Latest Nine-Month Reports As Insight To 2018 Full-Year

The recently concluded quarterly earnings reports season of listed companies on the Nigerian Stock Exchange, as would be expected, showed actual financial health and where they really stand, going into end of their financial year.

Generally, the numbers for the period under consideration came below expectation and market forecast, especially the top line, where over 40% of them released flat profitability levels, despite the mild growth in bottom line.

It must be noted that the Q3 corporate earnings sales growth rate were very slow and weak, following through from the previous quarters’, reflecting the nation’s economic fundamentals and cycle after a recession in 2016/2017.

A look at the Q3 numbers as a whole, by matching the actual numbers with expectations, and benchmarking them against those of the corresponding period of last year, we would see an obvious underperformance by way of weakened sales revenue as mentioned earlier. Profit levels were slightly above average in the period under review, due mainly to cost cutting measures as well as extraordinary incomes, which are mostly one-off.

Amongst the banks, for example, the rising oil price before the recent pullback impacted positively on the loan book, given that a sizeable chunk of their exposure was to oil companies, as well as the power sector. This enabled players in the oil and gas to sector repay their loans, including some that had been written off and duly provisioned for, which is why some of the banks reported write-back of such previously provisioned “bad and doubtful” loans, resulting in bigger profit margins.

Positive surprises were very few in the recent Q3 earnings season, a repeat of what happened in the half-year outing, when there were a few companies with positive revenue and earnings surprises.

One thing that is not in doubt is the weak economic activities and declining economic growth rate reflected in the recent corporate earnings picture, as numbers from many notable companies in the Industrial Goods, Consumer Goods and Healthcare, among other sectors came weak. This is due to an unholy alliance of factors like high production and, or operating cost, weak purchasing power of Nigerians and unstable government policies, all conspiring to make companies listed on the Nigerian Stock Exchange and many others operating in the country under-perform.

These takeaways have given insights into what should be expected by the first quarter of 2019, when the 2018 full-year audited numbers will pour in and whether the directors of these companies will recommend distribution of juicier dividends. It will also be a period when some will make a leaner offering, or regrettably, none at all. Historically too, the full-year earnings season is a time that witnesses the that attracts more participant to the equity market due to expectations of dividend rewards.

This is why how investors can play the dividend season intelligently with the help of deep research is part of topics slated for discussion at INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT put together by Investdata Consulting Ltd.

Take advantage of low prices in the market today to position in the right stocks that would ensure you recover you lost grounds and grow your income.
To track the prices and earnings trend of selected stocks on the Nigerian Stock Exchange, see Investdata Price & Earnings Tracking for the year. It will guide you on companies with numbers trending up or down fundamentally.

You will also see those companies that are positing negative numbers.

https://investdata.com.ng/2018/11/latest-nine-month-reports-as-insight-to-2018-full-year/

Investdata Price & Earnings Tracking For Week Ended Nov. 9, 2018

https://investdata.com.ng/2018/11/investdata-price-earnings-tracking-for-week-ended-nov-9-2018/#more

Corporate Actions On NGSE For Week Ended Nov. 9, 2018

https://investdata.com.ng/2018/11/corporate-actions-on-ngse-for-week-ended-nov-9-2018/#more

Mixed Performance, Speculative Trading, As Investors Position Full-Year Earnings

Market Update for the week ended November 9 and Outlook for Nov 12-16

The first full trading week in the month of November on the Nigerian Stock Exchange (NSE) recorded a strong buying pressure, closing on a positive note, while resisting further decline after retesting the last recent support level at 31,949.33 basis points on a lower traded volume. The undulating movement observed during the period reflected the level of indecision among players amidst portfolio repositioning and rebalancing continued ahead of the release of October inflation reports, as well as the Q3 GDP Figure and the year-end’s Santa Claus rally.

The long awaited wage increase has finally come through, with the Federal Government accepting to pay a N30,000 minimum wage, representing 66.67% increase from the current N18,000, even as the government’s revenue profile remains low, despite the recent oil rally. Implementation of this new wage may be delayed since no timeline is assigned and the government is still borrowing to finance its 2018 budget that had not in any way reflected on the economy.

The nation’s debt to GDP ratio seems low at between 20-25% but the high proportion of revenue used to service these debts is of major concern for investors and Nigerians. At the same time, corporate earnings reports released for the third quarter ended September 30, 2018, reveal the sliding earnings power of companies, thereby signaling the possibility of dividend cut across companies in some sectors.

The current market position technically supports a rebound after forming a double bottom which is subject to market forces, because the narrative has not change. Any breakdown of the support level of current NSE All-Share Index will provide great opportunity for discerning investors and traders to make money and recoup their losses.
Market players that understand market dynamics of investing in equities can without being emotional use history, patterns, seasons and cycle as a strategy for success.

Pullbacks and oversold position of the market and stocks offers a great chance to scoop great stocks, just as our medium and long-term view is bullish on the market and we feel that further pullbacks will offer great buying opportunities for the short and long run.

Nigeria’s market joins its counterparts around the globe, as major equity market posted week-on-week gains with the exception of China’s Shanghai Composite Index. In the U.S., the Dow Jones Industrial Average chalked 2.89% week-on-week; NASDAQ, 0.73%; and S&P 500, 2.12%, despite closing low on Friday. In the UK, the FTSE gained 0.02%; while the Japanese NIKKEI notched 0.03%, even after closing lower on Friday.

Back home, trading opened for the week on a negative note losing 0.24% on Monday which was reversed on Tuesday when the composite index gained 0.33%, before Wednesday’s 0.14% slide. On Thursday the market retraced up by 0.37% again, after which it shed 0.09% Friday. This brought the week’s total cumulative gain to 0.23%, as market sentiments turned positive in the midst of profit taking and portfolio reshuffling.
Market technicals for the period were positive and mixed, on low volume traded and negative market breadth, with strong buying pressure as revealed by Investdata’s weekly Sentiment Report, showing a buy volume of 82% and sell position of 18%. The volume index of total transactions within the period was 0.80.

The energy behind the week’s performance were weak despite the demand for highly capitalized stocks as money flow index fell to 31.07bps, from 39.46bps in previous week, an indication that funds are leaving the market and some stocks on low liquidity.

Equity Indicators Last Week
The NSE All-Share index for the week gained a marginal 75.27 basis points to close at 32,200.21bps, after opening at 32,124.93bps, representing a 0.23% growth, after touching a high of 32, 253.44.11bps, from low of 31,949.33bps on low volume. Similarly, market capitalization closed at N11.76tr, from an opening value of N11.73tr, representing 0.23% value gain.

NSE ASI WEEKLY TIME FRAME
The blend of low, medium and high cap stocks topped the week advancers chart as buying interest was rekindle during the period under review.

Meanwhile, the NSEASI’s year-to-date negative returns reduced to 15.8%, just as market capitalization dropped to N1.84tr, or 13.98 % below the year’s opening value.

Mixed Sectors Indices
The sectorial performance indexes for the period were largely bearish, except for the NSE Consumer Goods and Oil/Gas that closed high. Market breadth was negative, with decliners outnumbering advancers in the ratio of 39:27, halting the bullish transition.

The week transactions in volume and value were down by 14.95% and 10.57% respectively to 1.08bn shares worth N18.2bn from the previous week 1.27bn units valued at N20.35bn, boosted by trading in financial service, consumer goods and Oil/Gas sector.

UACN and NPF Microfinance were the best performing stocks for the period, as they gained 11.11% each at N10.00 and N1.50 per share, on low price attraction and positive sentiment, while Mutual Benefits and Flour Mills lost 23.33% and 16.76% respectively to close at N0.23 and N15.40 on profit taking and reactions to their weak Q2 earnings reports.

Market Outlook
We expect mixed performance as speculative trading continue to shape activities in the short-to-medium term. However, any position taking now should be for medium-to-long term horizon especially in stocks with good fundamentals, while watching the political space, since Q3 numbers have given insights into what the expected Q3 GDP and full year company earnings power will be.

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.

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.

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/2018/11/mixed-performance-speculative-trading-as-investors-position-full-year-earnings/#more

Investdata Weekly Sentiment Report

NSEASI buy 82% sell 18% volume index 0.80 MFI 31.07
Access buy 0% volume index 1.55 MFI 23.72
Afrprud buy 70% sell 30% volume index 1.02 MFI 48.32
Aiico buy 12% sell 88% MFI 58.69
Air service buy � volume index 0.88 MFI 66.89
Cadbury buy 0% volume index 0.80 MFI 25.50
Cap buy 33% sell 67% volume index 1.21 MFI 56.44
Caverton buy � MFI 33.00
CCNN buy 0% MFI 24.18
Continsure buy 0% volume index 0.97 MFI 16.14
Custodian buy 0% MFI 49.62
Dangcem buy � MFI 30.19
Dangflour buy 6% sell 94% volume index 1.11 MFI 29.72
Dangsugar buy 40% sell 60% MFI 33.32
Diamond buy � MFI 62.36
ETI buy � MFI 4.30
Fbnh buy 42% sell 58% volume index 1.66 MFI 36.90
Fcmb buy 54% sell 46% MFI 37.91
Fidelity buy 89% sell 11% MFI 57.59
Fidson buy 88% sell 12% volume index 0.88 MFI 0.45
Allum buy � MFI 80.78
Fmn buy 5% sell 95% volume index 1.03 MFI 44.50
FO buy 0% MFI 45.20
Glaxo buy 0% MFI 56.34
GT buy 11% sell 89% MFI 59.16
Hony flour buy 0% MFI 9.62
Jaiz buy 67% sell 33% MFI 37.62
Japaul buy 50% sell 50% volume index 1.03 MFI 24.07
Lasaco buy � volume index 0.77 MFI 16.61
Lawunion buy 0% MFI 10.06
Learn buy 0% volume index 0.92 MFI 73.29
Lvstk buy 80% sell 20% MFI 50.95
M&B buy 0% volume index 0.75 MFI 73.73
Mben buy 0% MFI 24.95
Mobil buy 0% volume index 0.87 MFI 42.01
Nahco buy 68% sell 32% MFI 68.09
Nem buy � MFI 90.82
Nestle buy � volume index 2.33 MFI 44.61
Nigerins buy � MFI 62.16
Oando buy 8% sell 92% MFI 39.26
Presco buy � volume index 3.36 MFI 85.02
Prestige buy � volume index 1.60 MFI 23.22
PZ buy 0% volume index 2.02 MFI 14.32
Red buy � volume index 1.24 MFI 9.64
Regalins buy 0% volume index 3.63 MFI 6.79
Seplat buy � volume index 1.75 MFI 28.78
Stanbic buy � MFI 16.25
Sterling buy � MFI 44.58
Transcorp buy 50% sell 50% MFI 47.88
Uacp buy 0% MFI 40.81
Uacn buy � MFI 31.53
Uba buy 90% sell 10% MFI 32.33
Ubn buy 9% sell 91% volume index 1.44 MFI 36.83
Ucap buy 45% sell 55% MFI 29.21
Unilever buy 0% volume index 2.11 MFI 38.23
Uniondac buy 33% sell 67% volume index 0.95 MFI 61.52
Unity buy � volume index 1.00 MFI 37.59
Vitafoam buy 32% sell 68% volume index 1.62 MFI 29.62
Wapco buy 4% sell 96% MFI 23.15
Wapic buy 0% volume index 1.52 MFI 43.33
Wema buy 0% MFI 17.14
Zenith buy � volume index 2.65 MFI 66.15

https://investdataltd..com/2018/11/investdata-weekly-sentiment-report_12.html

Are You Aware of This?

Last week, I got a call from three of the investors. One of the three always travel from Enugu to attend my Seminar but he did not attend my last seminar and it is to the question he asked me last week . The others reside in Lagos. The three of them asked a similar question. "are the Speakers the Same with Previous InvestData Seminars?" I told them no and took my time to explain one after the other the 6 speakers that will be there excluding myself.

These 6 speakers are top notch experts. In combine they are currently managing stocks worth billions of naira for their clients. On the 8th December, 2018 at Alausa, Ikeja, Lagos, you will be learning how they are able to manage and make the best returns.

As result of the questions asked by the 3 investors, it then dawn on me to dive deep about the experts because I don't how many investors have similar experience.

The experts include:

1. *Mrs Toyin F. Sanni,* Group CEO of Emerging Africa Capital Group, an African provider of integrated financial services covering Advisory and Capital Raising, Trusts, Wealth Management and Investment Facilitation. She will be taking you on *Pre-election year performance Review and post-election Investing opportunities.*

2. *Alhaji Garba Kurfi,* Managing Director of APT Securities & Funds Limited is a Fellow of both the Institute of Chartered Accountants of Nigeria (FCA) and the Chartered Institute of Stockbrokers (FCS). He is also a council member of the Nigerian Stock Exchange. He will revealing Understanding the big picture of Budget Delays and Implications on the Economy/Stock Market.

3. *Mr. Abdul-Rasheed Oshoma Momoh,* Head, Capital Market, TRW Stockbrokers Limited, a graduate of the Ahmadu Bello University, Zaria; and Associate Member of the Chartered Institute of Stockbrokers, is a certified Technical Analyst and guru in short term trading techniques. He will be revealing *Simple Strategies for picking undervalued stocks With Fundamental & Technical Tools*

4. *Engr. Ekwueme Mike Anaydibe,* Head, Fixed Income Sales at TRW Stockbrokers Limited a ‘seasoned engineer,’ has developed and applied econometric techniques to the Nigerian financial & secondary commodity markets. He has successfully created ‘timing & trend’ models of the Nigerian Stock Exchange, for example, based on technical analysis of ‘Real Nigerian Investors’ Behavior & Sentiments. He will be revealing *Psychology of Equities Trading For Managing Positions & Money*

5. *Mr. Razaq Abiola, Economist/Head, Investor Relations and Portfolio Investment at United Bank for Africa Plc,* is responsible for managing the equity and debt capital of the Group, besides overseeing its private equity investments. He will be revealing *Nigeria’s Post Election Economy & 2019 Sectoral Analysis*

6. *Mr. Mike Uzor, Managing Director of Datatrust Consulting Limited is financial analysts and consultant.* Holder of Master of Business Administration from  Kensington University,  California has traversed core areas of the financial market- banking, stock brokerage, pension and marketing communications. He will be revealing *Picking the Right Stocks for Financial Independence and to Retire Rich*

With these 6 experts in a place, I don't why you won't achieve your 2019 financial goals. But, you still need to take action now because a journey of a thousand mile starts with a single step. Start your journey by calling 08028164085,08032055467 or send *Yes* to Register for the INVEST 2019 SUMMIT Now. Time waits for no one.

Happy Trading
Ambrose Omordion
https://investdataltd..com/2018/11/are-you-aware-of-this.html?m=1

Capital Market Studies Curriculum Will Boost Investor Education- SEC

The Securities and Exchange Commission (SEC), on Monday restated commitment to begin teaching Nigerians about the benefit of appreciating the benefits of, and participating in the capital market for economic growth and development.

This, according to Acting Director General of the SEC Ms. Mary Uduk, is in addition to the ongoing further enlightenment and education of investors in the Nigerian capital market to enhance their ability to make informed investment decisions.

Speaking at the planning and writing workshop for the development of Capital Market Studies Curriculum (CMSC) for Basic and Senior Secondary Schools levels, in Lagos on Monday, she said the development of the curriculum is one of such avenues.

Uduk assured that the Commission has been in the vanguard of inculcating financial literacy for quite a long time because the SEC has realised that it is very important for students to imbibe the culture and habit of being financial literate and to be familiar with the operations of the capital market.

“This partnership with the Nigerian Educational Research and Development Council (NERDC), to actualize this ground breaking Capital Market literacy programme, is part of the Securities and Exchange Commission’s effort at vigorously pursuing the implementation of one of the essential initiatives of the 10-year Nigerian Capital Market Master Plan,” she added.

Uduk said the implementation programme kick-started with the signing of a Memorandum of Understanding between the Commission and the NERDC in 2016, to develop a Standalone Capital Market Studies (CMS) curriculum for infusion into Basic and Senior Secondary Schools.

“I am happy to announce that, after a successful workshop for contents selection, the stage is now set for the planning and writing of the standalone curriculum.
“The Commission recognizes the efforts required for other stages of the programme and remain confident that with the active support and commitment of our stakeholders we will complete this project” she stated.
She said the Commission recognizes the efforts required for other stages of the programme and remain confident that with the active support and commitment of all stakeholders the project will be completed.

In his welcome address, Executive Secretary, National Educational Research and Development Council (NERDC) Prof Ismail Junaidu said the capital market connects the financial sector with the real sector of the economy and in the process, facilitates real sector growth and economic development adding that it increases the proportion of long term savings that are channeled to long term individuals/households and channels them into long term investments and fulfils the transfer of current purchasing power from surplus sectors of the economy to deficit sections.

He said a nation’s economic growth is expected to promote an efficient and effective financial sector that pools domestic savings and mobilises capital for productive purposes. Hence he said, an economy that is not growing can hinder stock market development, and engender such problems as low capitalisation, which limits the savings function of the stock market; and illiquidity of the market which is a disincentive to investment.

Junaidu described capital market education as a strategic imperative which requires a comprehensive curriculum run by competent academic and professional personnel adding that early involvement of the youth in Capital Market Studies could derive profit, growth and perhaps be the much sought antidote to over dependence on paid employments was one of the reasons the SEC approached NERDC to mainstream capital market issues into the national curriculum.

He therefore expressed gratitude to the SEC Management on their commitment to the execution of the project.
The 10 year Capital Market Master Plan requires the SEC to inculcate the culture of financial literacy and specifically to introduce Capital Market Studies (CMS) into curriculum at all levels of education and to encourage CMS as a degree programme in the tertiary institutions.

https://investdata.com.ng/2018/11/capital-market-studies-curriculum-will-boost-investor-education-sec/#more

Investdata Daily Sentiment Report

NSEASI buy 21% sell 79% MFI 47.59
Access buy � MFI 41.23
Dangsugar buy 0% MFI 24.49
Diamond buy 0% volume index 4.43
MFI 37.06
ETI buy � MFI 66.57
Fbnh buy � volume index 1.22 MFI 26.53
Fcmb buy 17% sell 83% MFI 70.81
Fidelity buy 33% sell 67% volume index 0.98 MFI 35.60
GT buy 0% volume index 0.85 MFI 66.65
Hony flour buy � MFI 23.02
Oando buy 50% sell 50% volume index 1.47 MFI 35.61
Regalins buy � MFI 28.47
Transcorp buy 50% sell 50% MFI 48.81
Uba buy 33% sell 67% volume index 1.85 MFI 26.75
Vitafoam buy 0% volume index 3.12 MFI 31.49
Zenith buy 0% MFI 75.75

https://investdataltd..com/2018/11/investdata-daily-sentiment-report_13.html

Investdata Daily Sentiment Report

SEASI buy 36% sell 64% volume index 0.96 MFI 60.84
Dangcem buy 0% MFI 98.01
Dangflour buy � volume index 1.57
MFI 37.84
Dangsugar buy 0% volume index 0.92 MFI 25.85
Diamond buy 0% volume index 3.50 MFI 11.15
Fbnh buy 14% sell 86% volume index 5.33 MFI 42.35
Fidelity buy � MFI 37.34
GT buy 78% sell 22% MFI 60.44
Hony flour buy 0% MFI 23.69
Jaiz buy 0% volume index 0.76 MFI 51.62
Japaul buy 0% volume index 1.92 MFI 52.47
Oando buy � MFI 43.67
Regalins buy � volume index 3.68 MFI 40.15
Total buy � volume index 1.06 MFI 88.16
Transcorp buy 0% volume index 1.36 MFI 29.27
Uba buy 0% volume index 0.97 MFI 42.15
Ucap buy 0% volume index 0.75 MFI 67.46
Vitafoam buy � volume index 4.09 MFI 50.43
Zenith buy 20% sell 80% volume index 0.86 MFI 76.41

https://investdataltd..com/2018/11/investdata-daily-sentiment-report_14.html

Investors Speculate Ahead Of Economic Data, Next Week’s MPC Outcome

Market Update for November 13
Nigerian stock market on Tuesday recorded a marginal gain, halting two previous sessions of losses on a seeming improved volume of trades driven by the huge interest in Ikeja Hotels, which resulted in N2.05 sell volume, as well as continued speculative trading in banking and industrial goods stocks that impacted the market positively.

The prevailing volatility and indecision in the market continued as the volume of trade remains small, besides low transactions that reflects the general mood of selloffs amidst repositioning in other stocks while interpretation of Q3 numbers continue ahead of the release of 2018 full-year financials.
The NSE All-Share Index opened the day on a flat note, but moved up and down in the mid-morning till midday as bargain hunters took advantage of low prices to position in some stocks that helped the index to touch intraday highs of 32,402.92 basis points, from a low of 32,101.80bps. It however pulled back at the last minutes, but closed above the day’s opening level at 32,153.90bps on negative sentiment.

The prolonged pullback in emerging markets due to the high yield environments in developed economies, after the more than triple the interest rate hike over a short period of time however had ripple effects including the trade war already manifesting in corporate earnings coming below market expectations in developed markets. Consequently, there is the high possibility of redirecting investments into emerging market, knowing that sovereign debts in these markets are low, with Price-to-Earnings ratio below its five-year low, given the recent pullbacks in oil price currently trading below $70 per barrel. This is likely to influence the U.S to slowdown rate hike as the economic growth remained strong.

Back to Nigeria, one thing that is clear from the equity market’s slowdown, is the bigger the pullback, the higher the possibility of a bull-run in the near term, with stocks like: UACN, PZ, GSK, Julius Berger, Lafarge Africa and Diamond Bank hitting their 10-year low. Also important to note is the fact that many stocks selling below 50 kobo continue to dominate the topped advancers table since the onset of selloffs by smart money. With the elections coming closer still, and the equity becoming cheaper, the possibility a return by foreign investors who had exited earlier, before the elections proper, or after is high.

This and more reasons are why you should attend INVEST 2019 where expert resource persons will guide you on how to take position well before the signs become clear to the majority, by following tell-tale signs.

Market technicals on Tuesday were positive but weak as volume traded was high, in the midst of negative market breadth and strong sell pressure as revealed by Investdata’s Daily Sentiment Report, with sell position at 83% and buy volume of 17%. The volume index for the day’s total transactions was 1.69.
The momentum behind the day’s market performance was up as speculative activities were on banking and industrial goods stocks. Money flow index for the session fell to 58.71bps, from previous day’s 47.59ps, indicating that funds are entering some stocks in the market.

Index and Market Cap
The composite index gained marginal 9.49bps, closing at 32,153.90bps, after opening at 32,153.41bps, representing 0.03% growth, just as market capitalization inched up by N3.52bn, closing at N11.74tr from an opening value of N11.73tr, representing 0.03% value gain.

Attention: join Investdata buy and sell signal setup to get all our in-depths analysis on the picture and to get access to our carefully created watch list. 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.
The day’s slight upturn was influenced by price appreciation in medium and high cap stocks like: Zenith Bank, UBA, Flourmills, Stanbic IBTC,Oando, Access Bank, Unity BANK and Dangote Flour. This impacted the Year-to-Date returns, which slightly reduced its loss level to 15.92%, while decline in market capitalization reduced to N1.87tr year-to-date, representing 13.73% drop.

Mixed Sectors Indices
Sectorial performance was largely bearish, except for the NSE Banking and Industrial Goods which closed green, while market breadth was negative with decliners outnumbering advancers in the ratio of 26:16, halting two sessions of bear run.
Market activities were up in volume and value by 181.3% and 44.10% respectively to 399.76m shares worth N2.24bn, from the previous day’s 142.11m units valued at N1.57bn.

Transaction volume was boosted by financial and hospitality service stocks: Ikeja Hotel, FBNH, Diamond Bank, FCMB and UBA.
The best performing stocks were Unity Bank and GSK, which gained 9.85% and 9.55% respectively to close at N0.78 and N12.05 each on market forces.
On the flip side, C/I Leasing and Lasaco Assurance lost 10% each to close at N2.52 and N0.27 respectively on profit taking and market forces

Market Outlook
As equity prices are becoming cheaper oscillating trend will continue as traders speculate ahead of October inflation report, given that there is no new incentive for the market in November, except for next week’s 264th meeting of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting on Monday and Tuesday, unless and until there is a change in the narrative. Going by the timetable of the National Bureau of Statistics (NBS) released earlier in the year, the nation’s Q3 Gross Domestic Product (GDP) report is slated for release on Tuesday, November 27, same date as the Q3 capital importation report.

The ongoing volatility will persist as Q3 numbers assist investors and fund managers rebalance their portfolios, while watching the political space and ahead of the expected Q3 GDP and full year company earnings position. 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...


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/2018/11/investors-speculate-ahead-of-economic-data-next-weeks-mpc-outcome/#more

Central Banks Should Consider Digital Currency Issuance, Says Lagarde, IMF Boss

Managing Director of the International Monetary Fund (IMF), Christine Lagarde, on Wednesday said the world’s central bank cannot run forever away from issuing digital currency, in an age where change remains constant.

In a presentation titled: “Winds of Change: The Case for New Digital Currency,” at the Singapore Fintech Festival, she expressed belief that central banks across the world “should consider the possibility to issue digital currency. There may be a role for the state to supply money to the digital economy.”

Such currency, she explained, “could satisfy public policy goals, such as: financial inclusion, and security and consumer protection; and to provide what the private sector cannot- privacy in payments.”
On financial inclusion, Lagarde said digital currency offers great promise by being able to reach people and businesses in remote and marginalized regions at a time when banks are in no rush to serve poor and rural populations.

This is critical, she continued, “because cash might no longer be an option here. If the majority of people adopt digital forms of money, the infrastructure for cash would degrade, leaving those in the periphery behind.

“What about subsidizing cash usage in those areas? But that means that economic life in the periphery would become disconnected from the center.”
While agreeing that offering a digital currency is not necessarily the only answer, the MD noted the scope for “governments to encourage private sector solutions, by providing funding, or improving infrastructure.”

Digital currency, she continued, relates to security and consumer protection, describing it as “a David versus Goliath argument. In the old days, coins and paper notes may have checked the dominant positions of the large, global payment firms—banks, clearinghouses, and network operators. Simply by offering a low cost and widely available alternative.

“Without cash, too much power could fall into the hands of a small number of outsized private payment providers. Payments, after all, naturally lean toward monopolies—the more people you serve, the cheaper and more useful the service.
“For a start, private firms may under-invest in security to the extent they do not measure the full cost to society of a payment failure. Resilience may also suffer—with only a few links in the payment chain, the system may stop working if one of these links breaks. Think about a cyber-attack, a glitch, bankruptcy, or a firm’s withdrawal from the local market,” she stressed, adding that while regulation may not be able to fully redress these downsides, a digital currency could offer advantages, as a backup means of payment.

“And it could (however) boost competition by offering a low-cost and efficient alternative—as did its grandfather, the old reliable paper note,” Lagarde added.
Another benefit of digital currency, she continued, is in the privacy domain, given that cash allows for anonymous payments and protection of privacy, while avoiding exposure to hacking and customer profiling.
As a simple example, she said: “Imagine that people purchasing beer and frozen pizza have higher mortgage defaults than citizens purchasing organic broccoli and spring water. What can you do if you have a craving for beer and pizza but do not want your credit score to drop? Today, you pull out cash. And tomorrow? Would a privately-owned payment system push you to the broccoli aisle?”

The IMF boss however warned that digital currency has its potential downsides, including risks to financial integrity and financial stability, in addition to those stifling innovation.
Rather than run away from these risks, she believes central banks should face them creatively and instead moderate them by designing digital currency in new and innovative ways using technology as “a very wide canvas.”

On the risks to financial integrity and the tradeoff between privacy and financial integrity, she said central banks could “design digital currency so that users’ identities would be authenticated through customer due diligence procedures and transactions recorded. But identities would not be disclosed to third parties or governments unless required by law. So when I purchase my pizza and beer, the supermarket, its bank, and marketers would not know who I am. The state might not either, at least by default.”

This, she said does not prevent anti-money laundering and terrorist financing controls from running in the background and that where there is a suspicion, it is possible to lift the veil of anonymity and investigate.
“This setup would be good for users, bad for criminals, and better for the state, relative to cash. Of course, challenges remain. My goal, at this point, is to encourage exploration,” she added.

Digital currencies, for her, could intensify pressure on bank deposits, thereby posing a risk to financial stability, as digital currencies being “sufficiently similar to commercial bank deposits—because they are very safe, can be held without limit, allow for payments of any amount, perhaps even offer interest—then why hold a bank account at all?”

She recommended innovation such that when digital currency becomes too popular and might ironically stifle innovation, the central bank could partner the private sector—banks and other financial institutions. Under such arrangement, she believes, the central bank could say, for example: “you interface with the customer, you store their wealth, you offer interest, advice, loans. But when it comes time to transact, we take over.

“This partnership could take various forms. Banks and other financial firms, including startups, could manage the digital currency. Much like banks which currently distribute cash.
“Or, individuals could hold regular deposits with financial firms, but transactions would ultimately get settled in digital currency between firms. Similar to what happens today, but in a split second. All nearly for free. And anytime.”

In summary, she urged “the central bank focuses on its comparative advantage—back-end settlement—and financial institutions and start-ups are free to focus on what they do best—client interface and innovation. This is public-private partnership at its best.

https://investdata.com.ng/2018/11/central-banks-should-consider-digital-currency-issuance-says-lagarde-imf-boss/

Investdata Daily Sentiment Report

NSEASI buy 2% sell 98% volume index 1.42 MFI 51.57
Access buy 0% MFI 68.33
Aiico buy 0% volume index 3.76 MFI 30.48
Cadbury buy 0% volume index 1.38 MFI 56.56
CCNN buy � volume index 5.17 MFI 40.02
Dangflour buy � volume index 2.98 MFI 33.99
Diamond buy � volume index 13.60 MFI 5.26
Fbnh buy 0% MFI 42.93
Fcmb buy 29% sell 71% volume index 1.01 MFI 70.39
Fidelity buy 33% sell 67% MFI 23.78
Glaxo buy 0% volume index 3.02 MFI MFI 43.06
GT buy 0% MFI 57.99
Jaiz buy � volume index 1.96 MFI 55.28
Japaul buy � MFI 53.20
Mobil buy 0% volume index 1.47 MFI 13.94
Nestle buy � MFI 71.87
Oando buy � MFI 39.10
PZ buy 0% volume index 2.47 MFI 14.39
Regalins buy � MFI 40.15
Total buy � volume index 1.08 MFI 88.16
Transcorp buy 0% volume index 1.21 MFI 28.10
Uacn buy � volume index 1.78 MFI 43.27
Uba buy 0% volume index 1.61 MFI 35.22
Ucap buy 0% volume index 1.48 MFI 54.92
Wema buy 67% sell 33% MFI 32.93
Zenith buy 12% sell 88% MFI 77.25

https://investdataltd..com/2018/11/investdata-daily-sentiment-report_16.html

CBN Injects another $210m into Forex Market

The Central Bank of Nigeria (CBN), in another round of intervention, on Tuesday, November 13, 2018, said it injected the sum of $210m in the inter-bank foreign exchange market.

According to the CBN, the authorized dealers in the wholesale segment of the market received the sum of $100m, while the Small and Medium Enterprises (SMEs) and invisibles segments were allotted the sum of $55m each.

The statement by Isaac Okorafor, the bank’s Director, Corporate Communications Department, assured that the CBN would continue to sustain liquidity in the forex market. He also expressed optimism that the Naira will continue its strong run against the dollar and other major currencies around the world, considering the stability in the market and robust reserves.

The CBN had on Friday, November 2, 2018, made interventions to the tune of $337.16m in the retail Secondary Market Intervention Sales (SMIS) and CNY56.17million in the spot and short-tenored forwards segment of the foreign exchange market.
Meanwhile, the Naira on Tuesday, November 13, 2018 exchange at an average of N360/$1in the BDC segment of the market.

Breaking News!

Recently, I sent you a post regarding the Invest 2019 Investors and Traders Summit. However, you are yet to take action for reasons best known to you. Although, you may be right or you may be wrong.

However, there is an information that just came in. If after giving you this information and you are still hesitant then it goes to confirm what Andrew said Carnegie Any man who cannot make a Decision in 60 Seconds after been shown all the obvious and possible facts is... in life". Andrew Carnegie. But I am sure that you know will take your decision Now.

Me and my team of expert just found out that *FOREIGN investors* will be coming much earlier than anticipated. Precisely, before or after the election. So, for you to get the best out of the Market is to
1.Take the right position on time.
2.Choose the winning stocks.

The above are part of what the me and other 6 experts will be addressing on 8th December, 2018 at OSTRA Hall and Hotel. Alausa, Ikeja.
Register via the below link to get started now

http://training.investdataonline.com/2019summit

However, just as you cannot push anyone up the ladder unless he is willing to climb so I can't force you to x the seminar unless you are willing to take action. But I am sure that you are willing to take action now.
Click on the below link to register NOW.

http://training.investdataonline.com/2019summit

Expecting you on the other side.

Ambrose Omordion

Speculations Still On NGSE, Ahead Of MPC Outcome, Oct Inflation Report

Market Update for November 15

Trading activities on the Nigerian Stock Exchange on Thursday was negative to consolidate the bearish transition which broke down 32,000 the psychological line after retesting the 31,949.40 basis points strong support level twice, before finally giving up on selloffs in premium stocks.

It was a volatile session indeed, as the corrective wave extended below the recent support level to make lower lows on high volume traded and negative breadth that prolonged the down trend experienced so far in the year. The massive spikes to new 52-week low and stocks hitting oversold condition can lead to temporary reversal or rally any moment from now. But more importantly, there are signs of further decline which will be a function of market reactions to the decisions reached at next week’s two-day meeting of the Central Bank of Nigeria’s Monetary Policy Committee and expected economic data.

The continued decline continues to offer higher possibility that the market and stock could rebound from their lows in the nearest future. That does not in any way mean that the down trend has changed just yet.

History however suggests that we most likely need to see a retest or overshoot of lows and strong market breadth improvement as a sign that the market has started the process of fixing itself after the huge losses and corrections.

Market technicalsfor the day were negative and mixed amidst the high volume traded; negative market breadth and strong selling sentiment as revealed by Investdata’s Daily Sentiment Report, which shows a sell position of 98% and 2% buy volume. The volume index for the day’s total transactions was 1.56, meanwhile the momentum behind the market performance was weaken, going by the decrease in Money flow index to 51.57bps, from previous day’s 60.84ps, indicating that funds are leaving the market and some stocks.

Index and Market Cap
At the end of Thursday’s trading, the NSE All Share index shed 244.12bps, at 31,854.80bps, having opened at 32,108.92bps, representing 0.76% decline, just as market capitalisation lost N89.1bn, at N11.63tr from an opening value of N11.72tr, representing a 0.76% value loss.

Attention: Join Investdata buy and sell signal setup to get all our in-depths analysis on the picture and to get access to our carefully created watch list. 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.
Thursday’s downturn was impacted by loses suffered by highly capitalized stocks like Guaranty Trust Bank, Zenith Bank, UACN, International Breweries, Access Bank and Transcorp. This impacted negatively on Year-to-Date returns, extending it to 16.68%, while market capitalization decline rose to N1.98tr from its opening level in January, representing 14.52% drop.

Bearish Sectors Indices
Sectorial performance was largely bearish, except for the NSE Insurance and Consumer goods that closed marginally green. Market breadth was negative with decliners outpacing advancers in the ratio of 21:10.
Market activities were up in volume and value by 52.4% and 1.8% respectively to 349.25m shares worth N2.45bn, from previous day’s 229.26m units valued at N2.39bn.

Transaction volume was boosted by financial services stocks like: Diamond Bank, FCMB, Stanbic IBTC, UBA and Guaranty Trust Bank.
Jaiz Bank and Japaul Oil were the best performing stocks, leading the advancers’ table, after gaining 7.5% and 5% respectively to close at N0.43 and N0.21 each on market forces.

On the flip side, Meyer and Uacn Property lost 10% each to close at N0.54 and N1.44 respectively, on market trend and weak earnings.

Market Outlook
With equity prices becoming cheaper, oscillating trend will continue as traders speculate ahead of the release of October inflation report and outcome of MPC meeting given that there is no new incentive for the market in November, until there is a change in the narrative. Going by the timetable of the National Bureau of Statistics (NBS) released earlier in the year, the nation’s Q3 Gross Domestic Product (GDP) report is slated for release on Tuesday, November 27, same date as the Q3 capital importation report.

The ongoing volatility will persist as Q3 numbers assist investors and fund managers rebalance their portfolios, while watching the political space and ahead of the expected Q3 GDP and full year company earnings position. 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.

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/2018/11/speculations-still-on-ngse-ahead-of-mpc-outcome-oct-inflation-report/

Market Update for the week ended November 16 and Outlook for Nov. 18-23

Trading on the Nigerian Stock Exchange in the past week was mixed, closing negative despite the improved volume driven by low price attractions as bargain hunters seemingly position for year-end Santa Claus rally. The session was however dominated by sell-offs as the market broke down the 31,949.33 basis points strong support level and rebounded to close above 32,000 mark.
At this point, the market remains dicey with the probability of a continued down trend or rebound now 50-50 on the strength of market forces and the outcome of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting, the last for the year. The all-important meeting has been rescheduled to Wednesday and Thursday, owing to Tuesday’s public holiday to mark the Id-el Maulud as declared by Federal Government.

Investdata Research expects issues that issues such as the nation’s declining reserves, impact of the N30,000 new minimum wage, the fall in oil price below $70, as well as the sustained rise in inflation rate. There is also the likely impacted of the oversubscribed Nigeria’s latest Eurobond issuance on the reserve needed to manage Nigeria’s exchange rate at a time of rising cost of debt servicing, which is a major concern for the country, especially as the budget continues to be financed external borrowings.

The market has become even more undervalued in nature, with many stocks selling at between 10 and 11-year low, impacting positively on the week’s performance which resisted further decline after side-trending, while waiting for external and internal trigger.
The continued decline in emerging market stocks after the 2017 rally was attributed to selloffs that were induced by the rising interest rates in developed economies, the U.S-China trade war tension and stronger US$. Others include the economic slowdown in China, crises in Argentina, Turkey and political uncertainties in Africa second largest economy.

With many emerging markets and their stocks trading below their five-year low, while medium and long-term outlooks remain positive and capable of attracting funds ahead of 2019. Recently, the Bank of America Merrill Lynch monthly survey showed that investors increased their emerging market stocks allocation to 13% in November, from 5% in the previous month, while reducing their exposure to developed markets.
Back home, the week’s trading started on a negative note, losing 0.18% on Monday. There was mild recovery on Tuesday when the benchmark index gained 0.03%, before the pullbacks on Wednesday and Thursday, when the All-Share index shed 0.07% and 0.76% respectively. The market however retraced up by 0.58% on Friday, bringing the week’s cumulative loss to 0.44%, thereby reversing previous week’s gain on a mixed sentiment in the midst of volatility and portfolio rebalancing.

Market technicals were negative and mixed, on high volume traded and negative market breadth, with strong selling pressure as revealed by Investdata’s weekly Sentiment Report, showing a sell position of 63% and buy volume of 37%. The volume index of total transactions within the period was 1.00.
Momentum behind the week’s performance were weak despite the demand for highly capitalized stocks as money flow index fell to 30.85bps, from 31.07bps in previous week, an indication that funds are leaving some stocks and market despite the prevailing low liquidity.

Equity Indicators Last Week
Trading for the week ended with composite index shedding 141.93 basis points to close at 32,058.28bps, after opening at 32,200.21bps after touching a high of 32,402.92bps, from low of 31,854.43bps on high volume. Similarly, market capitalization closed at N11.7tr, from N11.76tr, representing 0.44% dip in value.

NSE ASI WEEKLY TIME FRAME
(See Opening Graph)

Low and medium cap stocks dominated the advancers table amidst increased demand for stocks that hit new low within week.
Meanwhile, the NSEASI’s year-to-date negative returns rose to 16.18%, just as market capitalization dropped to N1.98 trillion, or 14.58 % below the year’s opening value.

Bearish Sectors Indices
The sectorial performance indexes for the period were largely bearish, except for the NSE Consumer and Industrial Goods indices that closed higher. Market breadth was negative, with decliners outpacing advancers in the ratio of 36:24, to halt the previous week upmarket.
The week’s transactions were mixed as volume a was up by 19.06% to 1.29bn shares from 1.08bn units, while value slipped 36.59% to N11.54bn from the previous week’s N18.2bn, boosted by trading in financial service, services industry and Consumer Goods.
The best performing stocks for the period were Unity Bank and Flour Mills, which gained 30.99% and 11.69% respectively to close at N0.93 and N17.20 per share, on low price attraction and market forces. Diamond Bank and C/I Leasing lost 29.69% and 26.43% respectively, close at N0.90 and N2.06 on profit taking and market trend.

Market Outlook
We expect speculative trading continue to shape activities in the short-to-medium term, as all eye on the outcome of MPC meeting. However, any position taking now should be for medium-to-long term horizon especially in stocks with good fundamentals, while watching the political space, since Q3 numbers have given insights into what the expected Q3 GDP and full year company earnings power will be.
As presidential campaign kicks off, Nigerians are expecting new mission, new strategy, new roadmap to address economic issues, poverty, development human capital, infrastructure and education with deliverable time. These campaigns 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.

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/2018/11/medium-long-term-positioning-amidst-safe-bets-on-mpc-meeting-outcome/

Forex: CBN Injects $318.03m, CNY 62.18m Into Retail SMIS


Ahead of next Monday’s final Monetary Policy Committee (MPC) meeting for the year, the Central Bank of Nigeria (CBN), on Friday, November 16, 2018, announced a $318.03m injection as part of the retail Secondary Market Intervention Sales (SMIS) at the inter-bank foreign exchange market.

This, it said, was in addition to CNY62.18m offered in the spot and short-tenored forwards segment.
In a statement, the CBN’s Director of Corporate Communications, Isaac Okorafor, while confirming the sales, stressed that retail SMIS were for requests in machineries, agricultural and raw materials sub-sectors, while the Chinese Yuan was for Renminbi denominated Letters of Credit.
Again, he assured that the CBN would continue to intervene in the foreign exchange market in order to guarantee exchange rate stability.
It will be recalled that the CBN had on Tuesday, November 13, 2018, intervened in the inter-bank foreign exchange market to the tune of $210 million.
Meanwhile, $1 exchanged for N361 at the Bureau de Change (BDC) segment of the foreign exchange market, while CNY1 exchanged for N54.

https://investdata.com.ng/2018/11/forex-cbn-injects-318-03m-cny-62-18m-into-retail-smis/

Investdata Price & Earnings Tracking For Week Ended Nov 16, 2018

https://investdata.com.ng/2018/11/investdata-price-earnings-tracking-for-week-ended-nov-16-2018/

NSE Proposes Submission Of Financials By Stockbroking Firms


The Nigerian Stock Exchange (NSE) has proposed two amendments to its dealing member Rule 7.4 and 7.5.
Under Rule 7.4, for example, dealing member or stockbroking firms, would like the listed companies; submit their audited annual financial statements, within 90 calendar days after their year-end.

The stockbroking firms must also present their quarterly financial statements within 30 calendar days of the end of the quarter and any other periodic report within the period stipulated by The Exchange.
All such financial statements, which “shall communicate the need for submission of any other periodic financial report to dealing members via its circular to the Market,” must “be prepared in accordance with the requirements of the International Financial Reporting Standards (IFRS) applicable to the period covered in such financial statement(s).”
While failure to submit quarterly returns on the due date shall attract a N5,000 penalty per day of default, and suspension of such Dealing Member from trading after the due date, non-submission of audited financial statements shall also attract N5,000 daily penalty, but for a maximum of four weeks.

Thereafter, the Dealing Member firm shall be suspended from trading.
Failure to submit any other periodic reports on the due date for submission shall equally attract a penalty in same sum for a maximum of four weeks, followed by suspension from trading forthwith.

Where a Dealing Member is suspended from trading for any of the reasons above, the NSE added, “such suspension shall be lifted upon submission of the quarterly returns, or audited financial statements or other periodic reports.”
Dealing member firms may however apply for an extension of time for the submission of its quarterly returns, or audited annual financial statements, but such, with reasons given, shall be no later than two weeks before the due date.

The decision to grant such request “shall be entirely at the discretion of The Exchange and such extension shall in no event be longer than a period of four weeks from the due date for submission for quarterly returns, and eight weeks for audited financial statements.”

The dealing member which fails to submit such quarterly or audited statements at the expiration of the extended period granted shall be suspended from trading forthwith and such shall be lifted upon submission of the quarterly returns, or audited annual financial statements.
All penalties, according to the statement, are however, “subject to review without notice by Council and any change thereto shall be made public by way of a Circular.”

https://investdata.com.ng/2018/11/nse-proposes-submission-of-financials-by-stockbroking-firms/

Corporate Actions As At Week Ended November 16, 2018

https://investdata.com.ng/2018/11/corporate-actions-as-at-week-ended-november-16-2018/#more

Big Announcement: Don't Miss This Opportunity

The Investors and Traders summit, tagged Invest 2019 is here. There is need for you to take the opportunity because available information and activities in the market reveal that smart money will likely take position earlier than anticipated. Precisely, before or after the elections, which begin in February, considering the facts that most stocks on the exchange have become seriously undervalued, just as other emerging markets.

However, there are 2 things you must do if you really want to get the best of the market.

1. Identify and position in right stocks before the smart money shows up.
2. Invest in selected best Stocks capable of reducing your risk of losing money. 

The question then becomes: how do you position and invest in the right stocks? You will get answer to this all-important question by attending Invest 2019 Investors and Traders Summit with the theme: Best Returns In 2019 & Beyond: Adopting The Billionaire’s Mentality In Stock Selection.

However, I want to make the decision easy for you by providing you with the details of, and precisely what makes this year’s edition of this annual event completely different from previous years’.

Click on the below link to register and get started.

http://training.investdataonline.com/2019summit 

The 2019 InvestData Summit is one of the biggest assemblage of experts to avail you the right methodology and principle you can adopt to get the best out of the 2019.

However, you cannot do this by mere wishful thinking. That is why Investdata Consulting has gathered six very outstanding experts managing combined portfolio worth billions of naira in assets who would handle various topics that will transform your thinking and stock market world view.

These topics include:

·         Pre-election year performance Review and post-election Investing opportunities

·         Simple Strategies for picking undervalued stocks With Fundamental & Technical Tools

·         Psychology of Equities Trading For Managing Positions & Money

Click on the below link for full details.

 http://training.investdataonline.com/2019summit

That aside, the society today is a sum total of different households, each of which are independent on a personal level. Ironically, none of these household can survive without the other, because you cannot produce every your needs all by yourself. Hence, the interdependent relationship as designed by nature.

Similarly, if you are a serious investor, you need to constantly communicate with other investors, since no investor is an island onto itself. That is, you cannot know all in the stock market on your own. 
That is another reason you should join the community of investors ready to take the bull by horn in 2019 without hesitation, without saying I will register soon, without procrastinating, without place self imposed limitations on yourself. Like the acclaimed kit maker NIKE will say: "Just do it”.

http://training.investdataonline.com/2019summit

For life is about decision making. Your current position is as a result of your past decisions. Your future actions will equally be the fallout of the decisions you take today. Make the decision Now. Click on the below link to Register and get STARTED 

http://training.investdataonline.com/2019summi

Happy 2019 Summit 
Ambrose Omordion

Investdata Daily Sentiment Report

NSEASI buy 98% sell 2% MFI 49.20
Access buy 0% MFI 64.39
Dangflour buy � MFI 38.40
Dangsugar buy � volume index � volume index 1.07 MFI 38.30
Diamond buy 75% sell 25% volume index 0.99 MFI 4.89
Fbnh buy 67% sell 33% MFI 45.54
Fcmb buy 0% MFI 79.42
Fidelity buy � volume index 1.20 MFI 24.79
Fmn buy � volume index 0.97 MFI 34.71
FO buy 44% sell 56% volume index 2.59 MFI 46.33
Glaxo buy � volume index 1.73 MFI 51.83
GT buy 78% sell 22% MFI 53.56
Hony flour buy 23% sell 77% volume index 1.83 MFI 40.17
Jaiz buy � MFI 60.13
Japaul buy � MFI 42.99
Oando buy � Volume index 12.06
MFI 72.80
Prestige buy � volume index 1.80 MFI 42.12
Regalins buy � MFI 40.69
Sterling buy � volume index 0.73 MFI 57.16
Total buy � volume index 1.62 MFI 84.12
Transcorp buy 0% volume index 0.87 MFI 18.88
Uba buy � volume index 1.35 MFI 26.42
Uniondac buy 0% volume index 5.41 MFI 5.46
Zenith buy 67% sell 33% MFI 78.42

https://investdataltd..com/2018/11/investdata-daily-sentiment-report_21.html?m=1

Want to achieve Your 2019 Financial Goals with No Risk? Foreign Investors are Coming into the Market before the Election.

Discover how to take the right Position before the foreign Investors Arrive and get the Best out of the Market.
Click below find out..

http://training.investdataonline.com/2019summit2/?fbclid=IwAR311_xmKQJ5v23eixSx2GpRICrOmsaIteYVDkLsbTm61h_yVqn1yEvxpGM

Speculation May Shape Trading On NGSE, As Investors Await Fresh Economic Data

Market Update for November 19

Monday’s trading on the Nigerian Stock Exchange (NSE) closed higher, consolidating previous day’s positive sentiments as buying interest among market players continued to look up, despite the low traded volume, as portfolio rebalancing continues, amidst fresh position taking on the strength of low entry prices ahead of year-end rally.

The fact that the Nigerian market is resisting further decline at this point should send a signal to investors and traders that the current low valuation of stocks on the bourse will not last for too long any more, hence the need to take advantage of the positive market breadth.
Investors and traders are also on the look-out for the all-important October inflation reports and outcome of the year’s final Monetary Policy Committee meeting for the year, where members would most likely retain the monetary policy rate at 14%. This is also as the anticipated impact of the 2018 budget implementation and electioneering campaign spending are yet to reflect on economic activities which continues to look down.

The NSE’s benchmark index opened Monday on a downside movement in the morning, but retraced up by the mid-morning to afternoon on increasing demand for financial services and consumer goods sector stocks which had suffered huge losses before now. The index during the session touched an intraday high of 32,226.73 basis points, from a low of 32,026.17bps before closing the session at 32,222.24bps on a low volume and above the session’s opening level. It started a 5-wave advance that took the NSE from just over 32,058.58bps to just over 32,222.24bps, which is more than 160 points. Also, MACD on daily time frame showed bullish crossover of the signal line which supported continuation of trend.

Monday’s market technicals were positive but weak in the midst of low volume traded, positive market breadth and strong buying pressure as revealed by Investdata’s Daily Sentiment Report, which shows a buy volume of 98% and 2% sell position. The volume index for the day’s total transactions was 0.60, while energy behind the market’s performance was weak, going by the drop in Money flow index to 49.20bps, from previous day’s 51.69ps, indicating that funds are leaving some stocks and the market.

Index and Market Cap
The benchmark All Share index gained 163.96bps, at 32,222.24bps at the end of Monday’s trading, having opened at 32,058.58bps, representing 0.51% growth, just as market capitalization climbed by N59.86bn, at N11.76tr from an opening value of N11.73tr, representing a 0.51% value gain.

Attention: Join Investdata buy and sell signal setup to get all our in-depths analysis on the picture and to get access to our carefully created watch list. 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.
The session’s upturn followed price appreciation in low, medium and high cap stocks like Guaranty Trust Bank, Zenith Bank, UACN Property, GSK, Flourmills, Oando, FBNH, Access Bank and Ucap. This impacted positively on Year-to-Date returns, which dropped to 15.74%, while market capitalization stood at N1.93tr from its opening level in January, representing 14.02% slip.

Mixed Sectors Indices
Sectorial performance was largely bullish, except for the NSE Industrial goods and Oil/Gas that closed lower. Market breadth was positive with advancers outnumbering decliners in the ratio of 27:5.
Market activities were down in volume and value by 9.84% and 35.52% respectively at 148.1m shares worth N1.8bn, from previous day’s 164.26m units valued at N2.79bn.
Transaction volume was boosted by financial services and Oil/Gas stocks like: Oando, Diamond Bank, UBA, Fidelity Bank and Guaranty Trust Bank.
GSK and UACN Property were the best performing stocks, leading the advancers’ table, after gaining 9.96% and 9.72% respectively to close at N13.25 and N1.58 each on market sentiments.
On the flip side, Mutual Benefits and Union Diagnostic lost 8% each to close at N0.23 and N0.23 respectively, on market trend.

Market Outlook
As we have earlier said, speculative activities will shape the performance of the market going forward given that there is no new incentive for the market so far, until there is a change in the narrative. Going by the timetable of the National Bureau of Statistics (NBS) released earlier in the year, the nation’s Q3 Gross Domestic Product (GDP) report is slated for release on Tuesday, November 27, same date as the Q3 capital importation report.

The ongoing volatility will persist as Q3 numbers assist investors and fund managers rebalance their portfolios, while watching the political space and ahead of the expected Q3 GDP and full year company earnings position. 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.

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/2018/11/speculation-may-shape-trading-on-ngse-as-investors-await-fresh-economic-data/#more

For everyone interested in attending our forth coming investment workshop on the 8th of December, 2018. Should you have any inquiries before the event date, Do drop your questions here and we will address them appropriately.

Thank you for your continuous support and patronage as we look forward to much more profitable 2019 investment calendar year.

Investdata Daily Sentiment Report

NSEASI buy 0% volume index 0.98 MFI 48.89
Access buy 0% MFI 63.76
Afrprud buy 0% volume index 1.75 MFI 19.22
Aiico buy 0% MFI 29.44
Cadbury buy 0% volume index 3.58 MFI 17.63
Dangcem buy 0% volume index 0.82 MFI 77.27
Dangsugar buy 50% sell 50% volume index 1.61 MFI 35.04
Diamond buy 25% sell 75% MFI 3.15
Fbnh buy � volume index 0.80 MFI 46.23
Fcmb buy 0% MFI 79.46
Fidelity buy 86% sell 14% volume index 1.66 MFI 24.69
Fmn buy � MFI 38.86
GT buy 6% sell 94% volume index 0.87 MFI 58.10
Hony flour buy 0% MFI 58.49
PZ buy 0% volume index 1.50 MFI 22.17
Stanbic buy 0% volume index 5.30 MFI 82.60
Sterling buy � MFI 57.86
Transcorp buy 0% MFI 19.90
Uba buy 67% sell 33% volume index 0.93 MFI 34.04
Ucap buy 60% sell 40% volume index 1.79 MFI 43.41
Unity buy � MFI 61.23
Wapco buy 0% volume index 2.64 MFI 28.72
Wema buy 0% MFI 36.94
Zenith buy 0% volume index 0.97 MFI 79.29

https://investdataltd..com/2018/11/investdata-daily-sentiment-report_22.html

Investdata Weekly Sentiment Report

NSEASI buy 9% sell 91% volume index 1.00 MFI 30.28
Access buy 11% sell 89% MFI 20.68
Afrprud buy 12% sell 88% volume index 0.79 MFI 45.94
Aglev buy 0% volume index 1.40 MFI 14.49
Aiico buy � MFI 61.53
Cadbury buy 0% volume index 1.20 MFI 30.52
Cap buy � MFI 63.84
Caverton buy 0% MFI 40.10
CCNN buy 0% MFI 21.48
Dangcem buy 0% MFI 31.50
Dangflour buy 80% sell 20% volume index 2.35 MFI 44.77
Dangsugar buy � MFI 44.66
Diamond buy � volume index 2.69 MFI 37.68
Eterna buy 0% MFI 64.39
ETI buy 50% sell 50% volume index 0.75 MFI 6.93
Fbnh buy 71% sell 29% MFI 44.73
Fcmb buy 60% sell 40% MFI 37.19
Fidelity buy 88% sell 12% MFI 60.92
Fmn buy 75% sell 25% MFI 58.29
FO buy 69% sell 31% MFI 35.52
Glaxo buy � volume index 0.93 MFI 63.39
GT buy 52% sell 48% MFI 61.46
Hony flour buy 77% sell 23% volume index 1.01 MFI 16.14
Jaiz buy 0% MFI 38.86
Japaul buy 0% MFI 27.16
JBerger buy 0% volume index 1.30 MFI 47.23
Lasaco buy � MFI 25.18
Mobil buy � MFI 26.72
Nem buy 0% MFI 92.13
Oando buy 0% volume index 5.54 MFI 29.78
Okomu buy 0% volume index 1.26 MFI 59.48
Presco buy 0% MFI 83.88
Prestige buy � volume index 1.01 MFI 44.07
PZ buy � volume index 0.83 MFI 20.40
Red buy 0% MFI 9.32
Regalins buy � MFI 17.23
Stanbic buy 21% sell 79% MFI 21.61
Sterling buy 92% sell 8% MFI 48.29
Total buy � MFI 78.23
Transcorp buy 40% sell 60% MFI 53.47
Uacp buy 0% volume index 0.81 MFI 39.72
Uacn buy � MFI 27.36
Uba buy 75% sell 25% MFI 38.10
Ucap buy 50% sell 50% MFI 46.09
Uniondac buy 50% sell 50% volume index 1.51 MFI 33.96
Veritaskap buy � MFI 64.11
Vitafoam buy � volume index 0.77 MFI 47.17
Wapco buy 0% volume index 1.14 MFI 23.94
Wapic buy � MFI 42.75
Wema buy 33% sell 67% MFI 27.81
Zenith buy 17% sell 83% volume index 4.92 MFI 77.27

https://investdataltd..com/2018/11/investdata-weekly-sentiment-report_25.html?m=1

Impact of Seasons, Historical Events On Equity Investment


The changing political landscape at a time of dwindling economic fundamentals pose recurring challenges to Nigeria’s equity market since the last pre-election year in 2014, due to policy instability and implementation style of government’s economic policies.

The table below shows that the NSE All-Share index closed negative in the pre-election year that ushered in the fourth republic democracy (in 1999), as a result of the lack of confidence, of amidst doubts about there will truly be handover to civilian government.
The years after have however closed positive as confidence was restored, political stability, improved liquidity and confidence that had supported the market during the period. But in 2014, despite the seeming strong economy, the heightened political risk, insecurity, division in political parties led to massive defections that deflated investor confidence, as many sought solace in safe havens.

This trend has resurfaced in 2018 due to many factors ranging from the high interest in developed markets, lack of economic policy direction, insecurity, dwindling economic activities, heighten political risk, continued defection and lack of transparency in the political environment.

Pre-Election Years Market Trend & Performance
1998 TO 2018


The prevailing economic indices and falling market fundamentals are also pointing more to bear market in the remain days of 2018 until there is improved economic condition and statistics to reverse the trend.

The table below shows the first month trading performance in post-presidential elections and inauguration movement of the composite index in the last two decades.
Post-Presidential Election Rally, First Trading month Performance in (20 Years)


From the above table, it is clear that the market’s performance post presidential elections have had positive impacts when the incumbent is re-elected. This trend of first month of the post-election performance has reflected the risk level associated with elections, given that government remains the major driver of economic reforms, besides being the biggest spender in the country.

The one step forward and three steps backward has not helped the nation record appreciable progress since May 2015, coupled with its unclear economic policy, at a time enormous time has been committed to fighting corruption at the expense of the economy and with national output dwindling, companies are closing down and unemployment rate rising, should be a source of concern to this government. The Federal Government must therefore find ways to fix the economy. The investing public has suffered huge losses since 2015 as the market continued to oscillate and make lower lows.


The tables above show the NSE’s performance at different periods. We therefore need to know how to take advantage of these various seasons, patterns and cycles to take position in good stocks. This is part of what our team of experts will discuss at the INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT holding December 8, 2018.

Invest 2018 Edition Was Strictly On When To Exit Position and Hold Cash.
It is unfortunate that many investors and traders were carried away with the unprecedented rally recorded in the first month of 2018 when the benchmark index broke out the 43,000 psychological line that was strictly set for investors and traders to selloff their position. Also, the expected 2017 full year earnings reports was one reason many held on, while smart money was exiting at the time seemingly naïve investors were entering the market to position for dividend. Failure to keep to instructions on the part of many caused them to loss all profits recorded in the first three month after the summit held December 9, 2017.

The 2019 edition of the annual Investdata event holding on December 8, 2018 presents opportunities for Traders and Investors to buy right and position for the coming year, looking at the current economic and market fundamentals as a basis for forecasting what the coming year holds for investors and investments opportunities before and after the 2019 general elections.

At the 2017 edition, the attention of participants was drawn to 15 “STOCKS TO WATCH” and are likely honey-pots in this ongoing year at a time the market was still looking up before the prolonged downturn hits the market. Investors are now eagerly seeking knowledge and strategies to recoup their huge losses by positioning right at the right time.
Those who attended the summit would remember the following 15 recommended stocks:


The table above highlights the performance of each of the said 15 RECOMMENDED STOCKS between Friday, December 8, 2017 and March 29, 2018, before the free fall that kept the market in a bearish mode for over 10 months. This is also due to political risks associated with the 2019 elections and dwindling economic activities that have many stocks to hit their 52-week lows and others 10 to 11 years low. This has created buy opportunities and revealed high possibility of bullish ascendancy that is imminent, as investors will be positioning for 2018 full year earnings reporting season for dividend and capital appreciation, if the numbers beat market expectation.

We advise that traders and investors should target good companies with sound fundamentals that have the earnings capability to pay dividend. This is the time to effectively combine technical and fundamental analysis for successful investment decisions.

https://investdata.com.ng/2018/11/impact-of-seasons-historical-events-on-equity-investment/

Investdata Daily Sentiment Report

NSEASI buy 77% sell 23% volume index 2.58 MFI 44.71
Afrprud buy 17% sell 83% volume index 5.35 MFI 16.54
Eterna buy 0% volume index 3.42 MFI 31.47
Fbnh buy � MFI 48.70
Fcmb buy � MFI 63.89
Fidelity buy � MFI 27.50
Fmn buy � volume index 0.77 MFI 40.80
GT buy � MFI 38.52
Jaiz buy 0% volume index 2.56 MFI 29.66
JBerger buy 0% volume index 2.46
Lasaco buy � MFI 51.50
Oando buy 0% MFI 87.16
Prestige buy 0% volume index 1.46 MFI 58.17
Sterling buy 0% MFI 64.63
Transcorp buy 50% sell 50% volume index 1.66 MFI 19.90
Uba buy � MFI 34.04
Ucap buy 0% volume index 1.23 MFI 48.49
Wema buy 0% volume index 1.11 MFI 33.85
Zenith buy 60% sell 40% volume index 13.51 MFI 93.54

https://investdataltd..com/2018/11/investdata-daily-sentiment-report_26.html?m=1

Investdata Price & Earnings Tracking For Week Ended November 23, 2018


https://investdata.com.ng/2018/11/investdata-price-earnings-tracking-for-week-ended-november-23-2018/

Bargain Hunting For Fundamentally sound Stocks May Continue This week

Market Update for the week ended November 23 and Outlook for Nov. 26-30

Last week, Nigeria’s stock market extended its bearish ascendancy as the benchmark All-Share index hit 17-month low on a high traded volume, breaking down the 32,000 points psychological line and 31,854.40 strong support level which resulted in selloffs in medium and high cap stocks that continued to dragged the general performance lower.

The high volume traded for the period, despite Tuesday’s public holiday, was largely driven by transactions in Zenith Bank and Diamond Bank, which in the last three months had positive technicals, resulting in the September rebound after touching a low of N19.60 due to sustained uptrend on improved transaction volume. This is why it has recorded 1.05 billion transaction volume so far in November, the highest so far in 2018, while monthly buying position stood at 71% and sell volume at 29% for the period. Transaction volume index for the period stood at 1.97. Notice also that since Zenith Bank released its third quarter earnings report, market sentiment and perception has remained positive owing to the robust balance sheet and profitability levels that support possible high dividend payout at the end of current financial year.

Diamond Bank has however suffered huge losses within the period due to its high non-performing loans profile, and the recent exit of its chairman and three directors, a situation the said chairman has debunked. Add this to the weak Q3 numbers that triggered selloff in the bank’s share as revealed by monthly sell position of 83% and buy volume of 17%, with monthly transaction volume index of 1.10 and then you get a seemingly unpalatable picture.

Meanwhile, it was a very volatile week as the NSE All Share index opened the week on a positive note, before turning red on Wednesday, Thursday and Friday, despite the seeming decline in October inflation rate and outcome of MPC meeting. Analysts had already anticipated that the MPC will retain the rates, since expected variables like implementation of 2018 budget, election spending and oil price are yet to impact the economy and liquidity level.

Selling pressure was high especially in the banking, industrial and Oil/Gas sector as market technicals stayed negative and mixed, on high volume traded and positive market breadth and strong selling pressure as revealed by Investdata’s weekly Sentiment Report, showing a sell volume of91% and buy position of 9%. The volume index of total transactions within the week was 1.01.

The energy behind the week’s performance were weak and flat as blue chip stocks suffered losses, reflecting on the money flow index at 30.54bps, from 30.85bps in previous week, an indication that funds are leaving some stocks and market in the midst of low liquidity and dwindling economic fundamentals.

Equity Indicators Last Week
The composite index for period shed 379.58 basis points to close at 31,678.708bps, after opening at 32,058.28bps, after hitting a high of 32,357.20bps, from low of 31,610.43bps on high volume. Similarly, market capitalization closed at N11.57tr, from N11.7tr, representing 1.18% value loss.

The advancers’ table was dominated by Low and medium cap stocks as bargain hunters took advantage of the prevailing low price to accumulate position as many stocks hit their new 52 week low.
Meanwhile, the NSEASI’s year-to-date negative returns dipped to 17.17%, just as market capitalization dropped to N2.05tr, or 15.18% below the year’s opening value.

Mixed Sectors Indices
The sectorial performance for the period was largely bullish, except for the NSE Banking and Industrial Goods indices that were down. Market breadth was positive, with advancers outnumbering decliners in the ratio of 30:24, to continue the previous week’s down market.

Activities in terms of volume and value were up by 12.60% and 124.72%% respectively to 1.35bn shares worth N25.93bn, from the previous week’s 1.29bn shares value at N11.54bn boosted by trading in financial service, and Oil/Gas industry.
Prestige Assurance and PZ were the best performing stocks for the week, after gaining 41.07% and 18.02% respectively to close at N0.79 and N10.65 per share, on bonus issue and low-price attraction. On the other hand, Ikeja Hotel and Lafarge Africa lost 18.54% and 12.58% respectively, close at N1.67 and N14on market trend and weak earnings power.

Market Outlook
we expect overall market sentiment to remains weak with the most pressure coming from banking, and oil & gas stocks amidst uncertainty in the global crude oil market that continues to weigh on investors sentiment. However, we expect the bargain hunting for cheap stocks with strong fundamentals to continue this week.

while watching the political space, since Q3 numbers have given insights into what the expected Q3 GDP and full year company earnings power will be.

As the presidential campaign kicks off, Nigerians are expecting new demission, new strategy, new roadmap to address the economic issue, poverty, development human capital, infrastructure and education with deliverable time. These campaigns 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.


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/2018/11/bargain-hunting-for-fundamentally-sound-stocks-may-continue-this-week/