that a new meeting time-table will be released in due course, Emefiele said as a consequence, the apex bank shall continue to maintain key monetary policy variables decided at its November 2017.
They include the benchmark Monetary Policy Rate (MPR) of 14%; Cash Reserve Ratio, 30% and Asymmetric corridor at +200 and -500 basis points around the MPR.

He assured that the postponement notwithstanding, Nigeria’s key economic indicators remain as desired, on the back of rising oil prices and domestic production output, just as inflation has fallen to 15.37%.
Foreign reserves, Emefiele continued, rose from $23bn in October 2016 to $40.78bn as at January 18, 2018, even as investor confidence in the country remains strong as reflected in the inflows of about $13bn in a period of nine months since the opening of the Investors’ and Exporters’ Window in April 2017.

“These inflows have boosted FX supply and helped stabilize the exchange rate,” he stressed.
Analysts also link the FX inflow through the I&E window to the robust northward push of the Nigerian Stock Exchange’s Market Capitalisation by 22.3% from N13.21tr on November 30, 2017 to N16.15tr at the close of trading on January 29, 2018. Also, the All-Share index grew 18.18% from 37,944.60 to 45,092.83 basis points within the same period.

The CBN management, he further assured, “is determined to sustain these gains and will continue our vigilance and proactivity to ensure macro-economic stability through 2018.”
A statement by the CBN said the failure to hold the meeting followed the non-confirmation of replacements to fill positions vacated by retiring members including two Deputy Governors- Dr. Sarah Alade, who retired in March and Suleiman Barau, who exited in December, by the nation’s Senate.

Mrs. Alade was Deputy Governor for Economic Policy and Barau in charge of Operations, while Adebayo Adelabu, the Deputy Governor (Corporate Services), has served notice of disengagement ahead of the 2019 governorship election in Oyo State, among others.
This means only five MPC members are left at the moment, one short of the quorum from the 12 members committee as defined by the second schedule of the CBN Act.

https://www.google.com/url?hl=en&q=http://investdata.com.ng/2018/01/cbn-confirms-suspension-jan-mpc-meeting-quorum/&source=gmail&ust=1516730930519000&usg=AFQjCNH6HE7iuPDaCYJGmao5hIbjjTu7Ug

Investdata Price & Earnings Tracking For Week Ended Jan. 19, 2018

http://investdata.com.ng/2018/01/investdata-price-earnings-tracking-week-ended-jan-19-2018/

MARKET UPDATE FOR JANUARY 22, 2018



PROFIT-TAKING, VOLATILITY MAY CONTINUE AMIDST REPOSITIONING FOR QUARTERLY, FULL-YEAR REPORTS


Trading on the Nigeria Stock Exchange (NSE) was once more interesting, mixed and highly volatile at the same time to start the week Monday on negative note, as the market bowed to selling pressure amidst profit talking and stock revaluations to match their fundamental strength after more prices hit their new 52-week high.

Volume was huge, breadth flat, while the composite NSE All-Share index experienced a pullback to close the day. Profit taking among the conglomerate and banking stocks were unprecedented as Transnational Corporation of Nigeria (Transcorp) and some first-tier banking stocks suffered losses.
The day started out with a little pop to the upside, and had a run up which was consolidated midmorning, reaching intraday highs of 45,321.82 around the noon hour, before it pulled back early afternoon to touch a low of 44,748.20, where it held support, and came on strong to close finally at 44,912.53 basis points.

In related news, the International Monetary Fund (IMF) has upgraded global economic outlook and Nigeria’s 2018 GDP growth forecast as exchange rate remains relatively stable in the FX market due to the sustained intervention by the Central Bank of Nigeria (CBN). This has been helped by the rising oil prices and the nation’s oil production output, with the expanding Purchasing Managers Index (PMI) to indicate the increasing economic activity and the continued positive economic data that support growth. The upward review is also despite uncertainties surrounding oil price movement and Nigeria’s political environment, this being pre-election year as politics affect policies, especially against the backdrop of the fire brigade approach of the Nigerian government.

Meanwhile, despite the high selling pressure of 71% and buying position, 29% with volume index at 5.57 of the day’s total transaction that reflected profit booking, institutional money flow index remained strong and looking up to signal that funds are still entering the market regardless of Monday’s pullback. The benchmark index shed 180.30 points to close at 44,912.53 after opening at 45,092.83 representing a decline of 0.40% on huge traded volume higher than Friday levels. Similarly, market capitalisation for the day went down by N64.59bn, closing at N16.09tr, from an opening value of N16.15tr, also representing a 0.40% value loss.

The downturn recorded in low, medium and high cap stocks at the end of the day impacted negatively on the NSE’s YTD returns, reducing it to 17.44%, just as market capitalisation gain for the period dropped to N2.48tr, representing 18.23% YTD growth.
The All Share Index and all sectorial indices closed lower, except for the NSE Insurance and NSE Industrial Goods indexes that closed higher at 0.42% and 0.17% respectively, while the NSE AseM remained flat. Market breadth was flat as decliners equaled advancers in the ratio of 26:26 to halt last Friday bull market.

Market activities in volume and value terms for the day stood at 4.44bn shares worth N15.93bn from previous day's 1.34bn units valued at N12.52bn. Transaction volume for the day was significantly boosted by the conglomerate and financial services sectors, with heavy trading in shares of Transnational Corporation of Nigeria, Wema Bank, Sterling Bank and Diamond Bank that topped the activity chart as most traded by volume.

The best performing equities were Caverton and Wema Bank which topped the advancers table, chalking 9.90% and 9.40% respectively to close at N2.44 and N1.23 each. The gains were propelled by positive market sentiments, while Transcorp and Unilever were the worst performing, after shedding 9.20% and 5.96% to close at N2.27 and N46.20 respectively, while traders and investors took profit.

TODAY OUTLOOK
We expect profit taking and volatility to continue even as repositioning for quarterly and full year score-cards begin to hit the market any moment from now. The energy behind money flow index still strong without divergence yet, despite drop in prices
However, we would like to reiterate that investors should go for equities with intrinsic value, 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 08028164085.

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.
UP Coming Seminar, Practical Conference on Technical Analysis for the Novices and Advance Traders. Understanding the momentum behind current equity movement and when to exit using SIMPLE Technical Indicators and Tools to avoid losing capital and profit. Registration is ongoing, Call or text yes to the phone numbers above.

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-22-2018.html

Nigeria’s Equity Indicators Stay South, Amidst Weak Money Flow, Portfolio Rebalancing Ahead Full-Year Numbers


Market Update for January 23

Equity market on Tuesday recorded a very volatile movement to pullback in consolidation of the previous day’s correction on mixed sentiments and relatively high volume to kick off a wave 4 correction as profit taking persisted, especially in banking, Insurance and industrial goods stocks. In the process, the composite Nigerian Stock Exchange (NSE) All-Share index suffered a heavy downward pull during the trading session. A lot of the stocks in the financial and consumer goods sectors suffered huge losses due to the much envisaged profit takers activities. The day started out with a snap and a thrust to the downside in a morning session, when the index hit a low of 43,720.59 basis points, before reversing to touch high of 44,937.83 between the midday and afternoon, after which there was another pull back before the market closed the day lower at 44,389.85.

Market technicals for the day were mixed and weak, despite the fact that the index remained in the rising channel since it did not breakout the upper line of the channel with huge volume traded at that point. The two-day pullback due to profit booking has signaled a wave 4 correction as mentioned earlier, which may not last long, especially with the earnings reporting season around the corner. It must be noted that investor expectations of these numbers have been priced into stock prices on the exchange, especially judging from the Q3 financials. It is therefore earnings surprises from these companies, particularly those in the banking, industrial and consumer goods sectors that will trigger another uptrend, just as disappointments would likewise lead to further correction in the share prices of the affected stocks.

This is the reason investors should stay with fundamentally sound stocks that have good dividend history and had recorded earnings uptrend in 2017.
Meanwhile, Tuesday’s session closed with a buying pressure of 55% and selling position of 45%, while volume index recorded 0.92 of the day’s total transaction, reflecting mixed sentiments, just as institutional money flow index moved strongly towards the southward direction, a signal that funds are leaving the Nigerian market.

The All Share Index shed 522.68 points to close at 44,3,89.85 basis points after opening at 44,912.53, representing a decline of 1.16% on high traded volume which was however lower than the previous day’s levels. Similarly, market capitalisation for the day lost N187.25bn to close at N15.9tr, after opening at N16.09tr, also representing 1.16% depreciation in investors’ portfolios.

Tuesday’s losses by low, medium and high cap stocks, impacted negatively on the NSE’s Year-To-Date returns, reducing it to 16.07%, just as market capitalisation gain for the period dropped to N2.29tr, representing 16.85% YTD growth.
The NSE’s benchmark Index and all sectorial indices closed in red, except for the NSE Consumer Goods and NSE Oil/Gas indexes that managed to 0.70% and 0.10% green respectively, while the NSE AseM remained flat. Market breadth was negative as decliners outnumbered advancers in the ratio of 43:14 to continue the bearish transition.

Market activities in volume and value terms for the day were down by 83.37% and 51.82% respectively to 737.86m shares worth N7.67bn from previous day’s 4.44bn units valued at N15.93bn. Transaction volume for the day was significantly boosted by stocks in the financial services sector, as Skye Bank, FBNH, Wema Diamond Bank and Transcorp continued to witness heavy trading volume to top the activity chart as most traded. There was also a very heavy demand for shares of Oando Plc, following which it closed on strong bid of about 156m units, as investors continue to interpret the company’s statement on Monday that the technical suspension on its shares as directed by the Securities & Exchange Commission (SEC) could soon be lifted (READ STORY). The calculation is that the accord with one of the two shareholder-petitioners, Alhaji Dahiru Mangal, which was brokered by Emir Muhammadu Sanusi II of Kano, would lead to a rally in its share price once the suspension is lifted by the NSE.

Skye Bank and Caveton topped Tuesday’s advancers table, with 9.91% and 9.84% respectively to close at N1.55 and N2.68 each. Skye Bank’s price continues to be driven by market sentiments, rather than anything fundamental, given that it is yet to present its 2016 audited financials or even the quarterlies for 2017 for review to the market. Fidelity Bank and AG Leventis however suffered the biggest losses for the day, after shedding 9.91% and 9.09% to close at N3.57 and N0.60 respectively, purely on profit taking by the traders and investors.

TODAY OUTLOOK
We expect profit taking and volatility to continue, but there should be no panic for investors who have taken position in value stocks for the expected quarterly and full year score-cards underway. The energy behind money flow index as at yesterday was weak. Portfolio reshuffling on the on the strength of companies fundamentals and payout possibilities.
However, we would like to reiterate that investors should go for equities with intrinsic value, 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 08028164085.
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.

UP Coming Seminar, Practical Conference on Technical Analysis for the Novices and Advance Traders. Understanding the momentum behind current equity movement and when to exit using SIMPLE Technical Indicators and Tools to avoid losing capital and profit. Registration is ongoing, Call or text yes to the phone numbers above.

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/nigerias-equity-indicators-stay-south-amidst-weak-money-flow-portfolio-rebalancing-ahead-full-year-numbers/

Obasanjo Passes No Confidence Vote On Buhari, APC, PDP


Tells President: ‘Don’t Be Deceived That Without You There’ll Be No Nigeria’

Both Buhari, Obasanjo Are Expired Products- Fayose

Ex-President Olusegun Obasanjo came out hard on the President Muhammadu Buhari-led Federal Government, accusing it of dragging Nigeria into mire of poor performance.
This, he wrote in a special press statement on Tuesday, has become visible as Nigerians groan under the weight of “poverty, insecurity, poor economic management, nepotism, gross dereliction of duty, condonation of misdeed – if not outright encouragement of it, lack of progress and hope for the future.”

Others, he continued, while passing a no-confidence vote on the President, the ruling party- the All Progressives Congress and Nigeria’s main opposition- Peoples Democratic Party, include a “lack of national cohesion and poor management of internal political dynamics and widening inequality,” which he stressed “are very much with us today.”

The ex-President while muting the idea that Nigerians go for a third-force to take the nation out of the woods, he expressed strong belief that “God has endowed Nigeria so adequately that no Nigerian should be either in want or in despair. I believe in team work and collaborative efforts.”

For Africa to move forward, he stressed: “Nigeria must be one of the anchor countries, if not the leading anchor country. It means that Nigeria must be good at home to be good outside. No doubt, our situation in the last decade or so had shown that we are not good enough at home; hence we are invariably absent at the table that we should be abroad.
“All these led me to take the unusual step of going against my own political Party, PDP, in the last general election to support the opposite side. I saw that action as the best option for Nigeria. As it has been revealed in the last three years or so, that decision and the subsequent collective decision of Nigerians to vote for a change was the right decision for the nation.”

The decision, he continued, is not personal as it is in the best interest of Nigeria, Africa and humanity at large, lamenting: “The situation that made Nigerians to vote massively to get my brother Jonathan off the horse is playing itself out again. First, I thought I knew the point where President Buhari is weak and I spoke and wrote about it even before Nigerians voted for him and I also did vote for him because at that time it was a matter of “any option but Jonathan” (aobj).

“But my letter to President Jonathan titled: “Before It Is Too Late” was meant for him to act before it was too late. He ignored it and it was too late for him and those who goaded him into ignoring the voice of caution. I know that praise-singers and hired attackers may be raised up against me for verbal or even physical attack but if I can withstand undeserved imprisonment and was ready to shed my blood by standing for Nigeria, I will consider no sacrifice too great to make for the good of Nigeria at any time. No human leader is expected to be personally strong or self-sufficient in all aspects of governance.

“I knew President Buhari before he became President and said that he is weak in the knowledge and understanding of the economy but I thought that he could make use of good Nigerians in that area that could help. Although, I know that you cannot give what you don’t have and that economy does not obey military order. You have to give it what it takes in the short, medium and long-term. Then, it would move. I know his weakness in understanding and playing in the foreign affairs sector and again, there are many Nigerians that could be used in that area as well. They have knowledge and experience that could be deployed for the good of Nigeria.

“There were serious allegations of round-tripping against some inner caucus of the Presidency which would seem to have been condoned. I wonder: If such actions do not amount to corruption and financial crime, then what is it? Culture of condonation and turning blind eye will cover up rather than clean up. And going to justice must be with clean hands.
“I thought President Buhari would fight corruption and insurgency and he must be given some credit for his achievement so far in these two areas although it is not yet uhuru!

“The herdsmen/crop farmers issue is being wittingly or unwittingly allowed to turn sour and messy. It is no credit to the Federal Government that the herdsmen rampage continues with careless abandon and without finding an effective solution to it. And it is a sad symptom of insensitivity and callousness that some governors, a day after 73 victims were being buried in a mass grave in Benue State without condolence, were jubilantly endorsing President Buhari for a second term! The timing was most unfortunate. The issue of herdsmen/crop farmers’ dichotomy should not be left on the political platform of blame game; the Federal Government must take the lead in bringing about solution that protects life and properties of herdsmen and crop farmers alike and for them to live amicably in the same community.”

He frontally accused President Buhari of glaring nepotism and even clannishness in the area of bringing discipline to bear on errant members of his inner circle, with “grave consequences on performance of his government to the detriment of the nation.
“It would appear that national interest was being sacrificed on the altar of nepotic interest.”
For example, he wonders what to “make of a case like that of AbdulRasheed Maina: collusion, condonation, ineptitude, incompetence, dereliction of responsibility or kinship and friendship on the part of those who should have taken visible and deterrent disciplinary action? How many similar cases are buried, ignored or covered up and not yet in the glare of the media and the public?
Besides Buhari’s poor understanding of the dynamics of internal politics, which has made the nation more divided with widening inequality, affecting general national security.

The Buhari government also got a knock over its penchant for passing the buck, like his blaming the Central Bank Governor for devaluation of the naira by 70% or past governments for it, rather than accepting responsibility.
“Let nobody deceive us, economy feeds on politics and because our politics is depressing, our economy is even more depressing today. If things were good, President Buhari would not need to come in.

“He was voted to fix things that were bad and not engage in the blame game. Our Constitution is very clear, one of the cardinal responsibilities of the President is the management of the economy of which the value of the naira forms an integral part. Kinship and friendship that place responsibility for governance in the hands of the unelected can only be deleterious to good government and to the nation,” he stressed.
Sympathising with the president over his health issues, he warned him to neither “over-push his luck nor over-tax the patience and tolerance of Nigerians for him, no matter what his self-serving, so-called advisers, who would claim that they love him more than God loves him and that without him, there would be no Nigeria.”

He called for drastic and positive change, progress and involvement that “will give hope and future to all our youth and dignity and full participation to all our women.
“Our youth should be empowered to deploy their ability to learn, innovate and work energetically at ideas and concepts in which they can make their own original inputs. Youth must be part of the action today and not relegated to leadership of tomorrow which may never come… change that will mean enhancement of living standard and progress for all. A situation where the elected will accountably govern and every Nigerian will have equal opportunity not based on kinship and friendship but based on free citizenship.”

Reacting to Obasanjo’s letter, Governor Ayodele Fayose of Ekiti State twitted on Tuesday evening: “Obasanjo (the accuser) and Buhari (the accused) are both expired people that Nigerians are desirous of getting rid of. They both don’t know when they were born and have outlived their usefulness in the political life of Nigeria.”

http://investdata.com.ng/2018/01/obasanjo-passes-no-confidence-vote-buhari-apc-pdp/

Expect Profit Taking Slowdown, As Volatility, Portfolio Rebalancing Linger Ahead Of Financials


Market Update for January 24

The Nigeria stock market on Wednesday had a down market to continue in its highly volatile and correction mode on a declining volume of trades and losing momentum as the indicators sought support ahead of the coming earnings reporting season.
The resultant panic selling and profit taking is expected to give the market a rally balance after the correction, with wave 4 decline giving rise to 5 extension wave when there is a reversal which we expect the market will do depending on the strength of the expected numbers and payout ratios, relative to the current price of equities on the exchange.

In the early hours of Wednesday’s trading, the index popped to a low of 43,092.87 basis points after losing more than 1000 points between mid-morning and midday, before reducing the losing streak by afternoon when high cap stocks like Dangote Cement, Nigerian Breweries, Nestle and Lafarge Africa inched up in value to save the market from the huge loss of over 2.5% in just one day. The afternoon rally reduced the losing positions of first-tier banking stocks while their second-tier peers finished in high to close the day trading.

Market technicality for the daily was weak despite the increase in buying pressure from 55% in the previous day to 67%, as selling position equally fell to 33% from Tuesday’s 45%. Volume index recorded 0.67 of the day’s total transaction, reflecting improving positive sentiments, irrespective of profit taking activities and institutional money flow index that continued to look down.

Meanwhile, the composite NSE All-Share index shed 426.45 points to close at 43,963.40 basis points after opening at 44,389.85, representing a decline of 0.96% on a relatively high traded volume which was however lower than the previous day’s levels. Similarly, market capitalisation for the day went down by N143.04bn to close at N15.76tr, after opening at N15.9tr, also representing 0.90% value loss in investors’ positions.
The downturn suffered by Unilever, Dangote Sugar, Dangote Flour, Julius Berger, Ecobank Transnational Incorporated, UBN, UBA, Access Bank, Zenith Bank , FBNH and others impacted negatively on the NSE’s Year-To-Date returns, which dropped to 14.96%, just as market capitalisation gain for the period dropped to N2.15tr, representing 15.80% YTD growth.

All Share Index and all sectorial indices closed lower, except for the NSE Consumer Goods, NSE Industrial Goods and NSE Lotus indexes that closed higher with 0.47%, 0.48% and 0.09% respectively, while the NSE AseM remained flat. Market breadth remained negative as decliners outpaced advancers in the ratio of 43:13 to continue the bearish run.

Market activities in volume and value terms for the day were down by 27.30% and 32.44% respectively to 536.43m shares worth N5.18bn from previous day’s 737.86m units valued at N7.67bn. Transaction volume for the day was considerably boosted by stocks in conglomerates and financial services sector, as Transcorp, Skye Bank, FBNH, Unity Bank and FCMB continued to witness increased trading volume to top the activity chart as most traded.

Best performing stocks for the day were May&Baker and Transnationwide Express topped the advancers table, with 4.95% and 4.00% respectively to close at N2.97 and N0.78 each, on market forces. FCMB and Diamond Bank were the worst performing for the day, losing 9.71% and 9.60% to close at N3.07 and N2.92 respectively, due to profit taking from both the banks’ recent rally.

TODAY OUTLOOK

We expect profit taking to start slowing down, while volatility continues due to portfolio reshuffling and repositioning for the expected quarterly and full year reports that is underway, just as the energy behind money flow index remains weak.
However, we would like to reiterate that investors should go for equities with intrinsic value, 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 08028164085.

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.

UPcoming Seminar, Practical Conference on Technical Analysis for the Novices and Advance Traders. Understanding the momentum behind current equity movement and when to exit using SIMPLE Technical Indicators and Tools to avoid losing capital and profit. Registration is ongoing, Call or text yes to the phone numbers above.

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/expect-profit-taking-slowdown-volatility-portfolio-rebalancing-linger-ahead-financials/

Oando Names Bukar Aji, Ex-HoSF, Non-Executive Director


Barely hours after Monday’s announcement of a truce with Alhaji Dahiru Mangal, one of those who petitioned the Securities & Exchange Commission (SEC) against it, alleging various infractions, the board of Oando Plc, on Wednesday, announced the appointment of 58 year-old Alhaji Bukar Goni Aji, former Head of Civil Service of the Federation (HoSF), as a Non-Executive Director.

Oando Plc informed the Nigerian Stock Exchange (NSE) that Emir Muhammadu Sanusi of Kano, had on January 7, brokered a peace deal between the company’s management and Mangal, leading to recognition of the aggrieved shareholder as a majority substantial stakeholder.
Although the Wednesday’s statement signed by Ayotola Jagun, Chief Compliance Officer and Company Secretary, did not say the new board member will represent Mangal, but as part of the deal, it was agreed that the shareholder would present a nominee as non-executive director of Oando.

According to the statement dated January 23, 2018, Alhaji Bukar Aji attended Government College, Maiduguri; Borno College of Basic Studies, Maiduguri as well as the University of Maiduguri, graduating in 1984.
He joined the civil service of today’s Yobe State, becoming Principal Secretary to the Military Administrator of the the State (1992-1993); and Principal Secretary to the first civilian governor of the State in the 3rd Republic and second military administrator of the state from (1993-1995).

In 1995, he was appointed into the Federal Civil Service as Director, Planning, Research and Statistics (PRS) at the Federal Ministry of Women Affairs; from where he transferred to the Federal Ministry of Defence in year 2000 as Director, Personnel Management, heading various departments.

In 2008, Alhaji Goni Aji was posted to the Office of the Secretary to the Government of the Federation as Director, International Organisations and appointed Permanent Secretary of the Ministry of Defence the following year. He also served as PermSec in the Ministries of Police Affairs (August 2009-2010) and Works (September 2011-November 2012); and then Common Services Office, Office of the Head of the Civil Service of the Federation.

He became the 17th HoSF on March 25, 2013 until his retirement on August 18, 2014.
He joins other members of the board led by Oba Gbadebo, Alake of Egbaland, including Ademola Akinrele, Ike Osakwe, Tanimu Yakubu, Chief Sena Anthony; Oghogho Akpata; as well as the management team led by Jubril Adewale Tinubu, such as: Omamofe Boyo, Deputy Group Chief Executive; Bolaji Osunsanya, and Olufemi Adeyemo, GED, Finance.

https://www.google.com/url?hl=en&q=http://investdata.com.ng/2018/01/oando-names-bukar-aji-ex-hosf-58-non-executive-director/&source=gmail&ust=1517175492302000&usg=AFQjCNEeo7SY7ppiTn2H2pDdft6lUbW3BA

Reversal Imminent As Profit Taking Moderates, Portfolio Rebalancing Continues


Market Update for January 25

Nigeria’s stock market on Thursday continued suffered its back-to-back loss for the fourth trading sessions on a very high intraday volatility to reflect the lingering profit booking amid repositioning by smart money and reshuffling of portfolios by investors in preparation for the Q3 and full-year earnings reporting season that is just by the corner. The mixed sentiments at the close of trading indicates a gradual easing of selling pressure as expected dividend paying stocks with strong fundamentals experience reversal after attaining their new support levels, a sign that the current market decline is coming to an end.

This is however with a caveat that the expected 2017 full-year earnings reports beat market expectations, given that the huge robust investors’ outlook has already been factored into equity prices before now.
Furthermore, the ongoing market correction is already revealing buying opportunities as the fundamental strength of these companies support higher payout at full-year, knowing that 80% of the factors that influence stock prices (the market and economic fundamentals, which comes in form of liquidity and positive economic data) are still intact in the Nigerian market. The remaining 20% comes from company fundamental and earnings performance, both of which would become evident soon to trigger an uptrend, should the earnings be surprising and above expectation or appropriate sanctions if such numbers are in the opposite direction.

The NSE Index was resisting a breakdown of its support level at 43,000 basis points and the technicals came back to mixed position for the day, but as trading volume continues to decline daily it is a signal that reversal is imminent.
Thursday’s trading session began with the index dropping pre-opening, it did pop at the opening, before pulling back to test the intraday low of 43,106.26, but when the test was successful, the indices ramped up to a high of 43,995.68, before closing lower at 43,529.06 on a relatively high volume that is marginally above the recent market average traded volume.
The day’s buying pressure was 48% and selling position, 52%. Volume index recorded 0.64 of the day’s total transaction, to reflect the mixed sentiments, despite profit taking activities and institutional money flow index that continued to look down in the same direction with volume.
The Nigerian Stock Exchange (NSE) All-Share index for the day shed 434.34 points to close at 43,529.06 basis points after opening at 43,963.40, representing a decline of 0.99% on a relatively high traded volume which was however marginally lower than the Wednesday ’s. Similarly, market capitalisation for the day lost N155.7bn to close at N15.6tr, after opening at N15.76tr, also representing 0.99% depreciation in investors’ portfolios.

The losses suffered by highly capitalized stocks like Dangote Cement, Lafarge Africa, GTBank, Unilever, Ecobank Transnational Incorporated, Stanbic IBTC, Guinness Nigeria, PZ, Forte Oil, UACN, FCMB and others impacted negatively on the NSE’s Year-To-Date returns, which dropped to 13.82%, just as market capitalisation gain for the period reduced to N1.99tr, representing 14.65% YTD growth.
Just like the benchmark index, all sectorial indices closed in the red, except for the NSE Consumer Goods and NSE Oil/Gas indexes which chalked 0.72% and 0.31% respectively, while the NSE AseM continues to remain flat. Market breadth remained negative as decliners outpaced advancers in the ratio of 30:21 to continue the down market.

Market activities in volume and value terms for the day were mixed as volume was down marginally by 6.63% to 500.85m shares from the previous day’s 536.43m units, while value was up by 27.98% to N6.63bn from N5.18bn on Wednesday. Transaction volume for the day was considerably boosted by stocks in the conglomerates and financial services sector, as Transcorp, Fidelity Bank, Zenith Bank, Access Bank and UBA continued to witness increased trading volume to top the activity chart as most traded.

Dangote Sugar and Africa Prudential topped the advancers table, with 10.16% and 4.24% respectively to close at N22.01 and N4.43 each, on full year expectation and possibility of dividend payout. GSK and Caverton topped the decliners log for the day, losing 9.67% and 9.41% to close at N18.90 and N2.31 respectively, purely on profit taking.

TODAY OUTLOOK

Being the last trading day of the week, we expect profit taking, but on a moderate scale, since the market had been red all week-long, while volatility continues due to portfolio reshuffling and repositioning for the expected quarterly and full year reports that is underway. It is important to note that the candlestick formation at the close yesterday’s trading supports an imminent reversal.
However, we would like to reiterate that investors should go for equities with intrinsic value, 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 08028164085.

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.

UP Coming Seminar, Practical Conference on Technical Analysis for the Novices and Advance Traders. Understanding the momentum behind current equity movement and when to exit using SIMPLE Technical Indicators and Tools to avoid losing capital and profit. Registration is ongoing, Call or text yes to the phone numbers above.

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/reversal-imminent-profit-taking-moderates-portfolio-rebalancing-continues/

What Gives Me Sleepless Nights, By Jim Yong Kim, World Bank President


This year’s World Economic Forum Annual Meeting comes at a time of good news for the world economy. As we said in this month’s Global Economic Prospects report, for the first time since the financial crisis, the World Bank is forecasting that the global economy will be operating at or near full capacity. We anticipate growth in advanced economies to moderate slightly, but growth in emerging markets and developing countries should strengthen to 4.5% this year.
Global growth is good news for the fight to end poverty and boost shared prosperity around the world. But there are a few things we’re seeing that keep me up at night.

First, aspirations are rising all over the world. Nearly everywhere I travel, I see people on smartphones – and thanks to the internet and social media, those people can see how everyone else lives. Our research suggests that as people access the internet, their reference income – the income to which they compare their own – begins to grow, leading to rising aspirations. And internet access is booming. At the end of 2015 in Africa, 226 million smartphones were connected to the internet. By 2020, that number will triple to three quarters of a billion. Some studies estimate that by 2025, eight billion people worldwide will have access to the internet.

Rising aspirations are a good thing for the world.
First: Aspirations, linked with opportunity, can breed dynamism and drive inclusive, sustainable economic growth. But I worry – and studies suggest – that if aspirations are met with frustration, it could lead countries down the path of fragility, conflict, extremism and migration.
Second: Innovation is accelerating and technology is reshaping nearly every aspect of our lives. We see this in our development efforts: we are now using drones to map the Zanzibar Isles to create a digital national property register, and satellite imagery to map power outages for tens of thousands of villages in South Asia. New technologies are giving us more and better data, so we can see what works and scale our efforts around the world.

But technology is also changing the nature of work. We don’t know exactly what the future of work will look like, but we know that automation will replace scores of tasks, which will in turn eliminate many of the less-complex and low-skilled jobs. The remaining jobs, and new ones that will be created, will demand new and more sophisticated skills. Some studies estimate that as many as 65% of primary school children today will work in jobs or fields that don’t exist yet.

A report released last December by the McKinsey Global Institute found that roughly half of all jobs are at risk of being automated – and that’s just with the technologies we have today. As Rob Nail, one of the leading thinkers about technology, told me recently: “Today is the slowest day of innovation we will experience for the rest of our lifetimes.”
Third: While aspirations are rising and technology is changing the nature of work, we are facing a crisis in education. Our World Development Report this year found that more than 250 million children around the world cannot read or write, despite some schooling. Roughly 264 million children worldwide aren’t even enrolled in primary or secondary school.

Countries will not be able to compete in tomorrow’s economy unless they invest much more, and more effectively, in their people – especially in health and education, which build human capital. But the way we finance health and education is broken. Too often, heads of state and finance ministers are willing to invest in their people only through grants or concessional loans. Too many heads of state and finance ministers tell us, “First we’ll grow our economies, then we’ll invest in our people.” We need to change the system and create demand for far greater investment in people.

To help solve this crisis and to help countries prepare for an uncertain future, last autumn we launched the Human Capital Project, an accelerated effort to help countries invest in health and education. We’re working with some of the world’s leading health and education economists to shine a spotlight on how countries invest – and too often, don’t invest enough – in the health and education of young people in order to build the human capital stock of the next generation.

Eventually, the Human Capital Project will include a ranking, which we hope will create much more demand for countries to invest in health and education. The project’s data and analysis will also help us advise countries on where to invest resources for the biggest impact in improving outcomes in health and education.

We’re already seeing some startling findings on education. Examining data from the largest globally comparable database of education quality, which covers more than 90% of the world’s population, we’re quantifying the extent to which the same number of years of schooling leads to massively different learning outcomes in different countries. As our economists put it: the data imply that a year of schooling is worth much more in some countries than in others.

With this new data and analysis, the Human Capital Project will help countries improve their education systems, and we’re doing similar work to improve investments in health.
If we don’t act now, not only will our goals of ending extreme poverty and boosting shared prosperity be out of reach; peace, stability, and prosperity for large parts of the world could also be threatened. If we invest the right resources in people, with the sense of urgency that this crisis requires, we can create equality of opportunity, harness the power of innovation, and come closer to making the global market system work for everyone.

http://investdata.com.ng/2018/01/gives-sleepless-nights-jim-yong-kim-world-bank-president/#more

Utilising The Power of Dividend Growth In Equity Investment


Before now many investors think of dividend paying stocks as boring, offering low return on investment, compared to high flying penny stocks, whose volatility can be pretty exciting, with those who know how to successfully ride on them making a kill.
However, dividend paying companies are usually more mature and predicable, a situation some may consider dull, the combination of a consistent dividend and a rising stock price can offer earnings that are potentially powerful enough to be excited about.
Things to know with regards to dividend growth would include a high dividend yield. Understanding how to estimate dividend paying companies can give some insights into how dividends can boost returns on investment, especially if reinvested.
A common perception is that a high dividend yield indicates that the dividend paid is a fairly high proportion of return on the stock price and the most important measure.

However, yield that is considerably higher than that of other stocks in an industry may indicate not a good dividend but rather a dividend yield that is depressed, which is equal to annual dividends per share divided by share price.
The suffering price, in turn, may signal a dividend cut or worse still the elimination of dividend. The important indication of dividend power is not much a high dividend yield but high company quality and growth which you can discover through its history of dividend payment, which should increase over time. If you are a long term investor, looking out for such companies can be very rewarding.
Dividend payout ratio: This is the proportion of a company’s earnings allocated to paying dividends, which further demonstrates that the source of dividend- the company’s net profit aligns with its growth.

Therefore, if a company keeps a dividend payout ratio constant, say 5% and the company grows, that 5% begins to represent a larger and larger amount. For instance, 5% of N30, which is N1.50 is higher than 5% of N15 which is 75 kobo.
We can demonstrate this with an example. Let’s say you invested N1,000, in AXY Company, buying 10 shares, each at N100 per share. It is a well-managed company that has a price-to-earnings ratio of 10, and dividend payout of 10%, which amounts to a dividend of N1.00 per share. That is decent, but nothing to write home about, since you receive only a miserly 1% of your investment as dividend.

However, because AXY Company is well managed, the company expands steadily and after several years, the share price grew to N200. The payout ratio, however, has remained constant at 10% and so has the price-to-earnings ratio at 10%, therefore you are now receiving 10% of N20 in earnings or N2 per share because earnings is on the increase, even while payout remains unchanged. Since you paid N100 per share, your effective dividend yield is now 2% from the initial 1%.

For years, many investors have been using this dividend focused strategy by buying shares of blue chips companies. In the above example, we showed how lucrative a static dividend payout can be, imagine the earning power of the company that grows so much as to increase its payout.
In all of this, a company’s dividend policy plays an important role because the portion of its earnings that is paid to shareholders is pre-determined and also guides dividend equalization, where a company wants to maintain a steady payout, whether in bad or good times. This can be achieved with the board going into its reserves or retained earnings to make up for shortfalls to shareholders.

The company’s reserves serves as buffer between a certain dividend level and profits recorded. The sums are transferred and stored in a reserve account in good years and then withdrawn therefrom in bad years to sustain the dividend payout history. The same retained earnings can equally be used by the company for expansion purposes without borrowing.
As the New Year kick off with an uptrend market, smart traders and discerning investors should be preparing for the earnings season, and the associated tendency of dividend paying stocks to perform above average in the first quarter of the year. To profit from the potential gains of the earnings reporting season therefore, you should consider buying valued stocks with strong possibility of payout growth, irrespective of the current prices.

What to know when investing in stock market
It is true that to invest successfully and grow wealth in any market across the world, an investor must understand the bigger picture of the economy and stock market dynamics. The top wealthy men of today who made fortunes from equities investment are those that recognize the long-term nature of the stock market and know the appropriate keys with which to play the game profitably. The big picture gives an idea as to how all the facets of the economy work together to influence the share prices of quoted companies.

A booming economy will have a strong and promising stock market which is the leading indicator that reveals the country’s economic prosperity.
An economy consists of the socio-political and economic environments which influence business activities and in turn, drive a nation’s development and growth.

The economy is sub-divided into the market, sectors, industries and then companies. It also has economic cycles that go from boom to gloom. The boom stages are the early, middle and late expansion periods; while the gloomy stages are the early and late periods of contraction.
To be a successful investor, one must identify the stage an economy is, and which sector, industry and company can do well in all these stages by remaining in business and posting good earnings that can support its dividend payout in the future.

One therefore has to look at the nature of the particular company’s products and services, and try to determine whether demand for them are inelastic in nature such that a price increase will not have much effect on the demand for them. Is the company with a clear and simple business model that one understands? And lastly, is there a good management team with a succession plan in place?

Other factors used in identifying quality companies are consistent earnings growth, a profit margin that is above 10%, low debt, improved cash flow and good dividend payout ratio. This suggests that planning one’s financial freedom through equity investment is very possible if you buy the right stocks as you plan towards your retirement.

The 10 stocks selected below have shown strength in their earnings power on quarterly/yearly basis, recording consistent growth in dividend payout. Also, the nature of their products or services and business models support future performance.
In choosing any company, ensure it shows qualities that are consistent with the factors mentioned above to be considered. Also, select profitable and defensive stocks that meet your investment goals, because your objective helps you to plan your trading or investment.
For your retirement stocks pick, trading and investing for long term, sign up for Investdata buy and sell signal setup by calling 08028164085 and 0811181223.

When to buy and when to sell using Technical Analysis
To make real money in the stock market you don’t need to know why a stock price rises or falls, you just need to know two things: When to buy and when to sell. If you can quantitatively measure the buying and selling pressure of a stock, then you will know in advance whether the price of a stock is likely to go up or down. And you will then know if you should take a buy or sell position.
In other words, if you take a reading of the buying and selling pressure for a stock, you can successfully assess whether the price is likely to go up or down. There are numerous ways to measure the buying and selling pressure of a stock.

We want to teach you several methods. That way you can use all of them, or just work with the methods you are most comfortable. Remember, comfort and ease are what Investdata aims for and which our Buy and Sell Signal Setup offers subscribers
The best way to measure buying and selling pressure is to track the daily price movement of a stock. If the movement is increasing, then the buying is exceeding selling pressure and the stock is signaling ‘BUY’. On the contrary, should the daily price be on the decline, then the selling is exceeding buying pressure and the stock is said to be displaying a ‘SELL signal.

http://investdata.com.ng/2018/01/utilising-power-dividend-growth-equity-investment/#more

FG Investigating 200 Firms, Individuals, Officials Over Tax Frauds, Forgeries- Minister


“Take Advantage of VAIDS, Regularise Your Profile Before Deadline”

Photo Caption: Permanent Secretary in Nigeria’s Finance Ministry, Dr. Mahmud Isa-Dutse; Finance Minister, Mrs. Kemi Adeosun and the Queen of Netherlands, Her Majesty, Zorreguieta Cerruiti, during the recent visit of the Queen to the Ministry in Abuja.

Barely two months to the end of the March 31, 2018 grace period for update of tax records, under its Voluntary Assets and Income Declaration Scheme (VAIDS), the Federal Government said it is already investigating over 200 cases of under declaration by taxpayers and demand for gratifications by tax officials.

The VAID is part of government’s efforts to raise the country’s abysmally low Tax-to-GDP ratio said to be one of the lowest across the world at a time the administration seeks to reduce over dependence on oil revenue.
A statement by Oluyinka Akintunde, Special assistant, Media to the Finance Minister, Mrs. Kemi Adeosun, in a statement, on Sunday said the government through the Finance Ministry has also began the process of ridding the nation’s tax administration and revenue collection system of dishonest operatives.

Mrs. Adeosun, while presiding over the meeting of the Whistleblower Unit in the Ministry and the Presidential Initiative on Continuous Audit (PICA), noted “cases of procurement of tax clearance certificates with no corresponding records or assessments in the tax offices. In such cases, although payments have been made but there are no underlying assessment. So automatically, we will flag such companies for investigation.

“The data analysis being undertaken within the Federal Ministry of Finance is readily exposing those who have obtained tax clearance certificates that are either forged or are not consistent with their true income levels.”
While warning against relying on such documents, the Minister advised those who have procured such tax certificates in the past to take advantage of the VAIDS to regularise their profile ahead of the deadline.

Sanitizing the tax administration and revenue collection system, she stressed, is part of the government’s efforts at enhancing the willingness of citizens to pay their taxes, confirming that the Ministry had secured the suspension of two senior Tax Officials in Delta and Benue States, following verified tips from Whistle-blowers.

According to her, “the Ministry is currently analysing over 200 additional whistleblowing tips including recordings between tax officials and potential taxpayers in which various practices, designed to reduce tax payable, were detailed.
“These practices include demands for personal gratification by tax officers, promises to procure backdated tax clearance certificates, and offers to conspire to reduce taxes payable,” she added.

To deal with the influx of whistleblowing tips, the Minister has directed the reorganization of the Whistleblower Unit to fast track reports relating to those in the revenue generating agencies.
“Encouraging our citizens to pay taxes is a matter of law but it is also a matter of trust. Those who work in our tax offices must therefore demonstrate the highest level of integrity.

“The Administration of President Muhammadu Buhari understands that to reduce our reliance on oil means every citizen must pay their taxes as and when due.

“However, people will not be encouraged to pay if they believe that those involved in the assessment are not transparent or are dishonest. We will continue to sanitise the system and also improve our controls,” the Minister stated.
She assured that the Ministry would continue to root out fraudsters from compromising the integrity of the tax administration and revenue collection system.

She lauded members of the public for volunteering valuable information including voice recordings and other evidence to the Whistleblower Unit in the Ministry.
The Minister further enjoined members of the public to desist from the procuring tax certificates that are inconsistent with their true income.

http://investdata.com.ng/2018/01/fg-investigating-200-firms-individuals-officials-tax-frauds-forgeries-minister/#more

China Harbour Arrives Benin To Commence Gelegele Seaport Project


Officials of China Habour Engineering Company (CHEC) Ltd. Arrived Benin City on Tuesday to commence preliminary development for the construction of Gelegele Seaport, following the signing of a Memorandum of Understanding (MoU) between the Edo State Government and the company in China three weeks ago.

The Executive Director of CHEC, Mr Jason Wang, led the team of engineers to begin the execution of the project with the development of a masterplan for the project, feasibility study and an in-depth assessment of the Gelegele Seaport Report submitted by the Engr. Greg Ero-led Technical Committee on the Actualisation of the seaport, to the state government.

CHEC Ltd is the most renowned marine engineering and port development company famous for the construction of over 90% of the seaports in China, having over 90 branches and operating in about 100 countries across the world.
The company, according to a statement by the statement government commenced operations in 1994 and is handling various projects in Nigeria, including the Calabar, Warri ports and most recently, the $1bn Lekki Deep Seaport.

During the meeting with Governor Obaseki and other senior officials of the Edo State Government, Wang explained that apart from the Gelegele Seaport, his company will also carry out other infrastructural projects including access roads and rail projects as well as the dredging of 35 nautical miles of the seaport.
Responding, Governor Godwin Obaseki, welcomed the members of the CHEC team and stressed that the speedy implementation of the MoU shows the commitment of both parties to the actualisation of the project.

“We signed the agreement exactly 21 days ago and our Chinese partners are here today to commence preliminary work on the project. This shows the seriousness of both China Harbour Engineering Company Ltd., and Edo State Government. It also shows that we have chosen the right partners. 90 percent of the ports in China were built by this company.

“In terms of experience, there are not many companies in the world that can match CHEC. The governor stressed that another unique advantage of the partnership is that the Chinese company will help to raise the financing as they have done for many other projects in Nigeria, including the $1bn Lekki Deep Seaport that they have helped to finance at an interest rate of 2.5 percent with facility from the China EXIM Bank.

“We are excited to be working with people like you. Under this project, we want to build road and rail access. We want to use this access to build a toll road from Benin to Okpella. You have taken the project very seriously and we want to assure you that we have the political will to execute this project,” Obaseki said.

The governor hinted that the Minister of Transport, Rotimi Amaechi, has assured that all the approvals needed for the project will be given at the federal level.

http://investdata.com.ng/2018/01/china-harbour-arrives-benin-commence-gelegele-seaport-project/#more

Africa Must Prioritise Its Youth, Economy, Infrastructure, Says Elumelu


Promoter of the Africapitalism ideology and Chairman, United Bank for Africa Tony Elumelu, on Thursday spoke of the need for the continent’s leaders to change her narrative, drawing attention to the myriad of opportunities inherent therein.

Speaking on the CNN’s programme hosted by Richard Quest aired on the sideline of the ongoing World Economic Forum in Davos, Switzerland, Elumelu said: “The time has come for us to prioritise our young ones, who are the future of this great continent. These are the men and women who are energetic in Africa and who can perform wonders if the enabling environment is there.

“We need to get it right with infrastructure in Africa and with the macro-economic policies and environment. And the good thing is that things are gradually falling in place. I think Africa promises good investment opportunities, the problem has always been creating the right environment for it, and this should be our major focus.” Elumelu stressed.

Continuing, he said Africa’s economic transformation and stimulation, which he described as paramount, if the continent is to take its rightful position as a strong regional player in the international community, should be the focus of all governments and global institutions given its numerous investment opportunities.


Elumelu, who is the Founder of the Tony Elumelu Foundation, said the time had come for governments on the continent to put things in place to ensure that the continent which has great potential, lives up to it; adding that already, there are signals of the greatness all around.
He cited the example of Zimbabwe, whose government and people have in recent times made concerted efforts to change the narrative, expressing optimism “about what is happening in Africa right now, because our leaders are getting it right and in fact what has happened in Zimbabwe is also an indicator of great things to come. The fact that they on their own decided to sort things out the way they did, is a new kind of democracy that the world needs to learn from. “There is so much private global capital looking for the right destination, they can go to Zimbabwe as in other African nations, once the right environment is put in place.”

While calling for an end to the blame game which previously obtained in the continent, Elumelu called for increasing support from the private sector as well as key stakeholders to make Africa and African self-sufficient.

Shedding more light on this, he said: “We can’t keep talking about missed opportunities. What I keep saying to people is to put an end to the blame game. Let’s begin to fix what needs fixing and get things right. Our government should get it right, the private sector should come forward and we need to support the young African entrepreneurs; create economic hope and opportunities for them.

“We need to think of how to engage Africa in the 21st century because it is no longer about giving grants and aid to Africa, it is more about engaging them in a way that creates self-sufficiency; independence; and reduces the perpetual syndrome of dependence.
“There is promise; it is getting better because the way this year has started in Nigeria for instance, we have seen market indicators showing good promise, so we are optimistic that it will be better year. The Key is to prioritise things that are important to us to help the continent to grow,” he stressed.

http://investdata.com.ng/2018/01/africa-must-prioritise-youth-economy-infrastructure-says-elumelu/

Elumelu Seeks More Multilateral Supports For Entrepreneurship in Africa


Tony Elumelu, chairman of United Bank for Africa Plc and Founder, Tony Elumelu Foundation (TEF), on Wednesday urged global organisations and multinational institutions to support Africa’s much-needed growth, which would ultimately have positive affect on the world.
Speaking on the side-lines of the ongoing 2018 World Economic Forum (WEF) in Davos, Switzerland, he said organisations must come together to provide solutions to key challenges negatively impacting African economies.
These, he continued should come in areas of infrastructure, particularly power supply, which remains a major issue that African economies are grappling with.

Speaking specifically on power supply on the continent, he said, “Under the Obama administration the Power Plan programme was initiated, which helped in a number of ways. However, now, we have a number of investors, like the Transcorp Power Plc, that is working hard to improve power in the continent in the 21st century. The truth is we have a new crop of investors who know and realise that it is important to have access to power to grow the continent, and our governments have keyed into this.

“To this end, we would also continue to need support from World Bank, AFdB, and other organisations to support with the huge capital that is needed to boost that sector. We could also do with the support of America, because if we improve access to electricity in Africa, it would help the world in a variety of ways.” While noting that the private sector needs to get more involved, he cited the example of the achievements of the TEF over the past few years, which he said has begun to bear fruits, adding “We are beginning to see signs of the great things that these people are doing and they are making us proud. We have helped them realise their dreams and they are doing well.”

He used the opportunity to commend organisations that have keyed into the TEF’s vision of empowering 10,000 African youths such as the International Red Cross Society, which according to him, has helped to create more opportunities for more Africans to benefit from the TEF’s entrepreneurship programmes.

“We have seen that our interventions of 1,000 beneficiaries every year cannot be enough, in the first year, for instance, we had about 20,000 applications, we selected only 1,000; by the second year, it rose to 40,000 where another 1,000 was selected; last year, which was the third, we had 98,000 and we again selected 1000. It has become imperative to create more opportunities and to engage with our friends and partners and those who love Africa and who believe in this form of development that is truly sustainable.

“So we reached out and I am happy that Red Cross came through and they have committed $1m, so now, we would not just be talking about 1,000 entrepreneurs, but now, it would be 1,200 entrepreneurs. Thanks to Red Cross for the additional 200.”
He explained that the additional $1m fund they are bringing to the table is for the Niger-Delta region, covering the Ogoni part, and the North-Eastern Nigeria plagued by the Boko Haram insurgence.

“This kind of intervention, is what we need to develop Africa. We want to help to support the African youth, to support and prioritise them at a forum like this for global leaders. To let them know that Africa needs a new form of support, not necessarily hand-outs but support hat can empower. We need people to team up with us to support these youth,” he added.

http://investdata.com.ng/2018/01/elumelu-seeks-multilateral-supports-entrepreneurship-africa/

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Buhari Seeks Common African Position On Asset Recovery


• To Lead AU Anti-Corruption Fight

Photo Caption: President Buhari being congratulated by fellow African heads of government after his appointment in Addis Ababa on Sunday.

Nigeria’s President Muhammadu Buhari, on Sunday challenged leaders of African nations to develop a common position for the continent on recovery of public assets.

Buhari, who was reacting to his appointment at the ongoin African Union (AU) Summit in Addis Ababa, to champion the 2018 theme: “A Sustainable Path to Africa’s Transformation,” dedicated to the fight against endemic corruption on the Continent,” pledged to do his utmost in the anti-corruption agenda “and make the impact we all hope for, during 2018 and beyond.

He lamented that the manifestation of corruption across the continent “is also a reflection of the need for stronger leadership and oversight institutions. Tackling corrupt acts and greed require a reorientation of our attitudes and perceptions.”

Calling for a change of mindset to win the fight, he spoke of the need for “retraining a greater awareness as a means to instill better and more transparent values in the political class and the citizenry, especially people in positions of trust.”

Nigeria, he continued has gone far into the implementation of the change agenda primarily aimed at fighting corruption, warning beforehand “that fighting corruption is not going to be a straightforward task and that corruption does fight back.

Corruption, he noted, “is indeed one of the greatest evils of our time. Corruption rewards those who do not play by the rules and also creates a system of distortion and diversion thereby destroying all efforts at constructive, just and fair governance.

“In tackling corruption, the Continent has made significant strides, putting in place legal and policy frameworks, notably the African Union Convention on Preventing and Combating Corruption (AUCPCC). However, the adoption of the legal and policy frameworks have not had the desired success in tackling this evil.”

After 15 years post-adoption of the African Union Convention, Buhari added that
“2018 provides a good starting point to take stock of progress made so far, assess what still needs to be done and devise new strategies to address new corruption challenges.

“It is true that our continent has witnessed sustained growth over the past two decades. Nonetheless, public confidence has been eroded by a focus on short-term priorities and payoffs, propelled by corruption, which too often leaves projects uncompleted and promises unfulfilled.”
Corruption, he continued, poses real threat to national security, unity and survival of the African State and people, he stressed, adding that “the African Union Agenda 2063, under Aspiration 3 recognizes that corruption erodes the development of a universal culture of good governance, democratic values, gender equality, respect for human rights, justice and the rule of the law.”

“While we may face some setbacks, we should remain resolute. Our common goal is to eradicate corruption in the best interest of our societies,” he stressed, expressing appreciation for the commitment, encouragement and support of fellow African Heads of State, a necessity for success in the task.

http://investdata.com.ng/2018/01/buhari-seeks-common-african-position-asset-recovery/

At 11% Of GDP, Nigeria’s Capital Market Highly Under-developed, Says PwC


• Sustaining ongoing Reforms Key To Enhancing Confidence

PriceWaterhouseCoopers, an international firm of external auditors, consultants and advisors, last week hinted of a dire need to significantly develop and increase the depth of the Nigerian capital market, measured as a percentage of its gross domestic products (GDP).

In the January 22, 2018 edition of its publication Nigeria Economic Alert, titled “External Debt Issuance: Towards Capital Market Development,” co-authored by Andrew S. Nevin (PhD) and Adedayo Akinbiyi, PwC noted that Nigeria’s capital market is just 11% of its GDP , which is significantly below the world average of 98.5% in 2016, outperforming fellow African nation- Egypt’s 9%.
According to the report, Nigeria’s came far behind South Africa’s capital market at 334% of its GDP; which was far better than 136% for India; 63% for China; and Russia’s 49%.

Responding to a mail by Investdata at the weekend, Dr. Nevin explained further that in terms of total market capitalization to GDP, the depth of Nigeria’s capital market is still shallow, which translates to the fact that it is still “way behind!”
Developing the capital market is not however the result of wishful thinking according the report, as it requires improvements in demand and supply “which involves the creation of investable assets and securing a large universe of stable domestic and foreign investors that want to buy Nigeria assets.”

The report noted the discernible offshore interest in Naira assets, judging from the bond yields and the stock market rally, leading to its attracting foreign portfolio investments of $6.8bn as at Q3, 2017, as against $3.5bn in the corresponding period of 2016.
“There are investors who are comfortable with Nigeria risk, but not necessarily with Naira risk. By issuing external bonds, Nigeria attracts this class of investors, further increasing investor confidence and expanding Nigeria’s investor base,” the report added.
The analysts urged the Federal Government do all that is possible to sustain the tempo of investor confidence Nigeria is currently enjoying.
One of way doing this, PwC said is for the Federal Government not to falter on key reforms.

These include the ongoing efforts to increase tax revenues and improve the ease of doing business, given the growing appetite for sovereign and corporate bonds, maintaining ongoing business environment reforms, which noted, is crucial.
Such increase in revenue and sustained reforms, it continued, are crucial for attracting investment amidst the moderate debt sustainability risks.

While short-term borrowing can help bridge fiscal deficit, Nigeria’s tax revenues must increase, they noted, at a time Nigeria spent an estimated 44.6% of its revenue on debt servicing, a situation that is not sustainable in the medium term.
“The implication of such a high level of borrowing is evident in increasing interest rates, which crowds out the private sector’s access to credit

http://investdata.com.ng/2018/01/11-gdp-nigerias-capital-market-highly-developed-says-pwc/