Investors Look To Thursday’s Session For Direction On NGSE Ahead Of Elections

Market Update for February 13
Trading activities on the Nigerian Stock Exchange (NSE) at the midweek had a difficult and volatile session, halting the previous eight trading sessions of bull run on profit booking after the early hour rally failed on heightened political risk ahead of the all-defining Presidential and National Assembly elections of Saturday, February 16, 2019.

It is not known whether the continued political tension arising from the arrest warrant of the suspended Chief Justice of Nigeria (CJN), Justice Walter Onnoghen, issued by the Chairman of the Code of Conduct Tribunal (CCT) on Wednesday, despite the ruling of the Court of Appeal, as well as the lingering insecurity in the northeast has anything to do with the slide in the NSE’s All Share index, on a day the two leading candidates- incumbent President Muhammadu Buhari of the All Progressives Congress (APC) and Atiku Abubakar of the Peoples Democratic Party (APC) and former Vice President of the Country, signed a peace accord.

The changing dynamics in Nigeria’s political environment has already with the disregard and disrespect for the constitution have led to fear which triggered selloff as buying interest among investors slowed down.

Midweek’s decline was despite the seeming positive economic data released on Tuesday, showing that non-oil sector recovery boosted the nation’s GDP to 1.93% according to the 2018 report of the National Bureau of Statistics (NBS) (READ HERE). Also, the decline in NSEASI occurred on a day the NBS published the Capital Importation Report for 2018 Q4 and full year, showing that despite a decline in the final quarter, there was a growth for the year over the preceding one (READ MORE).

The NSE Index opened Wednesday’s trading on a gap up in the morning, but pulled back between mid-morning and midday before retracing up in the afternoon session on demand for industrial and consumer goods stocks, a situation that supported a rebound, resulting in a marginal loss for the day.
However, the NSEASI touched intraday highs of 32,635.13 basis points from a low of 32,267.37bps on profit taking in banking and insurance stocks to close the session at 32,413.92bps.

Market technicals at the midweek were weak, as volume traded was lower than previous session in the midst of a negative breadth and mixed sentiment as revealed by Investdata’s Daily Sentiment Report, showing a buying volume of 40% and selling position of 60%, while daily transaction volume index stood at 1.44.

The momentum behind the day’s market performance was up, despite the profit taking as shown by 74.07 point money flow index, from previous day’s 72.95bps, indicating that funds are leaving some stocks to enter others.

Index and Market Cap
The NSE’s benchmark All Share index at the end session shed 48.39bps, to close at 32,413.92 after opening at 32,462.31bps, representing a 0.15% decline, while market capitalization dropped N18bn to close at N12.09 trillion, from the opening value of N12.11 trillion. This represented a 0.15% 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.

Midweek downturn was driven by profit taking in Seplat, Guaranty Trust Bank, Zenith Bank, FBNH, UBA, Access Bank, Dangote Flour and Forte Oil, among others. This impacted negatively on Year-to-Date gain, reducing it to 3.13%, while market capitalization gain dropped slightly also to N367bn from the year’s opening level of N11.72tr, also representing a 3.13% growth.

Mixed Sectors Indices
The sectoral performances indexes were largely bearish, except for the NSE Industrial and Consumer goods sectors that closed higher as investor positioned in stocks like Dangote Cement, CCNN, and others. Market breadth remained positive with decliners outnumbering advancers in the ratio of 22:19.

Market activities were down in volume and value by 18.95% and 47.20% respectively to 479.3m shares worth N4.24bn, from previous day’s 580.41m units valued at N8.03bn. Transaction volume was largely driven by financial services and conglomerates stocks like: Diamond Bank, Zenith Bank, Guaranty Trust Bank, Transcorp and Access Bank.

Berger Paints and Unilever were the best performing stocks for the day, topping the advancers table with 10% each to close at N8.25 and N44.00 respectively on expectation of Q4 earnings reports and high dividend yield respectively. The flipside was led by C & I Leasing and Champion Breweries which shed 10% and 7.85% respectively to close at N7.33 and N1.61 each, on the back of profit taking and reconstruction .

Market Outlook
We expect this ongoing trend and volatility to persist, as investors and traders reposition for 2019 dividend declaration season and post-election rally which are expected to shape market performance in the interim. We advise cautious trading and investing while positioning in fundamentally sound equities. As early filers like United Capital, Africa Prudential, NB, Forte Oil and other are expected to hit the market with their numbers any moment from now.

Volatility will also continue as investors and fund managers reposition their portfolios, with eyes fixed on political space and ahead of January inflation data, which is another factor likely to drive prices north, or south, while determining market direction before or after the Presidential Election.

Investors should review their positions in line with their 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 low in the midst of mixed company numbers, weak economic and market fundamentals..

https://investdata.com.ng/2019/02/investors-look-to-thursdays-session-for-direction-on-ngse-ahead-of-elections/

THE WRONG INVESTMENT

Please Tell Me If I Got This Wrong?

I could still remember the Copernican revolution which changed the conventional beliefs that the world was flat. During those period, the people of the world held the belief that the world was flat but only Copernican saw it as spherical. Although, it was later accepted but he had to proof it.

Now, what kind of belief system do you have regarding the stock market? Is it the word of mouth of people? Is the 2007 market crash experience?

Sincerely, whenever you are making decisions, you will make it based on what you know and believe. So, if what you believe will be at a disadvantage to you, so will it be.

Similarly, whenever you ask a friend for an advice that you are going back into the stock market, Humm!!! They will tell you alot of negative stories about someone who invested and lost his money. Since 2007, why are you still dwelling in the past when the entire world has moved on. Don't also forget that the crash was not peculiar to Nigeria alone.

So for me as the expert, I won't recommend neither that you should just go into market without planning. Just like me, after the crash, I went to acquire more knowledge and I realized that lack of knowledge was the major reason I lost in the stock market and ever since I have been organizing seminars to help people build their portfolio again then reduced their risk of loosing.

In addition, I know that nothing is permanent except change, hence, I have been organizing seminars to help my clients build their portfolio. So JOIN ME, DON'T FOLLOW THE CROWD, DON'T BE A LISTENER OF LIFE BUT A DOER by registering for my *Buying and selling signal subscription.* Call NOW 08028164085,08032055467 or send an email to ambroseconsultants@yahoo.com

Happy Trading,
Ambrose Omordion
https://investdataltd..com/2019/02/the-wrong-investment.html

Investdata Daily Sentiment Report as at February 15th, 2019

NSEASI buy 67% sell 33% volume index 1.26 MFI 69.14
Access buy 25% sell 75% volume index 1.39 MFI 65.31
Custodian buy � MFI 12.96
Dangflour buy 47% sell 53% volume index 3.50 MFI 56.09
Diamond buy 43% sell 57% volume index 1.71 MFI 67.92
Eterna buy 0% volume index 1.43 MFI 72.33
Fbnh buy 67% sell 33% MFI 68.84
Fcmb buy 68% sell 32% volume index 2.31 MFI 74.45
Fidelity buy 33% sell 67% MFI 44.22
GT buy 50% sell 50% volume index 0.95 MFI 83.01
Honyflour buy � volume index 0.74 MFI 56.48
Jaiz buy � MFI 81.03
Lasaco buy 0% MFI 45.70
Learn buy 0% volume index 2.29 MFI 66.30
Nem buy � volume index 1.23 MFI 64.75
Oando buy 0% volume index 1.33 MFI 62.79
Pz buy � volume index 0.91 MFI 75.04
Regalins buy � volume index 2.20 MFI 82.33
Sovereins buy � MFI 55.11
Transcorp buy 62% sell 38% volume index 2.08 MFI 67.05
Uba buy 75% sell 25% volume index 0.76 MFI 60.34
Ucap buy � MFI 59.65
Uniondac buy 0% MFI 75.84
Veritas buy � volume index 17.35 MFI 11.77
Wema buy � volume index 2.95 MFI 89.26
Zenith buy 25% sell 75% volume index 1.18 MFI 62.06

https://investdataltd..com/2019/02/investdata-daily-sentiment-report-as-at_17.html

Investdata Weekly Sentiment Report as at February 18th, 2019

NSEASI buy 83% sell 17% volume index 2.13 MFI 46.76
Access buy 11% sell 89% volume index 3.35 MFI 59.60
Afrprud buy � MFI 70.34
Aglev buy � MFI 34.72
Aiico buy 40% sell 60% volume index 1.26 MFI 26.83
Berger buy � volume index 1.56 MFI 68.28
Cadbury buy � volume index 0.88 MFI 59.86
Cap buy 7% sell 93% volume index 1.29 MFI 59.65
Caverton buy 90% sell 10% volume index 2.27 MFI 86.11
CCNN buy 0% volume index 0.94 MFI 22.35
Chiplc buy � MFI 3.07
CIleasing buy 0% MFI 37.70
Cutix buy � volume index 2.49 MFI 73.43
Dangcem buy 75% sell 25% volume index 2.92 MFI 48.62
Dangflour buy � volume index 3.57 MFI 70.44
Dangsugar buy � volume index 4.18 MFI 71.30
Diamond buy 31% sell 69% volume index 4.42 MFI 82.44
Eterna buy 23% sell 77% volume index 0.82 MFI 67.80
ETI buy 53% sell 47% volume index 4.67 MFI 57.35
Fbnh buy 39% sell 61% volume index 1.10 MFI 70.33
Fcmb buy 29% sell 71% volume index 1.89 MFI 80.02
Fidelity buy 27% sell 73% volume index 2.72 MFI 81.10
Falum buy 0% MFI 38.99
Fmn buy 83% sell 17% volume index 1.68 MFI 79.52
FO buy 0% MFI 59.17
Glaxo buy 0% volume index 8.20 MFI 63.61
GT buy 23% sell 77% volume index 1.80 MFI 59.69
Honyflour buy � volume index 1.95 MFI 60.21
Jaiz buy 92% sell 8% volume index 4.35 MFI 80.19
Japaul buy 0% volume index 0.94 MFI 68.02
JBerger buy � volume index 1.60 MFI 61.45
Lasaco buy 33% sell 67% volume index 0.98 MFI 59.74
Learn buy � volume index 1.01 MFI 76.31
Lvstk buy � volume index 2.86 MFI 69.09
Mansard buy 0% volume index 9.97 MFI 92.27
M&B buy � MFI 56.83
Mben buy � MFI 48.19
Mobil buy � MFI 52.31
Nahco buy � MFI 22.54
Nascon buy � volume index 0.77 MFI 47.65
Neimeth buy 17% sell 83% volume index 0.72 MFI 33.40
Nem buy 42% sell 58% MFI 85.72
Nestle buy 72% sell 28% MFI 46.24
Nigerins buy � MFI 41.60
Oando buy 94% sell 6% volume index 1.59 MFI 55.37
Okomu buy � volume index 1.35 MFI 76.04
Presco buy � volume index 1.90 MFI 40.38
Prestige buy 0% MFI 47.38
PZ buy 52% sell 48% volume index 2.48 MFI 47.13
Red buy � MFI 95.27
Regalins buy 50% sell 50% volume index 1.03 MFI 62.91
Royalex buy � MFI 66.88
Seplat buy � volume index 2.07 MFI 40.46
Sovereins buy � volume index 1.09 MFI 43.90
Stanbic buy � MFI 42.53
Sterling buy 22% sell 78% volume index 1.50 MFI 80.42
Transcorp buy � volume index 5.08 MFI 79.81
Uacp buy 0% volume index 11.03 MFI 28.73
Uacn buy 0% volume index 1.72 MFI 35.35
Uba buy 50% sell 50% volume index 2.14 MFI 56.92
Ubn buy � volume index 1.09 MFI 89.90
Ucap buy 76% sell 24% volume index 1.39 MFI 60.03
Unilever buy 56% sell 44% MFI 74.21
Uniondac buy 75% sell 25% MFI 51.28
Unity buy � volume index 3.08 MFI 86.83
Veritas buy 33% sell 67% volume index 12.44 MFI 6.70
Vitafoam buy 94% sell 6% volume index 5.49 MFI 50.22
Wapco buy 44% sell 56% volume index 2.78 MFI 23.86
Wapic buy 67% sell 33% volume index 0.71 MFI 53.84
Wema buy 97% sell 3% volume index 1.27 MFI 81.82
Zenith buy 14% sell 86% volume index 1.72 MFI 71.36

https://investdataltd..com/2019/02/investdata-weekly-sentiment-report-as_18.html

Nigeria’s Inflation Rate Drops To 11.37% In Jan, Peaks In Kebbi, Bauchi

In what may stand this week out as one of big data, the National Bureau of Statistics (NBS), on Friday published yet another economic report- the January Consumer Price Index, or inflation, ahead of Saturday’s all-important Presidential and National Assembly polls.

The report showed headline inflation growth rate dropping Year-on-Year to 11.37%, from 11.44% in December 2018, even when core inflation climbed to 9.9% from 9.8%; while food inflation slowed down from 13.56% to 13.51%.
Reacting to the report, analysts at Cordros Securities Ltd, told its clients: “the data came in line with our forecast of 11.37% y/y, but 13 bps below Bloomberg compiled average estimate of 11.50% y/y.”

So far this week, the NBS has published the GDP data for 2018Q4 and full-year (READ), as well as the capital importation report (READ MORE).
While the January inflation fell 0.07% lower than the rate in December 2018, on a month-on-month basis, headline index at 0.74% did not change from the level in December.

According to the NBS, “percentage change in the average composite CPI for the twelve months period ending January 2019 over the average of the CPI for the previous twelve months period was 11.80%, showing 0.3% point from 12.1% recorded in December 2018.”
Urban inflation rate climbed by 11.66% year-on-year in January, compared to 11.73% recorded in December 2018, while rural inflation rate increased by 11.11% in January 2019 from 11.18% in December 2018.
On a month-on-month basis, urban index rose by 0.77% in January 2019, up by 0.01% from 0.76% recorded in December 2018, while the rural index also rose by 0.71% in January 2019, a slight improvement from the 0.72% recorded in December.

“The corresponding twelve-month year-on-year average percentage change for the urban index is 12.20% in January 2019. This is less than 12.51% reported in December 2018, while the corresponding rural inflation rate in January 2019 is 11.46% compared to 11.75% recorded in December 2018.
The rise in food inflation in January, the NBS said, followed “increases in prices of Fish, Bread and cereals, Vegetables, Meat, Fruits, Potatoes, yam and other tubers, oils and fats, soft drinks.”

On month-on-month basis, the food sub-index rose by 0.83% in January 2019, up by 0.02% points from 0.81% recorded in December 2018, just as average annual rate of change of the Food sub-index for the 12-month period ending January 2019 over the previous 12-month average was 13.93%, 0.42% points from the average 14.35% annual rate of change recorded in December 2018.

“The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 9.9 percent in January 2019, up by 0.1 percent when compared with 9.8 percent recorded in December 2018.

“On month-on-month basis, the core sub-index increased by 0.81% in January 2019, up by 0.31% when compared with 0.50% recorded in December 2018, with the highest increases recorded in prices of domestic and household services, tobacco, major household appliances, whether electronic or not, as well as medical and dental services, garments, narcotics, cleaning, repair and hire of clothing, carpet and other floorings.

“The average 12-month annual rate of change of the index was 10.34% for the 12-month period ending January 2019; which is 0.17% points lower than 10.51% in December 2018,” the report added.
On state-by-state basis, January’s all-item inflation was highest in Kebbi in the North West at 14.64%, possibly driven by the food inflation of 16.45% of which it ranked highest also; followed by Bauchi in the North East at 13.79%; while Jigawa, also in the North West reported 13.17%.

The rate was however slowest in Ogun at 9.01%; while Cross River followed with 9.24%; and Kwara, 9.28%; while month on month, January 2019 all items inflation was highest in Delta at 1.66%; Ondo, 1.55%; and Borno, 1.44%.
Meanwhile, “Ekiti, Nasarawa and Osun recorded negative inflation or price deflation (general decrease in the general price level of goods and services or a negative inflation rate) in January 2019,” the report added.

In terms of food inflation, Delta followed Kebbi YoY with a 16.27% climb; ahead of 15.63% by Ondo, while Ogun’s 10.99% made it the state with the slowest rise recorded, trailed by Enugu with 11.64%; and Plateau, 11.83%.

MoM however, January 2019 food inflation was highest in Delta at 2.73%; 2.5% in Kwara; and 2.22% in Ondo; “while Anambra, Ekiti, Enugu, Imo, Nasarawa, Osun and Zamfara all recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in January 2019.”

https://investdata.com.ng/2019/02/nigerias-inflation-rate-drops-to-11-37-in-jan-peaks-in-kebbi-bauchi/

Transcorp Hotels Offers N1.14bn Dividend, As 2018 Profit Jump 38.5% To N3.7bn

When shareholders of Transcorp Hotels Plc gather for their annual general meeting on March 15 in Abuja one of the proposals the directors will put before them is to consider and approve a total dividend of N1.14bn, up from the previous N947m. This translates to 15 kobo per share for the full year ended December 31, 2018, up from 12.45 kobo, out of the Earnings Per Share of 49 kobo and 35 kobo respectively for both years. Qualification date for the dividend is February 27, following which the register of shareholders will be closed between February 28 and March 1, payment is slated for March 19.

The company’s numbers showed continued improvement in profit, which grew faster than revenue, especially from its flagship Abuja facility, despite significant drop in other operating income and finance income for the period.

Revenue for the year rose by N3.581bn, or 25.87% from N13.643bn in the corresponding period of 2017 to N17.424bn, with the bulk being its rooms which fetched a cumulative N10.739bn. The lion’s share of this was the N10.217bn from the Transcorp Hotels, Abuja, while the Abuja arm contributed N522.027m. Food and beverages followed with N5.239bn contribution still led by Abuja’s N4.852bn, while Calabar fetched N386.854m; Abuja added N673.224m to shop rentals and Calabar, nil, among others. This brought the contribution of Abuja to group revenue to N16.475bn, up from N12.962bn in 2017; leaving Calabar with just N949.246m, as against N880.89m.
Cost of sales was constrained slightly within the period, rising by 20.54%, or N773.017m to N4.536bn from N3.763bn, boosted also by food and beverages as the biggest contributor at N2.897bn, up from N2.381bn; followed by ‘rooms,’ at N1.469bn from N1.233bn; while other operating costs rose to N169.512m from N149.07m.

Gross profit therefore inched N2.808bn or 27.86% up from N10.08bn to N12.888bn.
Other operating income fell from N1.178bn in 2017 to N571.336m, representing a decline of N607.393m or 51.53%, mainly driven by net foreign exchange gains that slipped from N954.607m to N310.297m; administrative expenses limped N634.83m or 8.14% up to N8.43bn, from N7.796bn; the lion’s share of which was the N1.444bn staff cost, rising from N1.308bn, followed by the N1.165bn management and incentives fees, up from N943.374m; and energy cost, N1.278bn, up marginally from N1.208bn. This resulted in operating profit of N5.029bn, a 45.23% improvement from N3.68bn in 2017 to N5.029bn.

Finance costs climbed to N5.395bn from N3.212bn; boosted by interest on debts and borrowings of N5.395bn, up from N3.212bn, while the interest income on deposits at N61.991m, up from N29.672m left capitalized borrowing cost at N5.333bn, up from N3.182bn.
Finance income dropped by N204.977m or 94.38% to N12.19m, compared to previous year’s N217.167m, after the repayment of the N186.893m interest on intercompany loan at the end of 2017, just as interest on bank deposits fell from N30.274m in prior year to N12.19m. This brought profit before tax to N5.041bn, an improvement of N1.361bn or 36.99% over the N3.68bn reported in prior year. Income tax for the period rose by N329.463m or 32.99% from N998.422m to N1.327bn; leaving profit after tax at N3.713bn, compared to N2.681bn in the corresponding period of 2017, representing a N1.031bn or 38.48% improvement within the period.

https://investdata.com.ng/2019/02/transcorp-hotels-offers-n1-14bn-dividend-as-2018-profit-jump-38-5-to-n3-7bn/

LCCI Reacts To 2018 GDP Report, Decries ‘Jobless Growth’

The Lagos Chamber of Commerce and Industry (LCCI), on Friday noted the 2.4% growth in the economy in the final quarter of 2018, as well as the 1.9% notch recorded in the Gross Domestic Products (GDP) as released by the National Bureau of Statistics (NBS), compared to the 2.4% increase reported in 2018Q3 and 1.8% for the year.

This performance, the chamber said in a review of the NBS report, is still fragile, weak, vulnerable and remains a cause for concerning, coming far below the 3% annual population growth, “with wider implications for poverty, inclusive and sustainable growth.”
Worse still, the chamber continued, “the growth in the economy is also tagged a “jobless growth” as unemployment keep on rising. The latest report by poverty world clock also suggests that the number of extremely poor Nigerians has risen to 91.6m.”

The 2018 GDP growth is the highest in three years, but is overwhelmed by the more significant levels of 8.35% and 9.54% attained in 2009 and 2010 respectively; before falling to 5.31% in 2011; 4.21% in 2012; after which it improved to 5.49% and 6.22% in the two succeeding years.
Sectors like trade, manufacturing and agriculture performed low for the period, suggesting the need for implementation of policies and reforms that will attract investment into the key employment elastic sectors.

The top five fastest sectors in 2018, LCCI said, were: metal ores, which grew at 26.34%; followed by air transport, 20.7%; while road transport followed with 14.47%; telecommunications and informational services, 11.33%; while quarrying and other mining sector recorded 10.33% growth. Meanwhile, the five biggest decline for the period came from coal mining, 5.81%; real estate, 4.74%; motor vehicles and assembly, 2.54%; and public administration, 2.05%.
On the performance of key sector, the chamber regretted that at 2.1% in 2018, the agricultural sector, which accounted for 25% of real output for the period, recorded its lowest growth rate since 1993 and the worst since 2010.

The oil sector, including crude, petroleum and natural gas could only grow at 1.1%, significantly slower than the 4.69% in 2017; just as manufacturing with an annual growth of 2.09% in 2018, representing a huge improvement over the -0.21% growth in 2017, even as it contributes 9.2% to over GDP. The 2018 growth was however a far cry from 17.82% in 2011, 13.46% the following year, or 21.8% peak since 201, reported in 2013; or the 14.72% of 2014, after which it turned negative for the next three years.

The trade sector, which contributed 17.16%, contracted by 0.63% in 2018, better than the prior year’s -1.05%, a situation it said, “signifies that Nigerian consumers are still under severe pressure in terms of weak purchasing power, as trade is major consumer facing sector.”

Telecommunication and information services sector, which contributed 10% to overall GDP, jumped by 11.33% in 2018, from a 2.04% contraction in 2017, after growing 2.03% a year earlier. The sector growth in 2018 was the most significant since 2010, when it recorded 34.83% rise.

https://investdata.com.ng/2019/02/lcci-reacts-to-2018-gdp-report-decries-jobless-growth/

Transcorp Plc 2018 Profit Up 94.5%, Offers N0.03 Dividend

The board of Transnational Corporation of Nigeria Plc, on Friday presented its audited financials for the year ended December 31, 2018, showing that profit significantly outgrew revenue, amidst constrained costs, following which the directors recommended three kobo per share from Earnings Per Share of 23 kobo, for which we await market reactions when trading opens on Monday, February 18, 2019.

Investors and traders will also react next week, generally, to the decision the Independent National Electoral Commission (INEC) to postpone the Presidential and National Assembly polls on election-day, after four years of planning, citing logistic challenges.
It is expected that the management of Transcorp Plc will explain and seek to justify the decision to pay three kobo as final dividend, at a time its subsidiary company- Transcorp Hotels Plc is offering 20 kobo per share (READ HERE).
Qualification date for the dividend is close of business on February 28, 2019, following which register of shareholders will be closed from March 1 to 5, 2019 and paid electronically on March 19, 2019.

Also noteworthy is the attention drawn by the group’s external auditors –Ernst & Young to “a material goodwill balance of N30.934bn, which principally relate to the acquisitions of Transcorp Hotels Calabar Limited (THC), Transcorp Hotels Plc (THP) and Transcorp Power Limited (TPL).”

Goodwill, EY explained, is the difference between the purchase consideration for the interest in all three companies and the group’s share of net assets acquired and then allocated to the trio, being cash generating units. It was however noted also that the group was tested for impairment “and no impairment charge has been recorded against these balances in the current financial year.”

Total revenue for the period under review rose by N23.877bn or 29.74% from N80.284bn in the 2017 financial year to N104.162bn; the lion’s share of which was the N86.737bn income from electric energy and capacity sold by Transcorp Power Ltd, up from N66.441bn in 2017. Transcorp Hotels Plc followed with a total of N17.424bn, as against the N13.843bn earned in prior year; while the corporate centre, N8.899bn, compared to N5.121bn
Cost of sales rose to N55.91bn from N43.86bn, representing N12.049bn or 27.47%. Gross profit for the period therefore increased N11.828bn or 32.47% from N36.86bn to N55.91bn.
Other operating income at N997.196m suffered a decline by N362.443m or 26.65% from N1.359bn in 2017 to N997.196m; administrative expenses rose by N2.848bn or 24.24% from N11.751bn to N14.6bn; resulting in operating profit of N34.649bn, as against the previous N26.031bn, representing an N8.617bn or 33.1% increase.

Foreign exchange loss dropped N1.386bn or 30.44% from N4.554bn to N3.167bn; following which Profit Before Tax for the year soared by N10.096bn, or 82.05% from N12.309bn to N22.402bn; even as income tax expenses rose slightly from N1.775bn to N1.698bn; leaving net profit of N20.626bn, N10.019bn or 94.46% better than the N10.607bn reported in the corresponding period of 2017. Other comprehensive loss for the year, net of tax stood at N1.254bn, as against an income of N2.798bn, which brought total comprehensive income for the year, net of tax amounted to N19.371bn, up from N13.406bn, translating to EPS of 23 kobo, up from 12 kobo.

https://investdata.com.ng/2019/02/transcorp-plc-2018-profit-up-94-5-offers-n0-03-dividend/

Rescheduled Polls: Profit Taking On NGSE, Amidst Repositioning For Dividend, Post-Election

Market Update for February 18
It was a disappointing and difficult session, although foretold, on Nigerian Stock Exchange on Monday following apprehensions as rescheduling of the Presidential and National Assembly elections triggered the long awaited pullback and profit taking after the market had rallied for two weeks that reversed the January down market, which had defied the political tension.

The Presidential and National Assembly elections were postponed just hours to their commencement across the country by the Independent National Electoral Commission (INEC) citing logistic reasons to the disappointment of many Nigerians. The situation also did not go down well with investors, especially as it seemingly confirmed long standing fears of uncertainties around the elections, just as it signaled the lack of preparedness by the umpire and the government. There have also been worries about the economic cost implication of the postponement, besides the huge budgetary allocations for the purpose over the past four years.

NSE’s All-Share Index started out trading on a big gap down in the morning session, plunging deeper between mid-morning and midday, when it fell to 31,824.22 basis points, before walking its way back up gradually in the afternoon when it closed at 32,190.07bps. Traded volume was low, revealing the wait-and-see attitude of market players, added to the dissatisfaction over the dividend declared so far which have come far below market and analysts expectations. This was especially true of the Transnational Corporation of Nigeria (transcorp), which recommended three kobo dividend, despite its impressive numbers, as its management could be building its reserves by retaining more of its earnings, being one of the NSE’s growth stocks (READ MORE).

The corporate earnings released so far have already given insights into what is likely to come from companies in the consumer goods, industrial goods, conglomerates and services subsector, at a time of stiffening competition for the reduced disposable income in the economy. Already, the reduction in the losing momentum during the session is a indication that some investors have taken advantage of the pullback to buy blue chip stocks.

Market technicals were negative and mixed, with traded volume lower than previous session’s in the midst of a negativebreadth and mixed sentiment as revealed by Investdata’s Daily Sentiment Report, showing a selling volume of 60% and buying position of 40%. Daily transaction volume index for the day stood at 0.66.

The energy behind the day’s market performance was high, despite the down market as shown by money flow index at 78.31points, from previous day’s 76.88bps, indicating that funds are moving around stocks.

Index and Market Cap
At the end of Monday’s trading, the All Share index lost 525.13bps, closing at 32,190.07bps after opening at 32,715.20bps, representing a 1.61% decline, while market capitalization shed N195.84bn, closing at N12tr, from the opening value of N12.2tr. This represented a 1.61% loss in value.

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.

Profit taking was largely driven by Dangote Cement, Nigerian Breweries (READ MORE), Unilever, Guaranty Trust Bank, CCNN, UBA, Access Bank, Diamond Bank and Transcorp, among others. This impacted negatively on Year-to-Date, reducing it to 2.24%, while gain in market capitalization YTD dropped to N187 84bn from the year’s opening level of N11.72tr, representing a 2.24% growth.

Bearish Sectors Indices
All the sectoral indexes were bearish, with NSE Banking and Oil/Gas leading the decline, while market breadth was negative with decliners outnumbering advance in the ratio of 37:12.
Market activities were down in volume and value by 71.13% and 48.15% respectively to 233.42m shares worth N3.36bn, from previous day’s 808.65m units valued at N6.49bn. Transaction volume was propelled by Access Bank, Chams, UBA, Zenith Bank and Guaranty Trust Bank.

Top advancers for the session were Presco and Beta Glass, which chalked 10% and 9.27% respectively to close at N72.60 and N79 respectively on market forces and earnings expectations; while the flipside was led by Transcorp and C & I Leasing after shedding 9.94% and 9.82% respectively to close at N1.54 and N6.61 each, on profit booking and market forces.

Market Outlook
With the postponement of the all-important Presidential and National Assembly polls, profit taking and volatility will continue, as investors and traders reposition for 2019 dividend declaration season and post-election rally which are expected to shape market performance in the interim. We advise cautious trading and investing while positioning in fundamentally sound equities.We expect early filers like United Capital, Africa Prudential and Forte Oil to hit the market with their numbers any moment from now.

Volatility will also continue as investors and fund managers reposition their portfolios, with eyes fixed on political space and ahead of January inflation data, which is another factor likely to drive prices north, or south, while determining market direction before or after the Presidential Election.

Investors should review their positions in line with their 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 low in the midst of mixed company numbers, weak economic and market fundamentals
Take action that will transform your life throughout 2019 and beyond by getting the just concluded and life transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT Home study pack (USB) that you can play on your phone, Laptop and Television set.

The event, which held on Saturday, December 8, 2018, was yet another successful, insightful and educative outing that not only offered direction as to where investors should look for a profitable trade in 2019, insight into industries, sectors and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment.

Don’t sit on the Fence call or text Stock to 08028164085, 08032055467, and 08111811223 now.

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/2019/02/rescheduled-polls-profit-taking-amidst-repositioning-for-dividend-post-election/

Investdata Daily Sentiment Report as at February 19th, 2019

NSEASI buy 40% sell 60% MFI 78.31
Access buy 25% sell 75% volume index 0.82 MFI 54.73
Aglev buy � volume index 8.58 MFI 75.93
Caverton buy 0% volume index 2.82 MFI 62.68
Dangcem buy � MFI 61.85
Dangflour buy � volume index 2.40 MFI 76.02
Dangsugar buy 0% volume index 0.94 MFI 50.29
Diamond buy � MFI 72.91
Fbnh buy 58% sell 42% MFI 74.59
Fcmb buy � volume index 0.78 MFI 78.03
Fidelity buy 52% sell 48% volume index 0.73 MFI 41.36
GT buy 0% MFI 85.74
Honyflour buy 0% volume index 1.35 MFI 57.46
Japaul buy � volume index 0.70 MFI 53.85
Mobil buy 0% volume index 13.54 MFI 8.69
Nascon buy 0% volume index 2.57 MFI 46.39
Nem buy 0% MFI 45.59
Nestle buy � volume index 4.61 MFI 59.60
Nigerins buy 0% volume index 3.31 MFI 5.54
Oando buy 31% sell 69% MFI 66.42
Presco buy � volume index 2.48 MFI 100.00
Sterling buy � volume index 0.93 MFI 60.23
Transcorp buy 0% MFI 76.04
Uba buy 36% sell 64% MFI 67.19
Ubn buy � volume index 1.35 MFI 98.55
Unilever buy 56% sell 44% volume index 3.45 MFI 68.31
Wema buy 0% volume index 1.97 MFI 82.97
Zenith buy 33% sell 67% MFI 60.99

https://investdataltd..com/2019/02/investdata-daily-sentiment-report-as-at_18.html?m=1

NBPlc Slips On NGSE, After 2018 Profit Drops By 41% On Heightened Competition, Weak Consumer Spending

The share price of Nigerian Breweries Plc suffered N8.00 or 9.64%, closing at N75 each on Monday, after the directors presented its audited financials for the year ended December 31, 2018 showed that net profit fell by 41.18%, faster than the 4.26% inch in revenue for the period.

Analysts at Cordros Capital and CSL Stockbrokers blamed the revenue decline on the impact of challenging competitive landscape and weakening “discretionary spend,” higher excise duty expense increased by 21.47% from N21.27bn in 2017 to N25.837bn; leaving a net revenue of N324.388bn, compared to the N344.527bn reported in the corresponding period of 2017.

“For context, the launch of International Breweries’ Sagamu plant has increased the supply of value lager beer, which has continued to weigh on NB’s market share, specifically in the mainstream segment. Going into 2019, we expect the competitive environment to remain largely same, amidst weak consumer wallets. NB currently trades at a P/E of 34.2x, a premium to MEA peer average (29.4x),” Cordros noted in its report to clients.

In a series of tweets, analysts at CSL Stockbrokers expressed belief that “NB’s efforts at local sourcing of raw materials is yielding some positive results while it has also been helped by decline in the price of barley and stable wheat price in the international market.”
Cost of sales dropped by 1.77% from N201.034bn to N197.484bn; resulting in gross profit of N126.903bn, down by 11.56% from N143.492bn in the preceding full year.

Other income (mainly the N777.934m derived from sale of scrap) suffered a 60.47% decline from N2.239bn to N885.364m; just as marketing and distribution expenses climbed marginally from N66.863bn to N70.052bn; even as administrative expenses stood at N20.785bn from N21.747bn.
Profit from operating activities for the period therefore fell 35.31% from N57.121bn in 2017 to N36.951bn.

Finance income soared by 110.33% to N361.923bn from N172.074m, being interest income on bank deposits; even as the management successfully constrained finance cost for the period by 25.99% from N10.663bn to N7.891bn. Net finance cost for the period came to N7.529bn from N10.491bn, representing 28.23% drop over the period.
Profit before tax slumped by 26.49% from N46.63bn in 2017 to N29.421bn; while income tax expense reduced to N9.984bn from N13.581bn in the 2017 full year, representing 26.49% drop.

Profit after tax fell from N33.048bn, translating to Earnings Per Share of N4.13; to N19.434bn or N2.43 per share. The board has therefore proposed a dividend of N1.83, down from N3.13 in prior year, in addition to the interim dividend of 60 kobo, bringing total dividend for the period to N2.43 each, representing a payout of N19.401bn.

While closure date of the register of members for the period has been fixed for March 7 to 13, 2019; payment date is May 20, three days after the annual general meeting holding at the Muson Centre, Lagos.

https://investdata.com.ng/2019/02/nbplc-slips-on-ngse-after-2018-profit-drops-by-41-on-heightened-competition-weak-consumer-spending/

Breaking: Zenith Bank Nets N193bn Profit, Offers N2.50 Dividend

Zenith Bank Plc, on Tuesday presented its much awaited audited financials for the year ended December 31, 2018, indicating that although there was a drop in earnings income, profit after tax soared to N193.147bn, up from the previous year’s N173.472bn.

This represented Earnings Per Share of N6.15, as against the previous N5.53, out of which the directors have proposed a dividend per share of N2.50, same as previous full-year, bringing total payout for the 2018 financial year to N2.80 per share, considering the 30 kobo interim dividend earlier paid.

While qualification date is March 8, 2019, payment date is March 19. No date is fixed yet for the Annual General Meeting.

https://investdata.com.ng/2019/02/breaking-zenith-bank-nets-n193bn-profit-offers-n2-50-dividend/

Google, UBA collaborate to provide free Wi-Fi to customers

United Bank for Africa (UBA) Plc has collaborated with Google, an ISP partner, to launch Google Station in 11 key UBA branches in Lagos State as part of plans to rollingtive would allow customers access to internet connectivity within the 11 branches and its environs, thereby facilitating their day-to-day businesses and activities, while ensuring unhindered connectivity.

At the official launch which took place in UBA’s Head Office on Wednesday, UBA’s Executive Director/Group Chief Executive Officer, Mr. Chuks Nweke, expressed UBA’s excitement over the collaboration, adding that the move will go a long way to present opportunities far beyond the imagination of both organisations.

He noted that the challenges of financial inclusion which the USSD platform has not been able to solve will be eased through the Google Station, as the financially excluded will now be able to access the internet and enjoy the services provided free of charge.

Google Nigeria’s Country Director, Juliet Ehimuan-Chiazor, noted that the institutions remained focused on providing internet services to users for free.

Copied: dailytrust Ngeria
https://investdataltd..com/2019/02/google-uba-collaborate-to-provide-free.html

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NGSE Indices Soar, Amid Investor Safe Bets On Dividend Stocks, Rescheduled Elections


Market Update for February 20
Volatility continued the Nigerian Stock Exchange (NSE) Wednesday while the market consolidated its previous day’s gain on renewed investor, especially with investors placing safe bets on expected dividend declaration, especially from blue chip companies and high cap stocks.

The increasing buying momentum as revealed by high volume traded and high buying pressure as shown by our daily sentiment reports with buy position of 98%, was strong enough to reverse the bearish situation of the Transactional Corporation of Nigerian (Transcorp) following its low payout after an impressive 2018 full-year performance (READ), as well as Nigerian Breweries whose directors cut its dividend owing to weaker earnings.

Their share prices however rebounded at the mid-week, just as the high dividend yield of Zenith Bank impacted it stock price, following which it closed higher. Also, the impressive numbers by Newrest ASL regardless of its low payout and planned voluntary delisting (READ) has given an insight into what investors should expect from aviation companies.

Meanwhile, the NSE All Share Index opened on Wednesday to the upside, it then pulled back to session lows of 32,392.46 basis points in the early hours and thereafter stair-stepped its way up to 32,617.94bps at midmorning. It then pulled all the way back down to below its opening figure before galloping up in the last few minutes to close the session at 32,614.05bps on a higher traded volume. The index bounced around over the rest of the afternoon, reaching session highs, and pulling back slightly to finish the day positive.

The expected certainty in the market, political correctness, economic policy reforms in the new dispensation after the February 23 polls and the ongoing earnings reporting season will determine the next direction of the market as global economic outlook still remains unstable, despite oscillating oil prices.

Market technicals at midweek were positive and strong with high volume traded that was higher than previous session’s in the midst of a positive breadth, while daily transaction volume index for the day stood at 1.22.
Energy behind the day’s market performance was high, reflecting the accumulation stage of the market as all eyes are on value stocks as shown by money flow index at 88.76 points, from previous day’s 82.86bps, indicating that funds are entering the market.

Index and Market Cap
At the end of midweek’s trading season, the composite NSE All Share Index gained 207.88bps, closing at 32,614.06bps, having opened at 32,406.18bps, representing a 0.64% growth, while market capitalization rose by N77.52 billion to close at N12.16tr, from the opening value of N12.08tr. This represented a 0.64% appreciation.

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 during this earnings season and beyond.

The market maintained an upturn on the strength of demand for Nigerian Breweries, Guaranty Trust Bank, Zenith Bank, UBA and FBNH, among others, which impacted positively on Year-to-Date gains, lifting it to 3.77%, while that of market capitalization reached N346.86bn, from the year’s opening level of N11.72tr, representing a 3.77% growth.

Bullish Sectoral Indices
All sectoral indices were largely bullish, except for the NSE Industrial goods that closed lower. The NSE Consumer goods took the lead, chalking 1.43% on expected full-year results from stocks in the sector, even as market breadth remained positive as advancers outnumbered decliners in the ratio of 26:14.
Market activities were up in volume and value by 22.65% and 35.63% respectively to 443.78m shares worth N5.64bn, from previous day’s 361.82m units valued at N4.16bn, while the day’s volume was driven by financial stocks like: Sterling Bank, Guaranty Trust Bank, UBA, Access Bank.

Nigerian Breweries and Caverton were the best performing stocks during the session chalking 10% and 9.25% respectively to close at N82.50 and N2.48 on market forces; while the flipside was led by newly readmitted Goldlink Insurance and Custodian Investment, which shed 9.43%% and 62% respectively to close at N0.48 and N6.18 each, on market forces.

Market Outlook
The market rebounded on improved volume despite profit taking and volatility that continued as investors and traders repositioned for the 2019 dividend declaration season and post-election rally expected to shape market performance in the interim. We advise cautious trading and investing while positioning in fundamentally sound equities. We expect early filers like United Capital, Africa Prudential, and Forte Oil to hit the market with their numbers any time soon.

Volatility will also continue as investors and fund managers reposition their portfolios, with eyes fixed on political space, but investors should review their positions in line with their 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 low in the midst of mixed company numbers, weak economic and market fundamentals

TAKE ACTION
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the just concluded and life transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT Home study pack (USB) that you can play on your phone, Laptop and Television set.

The event, which held on Saturday, December 8, 2018, was yet another successful, insightful and educative outing that not only offered direction as to where investors should look for a profitable trade in 2019, insight into industries, sectors and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment

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/2019/02/ngse-indices-soar-amid-investor-safe-bets-on-dividend-stocks-rescheduled-elections/1

Investdata Daily Sentiment Report as at February 20th, 2019

NSEASI buy 98% sell 2% volume index 1.22 MFI 88.76
Access buy 0% volume index 0.92 MFI 58.26
Afrprud buy 52% sell 48% volume index 4.83 MFI 45.87
Aiico buy 0% volume index 0.83 MFI 54.82
Dangcem buy � volume index 1.40 MFI 64.11
Dangflour buy 90% sell 10% volume index 2.40 MFI 69.79
Diamond buy 67% sell 33% MFI 74.83
Eterna buy � MFI 72.69
Eti buy 0% MFI 53.09
Fbnh buy 13% sell 87% volume index 1.00 MFI 74.50
Fcmb buy 0% MFI 78.31
Fidelity buy 0% volume index 0.91 MFI 45.67
Fmn buy � volume index 1.50 MFI 75.23
GT buy 71% sell 29% volume index 1.27 MFI 88.60
Honyflour buy 0% volume index 1.08 MFI 60.84
Jaiz buy � volume index 1.47 MFI 71.56
Japaul buy 0% volume index 2.18 MFI 76.03
Lasaco buy � volume index 2.94 MFI 57.23
Mobil buy 0% volume index 2.76 MFI 21.73
Nem buy 0% MFI 51.84
Nestle buy 67% sell 33% volume index 6.13 MFI 45.97
Nigerins buy 0% volume index 2.31 MFI 28.46
Oando buy � volume index 2.53 MFI 72.77
Regalins buy � volume index 2.28 MFI 84.76
Sovereins buy 0% volume index 1.76 MFI 70.21
Sterling buy � volume index 10.54 MFI 76.37
Total buy 0% volume index 9.00 MFI 80.02
Transcorp buy 83% sell 17% volume index 0.95 MFI 65.84
Uacn buy 67% sell 33% volume index 2.80 MFI 68.99
Uba buy 17% sell 83% volume index 0.94 MFI 84.00
Ucap buy � volume index 0.73 MFI 64.10
Unilever buy 0% volume index 0.93 MFI 68.19
Unity buy 43% sell 57% volume index 3.15 MFI 53.48
Wema buy 70% sell 30% volume index 2.94 MFI 83.92
Zenith buy 50% sell 50% MFI 72.45

https://investdataltd..com/2019/02/investdata-daily-sentiment-report-as-at_21.html

Nigerian Banks Reports 11.67% NPL Ratio In 2018Q4

New data by the National Bureau of Statistics (NBS), on Wednesday showed that Nigerian banks reported N1.792tr non-performing loans at the end final quarter of 2018, up from previous quarter’s N2.245tr.

As a ratio of gross loans of N15.353tr for the period, NPL ratio improved significantly to 11.67%, from 14.16% in the corresponding period of 2018Q3.

NPL after specific provisions however stood at 13.22%, down from 16.84%
The Q4 level was the lowest for the year, given that in Q2, NPL ratio stood at 12.45%, as against 13.83% in Q1; while NPL ratio after specific provisions stood at 14.27% from 15.75% in prior quarter.

The improvement in NPL ratio at Q4 2018 was even more significant, after it improved from N2.189tr, or 14.81%; just s NPL after specific provisions improved from 16.72%.
Despite the improvement, it is still a far cry from the 5% regulatory benchmark.

Total lending for 2018Q4 improved by 2.92% Quarter-on-quarter to N15.134tr, with oil and gas lending continue to dominate the space attracting the highest credit allocation of N3.548tr of total lending, representing 23.45%; followed by manufacturing with N2.23tr or 14.74%.

Lending to government for the period stood at N1.362tr, or 9% of total credit; trade/general commerce attracted N1.076tr, or 7.11%; finance, insurance and capital market sector lending accounted for N1.106tr, or 7.31%.
Rising from their meeting of September 2018, members of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC), expressed worry over the bloating NPL as ratio of total industry loan for the period from 12.45% at the end of June, to 14.7% by August, at a time of rising oil prices at the international market.

Also worrisome, according to Dahiru Balami, a member of the committee, for instance, the fact that oil and gas lending alone is responsible for 30.8% of industry total loan book; followed afar off by the 12.95% of the manufacturing sector.
Rather than oil and gas, which does not generate so much employment for the economy, he had argued that concentration of loans ought to be towards “agriculture, manufacturing, transport and storage, service, mining and quarrying as well as real estate activities.”

For him therefore, one critical question Nigerian banks need to answer: “Is what credit appetite do banks have for giving more credit to the gas and oil sector?

“In Nigeria, the sectors with highest credit concentration are also sectors with high impact on the NPLs,” he had lamented, stressing that between August 2017 and August 2018, the sector accounted for 44.67%; General Commerce, 8.31%; General, 8.85%; Power and Energy, 6.95%; and Manufacturing, 6.13%;” among others.

His sentiment was shared by Robert Asogwa, another MPC member, who drew attention to Capital Adequacy Ratio (CAR) as another financial soundness indicator that evokes new concerns for him, having declined from 12.0% in June to 10.79% in August.

The trend is worrisome, Asogwa continued, “given the expectation that loan losses by the banking industry should be declining at this time, with the exit from recession.”
He agreed that it was not all bad news after all, judging by the growth in total banking industry assets from N33.7tr in July to N34.05tr , even as total Industry credit moved slightly from N15.53tr to N15.76tr.

He equally drew attention to the deterioration of asset quality, despite the improved liquidity in the banking sector as a whole, calling for efforts to avoid provoking any further distress in the banking sector.”

https://investdata.com.ng/2019/02/nigerian-banks-reports-11-67-npl-ratio-in-2018q4/

United Capital Offers N0.30 Dividend, Despite Flat Earnings, Profit

Directors of United Capital Plc, on Thursday presented its audited financials for the year ended December 31, 2018, following which they proposed a 30 kobo dividend per share, despite flat revenue and profit, even as a lot of efforts were put into checking cost, the effect of which was muted by the increased income tax expense for the period.

The dividend is payable to shareholders whose names appear on the register of members as at the close of business on March 13, 2019, while following which the register is closed between March 14 and 20, while payment is slated for April 2. This will however be subject to approval at the annual general meeting scheduled for Thursday, March 29, 2019 at 10am in Lagos.

According to the result presented to the Nigerian Stock Exchange (NSE), gross earnings for the period rose to N9.25bn from N8.915bn in the corresponding period of 2018, with net operating income up from N7.01bn to N7.21bn. This followed the fall in investment income from N4.965bn to N4.422bn.

Fee and commission income improved slightly from N1.813bn to N1.904bn; just as net trading income climbed to N126.499m from N88.397m; while net interest margin soared from N143.516m to N757.475m
Other income increased to N2.042bn from N1.874bn.

Total expenses for the period stood at N4.337bn, compared to N4.362bn.
Profit before tax rose from N5.547bn to N6.221bn, while tax expenses of N1.883bn, as against the N1.185bn of 2017. This left after tax profit at N4.337bn, representing Earnings Per Share of 72 kobo; compared to the N4.362bn in 2017, which translated to EPS of 73 kobo.

https://investdata.com.ng/2019/02/united-capital-offers-n0-30-dividend-despite-flat-earnings-profit/

Investdata Price & Earnings Tracking For Week Ended Friday, February 22, 2019

https://investdata.com.ng/2019/02/investdata-price-earnings-tracking-for-week-ended-friday-february-22-2019/

Losing Momentum May Slowdown On Earnings Season, Despite Profit Taking, Volatility

Market Update for February 27
Stocks on the Nigerian Stock Exchange (NSE) closed lower at the midweek as negative sentiment extended into the second trading session on a high selling volume and declining money flow index. The index reveals the direction of smart money and institutional players at any given time.

Trading opened on the downside in the morning, a situation that was sustained throughout; on day when umpire, the Independent National Electoral Commission (INEC) declared incumbent President Muhammadu Buhari of the ruling All Progressives Congress (APC) winner of the presidential poll. Buhari, according to INEC, defeated his closest rival- Atiku Abubakar of the Peoples Democratic Party (PDP) and was handed the certificate of return.

The seeming flight for safety impacted the NSE All-Share index negatively as it it touched intraday lows of 32,185.34 basis point, from highs of 32,521.74bps, before retracing up slightly, finishing the day at 32,244.24bps amidst selling pressure.
Liquidity remains a key fundamental driving equity prices and impacting market performance, just as its flow is very important, because it tells where the general market direction. The increasing volume of transactions with MFI looking down, signals exit of funds from the market.

The Presidential election outcome has in one way or the other triggered this pullback having deviated from what smart money and other players expected, especially as the slant of the incumbent government is already well known.
Analysts and market players have also expressed disappointment that the Buhari government refused to appoint a board for an important institution as the apex regulator of the capital market- the Securities & Exchange Commission (SEC) over the last four years. The commission, whose newly inaugurated board by the Goodluck Jonathan government was dissolved with no replacement. This means that over the four-year term of the Buhari administration so far, the SEC has been run Finance Minister, thereby slowing down a lot of developments and innovations in Nigeria’s investment environment.

As we mentioned in the market update of Tuesday, February 26, 2019, the ongoing pullback may not last as the return of certainty and relative peace onto the polity may attract foreign investors, lured by the nation high interest rate environment. This does not however reduce the expected impact of the ongoing earnings reporting season.

So far, more companies have released more impressive full-year numbers, offering better dividend payout. One of them is the impressive full year earnings report of Dangote Cement, the most capitalized stock on the NSE (READ HERE). The board has recommended a dividend per share of N16, as against N10.50 each paid in the previous year. This is likely to support the market, in addition to earlier released numbers, thereby reducing the losing momentum or turn positive depending market forces.
Midweek market technicals were negative and mixed as volume traded were higher than previous session in the midst of negative breadth and high selling pressure. This was revealed by Investdata’s Daily Sentiment Report, showing a sell position of 82% and buy volume of 18% on a daily transaction volume index for the day at 1.25.

The energy behind the day’s market performance was down, reflecting the sell market as shown by money flow index at 79.51points, down from previous day’s 87bps, indicating that funds are leaving some stocks.

Index and Market Cap
NSE All Share index at the end of session shed 229.58bps, closing at 32,244.24ps, after opening at 32,473.82bps, representing a 0.71% decline. Market capitalization lost N86bn to close at N12.02tr, from the opening value of N12.11tr, representing a 0.71% 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 during this earnings season and beyond.

Wednesday’s downturn was due to profit taking in medium and high cap stocks like: Nestle, Zenith Bank, UBA, FBNH, Oando, and Dangote Sugar, among others. This impacted negatively on Year-to-Date gains which contracted to 2.59%, while market capitalization gain dropped to N214.39bn, from the year’s opening level of N11.72tr, representing a 2.59% growth.

Bearish Sectoral Indices
All sectoral performance indices were largely bearish, except for NSE Insurance that closed 0.08% green. Market breadth was negative as decliners outnumbered advance in the ratio of 29:10.
Market activity involume and value were up by 41.56% and 10.07% respectively to 456.67m shares worth N2.68bn, as against the previous day’s 322.18m units valued at N2.46bn, driven by financial services and conglomerates stocks like: Diamond Bank, Fidelity Bank, Access Bank, Transcorp and UBA.

Neimeth Pharmaceuticals and PZ Cussons were the best performing stocks, chalking 9.8% and 9.4% respectively to close at N0.67 and N13.45 per share on low price and market forces. The flipside was led by Union Diagnostic and Oando , which shed 9.79%% and 9.7% respectively to close at N0.28 and N6.55 each, on profit taking.

Market Outlook
We expect the losing momentum to slow down on Dangote Cement impressive numbers and more earnings reports. This will expectedly have positive influence on the market if the numbers and rewards beat expectations, despite profit taking and volatility that will continue. Investors and traders also should continue their repositioning for the 2019 dividend declaration season and post-election rally expected to shape market performance in the interim. We advise cautious trading and investingwhile positioning in fundamentally sound equities.

Volatility will also continue as investors and fund managers reposition their portfolios, with eyes fixed on earnings reports, but investors should review their positions in line with their 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 low in the midst of mixed company numbers, weak economic and market fundamentals

https://investdata.com.ng/2019/02/losing-momentum-may-slowdown-on-earnings-season-despite-profit-taking-volatility/

Investdata Daily Sentiment Report as at February 28th, 2019

NSEASI buy 18% sell 82% volume index 1.25 MFI 79.51
Access buy 14% sell 86% volume index 1.02 MFI 50.60
Afrprud buy 0% volume index 10.65 MFI 91.28
Aiico buy � volume index 1.36 MFI 37.28
Custodian buy 0% MFI 40.11
Dangcem buy � volume index 0.74 MFI 58.69
Dangflour buy 91% sell 9% volume index 2.13 MFI 86.08
Diamond buy 74% sell 26% volume index 3.50 MFI 60.06
Eterna buy 0% volume index 3.25 MFI 57.35
Eti buy � MFI 74.35
Fbnh buy 0% volume index 0.86 MFI 56.20
Fcmb buy 93% sell 7% volume index 1.27 MFI 67.23
Fidelity buy 42% sell 58% volume index 2.48 MFI 37.42
GT buy 44% sell 56% MFI 80.25
Honyflour buy � volume index 0.82 MFI 73.74
Jaiz buy � MFI 71.29
Japaul buy 50% sell 50% volume index 0.81 MFI 84.87
Oando buy 0% volume index 1.32 MFI 77.52
Sovereins buy 0% MFI 77.18
Sterling buy � volume index 1.37 MFI 71.94
Transcorp buy 22% sell 78% volume index 0.84 MFI 63.10
Uacn buy 0% volume index 1.56 MFI 61.53
Uba buy 0% MFI 73.50
Ubn buy � volume index 1.42 MFI 95.03
Ucap buy 0% volume index 1.88 MFI 35.60
Uniondac buy 0% volume index 2.30 MFI 71.19
Wapco buy � MFI 48.48
Wema buy 0% volume index 1.10 MFI 73.39
Zenith buy 4% sell 96% MFI 63.29

https://investdataltd..com/2019/03/investdata-daily-sentiment-report-as-at.html

Presidential Result 2019: Nigerian Stock Exchange Lost N170 billion ($500million) in Six Hours


https://www.youtube.com/watch?v=eySjyi4EJjo

Investdata Daily Sentiment Report as at March 1st, 2019

NSEASI buy 0% volume index 1.11 MFI 71.31
Access buy 0% volume index 0.91 MFI 44.41
Dangcem buy 2% sell 98% volume index 2.18 MFI 73.71
Dangflour buy 8% sell 92% volume index 2.44 MFI 74.64
Dangsugar buy � volume index 1.32 MFI 51.11
Diamond buy 0% MFI 57.24
Eti buy � volume index 2.30 MFI 68.97
Fbnh buy 20% sell 80% volume index 0.91 MFI 43.91
Fcmb buy 0% volume index 0.83 MFI 61.32
Fidelity buy 15% sell 85% volume index 0.70 MFI 32.70
Fmn buy 0% volume index 1.14 MFI 73.54
GT buy 0% volume index 1.54 MFI 66.79
Honyflour buy 0% volume index 1.63 MFI 63.97
Jaiz buy � volume index 3.20 MFI 74.72
Japaul buy 0% volume index 1.41 MFI 76.24
Lasaco buy � MFI 65.42
Oando buy 0% volume index 0.73 MFI 73.24
Regalins buy 0% volume index 2.12 MFI 57.16
Sovereins buy 0% MFI 75.27
Stanbic buy 0% MFI 87.11
Transcorp buy 75% sell 25% MFI 57.31
Uacp buy � volume index 7.64 MFI 98.10
Uacn buy 0% MFI 56.76
Uba buy 0% volume index 0.71 MFI 59.47
Ucap buy 0% MFI 31.80
Uniondac buy � volume index 3.63 MFI 75.91
Unity buy 0% volume index 1.02 MFI 38.92
Wapco buy 0% MFI 52.50
Wema buy 20% sell 80% MFI 71.34
Zenith buy 0% MFI 45.68

https://investdataltd..com/2019/03/investdata-daily-sentiment-report-as-at_4.html

United Capital 2018: Flat Numbers On Unstable Financial Market, High Tax Expenses

United Capital, an investment banking company spun out of the UBA Group, among others, recently made available its 2018 scorecard to the investing community. The numbers were not only flat; they came below market expectation. The performance was also mixed, when compared to figures from previous year, leading to a 14.29% dividend cut for the second consecutive year. The directors have proposed a 30 kobo dividend per share for shareholders’ consideration at its next annual general meeting.

Expectedly, the numbers have continued to impact the company’s share price negatively, regardless of the relative high yield. The financials however came earlier to the market when compared to the released date for the 2017 accounts, reflecting the company’s understanding of the importance of forecasts and projections to investors when planning.

However, those who know the importance of tracking quarterly earnings positions should not have been shocked, given that they have also been below market expectation, arising from the low primary market activities due to market lull that made many companies to slow down on Rights issues and other primary activities.
Top-line for the period rose marginally by 3.81% to N9.26bn from N8.92bn in 2017, primarily because investment and fee incomes- its core operation fell. While investment income dropped to N4.42bn from N4.97bn in 2017, income tax expenses jumped to N1.88bn, from N1.19bn in prior year. Provisions for loan loss notched to N266.90m from N219.04m in the previous year, which ate into the profit, following which profit after tax dropped to N4.34bn from N4.36bn in 2017, representing 0.46 percent slide.

Full year earnings power and dividend came to 30 kobo from 35 kobo paid in 2017, for a stock selling currently at 3.35 each, which is above its Book Value of N2.64, while Price to Earnings ratio is 4.80x. This means investors’ waiting period has reduced due to the decline in market value, when compared to its price as at released date in 2018.

Valuation/Recommendations
The company’s weak performance as revealed by its numbers is another pointer to Nigeria’s weak economic fundamentals and market oscillation. The relatively high interest rates in money market and fixed income markets may not bailout the company in this post-election economy. This 2018 numbers is an indication of where United Capital is heading in 2019, if financial markets remain unstable and the economy continues to struggle.

The Book Value at N2.64 per share and Profit Margin of 46.86%, one of the market’s highest signifies that the stock is selling at a premium looking at the market value on the strength of its Price-Earnings-Ratio of 4.80x, which is relatively okay in the market since it is below the market’s Price to Earnings at 15x.

The company has consistently paid dividend since 2013, although it has been on the decline in the last two years, dropping from 50 kobo in 2016 to 35 kobo in 2017 and 30 kobo in 2018. Based on market reality and the economic climate, we advise investors in this stock to HOLD and watch the stock and market trend, especially given that financials for 2019Q1 will hit the market in April.

United Capital’s price action is positive, trading above its 20-Day Moving Average, while forming a cup and handle to support an uptrend. Buying sentiment for the stock remains high at 83% on a weekly timeframe; ahead of it price adjustment for dividend of 30 kobo.

History
United Capital Plc was established in 2002 and listed on the exchange in 2013 to provide financial services through its investment banking, Trustees, Asset Management and Stockbroking. The company’s business capacity building and technology–driven has supported its status as a one-stop shop Investment outlet.

It was then wholly owned by United Bank for Africa Plc before being quoted on the NSE with its own unique shareholders. Its excellent service delivery in helping governments, corporate organisations and individuals to achieve their financial goals in the financial market has always supported its performance.
Its 17 years of active participation in helping to deepen the Nigerian Financial Market has afforded the company opportunities to participate in various offers, including financing of projects, financial advisory service, packaging of Initial Public Offerings, Right Issues, Debentures, as well as corporate and government bonds

Performance Analysis
A critical look at the company’s performance for the past five-years reveals mixed and oscillating numbers, besides showing the level of management’s commitment to meet projections since 2013. This has reflected on the unstable price movement and dividend payout which follows inconsistent growth in its earnings power.

Within the period under consideration, the company has inconsistently grown its gross earnings, profitability and investment ratios.
Topline for the period grew by 97.86% to N9.26bn from N4.68bn in 2014, the highest in six year, just as profit has been gliding up and down, from N1.85bn in 2014 to N4.34bn from its peak of N6.91bn in 2016, representing 134.59% increase over the period. The management efficiency as reflected in its profit margin for the review period has not boosted bottom-line having remained above the 15% standard.

Shareholders’ funds currently stand at N15.83bn from N9.08bn in 2014, showing an uptrend, before it slowed down in 2018.
The company has paid a total dividend of N1.95 since becoming a quoted company, a function of its earnings position for the periods.


Estimated Performance Ratios
Profitability and investment ratios for the period under review shows that the amount earned have been unstable, lower than the previous year’s 72 kobo from 73 kobo in 2017, but higher than 31kobo posted in 2014, increasing yearly from 31kobo in 2014; to 43 kobo in 2015 to keep a track of growing its earnings before the recent decline.

Price Earnings ratio is fair and okay at the current estimate of 4.80x from low of 3.20x in 2016 and a high of 5.91x in 2017. The last full year EPS is a yield of just 20.84% of the market price as of the release date. This simply signifies an improvement on the stock’s price performance against the posted numbers.

The Book Value of the company moved from N1.51 in five years to N2.64as the share price appreciated to N4.30 in 2017. Putting this ratio and the market price of the stock side-by-side, signals opportunity for medium and long term investors. Profit margin over the years has improved and remains above 15% that is internationally accepted level due to effective cost control that had helped bottom line.

https://investdata.com.ng/2019/03/united-capital-2018-flat-numbers-on-unstable-financial-market-high-tax-expenses/

Investdata Weekly Sentiment Report for the week ended March 28th, 2019

NSEASI buy 11% sell 89% volume index 1.30 MFI 45.33
Access buy 21% sell 79% volume index 1.70 MFI 53.59
Afrprud buy 39% sell 61% volume index 4.90 MFI 82.61
Aglev buy � volume index 0.87 MFI 53.95
Aiico buy 0% MFI 28.09
Ccnn buy 0% volume index 1.00 MFI 20.79
CIleasing buy � MFI 51.21
Custodian buy 0% MFI 39.90
Cutix buy � volume index 0.81 MFI 51.67
Dangcem buy 29% sell 71% volume index 1.10 MFI 48.63
Dangflour buy 0% volume index 5.14 MFI 86.34
Dangsugar buy 0% volume index 1.56 MFI 69.38
Diamond buy 21% sell 79% volume index 2.35 MFI 78.88
Eterna buy 0% MFI 70.31
Eti buy 17% sell 83% volume index 2.35 MFI 46.41
Fbnh buy 20% sell 80% volume index 0.93 MFI 58.98
Fcmb buy 17% sell 83% volume index 0.97 MFI 74.41
Fidelity buy 53% sell 47% volume index 1.88 MFI 68.85
Fidson buy � MFI 6.70
Fmn buy 0% MFI 71.64
Glaxo buy � MFI 46.52
GT buy 6% sell 94% volume index 1.09 MFI 53.13
Honyflour buy 58% sell 42% volume index 1.11 MFI 53.32
Jaiz buy 0% volume index 1.97 MFI 89.19
Japaul buy 14% sell 86% volume index 2.52 MFI 89.17
JBerger buy � volume index 8.54 MFI 82.14
Lasaco buy 0% MFI 57.92
Lvstk buy 90% sell 10% MFI 58.49
Mansard buy 75% sell 25% MFI 92.72
Mben buy 0% volume index 1.13 MFI 58.94
Nahco buy 13% sell 87% volume index 0.77 MFI 27.46
Nascon buy � MFI 46.34
Neimeth buy � MFI 34.17
Nem buy 78% sell 22% MFI 85.75
Nestle buy 96% sell 4% MFI 50.79
Oando buy 17% sell 83% volume index 1.36 MFI 84.75
Okomu buy 0% MFI 75.43
PZ buy � volume index 0.74 MFI 48.61
Regalins buy 0% MFI 64.40
Royalex buy 0% volume index 2.15 MFI 83.64
Sovereins buy 0% volume index 1.94 MFI 56.20
Stanbic buy 2% sell 98% MFI 34.40
Sterling buy 75% sell 25% volume index 1.05 MFI 88.73
Total buy 63% sell 37% volume index 1.04 MFI 18.91
Transcorp buy 10% sell 90% volume index 1.78 MFI 62.52
Uacp buy 50% sell 50% volume index 8.97 MFI 59.97
Uacn buy 0% MFI 32.65
Uba buy 18% sell 82% volume index 0.97 MFI 53.60
Ubn buy 31% sell 69% volume index 6.13 MFI 66.80
Ucap buy 83% sell 17% volume index 1.10 MFI 48.81
Unilever buy 0% MFI 71.36
Uniondac buy 67% sell 33% MFI 52.42
Unity buy 0% MFI 75.73
Veritas buy 50% sell 50% MFI 10.03
Wapco buy 78% sell 22% MFI 24.01
Wapic buy 0% MFI 51.60
Wema buy 21% sell 79% MFI 64.02
Zenith buy 2% sell 98% volume index 0.93 MFI 55.02

https://investdataltd..com/2019/03/investdata-weekly-sentiment-report-for.html

WATCH INVESTDATA MARKET UPDATE AS AT MARCH 4TH, 2019

Investdata present to you, market update for the week ended March 1st,2019. With insight about the Nigeria Stock Market and performance index of the various Stocks traded.


https://www.youtube.com/watch?v=upBSGIg-X4k

Investdata Daily Sentiment Report as at 5th, March, 2019

NSEASI buy � MFI 61.73
Access buy � MFI 18.97
Afrprud buy 33% sell 67% volume index 1.90 MFI 75.93
Dangcem buy � volume index 1.63 MFI 74.88
Dangflour buy 74% sell 26% volume index 2.09 MFI 64.57
Diamond buy 71% sell 29% volume index 0.74 MFI 45.07
Fbnh buy � MFI 39.26
Fcmb buy � volume index 0.95 MFI 59.30
Fidelity buy 81% sell 19% MFI 21.33
GT buy � MFI 54.72
Honyflour buy 0% volume index 0.89 MFI 56.67
Japaul buy � MFI 79.83
Lasaco buy � volume index 0.80 MFI 67.96
Oando buy � volume index 1.05 MFI 65.57
Transcorp buy 50% sell 50% MFI 47.37
Uacn buy 0% MFI 51.41
Uba buy 33% sell 67% volume index 0.86 MFI 51.61
Ucap buy 0% volume index 0.72 MFI 19.09
Unilever buy � MFI 14.22
Wapco buy � MFI 35.04
Wema buy � MFI 66.01
Zenith buy 61% sell 39% volume index 0.86 MFI 38.17

https://investdataltd..com/2019/03/investdata-daily-sentiment-report-as-at_5.html

NGSE Indicators Up As Investors Stay On Dividend Stocks, Expected Earnings Reports

Market Update for March 4
Nigeria’s stock market had a mixed session on Monday, closing higher and consolidating previous day’s gain on a low traded volume after some back and forth actions, with renewed buying interest in the banking, consumer and industrial goods sectors.

This was in the hope of more corporate earnings reports hitting the market as seeming calm returns to the economy and market after the outcome of the Presidential and National Assembly elections held on February 23, 2019.
Trading opened for the week on the upside, but slowed down between mid-morning to midday as traders and investors traded cautiously as funds flowed into the fixed income segment, irrespective of the attractive and high dividend yields prevailing in the equity market. The composite NSE All-Share index rebounded sharply thereafter, and into mid-afternoon when medium and capitalized stocks rallied to break through the overhead resistance level of 32,000 psychological line, and back up. It then finished for the day at 32,129.94 basis points, after touching intraday lows of 31,827.24bps.

Under the prevailing market situation, playing dividend stocks is advisable with all eyes on consistent dividend paying stocks, knowing the qualification and markdown date to guide movement of funds from one stock to the other. We expect trading for this month, the peak of earnings reporting season to influence the general market positively on the strength of more impressive numbers and high payout ratios to attract liquidity.

Monday’s market technicals were positive and mixed, with volume traded lower than previous session in the midst of positive breadth and sentiments, as revealed by Investdata’s Daily Sentiment Report, showing a buying volume of 100% and sell position of 0% on a daily transaction volume index for the day at 0.63.
The momentum behind the day’s market performance was down, despite the up market as shown by money flow index at 61.73 points, down from previous day’s 64.18bps, indicating that funds are still leaving the market.

Index and Market Cap
NSE All Share index at the end of Monday transaction gained 302.70bps, closing at 32,129,944ps, after opening at 31,827.24bps, representing a 0.95% growth. Market capitalization went up N112.88bn to close at N11.98tr, from the opening value of N11.87tr, representing a 0.95% value appreciation.

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 during this earnings season and beyond.

The uptrend was driven by gains recorded in medium and high cap stocks like: Dangote Cement, Guaranty Trust Bank, CCNN, Zenith Bank, UBA, Access Bank, FCMB, International Brewery, Dangote Flour, Transcorp, Diamond Bank and Dangote Sugar, among others. This impacted positively on Year-to-Date gains to 2.23%, while market capitalization gained N258.39bn, from the year’s opening level of N11.72tr, representing a 2.23% growth.

Mixed Sector Indices
All sectoral indices were largely bullish, except for the NSE Insurance and NSE Oil/Gas that closed red. Market breadth was positive as advancer’s outnumbered decliner in the ratio of 25:10.

Market involume and value were down by 33.18% and 30.40% respectively to 228.48m shares worth N2.61bn, as against previous session’s 341.95m units valued at N3.75bn, which was driven by financial services and conglomerates stocks like: Diamond Bank, UBA, Zenith Bank, Access Bank, and Transcorp.

McNichols and Cutix were the best performing stocks, gaining 9.8% and 9.76% respectively to close at N0.56 and N2.25 per share on the offer of five kobo dividend payout and low price attraction. The flipside was led by PZ Cussons and Livestock Feeds, which shed 9.67%% and 8.96% respectively to close at N12.15 and N0.61 each, on profit booking.

Market Outlook
We expect improved sentiment and more earnings reports to influence the general market. Especially when the numbers and rewards beats expectation, despite profit taking and volatility that will continue. Investors and traders also should continue their repositioning for the 2019 dividend declaration season and post-election rally expected to shape market performance in the interim. We advise cautious trading and investingwhile positioning in fundamentally sound equities.

Volatility will also continue as investors and fund managers reposition their portfolios, with eyes fixed on earnings reports, but investors should review their positions in line with their 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 low in the midst of mixed company numbers, weak economic and market fundamentals

TAKE ACTION
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the just concluded and life transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT Home study pack (USB) that you can play on your phone, Laptop and Television set.

The event, which held on Saturday, December 8, 2018, was yet another successful, insightful and educative outing that not only offered direction as to where investors should look for a profitable trade in 2019, insight into industries, sectors and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment

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/2019/03/ngse-indicators-up-as-investors-stay-on-dividend-stocks-expected-earnings-reports/

Investdata Daily Sentiment Report as at March 6th, 2019

NSEASI buy 37% sell 63% volume index 1.08 MFI 61.18
Access buy 33% sell 67% MFI 22.74
Chi buy 0% volume index 0.71 MFI 17.86
Dangcem buy 0% MFI 69.21
Dangflour buy � volume index 1.98 MFI 67.09
Dangsugar buy � MFI 55.70
Diamond buy 36% sell 64% volume index 2.59 MFI 63 .08
Fbnh buy 25% sell 75% volume index 2.02 MFI 53.03
Fcmb buy 0% volume index 0.77 MFI 63.09
Fidelity buy 0% volume index 0.95 MFI 29.63
GT buy 62% sell 38% volume index 1.32 MFI 61.69
Honyflour buy 0% MFI 45.46
Jaiz buy 0% volume index 0.77 MFI 51.03
Japaul buy 0% volume index 2.58 MFI 66.47
Nascon buy 0% volume index 7.88 MFI 66.68
Oando buy 50% sell 50% MFI 69.21
Sovereins buy � volume index 1.19 MFI 82.94
Transcorp buy 0% MFI 45.04
Uacn buy 0% volume index 1.07 MFI 43.96
Uba buy 25% sell 75% volume index 1.11 MFI 64.18
Wapic buy 0% volume index 8.39 MFI 75.88
Zenith buy 33% sell 67% volume index 0.72 MFI 47.46

https://investdataltd..com/2019/03/investdata-daily-sentiment-report-as-at_6.html

Mixed Performance Amidst Earnings, Repositioning For 2019 Dividends

Market Update for March 5
Trading on the Nigerian Stock Exchange on Tuesday was mixed and sluggish, closing marginally higher on declining momentum, but higher traded volume, after consolidating three trading sessions of back to back gains due to increased buying interest in banking and consumer goods stocks. All eyes are on the earnings reports from these sectors, especially high cap that are dividend paying.

Note that Nestle Nigeria’s N38.50 final dividend may not impact much on the share price, given its high price, from an Earnings Per Share of N54.26, compared to the N42.55 EPS from which the board offered N27.50 as dividend.

A bonus issue as anticipated by shareholders could have had a greater impact on the price. Summary of its earnings which the market would react to when trading opens on Wednesday, shows that sales revenue crawled 9% to N266.274bn in 2018, from N244.151bn in the prior full year, while net profit climbed 28% from N33.723bn to N43.008bn. The directors however recommended N37.653bn, representing 90% increase payout, when compared to the N19.816bn.

The market’s sluggish situation arose from fake news that Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN) had been sacked barely three months to the end of his five-year tenure, which the Presidency refuted. Later in the day however, international newswire- Reuters, reported that the Governor would soon commence on his terminal leave ahead of the end of his tenure in June. This kept the market foot dragging all day as investors sort some form of confirmation.

Also, following the recent adjustment in interest rate on Treasury Bills and OMO Auction, less funds will flow into money market instruments except for the back door arrangement.
The NSE All-Share index started out the day with a little upside in the morning, which was sustained till mid-morning before pulling back between midday and afternoon amidst profit taking in insurance, industrial and oil/gas stocks to test support.

After touching intraday low of 32,126.64 basis points, from a high of 32,252.89bps to form a consolidated wedge and finish the session at 32,173.66bps. It is not known whether profit taking seen in insurance stocks had anything to do with the players announcing late filing of their 2018 annual accounts, after the National Insurance Commission (NIC), their primary regulator just recently published account filing format for immediate compliance.

Market technicals for the day were positive but mixed, with higher traded volume than previous session in the midst of negative breadth and mixed sentiments, as revealed by Investdata’s Daily Sentiment Report, showing a selling volume of 63% and buy position of 37% on a daily transaction volume index for the day at 1.09.

Energy behind the day’s market performance was slightly down, despite the up market as shown by money flow index at 61.18 points, down from previous day’s 61.73bps, indicating that funds are still leaving the market.

Index and Market Cap
Benchmark index NSEASI was marginally up on Tuesday by 43.72 points to close at 32,173.66bps, after opening at 32,129,94bps, representing a 0.14% growth. Market capitalization went up N16.31bn to close at N11.99tr, from an opening value of N11.98tr, representing a 0.14% 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 during this earnings season and beyond.

The upturn was impacted by gains recorded in medium and high cap stocks like: Guaranty Trust Bank, Stanbic IBTC, Zenith Bank, UBA, Access Bank, FBNH, Dangote Flour and Dangote Sugar, among others.

This impacted positively on Year-to-Date gains, lifting it to 2.34%, while market capitalization notched N264.70bn, from the year’s opening level of N11.72tr, representing a 2.34% growth. Shareholders of Access Bank and Diamond Bank, on Tuesday, at separate court-ordered meetings in Lagos, approved the merger of both entities to create one of Africa’s biggest banks by several parameters. The combination is now expected to happen on April 1, quicker than the June previously envisaged (READ MORE).

Mixed Sector Indices
The sectoral performance indices were largely bearish, except for the NSE Banking and NSE consumer goods that closed 0.95% and 0.25% higher respectively. Market breadth was negative as decliners outpaced advancers in the ratio of 17:14.

Market activity in volume and value were up by 75.45% and 32.57% respectively to 400.87m shares worth N3.46bn, as against previous session’s 228.48m units valued at N2.61bn. This was driven by financial services stocks like: Diamond Bank, FBNH, UBA, Guaranty Trust Bank and Zenith Bank.

The best performing stocks for the session were McNichols and Dangote Flour that topped the advancers table with the gain of 7.14% and 5.77% respectively to close at N0.60 and N11.00 per share on the offer of five kobo dividend payout and market sentiment. The flipside was led by Redstar Express and JapaulOil, which shed 9.09%% and 8.70% respectively to close at N5.00 and N0.21 each, on market forces and profit booking.

Market Outlook
We expect a mixed performance as profit taking is underway in the midst of more earnings expectation, despite the numbers and rewards beating expectations. Investors and traders also should continue their repositioning for 2019 dividend declaration season and post-election rally expected to shape market performance in the interim. We advise cautious trading and investingwhile positioning in fundamentally sound equities.

Volatility will also continue as investors and fund managers reposition their portfolios, with eyes fixed on earnings reports, but investors should review their positions in line with their 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 also that investors should allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain low in the midst of mixed company numbers, weak economic and market fundamentals

https://investdata.com.ng/2019/03/mixed-performance-amidst-earnings-repositioning-for-2019-dividends/