ABC Strategies that will help you SURVIVE a Bearish market

With the recent deepen downturn in market and feedback regarding how to cope under such conditions, there is the need to discuss how to cope in a bearish condition (Market wide decline in stock prices). Hence we will be looking at 3 strategies for achieving that.

1. Don't be emotional
As an Investors you should try to always separate their emotions from the investment decision-making process. So, it is strictly recommended that you base your decision on facts and figures that affect stocks prices not the way you feel or emotional attachment to a particular stock. I have been a victim on several occasions.

2. Diversification
Having a percentage of your portfolio spread among stocks, bonds, cash and alternative assets is the core of diversification. How you slice up your portfolio depends on your risk tolerance, time horizon, goals, etc. Every investor's situation is different. A proper asset allocation strategy will allow you to avoid the potentially negative effects resulting from placing all your eggs in one basket.

3. Invest Only What You Can Afford to Lose
Investing is important, but so is eating and keeping a roof over your head. It's unwise to take short-term funds and invest them in stocks. Remember, bear markets, and even minor corrections, can be extremely destructive.

On a general note, please see a bearish Market as an opportunity to acquire undervalued stocks. *Warren Buffet also saw it in this light. According to him, a bear markets is a buying opportunities because the valuations of good companies get hammered down along with the poor companies.*

Happy Trading
Ambrose Omordion

PS: The current position of the market is not a new one. As a matter of fact, you cannot control the current market. What you can control is your response.

Subscribe Now by calling* 08028164085,08032055467 or send an email to ambroseconsultants@yahoo.com

Investdata Academy
https://investdataltd..com/2018/06/abc-strategies-that-will-help-you.html

WHY TECHNICAL ANALYSIS?




When it comes to investing in stocks, it is important that investor is able to conduct thorough analysis of his/her choice equity. Beyond analyst recommendations having a personal check on true price pattern is indeed very crucial for any serious investor.

Two major models for following the equities market are the.Fundametal Analysis which bordered more on getting to the main reason behind price movements and the Technical Analysis which deals strictly with price patterns as dictated by traders action on the floor of the exxhange.

You will agree with me that, it is better to tread the path dictated by many investors patronising the market than relying solely on.your own perceived impact of a particular fundamental news. Two heads they say, is better than one, now tell me what happen when you.have free access to the idea of all traders in the market on a daily basis. That is what TA offers its users. At the end.of every trading day, you open your chart, see the general judgement of traders, link it with past trading patterns and take informed investment decision.

Although TA do not guarantee a 100% accuracy just like no model will, it helps investora anticipate the future. Please dont forget that having the idea if future possibilities place anyman at an advantage position above peers.

Are you willing to take several advantage of market fluctuations to enrich your portfolios? What you need is the basic understanding od technical analysis charting tools. It remains your sure guarantee to winning trades.

For short course in Technical Analysis of the equities market plus charting tools fully converted to an end of day Nigerian equities, call Segun on 08098865598, 08037155684. Thank you
[6/7, 09:40] Investdata 2: What is averaging down?

Averaging down refers to the purchase of additional units of stock already held by an investor after the price has dropped. Averaging down results in a decrease of the average price at which the investor purchased the stock.

Averaging down allows investors to lower their cost basis in a stock, thus reducing the amount the stock must rise in order to show a positive return. However, if the stock continues to fall,losses of such an investor will be greater since more shares are now owned.

For the purpose of illustration let us use Wapco as an example
Suppose an investor holds 100 shares of Wapco stock that was purchased at say #60.00 per share for a total sum of #6000.00. Following a market price drop to #35.00 per share, the investor purchase 100 additional share of Wapco for a total sum of #3500.00.
This results in an average price of (6000 + 3500)/200 shares = #47.50 per share, lowering the original cost per share by #12.50 i.e (60-35)/2.

Investdata Academy
https://investdataltd..com/2018/06/mutual-fund.html

Investdata Daily Sentiment Reports

NSEASI buy 10% sell 90% volume index 0.85 MFI 34.24
Access buy 80% sell 20% volume index 4.40 MFI 32.32
Aiico buy � volume index 1.61 MFI 76.99
CIleasing buy 57% sell 43% MFI 84.55
Dangote Cement buy 0% MFI 43.77
Dangote flour buy � MFI 37.92
Diamond buy 0% MFI 25.65
ETI buy 80% sell 20% volume index 1.83 MFI 37.86
Fbnh buy � volume index 0.75 MFI 33.48
Fcmb buy 0% volume index 1.19 MFI 27.66
Fidelity buy 0% MFI 67.29
FO buy 0% volume index 1.19 MFI 30.63
GT buy 20% sell 80% MFI 36.29
Japaul buy 0% volume index 0.71 MFI 52.08
Mben buy 0% volume index 0.75 MFI 76.96
Oando buy � MFI 46.96
Regalins buy � volume index 0.70 MFI 41.34
Skye buy 0% MFI 36.13
Transcorp buy 29% sell 71% volume index 1.89 MFI 20.67
Uba buy 67% sell 33% MFI 75.07
Ubn buy � MFI 76.66
Ucap 0% MFI 52.76
Unitybank buy 0% volume index 1.47 MFI 39.71
Wema buy 0% MFI 96.73
Zenith buy � volume index 1.47 MFI 39.40

http://investdataltd..com/2018/07/investdata-daily-sentiment-reports_12.html

NOMINAL TRANSFER EXPOUND

Nominal transfer is the transfer of unlisted public securities between a transferor and transferee who are related or connected parties with no exchange of money or consideration for the transfer. It could also be a transfer from one nominal to another, resulting in a debit on one nominal and a credit on the other.
Nominal transfer can be used for transferring assets that have been accidentally posted to wrong nominal, or for posting double-sided journals between nominals.

For the more understanding of the NSE new rules regarding the nominal transfer, we hereby highlight some of the terms used in it.
Transferor: Is the person or corporate entity with title or ownership in the unlisted public securities to be transfer red.
Transferee: Is the person or corporate entity to whom title or ownership in the unlisted public securities is to be transferred.
Settlor: Is the person who creates the trust by placing a certain asset that he/she owns into the trust for the benefit of a third party.
The trustee: Is the person who holds the assets for the benefit of the beneficiary.

The beneficiary: Is the third party for whose benefit and profit the trust asset is held and managed by the trustee.
Indemnity: Is a contractual obligation of one party(indemnitor) to compensate the loss occurred to the other party(indemnitee) due to the act of the indemnitor.

Investdata Academy
http://investdataltd..com/2018/07/nominal-transfer.html

Is this important to You?

It is very common and natural that we avoid or runway from pain or events that are not favorable. However, pain is definitely unavoidable sometimes.

Depending on your response to the pain of an event, pain are structures that helps us build our confidence in life. So that we can always see obstacle as stepping stone.

When golf was first introduced, the terrain was very flat and it made the game straight forward and uninteresting so after a while bumps, sands, high level ground, sand etc where all introduced to make it more intriguing. This is no different from our experience in life.

Similarly, when Dangote started out, he lost in many businesses. However, he never gave up or dread obstacle but see it as a stepping stone.

Like me, all the knowledge I acquired today was as a result of painful experience. That is, if the market had not crashed in 2008 I would not have been in the level I am today.

Hence, I want to advice you not to see the current result in the market as bear market which is gradually recovering but as an opportunity to buy stocks that are undervalued but have very strong figures of bouncing back as soon as the market corrects itself.

However, the question is how go about it? you may not really follow my advice because you don't know what to do or You probably, lack the knowledge and besides you cannot succeed on your own because man by nature is a Social Animal and besides it is cheaper and less stressful to learn from other people's experience.

As a result, I have decided to organize a seminar that will help you safeguard the remaining part of the 2018. Commonly, you may decide to sit down on the fence and blame the current market which is out of your control or you can get your phone now and call 08028164085,08032055467 or send an email to ambroseconsultants@yahoo.com to register for the seminar Theme: Comprehensive Stock Trading & Investing Toolbox for the Rest of 2018 if you are really serious about growing your investment portfolio.

Happy Trading,
Ambrose Omordion

PS: So, to seize the initiative and opportunity for the remaining part of the year, action is very key. If you acquire all the knowledge in the world without putting it into practice then, you are not different from someone who does not know at all. However, I know that you really want to take the action but you don't know where to start from. No time to check time. Get started by registering for my Lagos Seminar call 08028164085,08032055467 Now!!!

http://investdataltd..com/2018/07/is-this-important-to-you.html

Real Estate! Very secure and guaranteed,

A Real Estate Company has a investment scheme that pays 20% in 30 working days!

This is definitely the best investment for you.

Your 100k will yield 20k every 30 working days.

Its a Real Estate Company that owns and manages known Estates on the Island of Lagos. Real office and address, staff and all.

They own and manages landed properties worth billions and so there's no fear of them absconding with investors money as they cannot carry their landed properties on their head to abscond.



for more info, Company name and address,
Call: 07013510007

Thanks.

Investors Await Q2 Earnings Reports, As Market Searches For Direction


Market Update for July 10, 2018

Tuesday’s trading on the floor of the Nigerian Stock Exchange was difficult and volatile, as shown in the market breadth and up/down volume that was mostly negative. Activities opened on the downside, a situation that was sustained until the closing gong as the benchmark All-Share index breaking down the recent strong support level of 37,451.08 on a low volume traded.
Within the session, the NSE ASI made an intraday low of 37,422.84 basis points, from its high of 37,647.93bps, as it closed below opening figure, after highly capitalized stocks suffered losses due to the sustained economic slowdown that is further worsened by insecurity across the country, which is likely to affect the farm outputs. There is the possibility of this reversing the gains recorded over the past 16 consecutive months in inflation as it declined, because of the farmers-herdsmen crisis, leading to food shortages in the system.
The situation is made worse by the fact that government is gradually shifting to politics ahead of 2019 general elections, the first set of which holds in February (Presidential election). This is already causing fear among investors who are becoming careful as they trade with cautious, notwithstanding the onset of the Q2 earnings season that kicks off expectedly, next week. But then, this weekend’s gubernatorial election in Ekiti, followed by that of neighbouring Osun before year end, is bound to set the tone for what to expect next year. It is a straight battle between the ruling Peoples Democratic Party, led by the incumbent Deputy Governor Olusola Eleka, backed by his boss, Governor Ayodele Fayose and Kayode Fayemi, who is seeking a return to a position in left after a single four-year term in 2014. Until now, Feyemi was Minister Of Solid Minerals Development.
Tuesday’s market technicals were negative with low traded volume in the midst of negative market breadth and sentiments, as revealed by Investdata’s Daily Sentiment Report showing a ‘selling’ pressure of 100% and ‘buy’ position for the day was 0% on a volume index of 0.63 of the day’s total transactions.
Impetus behind the market performance for the day were weak as reflected on the money flow index at 34.29 points, up from the previous day’s 33.77 points, an indication that funds are still in the market, but very low due to cautious trading as traders and investors maintain their wait-and-see attitude. The old economy stocks which are blue chips will bounce back, moreover new economy stocks that are growth equities should start outperforming the general market as technology and innovation are driving perception and performance.

Index and Market Cap

At the close of trading, the benchmark index shed 225.09 basis points, closing at 37,651.89bps, after opening at 37,651.89bps, representing a 0.60% decline, just as market capitalisation lost N82.2bn to close at N13.56tr, from an opening value of N13.64tr, also representing 0.60% value loss to further again deepen investors negative position.
If you are haven’t joined Investdata Buy & Sell Signal setup, where you can look over our shoulder and follow to know when to hold cash and take advantage of the watchlist of stocks for different investment purposes that you may position in, as the market oscillate. To register and become a member send Yes or stocks to the phones numbers below. Our watch list has increased due to the prolonged correction before now, take advantage of this service to buy right and sell right.
The day’s downturn was due to price decline generally, particularly in stocks like Nigeria Breweries, Total, Guaranty Trust Bank, Zenith Bank, Seplat, Lafarge Africa, , Dangote Sugar, Flourmills, ETI and Honey well. These impacted negatively on the NSE’s Year-to-Date return, to deepen the loss position to 2.15%, while market capitalisation loss stood at N5370 billion, same as 0.39% below the year’s opening value.

Bearish Sector Performance
It was a bloody session as sectorial performance indexes all closed red. The NSE Oil/Gas and Insurance took the lead with 2.55% and 2.23% loss. Market breadth was negative as decliners outnumbered advancers in the ratio of 27:12 to reverse Monday up market.
Market activities were up in volume and value by 37.4% and 88.86% respectively at 213.2m shares worth N3.76bn, from the previous day’s 155.17m units valued at N1.99bn. Volume was boosted by trading in financial services and conglomerates stocks like Zenith Bank, FBNH, Transcorp, GTBank and Sovereign Trust Insurance that witnessed increased trading to top the activity chart.
Forte Oil and Custodian Investment Plc were the best performing stocks that topped the advancers’ table after chalking 9.94% and 9.4% respectively to close at N29.85 and N5.70 each, due to their low-price attraction and expectation of interim of dividend.
On the flip side, Mutual Benefits and Multiverse were the worst performing, losing 9.09% each to close at N0.40 and N0.20 on market forces and profit booking.

Market Outlook

Reversal imminent as Q2 earnings season kicks off any moment from now, since equities remain undervalued with higher yields. Investors should review their position in line with their investment goals and take action as events unfolds in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value, especially during this season were Q2 interim dividend payment are expected in the market arena very soon.
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.


Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/2018/07/investors-await-q2-earnings-reports-market-searches-direction/#more

C&I Leasing Buys Out Minority Shareholders Of Petrotech JV


In the aftermath of its successful held N7bn bond issue, the board of C&I Leasing, on Thursday said it has concluded the buyout of the 27.5% minority stake in a Joint Venture- C&I Petrotech Marine Limited.
This, the company told the Nigerian Stock Exchange (NSE), transforms Petrotech Marine, which has six vessels presently deployed to a long-term contract with Shell Petroleum Development Company (SPDC), to a wholly owned subsidiary.

The N7bn bond issue is the first of a N20bn debt issuance progamme which it said would be used largely to invest in business expansion and restructuring of its debts over a five-year period, among others. The overall objective of this and other initiatives, the company continued, is to guarantee increased profit margins and returns on investment to shareholders, just as it is evidence of the company’s commitment to investing in its business growth and expansion.

The statement by Mbanugo Udenze & Co, its company secretary, quoted Andrew Otike-Odibi, managing director of C&I Leasing as recalling that the company’s forage into the nation’s maritime sector as a service provider for oil and gas operators started 10 years ago “through the C&I Petroteh Marine Joint Venture in 2010.”
Over the years, this and other strategic initiative, Otike-Odibi continued has resulted C&I Leasing’s ownership of over 20 vessels, “consisting of crew boats, pilot boats, tug boats, patrol boats and platform support vessels for providing services such as line and hose handling, berthing and escort services, mooring support, fire-fighting, pollution control, security and floating and self-elevating platforms.”

This level of investment, he continued, “clearly reiterates our commitment to growing our marine service business and gaining leadership in the field,” expressing hopes that the buyout will further the company’s drive to restructure and reposition its marine business for enhance profitability.

https://investdata.com.ng/2018/07/ci-leasing-buys-out-minority-shareholders-of-petrotech-jv/#more

Investdata Weekly Sentiment Reports

NSEASI buy 50% sell 50% MFI 42.87
Access buy 50% sell 50% volume index 1.67 MFI 38.16
Afrprud buy 0% MFI 87.69
Aiico buy 40% sell 60% MFI 47.76
Cadbury buy 0% MFI 8.35
Caverton buy 47% sell 53% MFI 28.68
CCNN buy � MFI 28.62
CIleasing buy � MFI 68.56
Custodian buy 54% sell 46% MFI 35.31
Dangote Cement buy � volume index 1.06 MFI 41.07
Dangote flour buy 0% MFI 24.08
Dangote sugar buy 33% sell 67% volume index 1.52 MFI 59.96
Diamond buy 14% sell 86% MFI 46.08
Equity buy � volume index 1.58 MFI 34.87
Eterna buy 0% MFI 66.80
Fbnh buy 50% sell 50% MFI 40.53
Fcmb buy 33% sell 67% MFI 88.66
Fidelity buy 0% MFI 44.46
Fidson buy � MFI 93.82
Fmn buy 0% volume index 0.73 MFI 23.13
FO buy 32% sell 68% volume index 1.69 MFI 54.93
Glaxo buy 0% MFI 44.78
GT buy 21% sell 79% MFI 39.18
Hony flour buy 39% sell 61% MFI 50.82
Jaiz buy � MFI 43.50
Japaul buy 0% MFI 52.10
JBerger buy 0% volume index 1.43 MFI 74.76
Lvstk buy 17% sell 83% MFI 31.89
M&B buy 0% MFI 28.71
Mben buy 0% MFI 31.15
Mobil buy 0% MFI 47.61
Nahco buy 0% volume index 1.48 MFI 49.40
Nascon buy 12% sell 88% MFI 47.10
Nestle buy � MFI 78.49
Oando buy 25% sell 75% MFI 66.26
Regalins buy � MFI 24.11
Royalex buy � MFI 48.67
Seplat buy � volume index 1.32 MFI 10.58
Skye buy 9% MFI 53.19
Sovereins buy 43% sell 57% volume index 0.98 MFI 70.88
Sterling buy 85% sell 15% MFI 35.62
Total buy 0% volume index 3.11 MFI 7.65
Transcorp buy 22% sell 78% MFI 24.83
Uacn buy 20% sell 80% MFI 4.50
Uba buy 0% MFI 42.79
Ubn buy � MFI 36.53
Ucap buy 38% sell 62% MFI 76.84
Unilever buy � volume index 2.67 MFI 65.59
Vitafoam buy 100 volume index 1.77 MFI 52.51
Wapco buy 88% sell 12% volume index 0.94 MFI 51.58
Wema buy 0% MFI 35.01
Zenith buy 5% sell 95% volume index 0.93 MFI 38.70

http://investdataltd..com/2018/07/investdata-weekly-sentiment-reports.html

NAHCo Aviance: Time To Match Liabilities, Income Growth


Company: NAHCo Aviance Plc
Rating: Buy
Current Market Price at Earnings Release: N3.92
Intrinsic Value: N7.88
Latest Cash Div: N0.25
By: Jeariogbe Tunde Segun (Equity Analyst)

Key Financial Tickers
• This report observed both the full year financial performance indices of the company, formerly known as Nigerian Aviation Handling Co. (NAHCO) for the year ended December 2017 and first quarter 2018 statistics
• As at the end of the 2017 activities, the following own more than 5% of the company’s shares:
 Rosehill Group Ltd (9.52%)
 Sycor Private Investment Limited (8.93%)
 Air France (5.81%)
 Lufthansa Commercial Holding GmBH (6.00%)
 AWHUA Resources Limited (7.13%)
• Finance cost was observed to have dropped in the current year by 60.92% to N213.06 million as against the N545.29 million of 2016
• Finance costs comprised of interest expenses on borrowings. Effective June 2016, Tranche 2 bond was restructured to enable half-yearly liquidation of principal and interest renegotiated to 15.75% per annum.


Corporate Figures
• The Turnover value reported for the year ended 31st December, 2017 is mildly below that of comparable year. A total of N7.926 billion was reported as Turnover value, which is 0.39% below the N2.930 billion reported in 2016.
• Due to lower income from its fixed income investment and higher administrative expenses, compared to the previous year’s, while operating profit stood at 46.92% below the reported amount in 2016
• Profit before Tax also stemmed below that of 2016 at N600 million, as against N909 million earned in 2016
• Nevertheless, the amount reported as Profit for the year stood at 33.59% above last year’s profit, with N775 million reported as profit, as against the N580 million of 2016
• Retained Earnings improved to N4.171 billion, compared to the N3.748 billion in 2016
• Non-Current Assets notched 1.21% over the comparable year. Please note that current value is N6.879 billion as against N6.796 billion
• Meanwhile Current Assets stood at 7.79% below that of 2016
• Total Liabilities stood at 12.59% below 2016 liabilities.
• The current value reported as Net Assets is 6.59% above the N6.352 billion posted in 2016 financials.


Liquidity/Risk Ratios
• Although the estimated Debt to Equity ratio is below the industry average, the 12.26% estimate is still within acceptable range
• Also, estimated current ratio is above unity at 1.34x as against the industry average of 2.79x. The theoretical implication of this is that the company will be able to swiftly service its current liabilities as and when due
• At 0.71 beta value, Nahco is less patronized by the investing public, and could be said to be less volatile than most industrial peers
• The company’s ability to service its interest-bearing liabilities is tested by checking the interest coverage at 5.57x, far below industry average, implying that the company can service its liabilities 5.57x.
• In our opinion, this should be well managed while much caution is put in place to ensure liabilities are not built without corresponding growth in income


Profitability Ratios
• Cost of Sales margin is currently estimated at 70.74%, slightly below the 70.96% estimated last year.
• Profit before Tax margin is same as 7.57%, this is 33.78% below the 11.43% estimated in the 2016 financials
• The amount reported as Profit for the period is 34.11% above the previous year margin
• Return on Average equity is currently estimated at 11.46%, compared to the 9.14% estimated in 2016
• Return achieved on Average Assets is now 6.33% against the previous 4.60%.


Efficiency Ratios
• Testing the management’s efficiency, the Asset Turnover was gauged, which showed that the Ratio improved marginally by 2.64% from 62.98% to 64.64%.
• Also tested was the Equity Turnover, which currently stands at 117.06%, as against the 125.26% estimated in 2016.
• In other words, the equity was multiplied 1.81 times through the 2017 financial activities, compared to the 1.99 times in 2016.
• See below for further efficiency ratios.


Investment Ratios
• Following same trend as in the earnings, the amount earned per unit of Nacho Aviance (EPS) improved outstandingly by 33.59% from N0.36 to N0.48
• Due to the difference in market price between the two financial years compared in this analysis, the current Earnings Yield stood below estimated yield in the previous year. as shown in the table below, the current yield is 11.94% as against 16.18%
• Price Earnings ratio (PE/Ratio) confirmed marginal investors’ preference for Nahco Aviance’s share as it moved from 6.18x to 8.37x
• Two ratios confirming an underpriced position of each shares of Nahco on the floor of the Exchange are the Price to Book Value (P/BV) and the Book Value (BV). Since P/BV stood below one (1) it implies that each unit is in theory, mildly underpriced. Confirming this further is the estimated BV of N4.17 as against the market price of N4.00 (as at the released of the current full year result).


First Quarter 2018 Financial Indices
• Put side by side, the first three months of 2018 was far more bullish than that of 2017
 Turnover: improved by 22.54% to N2.188 billion, as against the ₦1.786 billion posted in Q1 2017,
 Profit before Tax galloped over that of 2017, moving to N1.026 billion from N117.405 billion
 Similarly, Profit after Tax moved to N1.026 billion from N97.566 million
• Total Assets grew mildly by 1.10% from N12.70 billion to N12.842 billion.
• Total Liability dropped against corresponding year by 5.90% to N5.973 billion from N6.348 billion.
• Net Assets posted for the period is now N6.868 billion, this is 8.11% above the previous N6.353 billion.
• On the strength of the above mentioned
 Earnings per share for the reported three months is estimated at 7 kobo, compared to the 0.001k earned in Q1-2017
 The said earnings is a yield of 1.70% over the current market price as at the released date of the financials
 Book Value increased to N4.65 above the N4.30 achieved at the end of Q1-2017.

Valuation
• Our blend of valuation model do not agreed fully with the overpriced state of Nahco Aviance share price as established by the Book Value and the Price to Book Value estimated from the full year 2017 financial performance. We have valued each unit of Nahco Aviance’s share price for N7.88 each.

https://investdata.com.ng/2018/07/nahco-aviance-time-to-match-liabilities-income-growth/

CAPITAL GAINS AND LOSSES

A capital gain is the amount by which an asset's (stock, bonds, real estate etc) selling price exceeds its initial purchase price. Conversely, capital loss arises if the proceeds from the sale of an asset is less than the purchase price.
Capital gains are of 2 types namely realized capital gains and unrealized capital gains.
Realized capital gain is the gain made on an investment that has been sold for a profit while unrealized capital gain is the gain on an investment that has not been sold yet but can make profit if sold later.
Unrealized gains or losses are referred to as paper gains or paper losses as they reflect an increase or decrease in an investment's value. For example
Case 1 capital gain:
Suppose an investor purchased 200 units of stock at # 100.00 each totaling #20000.00. After a period of say 6 months, if he sells these shares for #150.00 each, it would result in a profit of #10000.00. This amount is called capital gain.
Case 2 capital loss:
If after a 6-month period, the investor sells these shares for #80.00 each, realizing #16000.00, thus suffering a loss of #4000.00. This amount he suffers is what is called a capital loss.

Investdata Academy
http://investdataltd..com/2018/07/capital-gains-and-losses.html

The Fixedincome Securities as at July 18, 2018

Bond market

The Debt Management Office (DMO) has released the Quarter 3 2018 FGN Bond Calendar. The volume on offer is higher as against Quarter 2 calendar, especially on the 10-yr FGN bond.

The secondary market FGN bond yield dipped across tradable benchmark bonds. Market was bullish for medium maturities especially for FGN 2026 & 2028 maturities.


Treasury bills.

The bullish sentiment persisted on the 3rd day running across the benchmark securities. Investor demand was notable on the short to medium maturities as rate dipped by 40bps on the average.At the Primary Market Auction, the DMO sold a total of N107.04bn for

the 91,182 and 364day . The stop rates for the 91, 182 and 364-day bills were 10.00%, 10.50% & 11.49%

respectively. The Primary market auction result is expected to influence market activities in the secondary today. OMO maturities of N430.18bn expected to hit the banking system today as investors will reinvest maturities from repayments.We expect CBN to conduct OMO to mop up excess Liquidity from system.


Interbank

The interbank rate decreased despite Liquidity in the system .The overnight and Open Buy-Back rates closed at 5.67% and 6.67%.The total volume of Omo Auction which will be mopped up by the CBN will determine the direction of money market rate.

The Naira remained relatively stable, with the Interbank rate closing at N305.85/$

http://investdataltd..com/2018/07/the-fixedincome-securities-as-at-july.html

Unilever Nigeria Nets N5.7bn Q2 Profit, After 324.89% Finance Income Growth


Consumer and household goods conglomerate, Unilever Nigeria, on Friday gave its shareholders reasons to cheer, going by the half-year financial score-card presented to the Nigerian Stock Exchange (NSE), showing that profit before and after tax grew at a faster rate than sales revenue. This was despite the 31.65% rise in marketing and administrative expenses and was helped by the significant 324.89% growth in finance income for the period, among others.

Turnover from sales rose to N48.125bn from N42.629bn in the corresponding period of 2017, cost of sales jumped 11.75% to N32.802bn, compared to N29.353bn; resulting in gross profit of N15.322bn, which was 15.41% better than the prior half-year’s N13.275bn.

Selling & distribution expense climbed 12.92% up to N2.083bn from N1.845bn; just as marketing and administrative expenses stood at N7.029bn from N5.339bn; following which operating profit rose marginally to N6.209bn from N6.091bn.

There was an almost even contribution from its food products, as well as the home and personal care operating segments. While food products yielded N18.249bn and N2.612bn revenue and operating profit respectively, the home and personal products pooled N24.379bn and N3.49bn respectively.
A further breakdown showed that in the six-month period, sales revenue was concentrated in the domestic environment at N46.755bn, compared to N41.868bn in 2017, while export revenue stood at N1.369bn, almost double the N761.159m of 2017.

Finance income rose to N1.505bn from N354.4m, helped by the N1.45bn interest on call deposits and bank accounts, up from N342.508m.
Finance cost fell significantly from N1.63bn to N169.42m, which was mainly the due from the interest cost on defined benefit plans of N118.737m, down from N161.057m. This was also helped by the nil interest on intercompany loan and exchange loss difference on bank accounts, which stood at N681.845m and N314.757m respectively in the prior Q2.

Profit before tax ballooned to N7.545bn, which was 56.7% up from N4.815bn. Profit after tax at N5.719bn rose from N3.676bn, or 55.54%, representing Earnings Per Share of 100 kobo, up from 97 kobo.

https://investdata.com.ng/2018/07/unilever-nigeria-nets-n5-7bn-q2-profit-after-324-89-finance-income-growth/#more

Dangote Cement invests $3bn On Pan-Africa Operations, Targets Two New Lines

Group Chief Executive Officer of Dangote Cement, Joseph Makoju says the company has so far invested $3bn to build manufacturing plants and import/grinding terminals as part of its Pan-Africa diversification strategy.
Makoju, who addressed a conference call on Friday, following the release of the group’s half year 2018 result, listed such investments as the 1.5Mta clinker grinding plants each in Cameroon; Congo, Ghana (import), Zambia and Senegal.

Others include the 2.5Mta plant in Ethiopia, Sierra Leone (0.7Mta import), South Africa (2.8Mta) and Tanzania (3.0Mta).
Commenting on the group’s future growth plans, he spoke of a renewed “focus on building new grinding plants along the coast of West Africa, and ensure we have clinker export facilities in Nigeria. We are looking at the possibility of two new lines in Nigeria, perhaps by the end of 2020 and its likely these will be in Edo state and Obajana, with a combined capacity of 6Mta”

On the second quarter performance score-card, Makoju, explained that while total Nigeria sales volumes went up by 13.9% to 7.8Mt, the Pan-African volumes dropped by 3.9 per cent, mainly due to the shut-down in Tanzania.
In all, he assured the analysts: “Our first-half performance was very strong and driven by an excellent recovery in Nigeria, where our sales volumes increased by nearly 14% and revenues rose by more than 18%. Pan-African operations saw a slight fall in volumes but both revenues and EBITDA increased because of better pricing and currency conversion effects.

“In addition, we achieved the largest-ever issuance of Commercial Paper by a Nigerian company when we issued ₦50B Series 1 & 2 Notes at the end of June, with a discount rate that reflected the strength of our company and its excellent credit ratings.
“Of course, our strong performance has been overshadowed by the tragic and heartbreaking events in Ethiopia. I would like to pay tribute to my colleagues Deep Kamra, Beakal Alelign and Tsegaye Gidey and offer our sincere condolences to their families,” he added.

Explaining the rationale behind the success recorded in revenue, he said “… the increase was helped by our decision to increase our use of local coal in Nigeria and that also helped to improve our fuel security, maintain production uptime and it reduced our need for foreign currency. We source coal from our parent company, Dangote Industries and from another Nigerian supplier, and we are very happy with the way this has worked out for us because it has enabled us to phase out the use of expensive low pour fuel oil in our kilns and also to reduce our use of imported coal”

A statement by the company recalled its Chairman, Alhaji Aliko Dangote, as telling shareholders during the company’s recently concluded annual general meeting (AGM), that the 31% increase in the company’s revenue of N805.6bn, for the 2017 financial year, is attributable to its pan African operations growth which also recorded a significant increase in revenue from N195bn to N258.4bn in 2017.

According to him: “Pan African operations increased volumes by 8.4%, with Ethiopia, Senegal, Cameroon and South Africa all performing strongly and close to their operating capacity.”
Noting that the company experienced some challenges in operating in sub-Saharan Africa, Dangote said the management responded in robust fashion and benefited from “…the diversity we have created across our business and because of our local knowledge and attitudes towards doing business in neighboring countries in Africa.”

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https://investdata.com.ng/2018/07/dangote-cement-invests-3bn-on-pan-africa-operations-targets-two-new-lines/#more

Caution Still, As Earnings Season Peaks, Investors Look To Expected Economic Data

Market Update for Week Ended July 20 and Outlook for July 23-27
The continued selloff on the Nigerian Stock Exchange continued for the third successive week in this second half of 2018, reflecting the continued cautious trading even at the peak of the Q2 earnings season which is being fueled substantially by uncertainties surrounding the 2019 general elections.

The Q2 numbers released so far has been mixed with the figures released by the likes of Transnational Corporation of Nigeria, Ecobank Transnational Incorporated, Wema Bank and Unilever beating expectations. Others came below market estimates, as they were poor, even as they revealed the negative impact of the economic slowdown in the first half of 2018.
We believe investors had significantly priced the various earnings expectation into trading decisions made in the period, leading up to the earnings season. This may have accounted for the somewhat muted impact on market performance as capital outflows and reversed the high investment inflows in the late 2017 and early 2018 as a result of profit taking and correction.

Already, going by data by the National Bureau of Statistics (NBS), inflation has continued to decline more rapidly than expected, as it moved closer still to the single digit target. The NBSe is expected to publish its June inflation data on Monday, July 23, 2018, which may follow the same pattern as in the past 16 months. Based on this reality, we expect that the Central Bank of Nigeria (CBN), during its two-day Monetary Policy Committee (MPC) meeting, beginning on Monday, we expect that based on emerging realities, the benchmark Monetary Policy Rate (MPR) would be slashed by 100bps to 13.00% in this or next meeting and definitely during this third quarter.
We are quick to note however, that there are significant risks that the MPC committee members will not make any rate cuts given its concerns about inflationary pressures from fiscal and electioneering spending.

Back to the market, in the period under view, the NSE’s market sentiment, technical, fundamental and bottom line were mixed, with selling pressure at 76% while buying position stood at 24%, due to players reaction to recent earnings released so far to market and expected economic reports, considering the low valuation of stocks while some were selling at loss for safety.

However, the downturn recorded, reflected marginally on the money flow index slight down to 42.69 points from the previous week’s 42.87 points, a sign that funds are still leaving some stocks and the general market, notwithstanding the weak liquidity level currently. As a result, the NSE index for the period remained above its 100-Day Moving Average, while trading below its 50-DMA for the fifth week to resist decline last Friday.

Equity Indicators Last Week
For three straight weeks in July, the benchmark NSE All-Share index suffered a decline, shedding 789.33basis points to close at 36,603.44 basis points, after opening at 37,392.77bps, representing a 2.11% decline on a high transaction volume to breakdown another psychological line of 37,000 mark, compared to the previous week’s. The volume index of total transactions for the period was 0.72. Similarly, market capitalisation for the week closed at N13.26tr from the opening value of N13.55tr, representing a 2.11% value loss as all classes of stocks depreciated in their stocks price.

During the period under review, low cap stocks topped the advancers table as market players await Q2 numbers to reposition their portfolios, using the support and resistance levels.
The decline in stock prices for the period despite the seeming rebound on Friday reflected on the NSEASI’s year to date returns, which dropped farther to 4.29% negative returns, just as market capitalisation remain in negative at N321.56bn, representing 2.45% below the year opening value.

Negative Market Breadth

The number of decliners for the week surpassed advancers in the ratio of 59:16 to record a negative market breadth as hot money continued to exit the market ahead of the 2019 general elections and the accompanying uncertainties, despite MPC meeting kicking off today. Investors’ fears and the dwindling confidence level in the whole system continue to trigger cautious trading, making many investors sit on the fence.
The NSE Index started the week on a negative note which lasted till Thursday, before turning positive on Friday after notching 0.38% that reduced the loss momentum of the index for the period to 2.11% from previous week’s 0.62%.

Sectoral indices for the period were in red as the general market, except for the NSE Insurance that closed green at 0.08%, while other indexes were red.
Market activities were mixed for the week as volume traded was up by 36.99% to 1.67bn shares, compared to previous week’s 1.22bn units, while value dropped by 14.43% to N14.83bn, from previous week’s N17.33bn.
Linkage Assurance and Sovereign Trust Insurance were the best performing stocks that topped the advancers table with 9.72% and 8.70% gains respectively, closing at N0.79 and N0.25 each as a result of N0.05 dividend and low price. The worst performing equities were Union Diagnostic and Capital Oil, which lost 34.29% and 23.38%, closing at N0.23 and N0.23 respectively on impact of market forces.
During the week, eight companies presented their Q2 earnings reports to the market, while one released its Q1 and 2017 full year results.

Market Outlook
As we expect more mixed performance in this earnings season, where surprises will be few and more disappointing numbers that will be below expectations of the market and analysts, in the midst of events unfolding in the political environment and expectation of June inflation reports this morning as MPC two days meeting kicks off today.
Investors should review their position in line with their investment goals and take action as events unfolds in the global and domestic environment.

However, we would like to reiterate our advice that investors should go for equities with intrinsic value, especially during this season were more quarterly earnings are expected to hit the market, ahead of Q2 interim dividend paying equities in August due to the auditing process of their financials for half year.
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.


Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/2018/07/caution-still-as-earnings-season-peaks-investors-look-to-expected-economic-data/#more

Investdata Price & Earnings Tracking For Week Ended July 20, 2018

https://investdata.com.ng/2018/07/investdata-price-earnings-tracking-for-week-ended-july-20-2018/#more

Corporate Action, AGM Dates For Week Ended July 20, 2018

https://investdata.com.ng/2018/07/corporate-action-agm-dates-for-week-ended-july-20-2018/#more

Investdata Weekly Sentiment Reports

NSEASI buy 24% sell 76% volume index 0.72 MFI 42.69
Access buy � MFI 39.28
Afrprud buy 75% sell 25% volume index 0.85 MFI 87.67
Aiico buy 67% sell 33% MFI 42.43
Cadbury buy 0% MFI 7.93
Caverton buy 0% MFI 29.73
CCNN buy � MFI 25.51
CIleasing buy 85% sell 15% MFI 66.75
Continsure buy 12% sell 88% volume index 1.60 MFI 31.46
Custodian buy 74% sell 26% volume index 1.59 MFI 31.56
Dangote Cement buy � MFI 41.02
Dangote flour buy 0% MFI 24.87
Dangote sugar buy 10% volume index 0.80 MFI 57.11
Diamond buy 69% sell 31% MFI 42.97
Eterna buy 38% sell 62% volume index 2.10 MFI 74.33
ETI buy 87% sell 13% MFI 67.90
Fbnh buy 22% sell 78% MFI 41.51
Fcmb buy 0% MFI 91.80
Fidelity buy 24% sell 76% MFI 45.48
Fmn buy 70% sell 30% MFI 27.73
FO buy � volume index 2.07 MFI 53.57
Glaxo buy 0% MFI 63.35
GT buy 45% sell 55% volume index 1.04 MFI 38.48
Hony flour buy 0% MFI 47.76
Jaiz buy 40% sell 60% MFI 46.06
Japaul buy 0% MFI 43.60
JBerger buy 0% volume index 1.87 MFI 68.16
Lvstk buy 29% sell 71% volume index 0.75 MFI 23.80
M&B buy 0% volume index 1.87 MFI 27.00
Mobil buy 0% MFI 40.56
Nahco buy 33% sell 67% volume index 1.34 MFI 51.86
Nascon buy 50% sell 50% volume index 1.33 MFI 41.00
Nem buy � volume index 1.10 MFI 65.76
Nestle buy 0% MFI 75.21
Oando buy 64% sell 36% volume index 1.09 MFI 62.98
Okomu buy 2% sell 98% volume index 2.61 MFI 57.57
Presco buy 0% MFI 68.65
PZ buy 78% sell 22% volume index 1.04 MFI 2.05
Regalins buy � volume index 0.88 MFI 22.00
Skye buy � MFI 37.03
Stanbic buy 32% sell 68% MFI 3.37
Sterling buy 9% sell 91% volume index 2.63 MFI 21.92
Transcorp buy 10% sell 90% MFI 22.67
Uacn buy 0% MFI 9.85
Uba buy 36% sell 64% MFI 44.29
Ubn buy 50% sell 50% MFI 36.38
Ucap buy 58% sell 42% MFI 76.98
Unilever buy 29% sell 71% MFI 68.26
Wapco buy 9% sell 91% volume index 0.76 MFI 52.44
Wema buy � MFI 35.64
Zenith buy 9% sell 91% volume index 0.92 MFI 40.43

http://investdataltd..com/2018/07/investdata-weekly-sentiment-reports_23.html

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Investdata Daily Sentiment Reports

NSEASI buy 99% sell 1% volume index 0.73 MFI 27.40
Access buy 50% sell 50% MFI 44.71
Afrprud buy � MFI 76.00
Aiico buy 0% MFI 63.89
CIleasing buy 88% sell 12% MFI 55.55
Custodian buy � volume index 0.92 MFI 19.98
Dangote Cement buy � volume index 2.25 MFI 76.42
Diamond buy 0% volume index 0.96 MFI 43.21
ETI buy � MFI 45.41
Fbnh buy � MFI 42.69
Fcmb buy � volume index 1.20 MFI 32.33
Fidelity buy 0% MFI 44.07
FO buy 33% sell 67% volume index 1.16 MFI 59.44
GT buy � MFI 75.26
Japaul buy 50% sell 50% MFI 45.68
Lasaco buy � volume index 0.94 MFI 38.68
Nem buy 0% volume index 0.71 MFI 62.34
Oando buy 19% sell 81% volume index 0.89 MFI 49.50
Stanbic buy 67% sell 33% volume index 0.87 MFI 27.90
Sterling buy � MFI 92.23
Transcorp buy 75% sell 25% volume index 1.13 MFI 52.59
Uacn buy 0% MFI 15.60
Uba buy 0% MFI 83.88
Ucap buy � MFI 55.29
Wema buy 60% sell 40% MFI 46.57
Zenith buy 50% sell 50% MFI 21.41

http://investdataltd..com/2018/07/investdata-daily-sentiment-reports_24.html

ACCRUED EXPENSES

Accrued expenses are expenses that are incurred, but for which payment has not been made, during a given accounting period. Accrued expenses are indicated on the balance sheet as a current (short term) liability, and are usually recorded in a journal entry, as well as offsetting liability. Without a journal � entry, the expenses would not appear in the entity's financial statements in the period incurred which will result in high profit yield for the period.

Expenses which are commonly accrued are interest on loans, wages,salaries,utility costs, services received and taxes all for which payments have not yet been made or their invoice have not yet been received. For example:
A company borrowed 2 million naira on November 1st, the agreement requires that an interest of 3% be paid on this 2 million naira at the end of 3 months which will elapse by January 31, for a company whose financial year end is December 31. Going by this development it will be very impossible for this company to reflect this expenses in their financial statements as of December 31 because the 3 months has not yet arrived,so the company will not have paid let alone receive an invoice of payment. In order not to record a deceptive account statements, an adjusting entry which will consist of a debit of 3% (#60,000.00) to interest expense in income statement account and a credit of #60,000.00 to interest payable in a balance sheet account has to be created.

Investdata Academy
http://investdataltd..com/2018/07/accrued-expenses.html

Nigeria’s June Inflation Rate Slows Down To 11.23%- NBS

The National Bureau of Statistics (NBS), on Monday morning, released its Consumer Price Index (CPI) for the month of June, showing that inflation rate in Nigeria sustained its declining growth at 11.23% year-on-year, 0.37% points drop from 11.61% in the corresponding period of May, 2018.
This, the report noted, represents the 17th consecutive month of disinflation since January 2017.
Month-on-month, the headline index increased by 1.24% in June 2018, up by 0.15% points from the rate 1.09% recorded in May 2018.

According to the NBS, “the percentage change in the average composite CPI for the twelve months period ending June 2018 over the average of the CPI for the previous twelve months period was 14.37%, showing 0.42% point lower from 14.79% recorded in May 2018.”
Food inflation fell to 12.98% YoY, from13.45% in May; while MoM, it jumped to 1.57%, when compared to the 1.33% record in May, with the highest rates of increase seen in food items such as potatoes, yam and other tubers, bread and cereals, vegetables, milk, cheese and eggs, fish, as well as fruits, meat, oil and fats.

“The average annual rate of change of the Food sub-index for the twelve-month period ending June 2018 was 17.75 percent, down 0.61 percent points from the average annual rate of change recorded in May 2018 (18.36%),” the report added. Core sub-inflation dropped to 10.4% from 10.7% in May, while MoM, it climbed from 0.98% to1.03%, after seeing increases in fuel and lubricants for personal transportation equipment, garments, books and stationeries, domestic household services, actual and imported rentals for housing and tobacco. Others included: vehicle spare parts, dental services, maintenance and repair of personal transport equipment, hairdressing salons and personal grooming establishment, paramedical services and hospital services.

Urban inflation rate however eased by 11.68% (year-on-year) in June 2018 from 12.08% recorded in prior month, but rose month-on-month by 1.24%, up by 0.14 from 1.1%; while rural inflation rate fell by 10.83% in June 2018, from 11.20% in May 2018. MoM, it however rose by 1.23% in June 2018, up by 0.15% from 1.08% recorded in May 2018.

The 12-month year-on-year average “percentage change for the urban index was 14.71% in June 2018. This is less than the 15.1% reported in May 2018, while the corresponding rural inflation rate in June 2018 was 14.08 percent compared to 14.53 percent recorded in May 2018.”
On a state-by-state basis, food inflation (YoY) was at its peak in the oil-rich states of Bayelsa at 15.90% and neighbouring Rivers, 15.54%; while Abuja followed with 15.44%.

On the other side, Benue recorded 8.92% inflation rate, making it the state with the slowest growth rate in food inflation for the period, ahead of Plateau, 10.42%; and Borno, 10.21%.
Month-on-Month, however, June 2018 food inflation was highest in Kogi, 5.05%; Oyo, 3.54%; and Gombe, 2.75%; while Edo with 0.01%, recorded the slowest rise, while “Kwara and Kaduna all recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in June 2018.”

https://investdata.com.ng/2018/07/nigerias-june-inflation-rate-slows-down-to-11-23-nbs/#more

With Most Earnings Below Expectation, Investors Anxious For Interim Dividend Stocks

Market Update for Week Ended July 27 and Outlook for July 30-Aug 3

Three consecutive weeks of decline on Nigeria’s equity market was halted last week on a mixed performance due to the release of more earnings reports within the period, despite the seemingly weak numbers released to the investing public.
The mixed reported earnings however reflect the decreasing economic activities in the country within the reporting period, regardless of the relative exchange rate stability and rising oil price in the international market as the Nigerian economy continues to suffer from the lack of fiscal stimulus in the real sector to complement the monetary input. It is however gratifying to note that the Central Bank of Nigeria (CBN), at the end of its Monetary Policy Committee (MPC) meeting last week said it is working on single-digit, seven-year fund for real sector players in labour-intensive manufacturing and agric sectors. (READ MORE).
Also, the latest economic data from the National Bureau of Statistics (NBS) last week also, showed that inflation declined for the 17th consecutive month in June to 11.21% year-on-year. The report however showed an increase, month-on-month in June to 2.04%, from 1.99% in May, which could be direct consequence of the increasing spate of insecurity across the country, especially in the North-East and North-Central, that is already affecting farmers and the sales figure of most manufacturing companies, whose products cannot go into most areas in the affected regions and unto neighboring countries. Food items prices are therefore on the rise.
The decision by members of the MPC during last week’s meeting to retain the benchmark rates, is an indication that the committee has taken cognizance of the economic slowdown already, which is why they also encouraged Nigerian banks to raise lending to the private sector. The committee also urged companies to issue commercial papers that would thereby boost their businesses. The Q2 earnings reports are pointers to what the Q2 GDP report will be when it is released by the NBS on July 31, 2018, according to the release timetable, even as we expect the impact of the 2018 budget implementation and inflow of electioneering campaign spending to boost the economy again.
The CBN has abandoned rate setting through the MPR in favour of its regular money market operations which are more indicative of its intentions, and we expect this to continue for the rest of the year.
Equities continue to suffer from foreign capital outflows and the absence of a positive trigger, or enough retail investors to help stablise the domestic market. This is why investors would continue to trade cautiously.
The political risk and uncertainties ahead of the 2019 general elections are major factors that continue to escalate foreign capital flight, but since the elections will come and go, investors should also change their investing strategies in favour of medium to long-term horizon and position for higher returns post-election. These strategies were discussed at the Investdata Midyear comprehensive stock trading and investing workshop on Saturday, July 28, 2018.
Back to the market, 35 companies released their quarterly earnings reports within the period. The general market sentiment for the week were positive, with buying position at 81% while selling volume stood at 19%, due as investors and traders react to the recent earnings and economic reports released, considering the prevailing low-price regime.
Notwithstanding the improved market breadth, the impetus behind trades was weak as reflected on the money flow index which slipped to 31.34 points from the previous week’s 42.69 points, a sign that funds are still leaving the market, despite the seeming rebound in the two trading sessions of the week.

Equity Indicators Last Week
The NSE All-Share index recorded marginal gain of 33.53basis points to close at 36,636.97 basis points, after opening at 37,603.44bps, representing a 0.09% growth on a low traded volume, compared to the previous week’s. The volume index of total transactions for the period was 0.61, just as market capitalisation for the week closed at N13.27tr from the N13.26tr opening value, representing a 0.09% gain as interim dividend stocks and some surprising earnings that attract high patronage to influence stock prices.
Low cap stocks dominated the top advancers table as investors and traders reacted to the Q2 mixed numbers as analysis of these numbers will help players to reshuffle their portfolios ahead of next month’s shadow elections (or primaries) to be conducted by the political parties. These will give direction as to how the 2019 election will be and parties with high possibility winning.
The seeming price retracement in some stocks for the period, especially, Thursday and Friday’s rebound that reflected on the NSEASI’s year to date returns, reducing the loss to 4.20%, just as market capitalisation remained negative at N327.59bn, which was 2.38% below the year’s opening value.

Negative Market Breadth
Despite the improvement in market breadth, the number of decliners for the week outweighed advancers in the ratio of 48:31 as capital outflow continued ahead of the 2019 elections and the accompanying uncertainties, amidst the dwindling confidence level that continues to trigger cautious trading, as reflected in the volume traded.

The benchmark NSE All-Share Index started the week on a positive note but reversed, closing negative on Tuesday and midweek before rebounding on Thursday and Friday when it recorded 0.09% gain for the week, as against the previous week’s 2.11% loss.
Sectoral indices were mixed in performance for the week as the NSE Banking and Insurance closed in the same direction with the general market, while the NSE Consumer and Industrial Goods indices closed red.

Market activities were negative for the week as volume traded was down by 14.97% to 1.42bn shares, compared to previous week’s 1.67bn units, while value fell by 12.88% to N16.74bn, from previous week’s N14.83bn.
The best performing stocks for the week were Cutix and Cement Company of Northern Nigerian that topped the advancers’ table with 46% and 25.9% gains respectively, closing at N4.38 and N31.35 each as a result of the N0.20 dividend, bonus of one ordinary share for every one held, as well as expectation of positive Q2 earnings report. The worst performing equities were Rak Unity Petroleum and UACN Property, which lost 20% and 18.85%, closing at N0.40 and N1.55 respectively on impact of market forces.

Market Outlook
We expect mixed performance from the interim dividend companies scheduled to publish their results in August, even as market analysts, investors and traders digest those earnings reports already published. There would be repositioning on the strength of earning surprises and disappointing numbers that come below market expectations in the midst of events unfolding in the political environment. Investors should review their position in line with their investment goals and take action as events unfolds in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value, especially during this season were more quarterly earnings are expected to hit the market, ahead of Q2 interim dividend paying equities in August due to the auditing process of their financials for half year.
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.

ATTENTION
The management of Investdata Consultants Ltd wishes to appreciate all participants and facilitators that made it to the Investdata Midyear Comprehensive Stock Trading and Investing Workshop on Saturday, July 28, 2018.

Caverton Offshore Reports 61.87% Rise In 2018 Half-Year Profit


The management of Caverton Offshore Support Group Plc, last week presented its half-year report for the period ended June 30, 2018, indicating among others, a faster profit growth than revenue, despite the rise in operating costs, resulting in a possible increase in dividend, if the company sustains its growth.
The continued growth in top and bottom-lines is coming after almost a year since the company announced an August 2017 five-year contract between its subsidiary- Caverton Helicopters and the NNPC/Chevron Joint Venture to provide aviation services to Chevron Project based in Escravos, Delta State.

The result shows that revenue swelled by 40.64% from N10.112bn to N14.222bn, which expectedly, confirmed the contribution of the Chevron deal, with the helicopter/airplane contract contributing N13.827bn. This represented a juicy, but seemingly unhealthy 97.22% of income; followed from a long-distant with N310.922m, or 2.24% of total, helicopter charter, compared with N570.896m in the corresponding period of 2017. Vessel time charter earned N49.85m, a decline also from N56.766m; while the biggest decline was recorded in vessel agency service, which could only contribute N28.852m, deep cut, when compared to N99.801m in 2017.
Operating expense climbed 33.23% to N8.81bn, as against the N6.612bn reported in the prior half-year. Operating profit therefore stood at N5.411bn from N3.399bn, representing a 54.62%, with aviation fuel and spare parts gulping N3.039bn, rising by N1.403bn or 85.9% from N1.634bn in the prior Q2; this was followed by a less dramatic rise in crew salaries from the previous N2.139bn to N2.698bn; just as the N2.587bn cost of aircraft rentals, from N2.476bn; among others.

Other operating income dropped by a significant 65.04% at N52.554m, compared to the previous N150.308mn, without an exchange gain unlike in the past half year, while grant income fell to N24.872m from N117.247m. Interest income rose marginally from N9.911m to N10.347m; followed by the rise in “others” from N9.471m to N17.335m.
Administrative expenses also increased by 35.15% to N2.639bn from N1.953bn. Finance cost jumped to N1.267bn, 67.05% higher than the N759.04m reported in the preceding half year, being interest on debts and borrowings

Profit before tax rose by 65.95% to N1.556bn from N983.03m; even as tax expense jumped to N594.187m, a rise by N250.745m or 73%; leaving a net profit growth of 61.87% from N594.58m to N962.45m, which translated to earnings per share of 29 kobo; up from 18 kobo.

https://investdata.com.ng/2018/07/caverton-offshore-reports-61-87-rise-in-2018-half-year-profit/

Investdata Price & Earnings Tracking For Week Ended July 27, 2018

https://investdata.com.ng/2018/07/investdata-price-earnings-tracking-for-week-ended-july-27-2018/

Transcorp Sustains Growth Impetus, Nets N10.875bn H1-2018 Profit



Company: Transnational Corporation of Nigeria Plc
Rating: Buy
Current Market Price at Earnings Release: N1.26
Intrinsic Value: N3.23
Latest Cash Dividend: N0.02
By: Jeariogbe Tunde Segun (Equity Analyst)

Key Financial Tickers:
• This report considers the half year financial statistics recently released by the management of Transcorp for the period ended 30th June, 2018.
• The company, Transcrop, has controlling interest in 14 other companies from where it enjoys consistent dividend. They are:
i. Capital Leisure and Hospitality Limited
ii. Transcorp Hotels Plc
iii. Transcorp Hotels Calabar Limited
iv. Transcorp Energy Limited
v. Teragro Commodities Limited
vi. Transcorp Power Limited
vii. Transcorp Staff Share Ownership Trust Company Limited
viii. Transcorp Properties Limited
ix. Transcorp OPL 281 Limited
x. Transcorp Telecomms Limited
xi. Transcorp Trading and Logistic Limited
xii. Transcorp Refining Company Limited
xiii. Transcorp Hotels Ikoyi Limited
xiv. Transcorp Hotels Port Harcourt Limited

• The result is positive as all the income indices improved outstandingly above the corresponding period of 2017
• The reported net finance cost for the period was N5.402 billion as against the N4.988 reported in the corresponding period of 2017
• Administrative Expenses was estimated at N7.617 billion compare to N5.663 billion last year.

Corporate Figures
• Turnover for the period improved over similar quarter of 2017 by 58.28% at N54.089 billion. Compared to the N34.173 billion reported in the previous half year.
• Operating Profit soared above prior half year by 82.20%, from N9.520 billion to N17.346 billion
• Profit before tax stood at N11.944 billion, 163.53% above the N4.532 billion estimated in 2017
• Thus, Profit for the period achieved through the six-month period was N10.875, same as 161.19% above the N4.163 billion last year
• Total Comprehensive Income stood at N10.971 billion as against N6.219 billion
• Retained Earnings improved by 24.62% as it is currently valued at N35.865 billion as against N28.780 billion
• Total Assets grew by 9.82% to stand at N290.262 billion, up from N264.301 billion achieved in the previous half year financials
• Similarly, Total Liabilities stood above last year’s figure by 7.43% at N184.395 billion
• Following the same trend, Net Asset appreciated to N105.866 billion from N92.661 billion.

Liquidity/Risk Ratios
• Estimated Debt is same as 118.66% of the shareholders’ equity/Net Assets. This is far above the industry average of 29.33%.
• Meanwhile, estimated current ratio is above unity at 0.92x as against the industrial average of 88.52x. The theoretical implication of this is that the company will not be able to swiftly service its current liabilities as at when due.
• The share price of Transcorp is fully patronized on the floor of the exchange. This can by justified by the estimated 2.24 beta value for the period being analysed.

Profitability Ratios
• Cost of Sales Margin is currently estimated at 54.57% slightly below the 56.48% estimated last year.
• Profit before Tax margin is 22.08%, which is 66.50% above the 12.18% estimated from 2017 half year statistics
• The amount reported as Profit for the period is 20.11% of the Turnover figure.
• Return on Average equity is currently estimated at 10.27% compared to the 4.49% estimated in 2017
• Return achieved on Average Assets is now 3.75% against the previous 1.58%.

Efficiency Ratios
• The management of Trascorp achieved Total Assets Turnover of 18.63%, 44.12% above the 12.93% asset turnover achieved in the prior quarter
• Equity Turnover on the other hand was 51.09% as against the 36.88% equity turnover estimated from its statistics last year
• Thus, the equity was effectively multiplied 2.74 times, slightly below the 2.85 times turnover of Q2-2017
• Fixed Asset Turned over was equally fair at 27.65%, as against the 18.69% last year.

Investment Ratios
• In line with the level of growth achieved in the income statement, and since the share outstanding of Transcorp did not change within the two periods compared in this report, the amount earned per share soared by 161.19% over comparable year
• The 27k Earnings Per Share is a Yield of 21.23% of the current market price of Transcorp as at the time this report was made available to the investing public
• Nevertheless, P/E-Ratio dropped to 1.18x from 3.93x, which shows a reduced investor sentiment for Transcorp, just as on the positive side, it reduced the investments recouping period in the stock
• The estimated Price to Book Value is below unity (1) implying an underpriced status of Transcorp Plc
• Confirming the above further is the estimated Book Value of N2.60 as against the N1.26 investors’ valuation on the floor of the exchange

Valuation
• In valuing the share price of Transcorp, we adjusted our valuation model to consider the low frequency of dividend payment by Transcorp. We classified it in our growth stocks and therefore anticipate an improvement over the years. We also put into consideration its sensitive sectors of operation in the nation’s economy, bearing in mind various regulations that may either dampen or boost its performance.

• Going by the above we have conservatively valued each unit of Transcorp share at N3.23. Please note that should the current growth status be maintained till the end of 2018, the valuation may be upgraded, depending on the various economic indices at that moment.

https://investdata.com.ng/2018/07/transcorp-sustains-growth-impetus-nets-n10-875bn-h1-2018-profit/

Investdata Corporate Action As At Week Ended July 27, 2018


https://investdata.com.ng/2018/07/investdata-corporate-action-as-at-week-ended-july-27-2018/

July Closes Red, As Political Anxiety, Economic Slowdown, Becloud NGSE Indicators


Market Roundup for July

July will be remembered by many traders and investors on the Nigerian Stock Exchange (NSE) as a month when many stocks suffered severe hemorrhage, besides being one that witnessed free-fall of equity prices. The loss would have been more severe, but for the reduction in the loss for the period, owing to month-end rotation and rebalancing of trading accounts in reaction to Q2 earnings reports released to the market, especially being the peak of the reporting season.
The bourse also saw last minute positioning as investors and traders sought to take advantage of the relatively low prices that triggered positive sentiments, despite the mixed performance of figures released so far. This resulted in three trading sessions of bull transition that reduced the momentum of price decline in the period under review.

The further decline of the market after June resisted four consecutive months of correction was due to sustained sell-offs by foreign and some domestic investors, due to dwindling confidence in the system, as economic slowdown continue in the midst of insecurity and anxiety ahead of the 2019 general elections. The fear over next year’s polls are not unfounded, given the enormous bad blood in the polity, especially after the Ekiti State governorship, even as all eyes are fixed on the coming Osun State. Still on politics, it has been one-week, one-trouble among the political class in view of the gale of defection involving Senate President Bukola Saraki and about 15 Senators as well as some governors, from the ruling All Progressives Congress to the rival Peoples Democratic Party ahead of 2019 general elections. This has further heightened fears among the investing public, resulting in cautious trading to watch as events unfold, while others have taken a flight for safety.

The rising crude oil price in the international market and sustained production output has impacted the nation’s foreign reserves since 2017. This has however not reflected in the data so far released in 2018 as economic activities slowed down in Q1 as revealed by GDP of 1.99%, there are also indications that the expected Q2 GDP may go in same direction, going by recent corporate earnings and economic data.
The bear dominancy during the period under review was obvious in the 22 trading sessions of the month on the Nigerian Stock Exchange (NSE), as the market was down for 13 days and up in just nine, thereby continuing the six months of decline. Year-to-date returns on the NSE remain negative at 3.20%, a factor that was attributed to a combination of low liquidity, capital outflows, mixed performance of listed companies and political uncertainties. Others included: the delay in passage, assent and possible implementation of the 2018 budget, as well as the declining buying pressure as revealed by volume traded for the period.

The positive economic data emanating from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) before now have been ignored by smart money investors that kept selling down their positions. This has prolonged the correction and made equities parade low Price/Earnings (P/E) ratios, that made stocks attractive for long-term positioning knowing that their waiting period in these stocks are short, as soon as this system induced decline is over after the election in 2019.
Meanwhile, the All Share Index for the month lost 1,260.77 points to close at 37,017.78 after touching lows of 36,316.30 and high of 38,322.94 within the period under review from the opening figure of 38,278.55 that represented 3.29% decline over the month of strong sell market position that reflected on the stock prices that are making lower low in recent days.
The selling volume of the total transactions for July was 65%, while buying position was 35% after six months pullback persisted on bear run, while volume index for the period was 0.88. Market capitalisation for the month shed N46bn to close at N13.41tr from an opening value of N13.87tr, representing a 3.31% depreciation in value. The market sustained a downtrend and negative sentiment for stocks, especially given the unstable political environment.

Traded volume for the month was down by 7.33% to 6.32 billion shares from 6.82 billion in the preceding month. The benchmark index year to date loss stood at 3.32% just as market capitalisation for same period was down by N225.74bn, same as 1.66% below the year’s opening value.
Market breadth for the month was negative with the decliners outnumbering advancers in the ratio of 95:17 to continue the bear transition despite the last three trading days of retracing up for the period due to buying sentiment for end of the month window dressing and rebalancing.

The NSE sectorial indexes bled profusely during the period, closing lower for the period, with NSE ASeM and Industrial having significant value loss of 14.46% and 10.42% respectively. They were followed by Consumer Goods, NSE 30, NSE Lotus, NSE Oil/Gas, NSE Banking and Insurance, which shed: 4.97%,3.52%,3.19%,2.92%, 2.78% and 1.76% for the month. The dwindling confidence is obvious as the month under review performance was opposite what it did in same period of 2017.

A further breakdown of the month performance showed that, 17 stocks appreciated in price and it was dominated by low cap stocks with only two equities gaining above 20%, compared to their opening value at the beginning of the month. With Cutix topped the advancers’ table after gaining 46%, helped by the higher dividend payout and bonus of one-for-one share held. CCNN followed, gaining 29.17%, helped by positive market sentiments and improved numbers. C/I Leasing jumped 17.87%, coming behind CCNN on news of foreign company taking a stake, despite the proposed share reconstruction ahead of right issue, while Continental Reinsurance, Aiico, Vitafoam, Seplat Custodian investment, Law Union an Sterling Banking closed the period better at 16.55%,16.29%,11.11%,8.31%,6.45%,6.38% and 5% respectively.

https://investdata.com.ng/2018/08/july-closes-red-as-political-anxiety-economic-slowdown-becloud-ngse-indicators/

Transcorp Targets 2,500mw Of Electricity, Eyes Production From OPL 281 2019Q1



Photo Caption: Transcorp Plc Board members

The management of conglomerate- Transnational Corporation of Nigeria Plc, on Tuesday in Lagos assured that its recent earnings are no mere happenstance, and that top and bottom-line growth would be sustained even beyond year-end for the benefit of shareholders and other stakeholders.
As part of sustaining the growth trajectory, the group said it already strengthening existing honey-pots: the hospitality and power businesses, which are already receiving more investments, while working at ensuring that its oil and gas asset comes on stream to diversify the group further.
President and chief executive of Transcorp Plc, Adim Jibunoh, who led top management of the group to an investors’ conference, spoke of plans to raise the capacity utilization of Transcorp Power, operators of the Ughelli Power Generation Company, Delta State, ultimately to 2,500 mega watts.

The power plant, he said, currently has 81% capacity utilization, to about 800mw of power, from between 550 – 600mw at the moment.
The diversification, according to Mutiu Bakare, the Group Chief Finance Officer, is necessary given that Transcorp Power alone contributes 80% of the group’s top and bottom-line.
The strength of the power asset, Jibunoh also added, has been helped by the availability of gas and payments made to stakeholders in the sector by the Federal Government, which has enhanced the needed liquidity.
On Transcorp Hotels Plc, Jibunoh spoke of the recent investment of about $100m to upgrade facilities, following which room occupancy rate jumped from 63% to between 70 and 80%.
The hotel’s flagship Transcorp Hilton, Abuja, he continued, would benefit greatly from the activities ahead of the 2019 general elections, resulting in better numbers following the upgrade.

The board of Transcorp, he continued, recently appointed two Executive Directors- Christopher Ezeafulukwe and Mrs. Owen Omogiafor, with the former saddled with the task of commercialising the group’s oil and gas asset- Oil Prospecting Licence (OPL) 281, which became part of the Transcorp early in 2012.
Pre-exploratory activities on the licence, the President said, would begin before end of current quarter (Q3), while drilling of oil from the asset which will transform into an Oil Mining Licence (OML) in 2019Q1.
All of these, he stressed, “will translate into the (group’s) bottom-line.”
He spoke of plans by the group to someday expand the hospitality business by going into two, three and four-star hotels across the control and then dovetail into infrastructure development in such areas of railway, before expanding beyond the shores of Nigeria into Africa as contained in its blueprint.

More specifically, Valentine Ozigbo, CEO of Transcorp Hotels spoke of plans to develop the Transcorp Hotel Ikoyi and Port Harcourt by 2027, when the group will also go into low and mid-market segments across the continent.
Still on the Ughelli Plant, CEO of Transcorp Power, Kalyana Sundaram told the analysts conference of plans to extend the capacity from 972mw to 1,700mw, as well as acquire other plants in the medium-term to achieve the long-term target of 2,500mw. By 2027 also, the group hopes to generate 30% of Nigeria’s power needs, which began with just between 8 and 15% to the present 17%.

“We are putting efforts to sustain our number one position” in the industry, he stressed.
Speaking further on the OPL 281, Ezeafulukwe noted the group’s Gas-to-Power Initiative, which will see it commercialising the huge gas deposit, piping it to the Ughelli Plant. This is expected to take care of the plants gas needs, which constitutes 90% of its operating cost, which is according to Jibunoh, costs about N3bn monthly.
The gas-to-power initiative “means gas will be piped from the asset (OPL) to the power plant, thereby eliminating stories around gas, (and in the process) unlocking value in our energy business.”
On the medium term, he said, Transcorp Group is looking at opportunities that may arise via bid rounds, divestments and partnerships in the sector, and on the long-run (2027), petrochemical and fertilizer plants.
By the time OPL 281 is commercialized, Ezeafulukwe assured, oil production would be around 4,000 barrels per day and then grow to 10,000bpd.

Fielding questions, Ezeafulukwe said the group is studying also opportunities in renewable energy, particularly fossil fuel, even as oil and gas would not go away over the next 20 to 30 years.
“Let’s optimize the assets we have, while anticipating the future,” he said, in answer to a question on whether the need for huge investments in oil and gas assets going forward in view of the clamour for renewable energy.
Still on the sustainability of the growth so far, Jibunoh said events in the macro-economic landscape suggest that the current growth levels will be surpassed, helped by the progress recorded in the oil and gas business.
In the power segment, he said capacity is currently at 677.8mw with three turbines out and due to come back on stream soon, a total of 130mw would be added to available capacity, translating to more revenue and profit.

https://investdata.com.ng/2018/08/transcorp-targets-2500mw-of-power-eyes-production-from-opl-281-2019q1/

NGSE: Dicey Outlook Yet For Aug, Sept, Amidst Anxiety Over 2019, Lagging Economy

The market and economic outlook for the months ahead remain unpredictable as the unstable global economic prospective continues to hamper investor confidence, as the lingering trade tension subsides due to new deals among countries and zones. The currency war between the U.S and China is another threat to global investment and trades horizon, especially on emerging markets and developed economics. The oscillating crude oil price now above $72 per barrel should impact government revenue positively, despite the recent decline of 1.23% in the nation’s external reserves. This is given the increased number of tax payers brought into the tax net by the Voluntary Assets and Income Declaration Scheme (VAIDS), which is expected to support government spending. Also, revenue in excess of the $51pb benchmark set for the 2018 budget should help to fund the budget deficit and reduce borrowing so that the spending plan will make the expected economic impact on the lives of Nigerians.


The relative peace and security in the nation’s Niger Delta region that has guaranteed stability of oil output has supported the upside in the nation’s revenue, economic health and wellbeing which if not sustained as the 2018 general elections draw closer may reverse the progress recorded so far.
But with the increasing insecurity, reversal of inflation rate on month to month and seeming positive economic data may change going forward depending on government policy and implementation of 2018 budget, especially Q2 GDP figure which INVESTDATA Research estimated could be lower than Q1 position, while Purchasing Managers Index (PMI) for the first month in Q3 should also give insight were the economy is heading to, weather we are static or moving slowly.
With the Q2 earnings season officially ending on Tuesday, company scorecards for half year have so far revealed the state of these companies to help investors ascertain the health and wellbeing of listed companies as they take investment decisions to hold or sell off. This is especially true as equity prices remain low and the general election draws closer on daily base.

Traders and investors who understand the operations of the stock market should take this opportunity to position in some sectors for medium to long term gains, especially in the services provider, industrial goods, banking, Insurance and consumer goods.
The actual Q2 numbers of the companies will help to project whether they are likely to post better Q3 earnings or not, which is the most important quarterly earnings reports, as it foreshadows how the full year could pan out, while at the same picturing economic activities as measured by the GDP.


August As Dicey month
August performance in the last four years have been negative on the exchange as revealed by INVESTDATA, research, making, it easier to look into the future, especially with uncertainties that surround pre-election periods, since political parties have this month to conduct their primaries to select candidates for various positions at in the general elections. It is very dicey at this point to predict up market now knowing that the factors against the market is higher than factor for the market now. There may be pockets of oscillation going into the month. Let investors keep their gaze on market trend and happenings for quick action.


What to expect in August and September
• Implementation of new pension funds new assets funding and classification
• Few quarterly and few full year earnings would be released. This earnings may not make much impact on market fundamentals, weather good or bad numbers.
• Few Interim dividend expectation, especially from the financial services stocks
• High market volatility as a result of portfolio rebalancing after digesting the numbers released so far. Also, the source of funds flowing into the market may cause fluctuations, giving that both local and foreign institutional investors trade thereon. There is the factor of the Federal Government crowding the private sector out of the financial market, with their offer of high and mouth-watery rates.
• Investors are expected to reshuffle their portfolios and invest in equities with strong fundamentals and prospects of growing their earnings going forward.
• A more vibrant market as a result of market players positioning for Q4, even as we expect liquidity to improve more.
• Market outlook for these months are dicey but invest wisely, using dates, bids, offers and volume when taking decisions.
• Managing risk and protecting capital at this point is very important, so you will be able to determine when to buy or sell by watching the stocks and the market, using technical analysis tools.

APPRECIATION
The management of Investdata Consultants Ltd wishes to appreciate all participants and facilitators that made it to the Investdata Midyear Comprehensive Stock Trading and Investing Workshop on Saturday, July 28, 2018.

The difference between you and others who are not aware of what I am sharing with you is ACTION.
Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467