Have You Done This?

According to G.W.F Hegel Dialectics. An event is a thesis is negated by an antithesis then synthesis which is the final stage of the circle.

If we apply this to the stock market, thesis (Bear Market) will be negated by an antithesis (Bull) and finally into synthesis which will encompass both uptrend and little downtrend of the market.

However, until a bear market market sets in, you will be getting the best out of the bull market. But, the question I want to ask you is, how prepared are you for the massive change that is coming? Are you sure if your old knowledge about an ever changing market is still relevant? Because during the transformation from either bear to bull or bull to bear, many variables and circumstances have changed.

Hence, if you really want to get the best in the new promising phase, you have to get the right knowledge by joining paid investment groups like buying and selling signal subscription, attending seminars that will tell you what to do and buying training materials.

Happy Trading,
Ambrose Omordion

PS: just as it is impossible to start studying on the exam day and pass, so also it is impossible to start acquiring the necessary skills when in you are already in the bull market. A word is enough for the wise...

https://investdataltd..com/2018/10/have-you-done-this.html?m=1

Investdata Daily Sentiment Report

NSEASI buy 78% sell 22% volume index 0.74 MFI 37.19
Access buy 0% MFI 68.01
Continsure buy 0% volume index 3.59 MFI 21.23
Dangote flour buy 0% volume index 1.90 MFI 68.34
Diamond buy 50% sell 50% MFI 38.08
Fbnh buy 80% sell 20% volume index 0.89 MFI 42.20
Fcmb buy 57% sell 43% volume index 1.10 MFI 18.49
Fidelity buy � volume index 1.28 MFI 74.97
Fmn buy 70% sell 30% volume index 1.96 MFI 72.48
GT buy 50% sell 50% volume index 2.31 MFI 63.73
Hony flour buy 0% volume index 1.95 MFI 58.32
Lawunion buy 0% volume index 1.21 MFI 20.47
Lvstk buy 0% volume index 2.08 MFI 55.35
Oando buy 0% volume index 0.97 MFI 29.69
Okomu buy � volume index 5.30 MFI 87.94
Prestige buy � volume index 3.84 MFI 30.37
Stanbic buy � volume index 1.16 MFI 64.37
Transcorp buy 0% volume index 1.30 MFI 49.23
Uba buy 0% MFI 82.94
Wapic buy � volume index 0.75 MFI 80.78
Zenith buy 25% sell 75% MFI 68.54

https://investdataltd..com/2018/10/investdata-daily-sentiment-report_12.html

UBA Estimated To Grow 2018 EPS By 6.74% Over Prior 9-Month

Coy: United Bank For Africa Plc
Rating: Buy
Current Market Price:N8.25
Year High: N13.50
Year Low: N7.00
Fair Value: N19.70
Expected Q3-EPS: N1.90
By: Jeariogbe Tunde Segun (Equity Analyst)

Introduction
• This report reviews the half-year financial performance of United Bank for Africa (UBA).
• But valuation was achieved through full year performances, from where projections were made and appropriate techniques adopted.
• We maintained that analyst influence might be reflected in the valuation and projections accordingly.
• The next financial statistics currently awaited by investors from the financial institution is the nine-month performance indices.
• History reveals that the bank usually releases its third quarter earnings in the second week of October. For example, released dates for the past three financial years are: October 16, 11, and 15 in 2017, 2016 and 2015 respectively.
• Standing upon this fact, we expect same between October 8 and 19, 2018
• Please note that interim cash dividend trend had remained same (N0.20 per share) for the past three years, although slight variations were noticed in the payout ratio. We are of the opinion that such variations are negligible.

Company Figures
• Gross Earnings for the half year improved over the corresponding year by 15.80%, from N222.71 billion to N257.91 billion.
• Interest Income stood above that of similar period of 2017 by 20.87%; standing at N187.29 billion, as against the previous N154.95 billion.
• Interest Expenses increased at a higher momentum, compared to the rate of income/ gross earnings growth, rising from N53.57 billion to N76.21 billion, representing a difference of 42.26%
• Having considered all expenses and incomes, N58.14 billion was reported as Profit before Tax for the period, which is only 1.06% above the N57.53 billion reported in the same period of 2017
• After deducting income tax expense, the financial institution reported N43.79 billion as profit for the period as against the N42.33 billion earned in 2017 half-year. In other words, the profit only improved by 3.43%.
• Total Comprehensive Income for the period stood 42.72% below what was reported in 2017 half year financial activities. A total of N30.48 billion was reported, compared to N53.21 billion.
• Retained Earnings grew to N165.71 billion from N149.46 billion, a 10.87% improvement within the two periods under comparison.
• Total Assets was valued at N4.26 trillion after enjoying 15.65% improvement over the period.
• Total Liabilities was estimated at N3.77 trillion, as against N3.20 trill in 2017.
• Total Deposits received for the period stood at N3.03 trillion, compared to the N2.58 trillion in the corresponding half-year of 2017, a difference of 17.42%.
• Meanwhile, Loan and Advances to customers dropped marginally against the previous half-year’s figure. According to the released document, Loan and Advances is currently N1.55 trillion, as against N1.57 trillion last year.
• Net Assets, on the other hand improved by a marginal 2.72% in the period under consideration in this report.

Volatility Ratios
• Estimated beta value of UBA Plc stood above both the market and industry’s Average Beta Value. This confirmed the volatility/patronage of its shares on the floor of the exchange
• Although, this is almost irrelevant, since we analyze a financial institution whose major business is to collect deposits (mostly reported under liability). We estimate Debt to Equity ratio as 104.21%, well above the 58.79% industry average.

Profitability Ratios
• Interest Expense to Gross Earnings is presently estimated at 29.55%, which is 22.85% above the 24.06% estimated in the 2017 half-year result.
• PBT Margin stood at 22.54%, as against 25.83% last year, representing a 12.73% drop.
• Similarly, Profit margin dropped against prior year’s. We have estimated 16.98% margin from Gross Earnings, compared to the 19.01% previous estimate.
• Return on Average Equity is now 8.82%, compared to the 8.76% returns achieved in the first six months of 2017.
• Return on Average Assets differs by 10.56%, moving from 1.15% to 1.03%.

Efficiency Ratio
• Gross Earnings to Total Assets was flat within the two periods compared.
• Gross Earnings to Equity is now 51.97%, as against the 46.10% estimated in the 2017 half-year financial statistics
• Financial Leverage is 8.60x as against 7.64x. This is an estimate of the number of times the total assets replicates the equity, meaning that the ratio got better over the review period.
• It was also established that 51.13% of the Total Deposit was given out as Loan and Advances during the period, 15.81% lower than the 60.73% during the first six months of 2017.
• Meanwhile, Loan and Advances is 36.41% of the Total Assets, 14.51% lower than the 42.59% of last half year. This shows a controlled/reduced risk compared to 2017.

Investment Ratios
• Just as in the company’s report above, since shares outstanding remained constant during the two periods under consideration, the estimated amount earned per units of UBA shares is N1.28, which is 3.43% above the N1.24 earned last year.
• P/E Ratio for the period is 1.57x, as against 1.96x estimated last year.
• As we speak, the Book Value of UBA Plc is N14.51 per share, fairly same as N14.13 last year. This confirmed that the company is currently undervalued.
• Also confirming this fact is the Price to Book Value that is estimated below unity, proving the low price against the Book Value.
• Operating Expenses for the period is currently 29.55%, this is 22.85% above the 24.06% of 2017 half year financials.

Valuation
As noted above, our valuation explored few full years’ financials prior, projected appropriately based on our growth expectations. Thus, we have placed the price of each UBA share at N19.70. Please note that our conservative earnings expectation for the expected nine months ended September 30th, 2018 is N1.90. This is about 6.74% growth above the previous third quarter earnings (N1.78) and 48.43% improvement from the half year earnings.

https://investdata.com.ng/2018/10/uba-estimated-to-grow-2018-eps-by-6-74-over-prior-half-year/#more

NDIC To Begin Payment Of Insured Deposits Of 83 CBN Liquidated PMBs, MFBs

The Nigeria Deposit Insurance Corporation (NDIC), on Saturday said it would start making the statutory maximum payments to 83 depositors of Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs).
They were part of the 186 PMIs, MFBs and Finance Companies liquidated by the Central Bank of Nigeria (CBN) on September 6, 2018, following which the NDIC assumed the role of provisional liquidator
According to a list published by the corporation, insured depositors of Bayelsa State Government-owned Transatlantic Savings Loans Limited; Ahocol Savings & Loans Limited, located in Awka, Anambra State; as well as Accord Savings & Loans Limited and Amex Savings & Loans Limited, both based in Lagos, will receive a maximum of N500,000 in insured deposits.
Lagos had eight failed MFBs on the list; Imo followed with seven; Bauchi, six; while Niger, Kogi and Anambra had five each; ahead of four by each for Cross River; Delta; and Kaduna. Oyo, Ogun, Abia and Ekiti, are home to three of the liquidated MFBs apiece, among others.
The NDIC also listed 79 MFBs, whose depositors will receive the maximum of N200,000 in insured deposits, in line with provisions of its enabling Act No. 16 of 2006.
All depositors of the affected PMBs with questions, or require further clarification in respect of their accounts in the closed banks were advised to contact any of NDIC’s zonal offices in Bauchi, Benin, Enugu, Ilorin, Kano, Port Harcourt, Sokoto and Yola, between October 8 and Thursday, 18, 2018; from 8.00am to 4.00pm.
Depositors of the affected MFBs are to contact any of the NDIC offices in Bauchi, Benin, Enugu and Kano.

https://investdata.com.ng/2018/10/ndic-begin-payment-insured-deposits-83-cbn-liquidated-pmbs/#more

Many Of Today’s Jobs May Not Exist In Future, Says World Bank President

World Bank Group President Jim Yong Kim says at the ongoing Annual Meetings of the group in Bali, Indonesia, many of the jobs existing across the globe may no longer exist in the not-too-distant future.
The World Development Report 2019: The Changing Nature of Work, quoted Yong Kim as urging countries in the world to prepare for the changing nature of work, by urgently embarking on greater investments in people’s health and education in a rapidly evolving labor market increasingly shaped by technology.

According to the World Bank boss, “the nature of work is not only changing – it’s changing rapidly. We don’t know what jobs children in primary school today will compete for, because many of those jobs don’t exist yet.”
For him therefore, “the great challenge is to equip them with the skills they’ll need no matter what future jobs look like – skills such as problem-solving and critical thinking, as well as interpersonal skills like empathy and collaboration. By measuring countries according to how well they’re investing in their people, we hope to help governments take active steps to better prepare their people to compete in the economy of the future.”

The report notes the rapid increase in the number of robots operating worldwide, stoking fears of a jobs meltdown, even as technology is laying down a path to create jobs, increase productivity and deliver effective public services. Fears surrounding innovation, which has already transformed living standards, are unfounded.
Digital technology spurs rapid innovation and growth, disrupting old production patterns and blurring the boundaries of firms. New business models, such as digital platforms, evolve at dizzying speed from local start-ups to global behemoths – often with few tangible assets or employees.

New platform marketplaces are connecting people more quickly than ever before. This “scale without mass” delivers economic opportunity to millions of people, regardless of where they live.
New markets and jobs are driving demand for employees with teamwork, communication and problem-solving skills. Technological change is eliminating repetitive “codifiable” jobs but replacing them with new types of employment: in Europe alone, there will be estimated 23m new jobs this century.

Technology is changing not just how people work but also the terms on which they work, creating more non-traditional jobs and short-term “gigs.” This is making some work more accessible and flexible, but raises concerns about income instability and the lack of social protection.
Four out of five people in developing countries have never known what it means to live with social protection. With two billion people working in the informal sector, unprotected by stable wage employment, social welfare, or the benefits of education – new working patterns are adding to a dilemma that predates the latest technological wave.
Adjusting to the changing nature of work requires enhanced social protection. New ways of protecting people, regardless of employment status, are needed.
The report challenges governments to take better care of their citizens, calling for a universal guaranteed minimum level of social protection. Full social inclusion will be costly, but it can be achieved with reforms in labor market regulation in some countries and, globally, a long overdue overhaul of taxation policy.

With the boundaries of firms transcending borders and physical assets, it’s easier to shift profits to low-tax jurisdictions, which means billions of dollars go untaxed. The report calls for updates to the international tax system, taking into account the globalized digital economy.
As digital firms – with relatively few tangible assets – increase and grow, withholding taxes are also becoming more relevant. Current taxation patterns reveal large discrepancies, especially between poorer and richer countries. High-income countries collect a much larger share of their national output in direct taxes, while middle and low-income countries rely more on consumption and trade taxes.

The 2019 World Development Report features a chapter containing the recently released Human Capital Index, part of a broader World Bank Group project that recognizes human capital as driver of inclusive growth. In addition to the Index, the Human Capital Project includes a program to strengthen research and measurement on human capital, as well as support to countries to accelerate progress in human capital outcomes.

https://investdata.com.ng/2018/10/many-of-todays-jobs-may-not-exist-in-future-says-world-bank-president/#more

Investdata Research NGSE Best Performing Stocks on Q3 Earnings Reaction


Nigeria’s equity market this year has dashed the hopes of many investors and players, after recording very juicy returns in 2017, which ushered in a strong market in January. This prompted many analysts and research firms to project a positive outlook for the economy and market in 2018.

On the back of such rally, many players, including individual investors, traders and others had expanded their expectation, while stockbroking firms raised salaries of their workers and even employed more staff. Some even increased the incentives of their directors before the ongoing downtrend, which was triggered by profit taking initially, during the full year earnings season.
This was made worse, when stock prices did not react positively much to impressive numbers presented for the full year, due to exit of capital from emerging and frontier markets after the U.S hiked interest.

This reversed the inflow of funds to the markets, which was in addition to the dwindling economic activities, insecurity and political uncertainties as revealed by data emanating from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS).
As if these were not enough cause for alarm, the political tension in the country waxed stronger, forcing listed companies to post mixed Q1 and Half-year numbers in the ensuing earnings reporting season. At this time, funds continued to leave the market at a steady rate, even as those few companies that posted impressive earnings did not elicit the expected positive reactions. At this time too, smart money had continued to scale down their positions for higher yield investment environments in developed markets and economics.

In the past two earnings reporting season for 2018, reaction has been weak and mixed, due to the prevailing socio-economic and political risk environment.
Investors are probably more familiar with the bull or bear market, forgetting that they come with different characteristics, or conditions that are peculiar with each cycle. The market dynamics behind any situation determines the impact and how long a company’s share price will rally on the strength of its earnings performance when released to the market. Companies reporting surprising earnings during an up market experienced pretty brutal initial reactions than in a down market, the average one-day reaction to their earnings reports so far this year has declined by 1.2%, due to the prolonged correction.
The second quarter earnings reporting period has actually been the most bearish for stock price reactions throughout history. It is the only quarter of the year where stocks have historically averaged a decline (-2.19%) on their earnings reaction days going back to 2009.

This season, the possibility of earnings reaction improving is high, due to huge losses many blue chips stocks had suffered, ahead of the 2019 general elections beginning in February, even as the issues and choices available have become clearer. This is reducing the political tension in the land, enabling investors better analyse their risks, with presidential candidates of the major political parties’ now known.

Also, as the year winds down many market players are likely to start returning to the market if the expected Q3 numbers beats expectation, revealing what the dividend possibility will be to the investors at the end of this financial year and post-election that will usher in another recovery trend on expected economic recovery.
This is revealed in the table below, the average three-day earnings reactions during Q2 earnings reporting season.
See the tables above for earnings reaction in the last earnings season (Half Year)

https://investdata.com.ng/2018/10/investdata-research-ngse-best-performing-stocks-on-q3-earnings-reaction/#more

Short-Term Rebound Imminent On NGSE, As Investors Await Q3 Financials, Data


Market Update for the week ended October 12 and Outlook for October 15-19

Equities on the Nigerian Stock Exchange in the past week resisted further decline, recording mixed performances on a ranging movements supported by improved market breadth and buying sentiments, which halted previous week’s profit taking and sell-offs. This downtrend has persisted for the past eight months, revealing the behavioral pattern of investors towards various risks, both controllable and uncontrollable.

The seeming reversal as the market closed on bullish note could continue to play out over the coming weeks as investors and traders await more corporate earnings, alongside key economic indicators such as inflation report for the month of September.
Investdata Research notes that earnings and economic performance indicators in the first two quarters of this year have been mixed, reflecting a slowdown in the manufacturing sector, reflecting the implementation of the Federal Government’s Economic Recovery Growth Plan (ERGP). It was widely expected that ERGP would help sustain the recovery tempo after emerging from the recession, despite the rise in oil price well above the 2018 budget benchmark.

The much awaited Q3 numbers are likely to make little or no difference to the NSE’s benchmark indicators, judging by the unfolding events after the just concluded primaries by various parties to select their candidates for various elective positions. This is because investors continue to watch the horizon, notwithstanding the undervalued state of listed equities. It is also not known yet whether efforts by the Securities & Exchange Commission (SEC) to allay the fear among investors over the oncoming general elections. Ms. Mary Uduk, acting director-general of the SEC, while fielding questions at the end of the just concluded World Bank Group and International Monetary Fund Annual Meetings in Bali, Indonesia, on Sunday, said the commission is exploring various avenues to deepen the nation’s capital market (READ MORE).

The global markets during the period under review were mixed, as the 10-year US Treasury Yield hit 3.25% due to the impact of rate hike that characterized the activities of the Federal Reserve Bank. This triggered capital withdrawal from small and emerging market economies. These trends are reinforced by a flight to safety as investors increasingly seek safer instruments or assets that offer more attractive yields, while protecting their long year gains in equities. The expected bottoming out in emerging markets will expectedly redirect capital flow, helping Nigeria’s market post- elections, depending on whether oil prices remain relatively stable and above $70 barrel per day.

Back home, sentiment report for the week, showed ‘buy’ position of 86%, as against the 24% ‘sell’ volume, while volume index of total transaction stood at 0.65, amidst demand for stocks by bargain hunters ahead of earnings season and gradual accumulation of value stocks by investors at the subsisting low prices.
Energy behind the week’s performance, however remained weak, despite the improved traded volume and liquidity that entered the market as reflected in the money flow index at 20.74 points from previous week’s 19.68points.

Equity Indicators Last Week
The All Share Index reversed previous week’s negative position with a gain of 73.83 basis points, closing at 32,456.98bps from an opening figure of 32,383.15bps, which represented a 0.23% growth on an increased traded volume, compared to prior week’s. Market capitalization rose by 0.23%, closing at N11.85tr, from previous N11.82tr, as a result of value gain by medium and high cap stocks.
At the end of the week’s trading, low and medium stocks topped the advancers table as buying pressure increased, as investors and traders cashed out on low price stocks to position ahead of more quarterlyearnings release any moment from now.
Meanwhile, the NSEASI’s year-to-date negative returns reduced to 15.1%, just as market capitalisation yielded negative returns of N1.79tr, or 12.98% below the year’s opening value.

Bearish Market Breadth
Market breadth however remained negative as decliners outweighed advancers in the ratio of 37:29, amidst short- and long-term positioning.
The benchmark index had a mixed performance for the period, as it opened the week on a positive note, gaining 0.21%, but lost 0.11% on Tuesday and Wednesday respectively before retracing up on Thursday and Friday with 0.11% and 0.12% to close the week at 0.23% gain against the previous week loss of 1.17%.
The performance of various sectoral index for the period was mixed as the NSE Banking and Industrial Goods closed up, while others like NSE Insurance, Consumer goods and Oil/Gas were down, while the NSE ASeM index that closed flat.
The week’s market activity was up in volume and value by 43.26% and 25.41% respectively to 915.86m shares worth N9.84bn, from previous week’s 639.32m shares valued at N7.84bn.

Wema Bank and CAP were the best performing stocks for the period, as they topped the gainers chart, chalking 17.86% and 15.99% respectively, closing at N0.66 and N33.00 each, due to market forces and sentiment. The worst performing were First Aluminum and Cutix, which shed 21.43% and 17.35% respectively to close at N0.33 and N3.90 each on profit taking

Market Outlook
We expect another mixed performance this new week, as technical indicators reveal short term rebound is imminent at the very point RSI is reading oversold at 27.51in an upward movement with Money flow index at 20.73, as market resisted further decline ahead of Q3 corporate earnings reporting season, as investors awaits economic and issue based campaign from the presidential candidates of various parties.

However, we believe investors can take advantage of the current low prices of stocks with strong fundamentals in order to reap medium-to-long term benefits. Stage by stage buying is recommended as investors expect inflation data for September in the new week.
There could be repositioning on the strength of earnings in the midst of unfolding events in the political environment. Investors should review their positions 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, ahead of end of quarter which will ushered in another earnings season, ahead of Q3 interim dividend paying equities in October/ November due to the auditing process of their financials for Q3.
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! Attention!! Attention!!!
Investdata Consulting Ltd presents the 8thedition of its TRADERS & INVESTORS SUCCESS SUMMIT tagged: INVEST 2019, designed to be the biggest yearly workshop for stock market traders &investors in Nigeria.

Theme: Adopting The Billionaire’s Mentality In Stock Selection.
Venue: Ostra Hotel & Hall, Alausa, Opposite NNPC Gas-Plant Ikeja Lagos.
Date: Saturday, December 8, 2018.
Time: 10a.m.

The huge decline in stocks from its January 2018 peak has not necessarily been due to the fundamentals of quoted companies, but investors flight for safety over uncertainties arising from next year’s general elections, participants will learn from experts/facilitators at the workshop, how and where to position for juiciest returns, depending on investment horizon.
Previous editions have attracted participants from diverse class of investors and traders, as well as several world-class professionals and experts as speakers and facilitators, including representatives of quoted companies and stockbroking firms. The event has helped market players to effectively time opportunities for higher returns in the New Year.
In today’s equity market, there is wisdom in being able to identify ‘buy’ opportunities very early and sell for maximum returns, while minimizing loss in any market situation. Understanding the dynamics of the stock market during any cycle is the very key to successful trading and investing. For this to happen, we must arm ourselves with knowing the essential driving forces behind the market as they move up and down.

At the INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT (TISS) you will discover some seldom considered aspects of investing and trading that can help you bag more big winners, while ratcheting down the number of losers in 2019 and beyond.
This summit will provide answers to these six crucial questions AND others

• What exactly is it we are trying to do as traders & investors?
• What occurs every post-election year that we wish to take advantage of?
• What are the prevailing market moves and who are the dominant players?
• What is ‘smart money’ doing?
• Where should we look to enter the market or exit?
• Is it the same every day, season and year?

When you answer these important (and frequently overlooked) questions correctly, your trading/investing skills will launch into new levels.
For Registration kindly send YES or REG to 08179547605, 08032055467, and 08111811223 now for details.

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/2018/10/short-term-rebound-imminent-on-ngse-as-investors-await-q3-financials-data/#more

Flour Mills: Waiting For Fruits Of Recent Recapitalisation Exercise

Company: FLOUR MILLS NIG. PLC (FLOURMILL)
Rating: Buy
Market Price at Earnings Release: N28.70
Intrinsic Value: N40.00
Latest Cash Div: N1.00
By: Jeariogbe Tunde Segun (Equity Analyst)

Key Financial Tickers
• This report observed the financials of Flour Mills Nigerian Plc, for the first three months ended June 30, 2018. Meanwhile, full year indices were utilized in arriving at the intrinsic value for each unit of its shares.
• Please note the reduced dividend of N1.00 in its last full-year financial performance as against the previous year’s N2.62, resulted mainly from the increased share outstanding (now 1.467 billion ordinary shares of 50k each), due to the recently concluded rights issue. Recall that the right offer price was N27.00 per share.
• Nevertheless, we identified that the performance indices for the first quarter under review stood below that of the corresponding period of 2017.
Four Mills Nigeria’s Strength
• The major revenue drivers for Flour Mills are its investments to raise capacity in the different business segments of operation. Most significant is the commissioning of a 750,000MT sugar refinery in Lagos to increase its operating capacity from 24% at the end of FY’14. The plant is currently operating at about 50% capacity by producing 375,000MT.
• We expect revenue from the sugar refinery to grow at a much lower compound rate of 2.6% annually till 2019.
• Also, the increase in its flour milling capacity will contribute significantly to revenue growth in the ‘other foods’ segment (food businesses, apart from Golden Sugar) over the next few years from when the company launched its products in the snacks, powdered drinks and breakfast cereals segment of the market.
• We estimate that the ‘other food’ segments will grow up to 3.5% YoY till 2019 as Nigeria’s population and middle income earners increase, giving the ongoing aggressive efforts by the labour union to increase Nigeria’s minimum wage.

Corporate Figures
• Total Turnover (TO) reported for the first three months of 2018 is 10.70% below the corresponding quarter of 2017, as N133.02 billion was reported for the period, as against the N148.97 billion of Q1-2017
• Despite the reduced TO, Selling and Distribution Expenses increased to N2.02 billion, compared to N1.25 billion in similar period of 2017.
• Similarly, Administrative Expenses for the period at N4.68 billion was higher than the N4.05 billion of Q1-2017.
• Thus, Operating Profit stemmed below the 2017 figure. A total of N15.083 billion was estimated through the first three months of 2017 compared to the current N11.207 billion
• Profit before Tax slipped to N5.213 billion, as against to the N6.194 billion reported for same period in 2017.
• Having considering Tax Expenses for the period, N3.649 was reported as the Profit for the period, this is 19.47% below corresponding quarter’s profit of N4.531 billion.
• Due to the loss on available for sale investment, the Total Comprehensive income for the period was estimated at N3.634 billion, as against N4.556 billion in Q1-2017.
• Retained earnings improved over the period to N71.577 billion from N67.903 billion in prior year.
• Non Current Assets increased marginally, by 3.56% from N225.85 billion to N233.89 billion. This confirmed marginal capital investment within the observed periods
• Meanwhile, Current Assets dipped by 16.85%, having moved to N180.97 billion from N217.66 billion reported in the previous first quarter financial.
• Non Current Liabilities increased within the period to N67.12 billion, compared to the N284.17 billion in 2017 first quarter.
• Kindly observe that all items under the Non Current Liabilities in the first three months of 2017 stood below what was reported in the current first quarter financial.
• Enhanced by reduction in Bank Overdraft and Borrowings in the current first quarter financial compared to Q1-2017, the Current Liabilities stood at 31.91% below that of the previous quarter. See below table for details
• Since Assets and liabilities change rate favored the current quarter more, Net Assets for the current period is 46.02% above that of 2017. See below for details.


Liquidity/Risk Ratios
• Equity Holder may be suffering the impact of the nation’s economic challenges on Flour Mills, given that Total Debt by Four Mills is same as 97.93% of the total Equity. This is despite the fresh rights issue. Please note that the estimated industrial Average is 18.72%
• Current Ratio stood slightly below unity implying little challenges may be faced in settling current liabilities as at when due.
• Fairly above others in the industry, beta value of 0.97 as against 0.91 industrial average indicate lower volatility than the market
• Although far below the industrial average of 9.09x Flour Mills still have enough strength of servicing its interest yielding liabilities as at when due. Please note that it is strictly advised that, unless the company improved its financial strength, assessing interest yielding liabilities should be avoided.


Profitability Ratios
• Cost of Sales margin is currently estimated at 87.02% slightly below the 88.43% estimated last year.
• Profit before Tax margin is 3.92% also below the 4.16% margin estimated from the corresponding quarter figures
• Similarly, Profit after Tax margin stood below that of Q1-2017. We have currently estimated N2.74% as against the previous N3.04%
• Return on Average equity is currently estimated at N2.37% far below the 4.29% achieved in similar period of 2017
• Return achieved on Average Assets now 0.88% as against 1.02%
• This confirmed a lower profitability rating by the management of Flour Mills Plc. We are of the opinion that this shows the true economic state of higher running expenses and tight business terrain in the country, further impacting the unfavorable business environment are various insurgent in various part of the country, especially in the northern part of the country and oil exploration state.

Efficiency Ratios
• Testing the management efficiency, the Asset Turnover was gauged, the Ratio declined by marginal 4.54% from 33.59% to 32.06%.
• Also tested was the Equity Turnover, whichcurrently stood at 86.24% as against the 141.03% estimated in 2017. Please note that the newly raised capital through right issue further impacted the drop
• In other words, the equity was multiplied 2.69 times through the first three months of 2018 financial activities, far below the 4.20 times in Q1-2017.
• It was also estimated that Fixed Assets turnover is same as 56.87% below the 65.96% estimated in Q1-2017


Investment Ratios
• Following same trend as in the earnings the amount earned per unit of Flour Mills Plc in its Q1- financial performance,Earnings per Share (EPS)dropped by 48.46% against the comparable period of 2017. The current EPS estimate is N0.89
• Similarly, Total Comprehensive Income for the period is same as EPS since difference between the two figures is minimal. See the below table for details
• Price Earnings Ratio (PE/Ratio) is currently estimated at 8.06x as against the previous 4.05x. Although this is mainly used in confirming investment recouping time, it is also indicating investors’ sentiments on the price of Flour Mills; going by the reduction observed, it implies negative sentiments
• Two ratios confirming an overpriced position of each share of Flour Millsshare price 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 the share unit is theoretically underpriced. Confirming this further is the estimated BV of N37.62 as against the market price of N28.70 (as at the released of the current full year result) and the current market price of N20.40 (10/10/18).

Valuation
• Our weighted average DCF and P/E valuation for Flour Mills Nigeria gives TP of N45.00 (which implies a 56.79% upside potential from current price of N120.58. We therefore maintain a BUY recommendation on FLOURMILL.

https://investdata.com.ng/2018/10/flour-mills-waiting-for-fruits-of-recent-recapitalisation-exercise/#more

Corporate Actions As At Friday, October 12, 2018

https://investdata.com.ng/2018/10/corporate-actions-as-at-friday-october-12-2018/#more

Investdata Weekly Sentiment Report

NSEASI buy 86% sell 14% MFI 20.74
Access buy 50% sell 50% MFI 13.00
Afrprud buy � MFI 66.60
Aiico buy 0% MFI 60.74
Cadbury buy 0% MFI 21.36
Cap buy � volume index 4.42 MFI 63.73
Caverton buy 88% sell 12% MFI 49.71
CIleasing buy 0% MFI 86.23
Continsure buy 0% volume index 1.15 MFI 33.93
Cornerst buy � volume index 1.65 MFI 31.39
Cutix buy 0% volume index 2.38 MFI 55.37
Dangote Cement buy 50% Sell 50% volume index 0.72 MFI 22.99
Dangote flour buy 57% sell 43% MFI 35.42
Dangote sugar buy � MFI 35.78
Diamond buy 71% sell 29% MFI 54.79
Eterna buy � MFI 78.58
ETI buy 86% sell 14% volume index 1.77 MFI 19.72
Fbnh buy 38% sell 62% MFI 55.38
Fcmb buy 0% volume index 1.04 MFI 4.54
Fidelity buy 57% sell 43% volume index 0.94 MFI 58.37
Fmn buy 23% sell 77% volume index 1.70 MFI 32.85
FO buy 0% MFI 37.13
GT buy 20% sell 80% volume index 1.08 MFI 46.32
Hmarkins buy � MFI 90.02
Hony flour buy 0% volume index 2.78 MFI 11.58
Jaiz buy 0% volume index 0.91 MFI 45.61
Japaul buy � MFI 28.19
Lasaco buy 0% MFI 19.74
Lawunion buy 20% sell 80% volume index 1.03 MFI 57.17
Learn buy � volume index 0.89 MFI 55.31
Lvstk buy 57% sell 43% volume index 0.86 MFI 30.77
Mansard buy 0% MFI 88.87
Mben buy � MFI 33.32
Mobil buy 96% sell 4% MFI 38.70
Neimeth buy � volume index 0.72 MFI 49.63
Nem buy 31% sell 69% volume index 0.74 MFI 89.06
Nestle buy 0% volume index 0.95 MFI 50.62
Nigerins buy � MFI 74.73
Oando buy 17% sell 83% MFI 31.60
Okomu buy � volume index 1.10 MFI 43.46
Presco buy 0% MFI 7.39
Prestige buy 37% sell 62% volume index 1.02 MFI 33.80
PZ buy 11% sell 89% volume index 0.90 MFI 10.20
Red buy � volume index 0.93 MFI 4.68
Regalins buy 0% MFI 35.75
Royalex buy � volume index 23.74 MFI 10.64
Sovereins buy � MFI 40.97
Stanbic buy � MFI 11.08
Sterling buy � MFI 33.85
Transcorp buy 50% sell 50% MFI 30.16
Uacp buy 0% volume index 1.29 MFI 45.61
Uacn buy 47% sell 53% MFI 58.56
Uba buy 50% sell 50% MFI 32.59
Ubn buy 0% MFI 33.24
Ucap buy � MFI 25.50
Unilever buy 50% sell 50% volume index 1.00 MFI 39.40
Uniondac buy 40% sell 60% volume index 1.14 MFI 72.79
Unity buy 0% MFI 42.13
Wapco buy 28% sell 72% volume index 1.39 MFI 15.30
Wapic buy � volume index 0.82 MFI 41.27
Wema buy � volume index 0.71 MFI 19.20
Zenith buy � MFI 48.66

https://investdataltd..com/2018/10/nseasi-buy-86-sell-14-mfi-20.html

NSE Market Update, October 12, 2018

https://investdataltd..com/2018/10/nse-market-update-october-12-2018_15.html?m=1

NSE Market Update, October 12, 2018




https://www.youtube.com/watch?v=J4kNa8Z5l80&feature=youtu.be

To watch previous market updated video, you can subscribe to our youtube channel below;

https://www.youtube.com/channel/UC22yn_S9NHYoO8GT19g2k2Q?view_as=subscriber

Investdata Daily Sentiment Report

NSEASI buy 22% sell 78% MFI 38.10
Access buy � MFI 54.67
Dangote sugar buy 60% sell 40% volume index 2.11 MFI 43.36
Diamond buy � MFI 42.52
Fbnh buy 0% MFI 48.39
Fcmb buy 29% sell 71% volume index 1.18 MFI 16.52
Fidelity buy � MFI 75.24
Allum buy 0% MFI 31.45
GT buy � MFI 54.90
Hony flour buy 0% volume index 2.57 MFI 10.54
Lawunion buy 0% volume index 3.93 MFI 16.99
Lvstk buy � volume index 6.05 MFI 72.53
Mansard buy � volume index 2.69 MFI 91.09
Nem buy � MFI 75.93
Oando buy � MFI 52.29
Uacp buy 0% volume index 4.48 MFI 25.32
Uba buy 50% sell 50% volume index 0.95 MFI 71.98
Wapic buy 0% volume index 1.49 MFI 71.08
Wema buy � MFI 81.80
Zenith buy 29% sell 71% MFI 55.44

https://investdataltd..com/2018/10/investdata-daily-sentiment-report_16.html

BUY AND SELL SIGNAL

Hello Investors,

The, buy & sell signal for this week have been posted on the membership site for you. Pls click on the long link for this week download.

Furthermore, you need to login on the membership site before you can have access to it.

Kindly click on the below link now to login with your username and password

http://investdataonline.com/buy-sell-signal/

To Your Success
Investdata Consulting.

P.S. You need to act fast. You know time wait for now.

ACAN:
BUY AND SELL SIGNAL

Hello Investors,

The, buy & sell signal for this week have been posted on the membership site for you. Pls click on the long link for this week download.

Furthermore, you need to login on the membership site before you can have access to it.

Kindly click on the below link now to login with your username and password

http://investdataonline.com/buy-sell-signal/

To Your Success
Investdata Consulting.

P.S. You need to act fast. You know time wait for now.

Hello sir, how do I become a member

Volatility May Persist, As Inflow Of Q3 Data Raise Bargain Hunting Tempo On NGSE

Market Update for October 15, 2018

Nigeria’s stock market on Monday had an uneven consolidation as it halted previous the positive sentiment of previous session, amidst continued volatility triggered by the perceived risks in the political environment that has refused to go away. One factor that may continue to heat up the horizon is last week’s Executive Order issued by the Federal Government barring some high profile politicians, mostly in the opposition, from traveling outside of the country (READ MORE).

This action, coming barely four months to February’s general elections is likely to further erode investors’ confidence and liquidity in the system, despite efforts by the Securities & Exchange Commission (SEC Nigeria) to reassure investors on the soundness of the nation’s stock market fundamentals.
The NSE benchmark All-Share index, on Monday, attempted to resist further decline several times, but could not hold through, touching intraday low of 32,390.23 basis points, from a high of 32,474.42bps. It retraced up later in the day, but finished weak at the close of trading.

Also on Monday, Conoil Plc filed its Q3 earnings report for the period ended September 30, 2018 earlier than expected, going by the company historical pattern and dates, given that the 2017Q3 account was released to the market October 31, 2017 (READ MORE). The numbers, however, give insight to what the market should expect from companies in the NSE’s Oil/Gas sector.

Market technicals for the day were negative on a ridiculously low traded volume and negative market breadth, amidst high selling pressure as revealed by Investdata’s Daily Sentiment Report, showing a ‘sell’ volume of 78% and buy position of 22%. The volume index for the day’s total transactions was 0.49.
The impetus behind the day’s market performance was strengthened despite the profit taking and the wait-and-see attitude of many investors at a time many others move to safe havens, as reflected in the money flow index at 38.10bps, from previous day’s 32.91bps. This is an indication that funds are entering some stocks, despite low liquidity in the market.

Index and Market Cap
The NSEASI on Monday, shed 43.50bps, closing at 32,413.48bps, after opening at 32,456.98bps, representing a 0.13% decline, just as market capitalization lost N15.88bn to close at N11.83tr, from N11.85tr, representing a 0.13%, at a time more corporate earnings are expected to hit the market soon.

Attention: Investdata buy and sell signal setup is our premium advisory service. And we do like to invite you to join today, as we are beginning what I think will be a tremendous run for value stocks into the end of the year. It’s a great deal for the money. Just subscribe, and get immediate access to a WATCHLIST of stocks.

When you join, you’ll get immediate access to every recommendation–past, present and future–in the Signal Setup. And we will deliver the bigger picture and update every week, directly to you via email. We look forward to welcoming you on-board and navigating together as we continue to invest alongside the smart money, institutional players and discerning investors. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. The number of stocks on our watchlist has increased due to the prolonged market correction. Take advantage of this service to buy right and sell right.

Monday’s downturn followed losses suffered by medium and high cap stocks like: Nigerian Breweries, Lafarge Africa, Guinness, FBNH, Dangote Flour and Honeywell, bringing Year-to-Date negative returns to 15.24% and market capitalization to N1.8tr, representing a 13.12% drop, from the opening value.

Mixed Sector Performance
Monday’s sectorial performance was largely bullish, except for the NSE Consumer and Industrial Goods, which closed lower. Market breadth was negative as decliners outnumbered advancers in the ratio of 15:13, to upturn the bull transition.

Market activities were down in volume and value by 43.72% and 57.08% respectively to 91.41m shares worth N960.91m, from Friday’s 162.41m units valued at N2.24bn, with transactions boosted by trading in financial services and consumer goods stocks like: UBA, FCMB, Fidelity Bank, Guaranty Trust Bank and Honeywell flour.

AXA Mansard Insurance and Forte Oil were the best performing stocks, after chalking 10% and 9.88% respectively, closing at N1.98 and N22.25 per share, on the impact of market forces and earnings expectations. On the flip side, Fidson Healthcare and Wapic Insurance lost 10% and 9.09% respectively, closing at N5.40 and N0.40 each on profit taking and market forces.

Market Outlook
With the hope that more companies would release their scorecards, expect increased bargain hunting in the midst of volatility and profit taking. If the numbers beat market and analysts forecast. Also, the September inflation data is being expected. Investdata projects that it could be in the region of 11.49%, with expected electioneering spending to boost activities.
Investors are looking forward to Q3 earnings reports so as to rebalance their portfolios and watch the political space, while analysing the actual numbers that will give insights into expectations for Q3 GDP and full year companies earnings power that are likely to drive prices and determine the market before or after February election.

Investors should review their positions in line with investment goals, strength of the company numbers and act as events unfold in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value,
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst mixed company, economic and market fundamental.


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/2018/10/volatility-may-persist-as-inflow-of-q3-data-raise-bargain-hunting-tempo-on-ngse/

Do you have a habit of learning?

After my graduation at the university, my thinking was that I am done with studies like most fresh graduates.

But, it was after I got my first job that it done on me that studying in inevitable. In fact, learning should be a daily habit and not occasionally or when the need arises.

Unfortunately, the common method or reason why we study is when the need arises. That is, something is pushing you; like a threat or Danger.

This approach is similar to what most investors adopt. You don't expect a method you used last year to work this year because circumstances are always changing.

Hence, it is advisable to keep yourself up to date either in a bear or bull market, upturn or downturn market because life is always teaching you. So, you can never stop learning and the stock market is not exempted from it.

Happy Trading
Ambrose Omordion
08028164085,08032055467 ambroseconsultants@yahoo.com
https://investdataltd..com/2018/10/do-you-have-habit-of-learning.html

Have You Done This?


According to G.W.F Hegel Dialectics. An event is a thesis is negated by an antithesis then synthesis which is the final stage of the circle.

If we apply this to the stock market, thesis (Bear Market) will be negated by an antithesis (Bull) and finally into synthesis which will encompass both uptrend and little downtrend of the market.

However, until a bear market market sets in, you will be getting the best out of the bull market. But, the question I want to ask you is, how prepared are you for the massive change that is coming? Are you sure if your old knowledge about an ever changing market is still relevant? Because during the transformation from either bear to bull or bull to bear, many variables and circumstances have changed.

Hence, if you really want to get the best in the new promising phase, you have to get the right knowledge by joining paid investment groups like buying and selling signal subscription, attending seminars that will tell you what to do and buying training materials.

Happy Trading,
Ambrose Omordion

PS: just as it is impossible to start studying on the exam day and pass, so also it is impossible to start acquiring the necessary skills when in you are already in the bull market. A word is enough for the wise...

Have You Done This?


According to G.W.F Hegel Dialectics. An event is a thesis is negated by an antithesis then synthesis which is the final stage of the circle.

If we apply this to the stock market, thesis (Bear Market) will be negated by an antithesis (Bull) and finally into synthesis which will encompass both uptrend and little downtrend of the market.

However, until a bear market market sets in, you will be getting the best out of the bull market. But, the question I want to ask you is, how prepared are you for the massive change that is coming? Are you sure if your old knowledge about an ever changing market is still relevant? Because during the transformation from either bear to bull or bull to bear, many variables and circumstances have changed.

Hence, if you really want to get the best in the new promising phase, you have to get the right knowledge by joining paid investment groups like buying and selling signal subscription, attending seminars that will tell you what to do and buying training materials.

Happy Trading,
Ambrose Omordion

PS: just as it is impossible to start studying on the exam day and pass, so also it is impossible to start acquiring the necessary skills when in you are already in the bull market. A word is enough for the wise...

Investdata Daily Sentiment Report


NSEASI buy 6% sell 94% volume index 1.18 MFI 40.56
Cadbury buy 0% volume index 3.37 MFI 44.61
Custodian buy � MFI 10.28
Cutix buy � volume index 1.75 MFI 40.11
Dangote Cement buy 0% volume index 1.85 MFI 49.82
Diamond buy 0% volume index 0.82 MFI 43.30
Fbnh buy � MFI 49.15
Fcmb buy 0% MFI 15.55
Fidelity buy 0% volume index 1.31 MFI 66.29
FO buy 0% volume index 0.89 MFI 83.39
GT buy � MFI 41.02
Hony flour buy 0% volume index 2.37 MFI 5.79
Jaiz buy � MFI 49.75
Japaul buy 0% volume index 0.76 MFI 51.46
Lawunion buy 50% sell 50% volume index 1.94 MFI 14.32
Nem buy � MFI 78.97
Nigerins buy 0% volume index 1.88 MFI 32.49
Oando buy � MFI 46.57
Seplat buy 0% volume index 0.79 MFI 0.60
Sterling buy 0% volume index 3.26 MFI 52.76
Transcorp buy � volume index 0.82 MFI 38.75
Uacn buy 0% MFI 13.27
Uba buy 0% volume index 4.41 MFI 24.03
Ucap buy � MFI 48.47
Uniondac buy 0% MFI 39.56
Wapic buy � MFI 73.49
Zenith buy 0% volume index 4.58 MFI 44.03

https://investdataltd..com/2018/10/investdata-daily-sentiment-report_18.html

More Volatility Ahead, Amidst Bargain Hunting, Q3 Numbers Hit NGSE


MARKET UPDATE FOR OCTOBER 16, 2018

It was another interesting session on the Nigerian Stock Exchange on Tuesday as volatility continued, with the indicators closing the day positive, thereby reducing some of the losses recorded so far in the month.

The day’s rebound was driven by increased positioning by bargain hunters in uuder-valued blue-chip and highly capitalised stocks in the midst of weak macro-economic indicators including the nation’s reserves, which has continued to decline. It has so far lost 2.94% of the month’s opening value in just 15 days (READ MORE). Also, worrisome is the upswing in Nigeria’s consumer price index at 11.28% (year-on-year) at the end of September 2018, after 18 consecutive months of declining growth rate (READ MORE). Worrisome, in the light of the electioneering activities leading to next year’s general elections in Nigeria.

The corporate earnings released so far has not been altogether disappointing, judging by the few Q3 financials presented by the likes of petroleum marketing major- Conoil Plc (READ), followed by that of United Bank for Africa Plc (READ) after close of trading on Tuesday. Nonetheless, there is yet no surprising numbers from these numbers, but they have however given insights into what should be expected in the sectors they operate.

Still on UBA Plc, it maintained its historical pattern and dates as for Q3 results, which was released same date to the market- October 16, 2017. The bank’s numbers for the period were mild, but will however still support the price due to its low price compared to intrisic value, given the N1.74 Earnings Per Share, which signaled the possibility of dividend payment at the end of its financial year on December 31 (all things being equal).

The Nigerian Stock Exchange (NSE) All-Share index, on Tuesday, started out with a little gap up in the morning, which was sustained until the mid-morning, before bursting out at the midday to afternoon segments. This was when it touched intraday highs of 32,736.75 basis points, from a low of 32,413.00bps, before pulling back marginally on profit taking to close the day strong at 32,722.18bps.

Tuesday’s market technicals were positive, but mixed with huge volume traded and a negative market breadth in the midst of high demand for stocks as revealed by Investdata’s Daily Sentiment Report, showing a ‘buy’ position of 95% and sell volume of 5%. The volume index for the day’s total transactions was 3.24.
Momentum behind the day’s market performance was further strengthened despite the negative breadth as investors and traders positioned for the earnings season as reflected in the money flow index at 47.70bps, from previous day’s 38.10bps. This is an indication that funds are still entering some stocks, regardless of the prevailing low liquidity in the market.

Index and Market Cap
At the end of Tuesday’s trading session, the composite NSEASI gained 308.70bps, closing at 32,722.18bps, after opening at 32,413.46bps, representing a 0.95% growth, just as market capitalization rose by N112.7bn to N11.95tr, from N11.83tr, representing a 0.95%, at a time more corporate earnings are expected to hit the market ahead of the deadline October 31.

Attention: Investdata buy and sell signal setup is our premium advisory service. And we do like to invite you to join today, as we are beginning what I think will be a tremendous run for value stocks into the end of the year. It’s a great deal for the money.

Just subscribe, and get immediate access to a WATCHLIST of stocks. When you join, you’ll get immediate access to every recommendation–past, present and future–in the Signal Setup. And we will deliver the bigger picture and update every week, directly to you via email.

We look forward to welcoming you on-board and navigating together as we continue to invest alongside the smart money, institutional players and discerning investors. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. The number of stocks on our watchlist has increased due to the prolonged market correction. Take advantage of this service to buy right and sell right.

Tuesday’s upturn was impacted by value appreciation in medium and high cap stocks like: Dangote Cement, Nigerian Breweries, Guinness, Unilever, Zenith Bank, Forte Oil, FBNH, Dangote Flour and UACN Property. This reduced Year-to-Date negative returns to 14.44% and market capitalization to N1.66tr, representing a 12.22% drop, from the opening value.

Mixed Sector Performance
The sectorial performance for the session was largely bullish, except for the NSE Insurance and Oil/Gas, which were in red. Market breadth was negative as decliners outpaced advancers in the ratio of 23:16, to reverse Monday’s down market.

Market activities were up in volume and value by 624.27% and 452.32% respectively to 662.02m shares worth N5.31bn, from previous day’s 91.41m units valued at N960.91m. The day’s transactions were boosted by trading in financial services stocks like: Sunu Assurance, Guaranty Trust Bank, Fidelity Bank, Zenith Bank AND FCMB.

UACN Property and Cutix were the best performing stocks, chalking 9.94% and 9.74% respectively to close at N1.77 and N2.03 per share, on the impact of market forces and earnings expectations. On the flip side, Beta Glass and Julius Berger lost 10% and 9.83% respectively, closing at N70.20 and N21.55 each on profit taking.

Market Outlook
With more companies expected to present their numbers in the coming days, expect increased bargain hunting in the midst of volatility and profit taking, if the numbers beat market and analysts forecast.
This much anticipated Q3 earnings reports would assist investors and fund managers rebalance their portfolios, while watching the political space and analysing the actual numbers that will give insights into expectations for Q3 GDP and full year company earnings power. These are likely to drive prices north, or south, while determining market direction before or after Presidential Election.

Investors should review their positions in line with investment goals, strength of the company numbers and act as events unfold in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value,

We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst mixed company, economic and market fundamental.

ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/2018/10/more-volatility-ahead-amidst-bargain-hunting-q3-numbers-hit-ngse/#more

Volatility May Persist, As Inflow Of Q3 Data Raise Bargain Hunting Tempo On NGSE

Market Update for October 15, 2018
Nigeria’s stock market on Monday had an uneven consolidation as it halted previous the positive sentiment of previous session, amidst continued volatility triggered by the perceived risks in the political environment that has refused to go away. One factor that may continue to heat up the horizon is last week’s Executive Order issued by the Federal Government barring some high profile politicians, mostly in the opposition, from traveling outside of the country (READ MORE).

This action, coming barely four months to February’s general elections is likely to further erode investors’ confidence and liquidity in the system, despite efforts by the Securities & Exchange Commission (SEC Nigeria) to reassure investors on the soundness of the nation’s stock market fundamentals.
The NSE benchmark All-Share index, on Monday, attempted to resist further decline several times, but could not hold through, touching intraday low of 32,390.23 basis points, from a high of 32,474.42bps. It retraced up later in the day, but finished weak at the close of trading.

Also on Monday, Conoil Plc filed its Q3 earnings report for the period ended September 30, 2018 earlier than expected, going by the company historical pattern and dates, given that the 2017Q3 account was released to the market October 31, 2017 (READ MORE). The numbers, however, give insight to what the market should expect from companies in the NSE’s Oil/Gas sector.
Market technicals for the day were negative on a ridiculously low traded volume and negative market breadth, amidst high selling pressure as revealed by Investdata’s Daily Sentiment Report, showing a ‘sell’ volume of 78% and buy position of 22%. The volume index for the day’s total transactions was 0.49.

The impetus behind the day’s market performance was strengthened despite the profit taking and the wait-and-see attitude of many investors at a time many others move to safe havens, as reflected in the money flow index at 38.10bps, from previous day’s 32.91bps. This is an indication that funds are entering some stocks, despite low liquidity in the market.
Index and Market Cap
The NSEASI on Monday, shed 43.50bps, closing at 32,413.48bps, after opening at 32,456.98bps, representing a 0.13% decline, just as market capitalization lost N15.88bn to close at N11.83tr, from N11.85tr, representing a 0.13%, at a time more corporate earnings are expected to hit the market soon.

Attention: Investdata buy and sell signal setup is our premium advisory service. And we do like to invite you to join today, as we are beginning what I think will be a tremendous run for value stocks into the end of the year. It’s a great deal for the money. Just subscribe, and get immediate access to a WATCHLIST of stocks. When you join, you’ll get immediate access to every recommendation–past, present and future–in the Signal Setup. And we will deliver the bigger picture and update every week, directly to you via email.

We look forward to welcoming you on-board and navigating together as we continue to invest alongside the smart money, institutional players and discerning investors. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. The number of stocks on our watchlist has increased due to the prolonged market correction. Take advantage of this service to buy right and sell right.

Monday’s downturn followed losses suffered by medium and high cap stocks like: Nigerian Breweries, Lafarge Africa, Guinness, FBNH, Dangote Flour and Honeywell, bringing Year-to-Date negative returns to 15.24% and market capitalization to N1.8tr, representing a 13.12% drop, from the opening value.

Mixed Sector Performance
Monday’s sectorial performance was largely bullish, except for the NSE Consumer and Industrial Goods, which closed lower. Market breadth was negative as decliners outnumbered advancers in the ratio of 15:13, to upturn the bull transition.
Market activities were down in volume and value by 43.72% and 57.08% respectively to 91.41m shares worth N960.91m, from Friday’s 162.41m units valued at N2.24bn, with transactions boosted by trading in financial services and consumer goods stocks like: UBA, FCMB, Fidelity Bank, Guaranty Trust Bank and Honeywell flour.

AXA Mansard Insurance and Forte Oil were the best performing stocks, after chalking 10% and 9.88% respectively, closing at N1.98 and N22.25 per share, on the impact of market forces and earnings expectations. On the flip side, Fidson Healthcare and Wapic Insurance lost 10% and 9.09% respectively, closing at N5.40 and N0.40 each on profit taking and market forces.

Market Outlook
With the hope that more companies would release their scorecards, expect increased bargain hunting in the midst of volatility and profit taking. If the numbers beat market and analysts forecast. Also, the September inflation data is being expected.

Investdata projects that it could be in the region of 11.49%, with expected electioneering spending to boost activities.
Investors are looking forward to Q3 earnings reports so as to rebalance their portfolios and watch the political space, while analysing the actual numbers that will give insights into expectations for Q3 GDP and full year companies earnings power that are likely to drive prices and determine the market before or after February election.

Investors should review their positions in line with investment goals, strength of the company numbers and act as events unfold in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value,
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst mixed company, economic and market fundamental.

https://investdata.com.ng/2018/10/volatility-may-persist-as-inflow-of-q3-data-raise-bargain-hunting-tempo-on-ngse/

Expect Portfolio Rebalancing On NGSE, As Investors Digest Emerging Q3 Reports



MARKET UPDATE FOR OCTOBER 17, 2018

Volatility on the Nigeria Stock Exchange (NSE) continued at midweek despite the onset of Q3 earnings reporting season with trading indicators oscillating to reverse previous day’s gains as the composite index closed lower on profit booking and selloffs in high cap stocks that pulled the market down.
Trading for the day started out with a quick move to the downside at the opening session, followed by an orderly sell-off into the afternoon when it touched intraday lows of 32,413.90 basis points from highs of 32,722.18bps to retest the recent secondary support level. However, it rallied back marginally in the last few minutes to finish the session at 32,437.35bps on a lower volume of transaction.
As it is now, the market index has gone back to rest on the short Moving Average of seven and 21 days after it had earlier broken out. A breakdown of 7DMA could confirm 15 months lower lows, but the expected company fundamentals that would be made visible through the quarterly earnings which have started rolling in could support an uptrend, if the numbers beat expectations. Already, companies that have released their Q3 numbers include UBA, Guaranty Trust Bank and Lafarge Africa. We note that the numbers have been mixed as performance of the financial service providers were boosted by trading and other incomes, rather than their traditional interest income, while Lafarge posted loss.
Market technicals at midweek were negative and mixed as volume traded was relatively low on a negative market breadth in the midst of high selling pressure as revealed by Investdata’s Daily Sentiment Report, indicating a ‘sell’ volume of 94% and buy position of 6%. The volume index for the day’s total transactions was 1.18.
Energy behind the day’s market performance was weak as reported numbers came mixed, reflecting in the money flow index at 40.55bps, from previous day’s 47.70bps, an indication that funds left some stocks as traders took profit in the face of low liquidity in the market.

Index and Market Cap
The benchmark NSE All Share Index shed 284.83bps, closing at 32,437.35bps, after opening at 32,722.18bps, representing a 0.87% decline, just as market capitalization shed N103.98bn, closing at N11.83tr, from N11.95tr, representing a 0.87%, value loss.

The day’s downturn resulted from selloffs and profit taking in medium and high cap stocks like: Dangote Cement, Nigerian Breweries, UBA, Fidelity Bank, Access Bank, Zenith Bank, Forte Oil, FBNH and UACN. This impacted negatively on Year-to-Date negative returns, which increased to 15.18%, and market capitalization to N1.76tr, representing a 13.09% drop, from the opening value.

Bearish Sector Performance
Midweek sectorial performance was largely bearish, except for the NSE Insurance that closed higher. Market breadth was negative as decliners offset advancers in the ratio of 22:11, to halt the previous up market.
Market transactions in volume and value were down by 63.63% and 31.12% respectively to 240.76m shares worth N3.66bn, from previous day’s 662.02m units, valued at N5.31bn. Activities were boosted by trading in financial services stocks like: Zenith Bank, UBA, Fidelity Bank, Sterling Bank and Guaranty Trust Bank
Sunu Assurance and Continental Reinsurance were the best performing stocks, chalking 10% and 9.63% respectively to close at N0.22 and N1.48 per share, on the impact of market forces and low price attraction. On the flip side, Pharma Decko and UACN lost 10% and 9.09% respectively, closing at N1.71 and N10 each on profit booking and market forces.

Market Outlook
Expect the oscillating trend to continue as more companies present their numbers in the coming days, amidst increased bargain hunting activities, while volatility and profit taking continue, if the numbers beat market and analysts forecast.
The much anticipated Q3 earnings reports would assist investors and fund managers rebalance their portfolios, while watching the political space and analysing the actual numbers that will give insights into expectations for Q3 GDP and full year company earnings power. These are likely to drive prices north, or south, while determining market direction before or after Presidential Election.
Investors should review their positions in line with investment goals, strength of the company numbers and act as events unfold in the global and domestic environment.

However, we would like to reiterate our advice that investors should go for equities with intrinsic value,
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst mixed company, economic and market fundamental.

https://investdata.com.ng/2018/10/expect-portfolio-rebalancing-on-ngse-as-investors-digest-emerging-q3-reports/

Investdata Daily Sentiment Report

NSEASI buy 55% sell 45% volume index 0.85 MFI 46.29
Access buy 0% MFI 66.09
Cap buy � volume index 4.61 MFI 77.33
CIleasing buy 0% volume index 0.77 MFI 60.25
Dangote Cement 0% MFI 53.04
Dangote sugar buy 0% volume index 0.85 MFI 57.11
Diamond buy 0% MFI 47.11
ETI buy 30% sell 70% volume index 6.69 MFI 0.40
Fbnh buy � volume index 1.34 MFI 57.39
Fidelity buy � MFI 62.26
Fmn buy 0% volume index 2.28 MFI 44.13
GT buy 0% volume index 2.43 MFI 54.07
Hony flour buy 9% sell 91% volume index 3.36 MFI 21.14
Japaul buy 0% volume index 1.26 MFI 58.65
Oando buy � MFI 50.02
Prestige buy � MFI 62.27
Transcorp buy 50% sell 50% MFI 39.17
Uba buy 0% volume index 0.72 MFI 22.26
Wema buy � MFI 60.16
Zenith buy 50% sell 50% volume index 1.84 MFI 40.90

https://investdataltd..com/2018/10/investdata-daily-sentiment-report_19.html

CBN Sets N6bn Minimum Capital For Proposed Mortgage Guarantee Firms

The Central Bank of Nigeria (CBN), on Thursday unveiled an exposure draft to regulate the operations of Mortgage Guarantee Companies (MGCs), as part of efforts to promote mortgage financing and advance home ownership in the country.
This, according to the accompanying circular signed by Kevin Amugo, CBN’s Director, Financial Policy and Regulation Department said, is also to deepen the mortgage market, is also in a bid to promote affordable financing, while ensuring a safe and sound financial system.
Companies seeking licences as MGCs, the CBN proposed in the exposure draft, shall maintain a N6bn minimum capital, in addition to N100,ooo non-refundable application; non-refundable licensing fee of N1m; and N50,000 change of name fee.

Permissible activities of MGCs include: Full or partial guaranteeing of residential mortgage loans, investing in government securities, among others, in addition to assuming ownership of residential property in the event that a lender is unable to dispose of a foreclosed property.
If proposal is approved, MGCs can also issue bonds and notes to funds their operations; provide technical assistance to lenders on credit and business development related activities to increase pool of development expertise; in addition to other activities as may be prescribed by the CBN from time to time.

MGCs are allowed to invest in government securities, deposits with licenced banks, deposits held at the CBN; and other investment specifically allowed by the apex bank.
They are however not allowed to take any type of deposits; grant loans, whether consumer, commercial or mortgage; or originate primary mortgages. They are also not permitted to finance real estate construction, estate agency or facilities management, project management relating to real estate development, or management of pension funds/schemes. They also forbidden from transactions such as foreign exchange, commodity, financial derivatives (except hedging instruments), or equity trading; as well as other activity not expressly permitted by the CBN.

As part of good corporate governance practice, MGCs shall have a board comprising between seven and 11 members, with the number of non-executive members exceeding executive directors, including one independent director.
The executive directors shall hold office for a five-year term (10 years), which may be renewed only once; while non-executives are limited to three terms of four year each (total of 12 year). An executive director who has served the maximum 10 years, may be appointed Managing Director, who shall serve two terms of five years each.
No executive director is however allowed to transmute to non-executive director until after three years period.
The CBN also proposed that an MGCs cannot “declare or pay dividends out that will result in the capital adequacy ratio falling below 100%.”

https://investdata.com.ng/2018/10/cbn-sets-n6bn-minimum-capital-for-proposed-mortgage-guarantee-firms/#more

Investdata Daily Sentiment Report

NSEASI buy 83% sell 17% volume index 1.24 MFI 60.49
Access buy 0% MFI 69.08
Afrprud buy � volume index 1.16 MFI 36.00
Aiico buy � MFI 28.25
Dangote flour buy 0% volume index 2.29 MFI 56.09
Diamond buy � volume index 6.90 MFI 76.29
Fbnh buy � volume index 0.81 MFI 48.65
Fcmb buy 0% volume index 1.48 MFI 0.34
Fidelity buy 67% sell 33% MFI 67.87
Fmn buy 0% volume index 0.86 MFI 45.05
GT buy 0% volume index 3.15 MFI 41.66
Hony flour buy 0% MFI 17.16
Japaul buy � volume index 1.25 MFI 40.71
Lawunion buy � volume index 0.72 MFI 23.30
Neimeth buy 0% volume index 2.28 MFI 48.27
Nem buy � MFI 78.88
Oando buy � volume index 0.91 MFI 67.19
Sovereins buy 0% volume index 4.74 MFI 3.24
Sterling buy � volume index 3.48 MFI 45.02
Transcorp buy 0% MFI 33.21
Uba buy 50% sell 50% MFI 17.41
Unilever buy � volume index 4.34 MFI 96.30
Wapco buy 0% volume index 1.70 MFI 6.52
Wema buy � MFI 52.78
Zenith buy � MFI 43.27

https://investdataltd..com/2018/10/nseasi-buy-83-sell-17-volume-index-1.html?m=1

4 Strategic Ways of Handling Your Investment in 2019

"Give me six hours to chop down a tree, and I will spend the first four sharpening the ax." - Abraham Lincoln

For the do-it-yourself investor, knowing your strengths and weaknesses - as well as how much time and effort you are willing to commit to charting your investment course - will put you in the best position to succeed. This post will address the best ways to break down the hectic and procrastinating task of understanding and allocating your investments in 2019.

*1.Make an Examination:* The best place to start any journey is by knowing where you currently stand. Generally speaking, the younger you are, the more willing you should be to take on risk.

*2.Know Yourself:* according to Socrates. "All man know thyself" that is, you must know what you are capable of. You should know your strength and Weakness. I will recommend that you work more on your weakness than strength because whatever loss you must have experienced, is as a result of your weakness.

*3.Subscribe for Information Services:* In the business of stock, data is very very important. I don't know how to stress the importance because without it, you will be leaving your portfolio to chance and luck (gamble) You don't need to subscribe to expensive data services or data analysis. I have a Buying and Selling Signal Premium Group where you can get latest updates on which stock to sell and buy, stocks to keep, when to take action and host of others Call 08028164085,08032055467 for more information.

*4.Reassess and Adjust your Strategy:* Pick a schedule for assessing your progress and it should be a quarterly schedule. I will recommend that you attend seminars which is a great way to get first hand update information that will help you in readjusting your strategy.

Happy Trading,
Ambrose Omordion
https://investdataltd..com/2018/10/strategic-ways-of-handling-your.html?m=1

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