SEC Reduces Cost, Timeline For Transmission Of Deceased’s Shares To Beneficiaries

The Securities and Exchange Commission (SEC), on Wednesday announced a reduction in the time, processes and costs of transmitting shares from deceased investors to their beneficiaries.
This, the commission hopes in a statement, will further reduce the mountain of unclaimed dividends in the Nigerian capital market, while encouraging such beneficiary investors to intensify efforts at claiming such dividends.

According to an amended draft on the operating framework for the transmission of shares, the SEC said the timeline for transmission of deceased’s shares by registrars is now one week of receiving the request from the administrators or executors, from the previous three weeks.
Continuing, the statement said “the registrar is also required to transmit the Letter of Administration to the Probate Registry within 24 hours of receipt of same for verification.

“The administrators/executors are however required to provide a letter of Introduction introducing themselves as the legal representatives of the Estate. The letter should also indicate the names, addresses, signatures, and BVNs of the individual Administrators/Executors.”
The statement also listed other requirements as original Death Certificate from the National Population Commission (NPC) for sighting, original probate letter or Letter of Administration for sighting or the Certified True Copy (CTC) from a Notary Public.

The administrators or executors are also to present a copy of newspaper advert placed by the court or Gazette, any evidence of ownership of the investment (such as Central Securities Clearing System statement) of the deceased, original share certificates, dividend stub or dividend warrants or bank statement(s) showing receipt of dividend(s) into the account(s) of the deceased.

“Where the Administrator/Executor cannot provide these requirements, the Registrar may require confirmation through insurance, indemnity or interview” the SEC stated.

Fees chargeable for transmission of shares by registrars is now also “limited to one per cent of the total value and additional five per cent Value Added Tax (VAT) for shares of N5 million and below and 0.5 per cent of the value and five per cent VAT on shares above N5 million with a maximum chargeable amount of N200,000, excluding VAT. Also, fees chargeable for confirmation of probate or letter of administration shall not exceed N12,000.”

The commission also forbids registrars from charging a fee on dematerialisation of share certificate and mandating of accounts for electronic dividend, while a change of address, name or mandate shall not attract more than N100 per request. Also, an update of signature capture and scanning shall not be more than N200 per signature, warning that violation of the rules shall attract a penalty of not less than N1 million and an additional sum of N20,000 for every day the violation persists.

The new rules also seek to standardise the turnaround time for processing all requests for replacement and update from the date of submission of all relevant documentation. The turnaround time for dematerialisation is three working days, an update of signature capture and scanning shall take place in 24 hours while a change of address, name and mandate shall be done within two working days.
According to the SEC, the amended draft rules would ensure standardisation and efficiency in the transmission process, thereby minimising conflict, protecting investors and maintaining the integrity of the market.

Recall that the Acting Director-General of the commission, Ms. Mary Uduk recently urged beneficiaries of deceased investors to step up efforts to claim such dividends
Uduk stated that one category of investors whose investment yields had contributed to the growth of unclaimed dividends in the capital market are deceased investors.

https://investdata.com.ng/2019/07/sec-reduces-cost-timelines-for-transmission-of-deceaseds-shares-to-beneficiaries/

Investdata Daily Sentiment Report as of July 4, 2019

NSEASI buy 47% sell 53% MFI 4.89
Access buy � MFI 62.11
Ccnn buy � volume index 1.57 MFI 83.43
Cutix buy 7% sell 93% volume index 2.42 MFI 57.50
Dangflour buy � volume index 1.49 MFI 78.07
Dangsugar buy � MFI 61.70
Fbnh buy 0% volume index 1.48 MFI 18.97
Fidelity buy 0% volume index 0.72 MFI 66.48
GT buy 34% sell 66% MFI 67.91
Honyflour buy � volume index 1.36 MFI 42.06
Japaul buy � MFI 42.96
Lvstk buy 50% sell 50% volume index 3.70 MFI 8.05
Mansard buy � volume index 3.87 MFI 73.42
Mobil buy 0% MFI 45.77
Oando buy � MFI 53.66
Sterling buy � volume index 3.40 MFI 54.39
Total buy 0% volume index 3.00 MFI 0.00
Transcorp buy 75% sell 25% volume index 0.85 MFI 27.24
Uacn buy 0% MFI 57.08
Uba buy 25% sell 75% volume index 1.70 MFI 31.96
Unity buy 0% volume index 3.12 MFI 26.33
Wapco buy 93% sell 7% volume index 1.07 MFI 85.19
Wapic buy � MFI 35.88
Wema buy 0% MFI 51.38
Zenith buy 36% sell 64% MFI 41.50

https://investdataltd..com/2019/07/investdata-daily-sentiment-report-as-of_7.html

NGSE: Juicier Opportunities Beckon, But Dwindling Market Confidence Clouds Investors

Market Update for July 3
Nigeria’s stock market continued downhill ahead of the half-year earnings reporting season, amidst negative sentiments for the third consecutive day in the absence of a plan by the government to deliberately turn the economy around. The losing momentum is, however, slowing down as investors trade with some measure of caution.

The pullback was impacted by selloffs in the banking and oil/gas stocks on a low traded volume, as it becomes even more obvious that the unhealthy business environment, insecurity situation, lack of infrastructure and visionary leadership continues to influence the economy and market negatively. Recalls that Nigeria ranks 146 of 190 countries in the Ease of Doing Business, according to the most recent World Bank report.

Also important is the fact that most investors forget that stock markets have cycles, seasons and structures that help in timing returns at different periods from a risk perspective. We are not trying to generate returns based on the Beta, or the embedded risk in the market, alone. Anyone can ride the Beta wave up or down, depending on the strategy adopted. Merely looking at the reward-to-risk (R-2-R) profiles in the short or long term, you would notice that they are more than three-to-one. This means you have the opportunity to buy low and sell high. You only need to experience a Naira’s worth of drawdown to earn N3, by taking advantage of bearish price action. So far, our timing for medium and long trades is clear and better than a short position at this point.

Trading at midweek was volatile and mixed as it opened on the downside in the morning and lasted till afternoon, after touching intraday low of 29,300.70 basis points from its high of 29,458.03bps, before it finally closed the day slightly lower at 29,395.14bps.
Market technicals for the day were negative despite the fact that volume traded was higher than the previous day’s, amidst the negative market breadth and mixed sentiment as revealed by Invest data’s Daily Sentiment Report. The session ‘buy’ volume was 47% and ‘sell’ position 53% of the total daily transaction volume index of 0.56.

The energy behind the day’s performance remains seriously weak as Money Flow Index ranged along the new three-year low of 4.89points, from previous day’s 4.88bps. This shows that funds are not entering the market as revealed by the trading size looking at market data.

Index and Market Cap
At the end of trading, the All Share index lost just 19.89bps, closing at 29,375.25bps, after opening at 29.385,14bps, representing a 0.07% drop, just as market capitalization was down by N8.76bn to close at N12.95tr, from its opening value of N12.96tr, which also represented 0.07% value loss.

Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the most revered traders and investors in corporate Nigeria to our watchlist, these stocks are with double potentials. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right during this portfolio reshuffling and repositioning ahead of Q2 numbers and fiscal stimulus.

Again, the downturn was driven by price depreciation in medium and highly capitalized stocks like Dangote Cement, Zenith Bank, FBNH, UBA, Double 11 plc, Julius Berger, UACN, Okomu Oil, Eterna, Transcorp andWema Bank, which had a negative impact on the Year-to-Date loss position, that rose to 6.54%. Market capitalization gain also dropped to N1.47 trillion or 12.09%, from the year’s opening level of N11.72tr.

Bullish Sector Indices
The sectoral performance indices were largely bullish, except for the NSE Banking and Oil/Gas that closed in red at 0.59% and 0.71% respectively. The Insurance, Consumer and Industrial goods index close green, after gaining 0.54%, 0.48% and 1.65% respectively.
Market breadth remains negative as decliners outnumbered advancers in the ratio of 23:16, as market activities were mixed as volume traded was up by 18.45% to 237.71m units, as against the previous day’s 200.69m shares. Transaction value dropped by 31.45% to N1.98bn from Tuesday N2.89bn. This volume was driven by transactions in financial services and healthcare stocks like Morison Industries, UBA, Sterling Bank, Zenith Bank, and FBNH.

The best-performing stocks were BOCGAS and Academy Press, after topping the advancers’ table, with gains of 9.93% and 9.68% respectively to close at N4.54 and N0.34 per share, on market forces and dividend recommendation respectively. On the flip side, Morison industry and Fidson Healthcare lost10% and 9.68% respectively, closing at N0.54 and N4.55 respectively,

Market Outlook
We expect mixed performance as bargain hunters and traders to take advantage this pullback buy for half-year earnings reporting season that will kick off any moment in this July. While discerning investors should target value stocks considering the low valuation to position for dividend income from the just concluded March year-end account, ahead of interim dividend from the banking stocks especially.

They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as Central Bank of Nigeria (CBN) had rollout it plans to boost productivity and investment by lending to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector of the economy. There is also the likely impact of portfolio repositioning for the second half of the year in the midst of expected Q2 numbers, especially banking stocks.


https://investdata.com.ng/2019/07/ngse-juicier-opportunities-beckon-but-dwindling-market-confidence-clouds-investors-view/#more

Investdata Daily Sentiment Report as of July 5, 2019

NSEASI buy 0% MFI 4.87
Access buy 50% sell 50% volume index 1.34 MFI 63.43
Ccnn buy � volume index 1.01 MFI 84.22
Chams buy 0% MFI 18.49
Custodian buy � volume index 0.77 MFI 7.80
Cutix buy � volume index 1.11 MFI 61.42
Dangcem buy 0% MFI 14.61
Dangflour buy 0% volume index 1.73 MFI 69.59
Dangsugar buy � volume index 0.81 MFI 74.03
Eti buy 94% sell 6% MFI 72.88
Fbnh buy 0% MFI 18.40
Fcmb buy 0% MFI 36.78
Fidelity buy 0% volume index 0.93 MFI 58.26
GT buy 0% MFI 61.00
Lvstk buy � volume index 0.87 MFI 13.21
Nem buy � volume index 2.11 MFI 55.55
Oando buy � MFI 48.53
Presco buy 0% volume index 4.54 MFI 43.40
Sterling buy 0% volume index 0.79 MFI 55.88
Transcorp buy � volume index 1.44 MFI 34.16
Uba buy 33% sell 67% volume index 1.00 MFI 29.82
Wapco buy 36% sell 64% volume index 5.63 MFI 88.79
Zenith buy 89% sell 11% MFI 41.81

https://investdataltd..com/2019/07/investdata-daily-sentiment-report-as-of_22.html

NGSE Postpones Airtel Africa Listing

The Nigerian Stock Exchange (NSE) has postponed the planned cross-border Secondary Listing of 3,758,151,504 ordinary shares of Airtel Africa Plc, earlier scheduled for Friday, July 5, 2019.
The postponement, the NSE said, “was necessitated by the need to ensure that the Company meets all the post NSE approval pre-requisites for listing on the NSE.”
However, the Facts Before the Listing event will hold as planned at 11.00 a.m. on Friday, July 5, 2019.

https://investdata.com.ng/2019/07/ngse-postpones-airtel-africa-listing/

NGSE Market Momentum Stays Weak, As Airtel Africa Listing May Increase Money Flow

Market Update for July 4
The prevailing negative outing on the Nigerian Stock Exchange continued on Thursday as its benchmark All-Share index slipped lower again on a low traded volume, extending its losing trend for the fourth consecutive sessions in the first trading week of the month of July, as cautious trading persisted and many players adopt the wait-and-see strategy before jumping into, or considering any position looking at the current macro-economic situation of the nation.

The dynamics of the Nigerian bourse is set to change once more following the cross-border listing of the entire shares of Airtel Africa Plc on the Nigerian Stock Exchange on Friday. This is expected over the next weeks to result in an increased money flow as retail and other investors who could not participate in its book building process during the IPO acquire stakes in the group’s operations across 14 African countries, including Nigeria (READ MORE).

The monetary authority has earlier identified low national productivity as one of the major factors slowing down economic growth with recovery remaining slow fundamentals weak as reflected in the economic indices published by Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS).

It is in reaction to this and a desire to rev productivity and create more jobs among others, that is at the heart of the CBN’s recently released five-year blueprint for the second term of Godwin Emefiele as governor, where it muted plans for another round of banking sector recapitalization. Although it may not be as intense as the previous one, the exercise seeks to solidify the capital base of Nigerian banks to ensure financial stability under any economic cycle. Also on Monday, the CBN issued a directive that banks increase lending to the real sector, by creating loans that represent minimum 60% of their deposit base (loan to deposit ratio) at the end of September, suggesting that banks could do as much as between 70% and 80% depending on their risk appetite and management strategies (READ MORE).

Although the prescribed LDR is still low when compared to 90% and 75% what obtains in South Africa and Kenya, analysts say there are downsides to the directive (READ MORE). To avoid the problems associated with the new directive, the CBN can also follow through by further empowering the credit bureau to make them more effective to help weed serial debtors from the system, even as the Asset Management Corporation of Nigeria (AMCON) continues struggling to recover its N5tr debt mountain.
However, the CBN directive will, besides boosting market liquidity, drive productivity, create jobs and enhance disposable income needed to increase consumption, while oiling the macro-economic space. The banks will ultimately compete for the same borrowers; interest rate will slightly go down; a situation which on the long run impact positively on the economy and stock market.

Meanwhile, Thursday’s session was volatile still, with the NSE All-Share index opening on the downside and oscillating from the mid-morning to afternoon, before closing the session lower at 29,300.09 basis points on a positive market breadth which was the intraday low from its high of 29,466.94bps.

Market technicals were negative and mixed as volume traded was lower than the previous day’s, amidst breadth favoring the bull, even with high selling pressure as revealed by Investdata’s Daily Sentiment Report. The session ‘sell’ volume was 100% and ‘buy’ position 0% of the total daily transaction volume index of 0.48.

The momentum behind the day’s performance remained seriously weak and low as Money Flow Index ranged along the new three-year low of 4.87points, slightly lower than the previous day’s 4.89bps. This shows that funds are not entering the market as we speak even as the trading size has confirmed, looking at market data.

Index and Market Cap
The All Share index at the close of trading shed 75.16bps, after opening at 29.373.25bps, representing a 0.26% decline, just as market capitalization lost N33.13bn to close at N12.91tr, from its opening value of N12.95tr, which also represented 0.27% depreciation in value.

Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the most revered traders and investors in corporate Nigeria to our watchlist, these stocks are with double potentials. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right during this portfolio reshuffling and repositioning ahead of Q2 numbers and fiscal stimulus.

The session’s continued downturn was due to profit taking and selloffs in medium and highly cap stocks like MTNN, Guaranty Trust Bank, UBA, Presco, Oandoand Dangote Flour, which had a negative impact on the Year-to-Date loss position that increased to 6.78%. Market capitalization gain also dropped to N1.42trillion or 12.26%, from the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indices were largely bearish, except for the NSE Industrial and consumer goods that closed higher by 0.42% and 0.30% respectively. The Insurance topped the decliners with 0.45%, followed by Oil/Gas by 0.29% and banking index was next with 0.12%.

Market breadth turned positive as advancer outnumbered decliners in the ratio of 23:16, as market activities were mixed as volume traded was down by 24.09% to 180.46 million shares, as against the previous day’s 237.71 million units, while value went up by 4.98% to N2.08 billion from the previous day position of N1.98 billion. These transactions were driven by trades in financial services, industrial and conglomerates stocks like Lafarge Africa, Access Bank, UBA, Zenith Bank, and Transcorp
Cutix and Academy Press were the best-performing stocks, after topping the advancers’ table, with gains of 9.22% and 8.82% respectively to close at N1.54 and N0.37 per share, on earnings expectation and dividend payout of 0.05kobo. On the flip side, Presco and Sovereign Trust Insurance lost 10% and 8.70% respectively, closing at N46.80 and N0.21 respectively, on market forces.

Market Outlook
Being the last trading of the week, we expect volatility to continue as bargain hunters and traders to take advantage this pullback buy for half-year earnings reporting season that will kick off any moment in this July. While discerning investors should target value stocks considering the low valuation to position for dividend income from the just concluded March year-end account, ahead of interim dividend from the banking stocks especially.

They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as Central Bank of Nigeria (CBN) had rollout it plans to boost productivity and investment by lending to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector of the economy.

There is also the likely impact of portfolio repositioning for the second half of the year in the midst of expected Q2 numbers, especially banking stocks.

https://investdata.com.ng/2019/07/ngse-market-momentum-stays-weak-as-airtel-africa-listing-may-increase-money-flow/

How Reinvesting Pays on the Long Run

Ambrose Here Again,

When a stock you own pays dividends, you have two options: pocket the cash and use it as you would any other income, or reinvest it by purchasing additional shares of stock. Though having a little extra cash on hand may be appealing, reinvesting your dividends can really pay off in the long run.

To the Basics, Companies pay dividends to their shareholders to reward them for their investments and continued support. Dividends are taken from a company's retained earnings, which is the amount of cumulative profits that remains after accounting for all expenses and any reinvestment in the company's expansion. Though dividends can be issued in shares of stock, they are commonly issued as a cash payment.

However, reinvesting your dividends simply means purchasing additional shares of stock with the money you receive. On most trading platforms, you can choose to have this done automatically on your behalf. Proponents of this tactic highlight the fact that, by purchasing new shares of a stock that you know pays dividends, you can grow your investment at a much quicker rate than if you pocket your dividends and rely solely on capital gains to generate wealth.

But it is strictly for those who want to do long-term investments which is still okay. However, if you are thinking of a short-term or immediate return on investment, then it is recommended that you get

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Investdata Weekly Sentiment Report as of July 7, 2019

NSEASI buy 5% sell 95% MFI 15.24
Access buy � MFI 60.22
Afrprud buy � MFI 39.21
Aiico buy � MFI 58.20
Cadbury buy � volume index 1.35 MFI 72.56
Ccnn buy � volume index 0.74 MFI 6.19
Chams buy 40% sell 60% MFI 80.68
Chiplc buy � MFI 40.94
CIleasing buy 80% sell 20% MFI 0.01
Conoil buy � volume index 1.87 MFI 52.16
Custodian buy � MFI 32.91
Cutix buy � volume index 2.21 MFI 21.76
Dangcem buy 0% MFI 52.40
Dangflour buy 31% sell 69% MFI 62.32
Dangsugar buy � MFI 18.36
Eterna buy 0% MFI 6.52
Eti buy 94% sell 6% volume index 0.95 MFI 12.93
Fbnh buy 0% volume index 1.10 MFI 16.25
Fcmb buy 21% sell 79% MFI 34.76
Fidelity buy 0% MFI 40.20
Fidson buy 0% MFI 70.54
Fmn buy � volume index 0.81 MFI 44.50
Fo buy 88% sell 12% volume index 0.93 MFI 64.95
GT buy 10% sell 90% MFI 50.09
Honyflour buy 60% sell 40% volume index 1.32 MFI 40.58
Jaiz buy 0% volume index 0.92 MFI 27.82
Japaul buy 0% MFI 68.25
JBerger buy 0% volume index 0.88 MFI 42.86
Learn buy 0% volume index 3.13 MFI 72.85
Lvstk buy 29% sell 71% volume index 3.52 MFI 20.74
Mansard buy � MFI 79.52
M&B buy 0% volume index 1.20 MFI 66.96
Mben buy 0% volume index 1.06 MFI 42.15
Mobil buy 0% volume index 1.43 MFI 48.39
Nascon buy � volume index 2.13 MFI 18.71
Nem buy 19% sell 81% MFI 61.91
Nestle buy 0% MFI 45.66
Npf buy 0% volume index 0.97 MFI 21.02
Oando buy � volume index 0.76 MFI 21.48
Okomu buy 0% volume index 2.19 MFI 14.54
Presco buy 0% MFI 27.29
Prestige buy 0% MFI 96.95
Pz buy � volume index 1.08 MFI 17.74
Sovereins buy 0% MFI 42.10
Sterling buy 50% sell 50% volume index 0.99 MFI 86.84
Total buy 0% volume index 1.03 MFI 0.00
Transcorp buy 70% sell 30% volume index 0.86 MFI 61.99
Uacp buy 0% MFI 72.03
Uacn buy 20% sell 80% MFI 52.46
Uba buy 17% sell 83% volume index 1.07 MFI 32.26
Ubn buy 25% sell 75% MFI 86.91
Ucap buy 50% sell 50% MFI 30.58
Unilever buy � MFI 47.84
Unity buy 40% sell 60% MFI 23.87
Wapco buy 83% sell 17% volume index 5.17 MFI 89.59
Wapic buy 0% volume index 6.23 MFI 47.07
Wema buy 0% MFI 75.94
Zenith buy 44% sell 56% MFI 15.57

https://investdataltd..com/2019/07/investdata-weekly-sentiment-report-as_8.html?m=1

BUY AND SELL SIGNAL

Hello Investors,

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

BUY AND SELL SIGNAL

Hello Investors,

The fundamental and technical position of the selected companiest have been posted on the membership site for you. Please click on the below link to access and download it now.

To Your Success
Investdata Consulting.

P.S. You need to act fast. You know time wait for no one.

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

Investdata Daily Sentiment Report as of July 10, 2029

NSEASI buy � MFI 11.73
Access buy 67% sell 33% MFI 58.58
Cadbury buy � volume index 6.09
MFI 86.31
Ccnn buy � volume index 1.33 MFI 79.87
Cutix buy 0% volume index 0.84 MFI 75.23
Dangcem buy 23% sell 77% MFI 19.56
Dangflour buy � MFI 66.83
Dangsugar buy 0% MFI 66.85
Fbnh buy 0% volume index 1.24 MFI 0.81
Fidelity buy 0% MFI 33.65
FO buy 0% volume index 1.12 MFI 4.95
GT buy 60% sell 40% volume index 1.02 MFI 50.40
Honyflour buy � volume index 1.53 MFI 42.00
Jaiz buy � volume index 1.95 MFI 26.32
Japaul buy � volume index 1.79 MFI 56.31
Lawunion buy � MFI 51.30
Lvstk buy � volume index 1.84 MFI 19.09
Mben buy 0% volume index 1.29 MFI 56.86
PZ buy 0% volume index 1.06 MFI 58.30
Stanbic buy � volume index 1.73 MFI 17.52
Transcorp buy 20% sell 80% volume index 2.22 MFI 29.06
Uacn buy 50% sell 50% MFI 71.58
Uba buy 33% sell 67% MFI 22.42
Ucap buy 53% sell 47% volume index 3.34 MFI 28.11
Wapco buy 60% sell 40% MFI 87.53
Wapic buy 0% MFI 50.53
Zenith buy � volume index 1.00 MFI 64.11

https://investdataltd..com/2019/07/investdata-daily-sentiment-report-as-of_11.html

Mixed Performance May Linger On NGSE, As Investors Await, Fiscal Stimulus, Q2 Earnings, Inflation Data

Market Update for July 9
Tuesday’s trading on the Nigerian Stock Exchange (NSE) remained very volatile and mixed as equity prices continued falling despite two consecutive days of marginal gains. The benchmark index was red, shedding over 1% until the very last minute cross-border listing of 3.758bn ordinary shares of Airtel Africa Plc gave the market a boost and reversed the session’s negative position on a low traded volume and negative breadth. Airtel Africa shares which were listed at N363 per share gained maximum and closed at N399.30 (READ MORE).

The subsisting low investor confidence has not been helped by the lack of a positive statement by the government on how it plans to stimulate the economy beyond mouthing the old rhetoric. Meeting with a committee of the Nigerian capital market, Vice President Yemi Osinbajo acknowledged the prime position of the capital market in the economy, promising the administration’s help to boost its growth (READ MORE). Investors and analysts are however watching to see how it will do this. But then, there is yet no cabinet list announced by the President five months after his February 23, 2019 re-election for a second four-year term. Also worrisome is the fact that the calendar is now almost half-way into the seventh month and budget implementation is mostly limited to recurrent expenditure and possibly debt servicing.
Investors are, however, also awaiting the half-year score-cards of listed companies so as to position ahead of full-year in December. But until then, it remains a game of wait-and-see on the NSE, amid hope that the fiscal authorities would spring a positive surprise.

Recall that it took the same government almost six months after the presidential election to put together a cabinet, even as it had no economic direction. The government’s Economic Recovery and Growth Plan (ERGP) recorded mixed performance in three years, just as the few appointments made so far by the government shows that the much-expected change in the nation’s economy and governance style this time around may be a far cry.

Trading for the day started on a sharp downside in the morning session making new lows that lasted till midday to the afternoon before retracing up in the last minutes, closing the day at 29,318.02 basis points. This was after breaking down the 28,000bps psychological line and the lower Bollinger band, after touching intraday low of 28,943.43bps, from its 29,287.87bps opening. This free fall was checked by the gain recorded by the newly listed telecommunication giant.

In the course of the day’s trading, the NSEASI broke down the strong support level of the yellow line and rebounded as indicated in the chart above, suggesting a continuation or reversal at this point, depending on market forces today, which investors must watch out.
Market technicals on Tuesday were positive and mixed as traded volume was higher than the previous day’s, amidst breadth that favoured the bears and strong buying pressure as revealed by Investdata’s Daily Sentiment Report. The session’s ‘buy’ volume was 100% and ‘sell’ position of 0% of the total daily transaction volume index of 0.66.

The momentum behind the day’s performance remained seriously weak and flat as Money Flow Index read 11.73points, which was slightly lower than the previous day’s 11.81bps. This shows that funds are still struggling to enter and exit the market, despite, the N1.5tr added to the market capitalization due to the 3.76bn ordinary shares of Airtel Africa listed. Investors and traders remain cautious about the direction of the market.

Index and Market Cap
At the end of day’s trading, the NSEASI inched 30.15bps up, closing at 29,318.02bps after opening at 29.287.87bps, representing a 0.10% growth, just as market capitalization rose significantly by N1.5tr to close at N14.29tr, from its opening value of N12.91tr, which also represented 10.68% appreciation in value.
Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the most revered traders and investors in corporate Nigeria to our watchlist, these stocks are with double potentials. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right during this portfolio reshuffling and repositioning ahead of Q2 numbers and fiscal stimulus.

The session’s upturn was due to positioning in medium and highly cap stocks like Airtel, Nigerian Breweries, CCNN, Cadbury, Dangote Flour and Stanbic IBTC, which impact marginally on the Year-to-Date loss position, reducing it to 6.72%. Market capitalization gain stood at N2.57tr, or 21.91%, from the year’s opening level of N11.72tr.

Bearish Sector Indices
All sectoral performance indices were down, with the banking index topping the decliners table, after losing 2.20%, followed by Oil/Gas, 0.67%, while Industrial Goods, Insurance and consumer goods index were down by 0.48%, 0.45%, and 0.40% respectively.

Market breadth turned negative as decliners outweighed advancers in the ratio of 20:10; market activities were up in volume and value traded by 36.22% and 41.77% respectively to 294.62m shares worth N3.22bn from the previous day’s 218.29m units valued at N2.27bn. This volume was driven by trades in financial services and conglomerates stocks like Cornerstone Insurance, Zenith Bank, Guaranty Trust Bank, Transnational Corporation of Nigeria and FBNH.
The best-performing stocks for the session were Airtel Africa and Cadbury Nigeria, which topped the advancers’ table with gains of 10% and 4.37% respectively to close at N399.30 and N11.95 per share, on new listing impact and market forces. On the flip side, GSK and Courtville lost 9.78% and 8.70% respectively, closing at N8.30 and N0.21, on profit taking.

Market Outlook
The ongoing mixed performance may continue, as bargain hunters take advantage of the subsisting bearish trend and buy ahead of the half-year earnings reporting season and inflation data next week. Discerning investors should target value stocks considering the low valuation to position for dividend income.

They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as Central Bank of Nigeria (CBN) had rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.
There is also the likely impact of portfolio repositioning for the second half of the year in the midst of expected Q2 numbers, especially banking stocks.


https://investdata.com.ng/2019/07/mixed-performance-may-linger-on-ngse-as-investors-await-fiscal-stimulus-q2-earnings-inflation-data/#more

Market Outlook for July, August, As Market Decline Creates Entry Opportunities

Historically, the Nigerian stock market during the month of July has always been unstable in terms of performance, making it difficult to predict, especially with uncertainties that surround the current political environment, given that the ruling party’s economic agenda and leadership before and after the general elections have remained unclear.

It is very unpredictable at this point to expect whether it is an up or down market in July, looking at the first week negative performance of the month, but an oscillating market in this second half will likely close the year marginally up or flat as recorded in the first-half.

Nigeria post-election economy and market have been characterized by weak macroeconomic indices and bearish sentiments which had triggered the ongoing selloffs in the equity market. The economic front post the 2019 elections has been unclear, keeping many international and domestic investors on the sidelines, due to the unsettled political environment even long after the exercise. This situation has lingered partly on account of the weak economic indices in the first half of year, despite the rally in crude oil prices at the international market and the interest rates stability in the U.S.

There is also the continued delay by the government of President Muhammadu Buhari in constituting his cabinet, six months after he was re-elected and five weeks after his inauguration for a second and final four-year. A cabinet in place would have impacted the broader economy positively through quick approval and release of funds to execute new and ongoing capital projects, while also restoring the confidence of domestic and foreign investors.

Irrespective of the extended negative outing for the first trading week of the second half that recorded five consecutive sessions of losses, the rest of the year is full of uncertainty and mixed expectations as events unfold into the period of political intrigues, economic reforms agenda and implementation of policy that will boost the economy and at the same the ones that will mar the system, all these will influence investment decision in the short to medium term. There is the hope of economic revival looking at the monetary policy position and agenda in the recently released blue print for the next five years.

On the strength of the prevailing monetary policy stance and despite the mixed macroeconomic indices, we expect a positive outlook on Nigeria’s growth trajectory in the reminding days of the year albeit at a slow pace.

Going into the rest of the year, we expect a more cordial relationship between the three arms of government that will support quick reforms, implementation of the 2019 budget and other actions capable of boosting the expected economic recovery.
It is obvious that the bulk of the revenue that supports government expenditure is derived from crude oil sales, but despite the consistently high price since most of 2018, the oil sector component of Nigeria’s GDP underperformed its non-oil peer. The oil sector expanded by 1.14%, down compared to 2.0% by the non-oil sector, a situation that is attributable to three consecutive quarters of contraction (Q2-Q4). This was followed the declaration of Force Majeure on some oil wells (e.g. Nemebe-Creek pipeline in Q2), low domestic output (Q3) and weak global demand (Q4).

As mentioned earlier, to avoid imminent systemic collapse of the economy in the face of the rising insecurity, the government needs to wake up from slumber and revisit its Economic Recovery and Growth Plan (ERGP) initiative which failed to deliver on its three broad strategic objectives. They are restoring growth; investing in people and infrastructure to drive growth, and building a globally competitive economy that is dragging feet today.

Way Forward For The Rest Of 2019
1. Government at all level should focus on fixing the economy, reducing insecurity and attracting foreign and domestic investments, thereby generating employment for the people.
2. The government should borrow less and allow the real sector access cheaper funds to trigger national productivity again, which will engender stronger growth.
3. Regulatory bodies and government agencies should collaborate to provide a framework that will ameliorate the business environment and boost the different sectors of the economy.

July has been a dicey month On Nigeria’s Bourse
Nonetheless, the protracted down market has created opportunities for new positioning as the half-year earnings reporting season kicks off soon, which could have a stimulus effect when combined with a release of the long-awaited cabinet list. The combination will, no doubt, impact positively on the market fundamentals.

Equity price movement as we have always noted in INVESTDATA is a function of earnings and other information emanating from a particular sector of the economy which is expected to attract market players for different investment goals.

What to expect in July and August
• Listing of Airtel Africa on the Nigerian Stock Exchange to boost market capitalisation
• More quarterly and very few full-year earnings would be released. Earnings from blue-chip companies may strengthen market fundamentals, if positive and beat estimates.
• Interim dividend expectation especially from financial services stocks
• High market volatility as a result of selloffs and some disappointing numbers that will be released this period. Also, the source of funds flowing into the market may cause fluctuations, giving that both local and foreign institutional investors trade thereon. There is the factor of the Federal Government crowding the private sector out of the financial market, with their offer of high and mouth-watery rates.
• Investors are expected to reshuffle their portfolios and invest in equities with strong fundamentals and prospects of growing their earnings going forward.
• A more vibrant market due to market players positioning for the second half of the year, even as we expect liquidity to improve more.
• Market outlook for these months are dicey but invest wisely, using dates, bids, offers and volume when taking decisions.
• Managing risk and protecting capital at this point is very important, so you will be able to determine when to buy or sell by watching the stocks and the market, using technical analysis tools.

Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the most revered traders and investors in corporate Nigeria to our watchlist, these stocks are with double potentials. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right during this portfolio reshuffling and repositioning ahead of Q2 numbers and fiscal stimulus.

https://investdata.com.ng/2019/07/market-outlook-for-july-august-as-market-decline-creates-entry-opportunities/#more

Investdata Daily Sentiment Report as at July 11, 2019

NSEASI buy 80% sell 20% MFI 17.08
Access buy � MFI 53.92
Chams buy � MFI 22.90
Conoil buy 0% volume index 5.07 MFI 28.21
Custodian buy 0% MFI 8.03
Eti buy � MFI 71.79
Fbnh buy 0% volume index 1.39 MFI 0.83
Fcmb buy 0% MFI 27.17
Fidelity buy 0% MFI 30.70
GT buy 70% sell 30% MFI 48.40
Japaul buy � MFI 57.19
Pz buy � volume index 1.40 MFI 51.26
Transcorp buy 0% volume index 1.47 MFI 27.08
Uacp buy � volume index 6.51 MFI 12.20
Uacn buy 0% MFI 66.74
Uba buy 50% sell 50% MFI 19.57
Ubn buy � volume index 3.15 MFI 86.64
Unity buy 0% volume index 1.48 MFI 19.96
Vitafoam buy � volume index 6.96 MFI 25.39
Wapco buy 25% sell 75% MFI 84.95
Wapic buy 0% MFI 51.72
Zenith buy 50% sell 50% volume index 0.92 MFI 68.61

Cautious Trading Continues On NGSE, Amidst Uncertainty About Market Direction

Market Update for July 10
Trading activities on the Nigerian Stock Exchange at the midweek continued its volatility outlook as the composite All-Share index slipped to a negative position, wiping away gains recorded in the two previous trading sessions on a massive selloff in the shares of newly listed Airtel Africa Plc and other high cap stocks, thereby dragging the market down.
The lips services of government and its agencies to fixing the economy continues to weaken the entire system, resulting in low trading activities and volume in recent times.

A good understanding of equity market dynamics at this point will help intelligent and discerning investors take advantage of these low prices to reposition their portfolios by way of averaging down. This means selling down positions with less opportunity of rebounding, even when the market recovers.
The half-year earnings season is expected to catalyze a movement in some of the big stocks that recently made their 52 weeks lows. There is an opportunity to make billions of Naira within a few days on a quarterly basis. The challenge is only that many traders are very afraid of being caught on the wrong side, as a result of which they avoid such risks.

However, what if you had a method or strategy that helps you trade with an in-built safety net every earnings season?
This is exactly what Investdata buy and sell signal setup provides for premium membership group of smart investors and traders, when they trade some stocks on our watch-list that helps you know the hidden value with the aid of a chart. Knowing value allows you to tell if a stock you are buying is fairly valued, undervalued or overvalued.

When buying stocks, how do we know what the current value is? Are you mistakenly buying when it is overpriced, or are you selling when it underpriced? By understanding the value, you can easily assess the fair price of the stock and identify those that are currently undervalued. You can then jump in, expecting to sell at the top. The ABC of technical analysis for novice and advanced traders home study pack will help you out.
Meanwhile, the NSEASI opened Wednesday’s trading on the downside and stayed so throughout the session, but retraced up by afternoon, even as the upward move was not enough to prevent it from closing the day lower at 29,256.60 basis points. This was after the index had touched intraday low of 29,010.33 basis points, from a high of 29,318.02bps, on a low traded volume.

Midweek’s market technicals were negative as traded volume was lower than the previous day’s amidst the negative breadth and positive sentiment as revealed by Investdata’s Daily Sentiment Report. The session’s ‘buy’ volume was 80% and ‘sell’ position of 20% of the total daily transaction volume index of 0.44.

The energy behind the day’s performance remained seriously weak, despite the improvement in the Money Flow Index at 17.08 points, which was higher than the previous day’s 11.73bps. This shows that funds entered some stocks, despite the selloff that hit Airtel Africa a day after listing. Investors and traders remain cautious about the direction of the market.

Index and Market Cap
The benchmark index at end of the day’s trading shed 61.42bps, closing at 29,256.60bps after opening at 29.318.02bps, representing a 0.21% decline, just as market capitalization lost N29.93bn, closing at N14.26tr, from its opening value of N14.29tr, which also represented 0.21% value loss.

Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the most revered traders and investors in corporate Nigeria to our watchlist, these stocks are with double potentials. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right during this portfolio reshuffling and repositioning ahead of Q2 numbers and fiscal stimulus.

The day’s downturn was as a result of selloffs and profit taking in medium and highly capitalised stocks like Airtel Africa, Dangote Cement, and Lafarge Africa, which had a negative impact on the Year-to-Date loss position, which rose to 6.92%. YTD market capitalization gain stood at N2.54tr, or 21.65%, from the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indices were largely bearish, except for the NSE banking and consumer goods that closed 2.63% and 0.26% higher respectively, while the Oil/Gas index led the decliners, shedding 1.06%, followed by Industrial goods and insurance by 0.54% each.

Market breadth was negative as decliners outweighed advancers in the ratio of 17:15; market activities were mixed as volume traded was down by 35.93% at 188.77m shares from the previous day’s 294.62m units, while value increased by 15.51% to N3.72bn from N3.22bn on Tuesday. Volume was driven by trades in financial services, healthcare and conglomerates stocks like ZenithBank, Morison Industry, FBN Holdings, Guaranty Trust Bank and Transnational Corporation of Nigeria.

NPF Microfinance and Union Bank of Nigeria were the best-performing stocks for the day, as they topped the advancers’ table with gains of 9.71% and 9.49% respectively to close at N1.13 and N7.50 per share, on market forces. On the flip side, Forte Oil and Airtel Africa lost 10% and 9.99% respectively, closing at N20.70 and N359.40, on profit taking and selloff.

Market Outlook
The ongoing mixed performance may continue, as bargain hunters take advantage of the subsisting bearish trend and buy ahead of the half-year earnings reporting season and inflation data next week. Discerning investors should target value stocks considering the low valuation to position for dividend income.

They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as Central Bank of Nigeria (CBN) had rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.
There is also the likely impact of portfolio repositioning for the second half of the year in the midst of expected Q2 numbers, especially banking stocks, as the CBN again made a fresh move to compel bank lending by further reducing the Standing Deposit Facility (SDF) to N2bn, with effect from Thursday, July 11, 2019 (READ MORE).

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, CHART SUMMIT, and POST ELECTION BULLS & BEARS Home study pack (USB) that you can play on your phone, Laptop and Television set.

The events were a successful, insightful and educative outing that not only offered direction as to where investors should look for profitable trade in 2019 and beyond, insight into industries, sectors, and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with the 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, 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/2019/07/cautious-trading-continues-on-ngse-amidst-uncertainty-about-market-direction/#more

Investdata Daily Sentiment Report as of 12 July, 2019

NSEASI buy 12% sell 88% MFI 11.90
Access buy 0% volume index 1.21 MFI 45.92
Afrprud buy 0% volume index 1.19 MFI 57.05
Aiico buy � volume index 2.38 MFI 37.58
Chiplc buy 0% volume index 2.89 MFI 53.36
Dangcem buy 0% MFI 2.65
Dangflour buy � MFI 60.77
Eti buy � MFI 68.93
Fbnh buy 20% sell 80% volume index 3.33
Fcmb buy 0% MFI 22.43
Fidelity buy 40% sell 60% MFI 35.56
GT buy � MFI 46.68
Jaiz buy � volume index 1.27 MFI 28.20
Mansard buy 0% volume index 4.79 MFI 57.58
Nestle buy 0% volume index 1.95 MFI 47.05
Oando buy � MFI 53.97
Sterling buy � MFI 18.42
Transcorp buy 0% volume index 1.24 MFI 27.71
Uba buy 0% volume index 0.73 MFI 16.77
Ubn buy � volume index 3.79 MFI 60.04
Ucap buy � MFI 24.75
Wapco buy � volume index 1.50 MFI 84.88
Zenith buy 8% sell 92% MFI 72.91

https://investdataltd..com/2019/07/investdata-daily-sentiment-report-as-of_14.html

4 Reasons Why You Are Skeptical About Technical Analysis.

In our previous post, I discussed about The ABC of Technical Analysis for Novice and Advance Traders. However, despite all the good things it will do to ensure that your portfolio becomes risk proof there are still reasons why you may not want to know technical analysis.

Although, some of these reasons are self imposed, self defeating and limiting beliefs. They include:

*Comfort Zone:* most of us find ourselves in such a state inclusive of myself but you just have to keep walking and initiating the change. I am not saying that you should learn it indepth but what will it cost you to have the knowledge so that no broker will call wheat powder as Milo for you. Funny isn't it.

*You love the old ways:* sincerely, you perceive learning something new or improving on your knowledge as waste of your time, effort and energy. If that is the case then it is fine because for every action there is always a corresponding reaction.

*Over-Confidence/ I know it all Syndrome:* in this case you feel that you don't really need the knowledge of Technical analysis because you learned it years ago. As at Today, I still study (attending seminars, audio and video materials of expert) because things are changing very fast and no man is an island... According to John Donne.

*It is Technical (hard):* no it is not. It is a straight forward principle.

Happy Trading,
Ambrose Omordion

P.S. From history, you will see that successful people have gone beyond their limits to achieve in life. Warren Buffets uses 80% of his time to study. However, I don't expect it from you but at least you owe yourself daily growth.
Get *Technical Analysis for Novice and Advance Traders Workshop Video Training.* Call 08028164085, 08032055467

https://investdataltd..com/2019/07/4-reasons-why-you-are-skeptical-about.html?m=1

Bargain Hunting Continues On NGSE, As FG Delays Cabinet List

Market Update for July 11
Thursday’s was another session of free fall for the benchmark All-Share Index of the Nigerian Stock Exchange (NSE) as the bearish sentiment continued leasing to selloffs in the most capitalized stocks. Many equities were forced to new lower lows as the bear dominance increased beginning from the last week of May.

So far, the nation’s stock market has been ranked the third worse performing among 75 countries in the world today, as the nation’s economy continues to struggle. Reasons for this are not far fetched in the glaring absence of fiscal stimulus that would complement the recent efforts of the Central Bank of Nigeria (CBN), which continues to tweak its rules so as to enhance bank lending to the productive sectors of the economy (READ MORE). One other effort of the apex bank could lead to a rebirth of the nation’s once-thriving cotton, textile and garment sector to generate employment and consumption, key ingredients for economic growth and development (READ MORE).

The leadership style of this government and its non-implementation of the 2019 budget that was passed into law since May, continues to send wrong signals to investors, feedback of which we are seeing in the stock market today. The government of President Muhammadu Buhari is yet to send its Ministerial list for the National Assembly as various interests continue to pile pressure. When he eventually does, the whole process of screening the ministers and settling down will take till September for real governance to begin, just like in his first term, leaving the economy rudderless meanwhile.

Nonetheless, the ongoing pullback has created opportunities for accumulation, but we advise investors and traders to be cautious. They should target fundamentally sound stocks with a history consistent dividend payout whose business model supports growth.
Meanwhile, trading on Thursday started sharply on the downside in the morning and continued till afternoon, before retracing up marginally in the last minutes to close the session at 28,712.90bps after breaking down the psychological line of 29,000 basis points. It touched intraday low of 28,637.58bps from a high of 29,281.36bps on a low traded volume.

Market technicals for the day were negative as traded volume was slightly lower than the previous day’s, amidst the negative breadth and selling pressure as revealed by Investdata’s Daily Sentiment Report. The session’s ‘sell’ position was 88% and ‘buy’ volume was just 12% of the total daily transaction volume index of 0.44.
The momentum behind the day’s performance remained seriously weak and down, as Money Flow Index read 11.09 points, lower than the previous day’s 17.08bps. This shows that funds left some stocks, as selloff in high cap stocks persists on the exchange with investors and traders remaining cautious about the economy and market direction.

Index and Market Cap
The NSEASIat the end of the session lost a significant 543.70bps, to close at 28,712.90bps after opening at 29.256.60bps, representing a 1.86% decline. Market capitalization shed N264.97bn to close at N13.99tr, from its opening value of N14.26tr, which also represented 1.86% depreciation in value.
Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the most revered traders and investors in corporate Nigeria to our watchlist, these stocks are with double potentials. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right during this portfolio reshuffling and repositioning ahead of Q2 numbers and fiscal stimulus.

The day’s downturn was driven by selloffs and profit taking in MTN Nigeria, Airtel Africa, Dangote Cement, Nestle Nigeria, Zenith Bank, Stanbic IBTC, FBNH, UBA, Access Bank and Lafarge Africa. This heightened the negative position of the Year-to-Date loss, bringing it to 8.65%. YTD market capitalization gain stood at N2.27tr, or 19.93%, from the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indexes were largely bearish, except for the NSE Banking and Oil/Gas that closed green at just 0.64% and 0.01% respectively, while the Insurance index led the decliners, losing 2.67%, followed by consumer and industrial goods by 2.08% and 1.74% respectively.

Market breadth remained negative as decliners outnumbered advancers in the ratio of 18:10; market activities were down in volume and value traded by 0.18% and 14.61% respectively to 188.43m shares worth N3.17bn from the previous day’s 188.77m units valued at N3.72bn. Volume was driven by trades in financial services stocks like FBNH, Zenith Bank, Access Bank, UBA and Guaranty Trust Bank.

Sovereign Trust Insurance and Courtville Business Solution were the best-performing stocks for the day, topping the advancers’ table with gains of 4.76% and 4.53% respectively to close at N0.22 and N0.23 per share, on market forces. On the flip side, AXA Mansard and Airtel Africa lost 10% and 9.99% respectively, closing at N1.80 and N323.50, on profit taking and continued selloff.

Market Outlook
Being the last trading session for the week, we expect this trend to continue, as bargain hunters take advantage of the subsisting bearish trend and buy ahead of the half-year earnings reporting season and inflation data next week. Discerning investors should target value stocks considering the low valuation to position for dividend income.

They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as Central Bank of Nigeria (CBN) had rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.
There is also the likely impact of portfolio repositioning for the second half of the year in the midst of expected Q2 numbers, especially banking stocks.

https://investdata.com.ng/2019/07/bargain-hunting-continues-on-ngse-as-fg-delays-cabinet-list/

Investdata Weekly Sentiment Report as of 13 July, 2019

NSEASI buy 0% MFI 17.00
Access buy 55% sell 45% MFI 67.10
Afrprud buy 0% volume index 0.90 MFI 43.29
Aiico buy 0% MFI 57.29
Cadbury buy � volume index 1.91 MFI 77.10
Ccnn buy 43% sell 57% MFI 7.22
Chams buy 0% MFI 72.95
Chiplc buy � volume index 1.73 MFI 59.76
Conoil buy 1% sell 99% volume index 5.02 MFI 38.53
Custodian buy 50% sell 50% MFI 34.73
Cutix buy 0% volume index 0.83 MFI 26.32
Dangcem buy 0% MFI 53.90
Dangflour buy � MFI 64.02
Dangsugar buy 5% sell 95% MFI 15.36
Eti buy 69% sell 31% MFI 16.22
Fbnh buy 13% sell 87% volume index 1.34 MFI 18.07
Fcmb buy 40% sell 60% MFI 50.29
Fidelity buy 40% sell 60% MFI 49.63
Fmn buy 0% MFI 46.86
Fo buy 0% volume index 1.18 MFI 64.26
Glaxo buy 0% MFI 48.50
GT buy 97% sell 3% MFI 52.48
Honyflour buy 0% MFI 40.75
Jaiz buy 75% sell 25% volume index 1.40 MFI 25.99
Japaul buy 0% MFI 67.70
Lawunion buy � MFI 91.88
Learn buy � volume index 2.44 MFI 84.05
Lvstk buy 25% sell 75% volume index 1.47 MFI 20.95
Mansard buy 0% MFI 70.19
M&B buy � volume index 0.93 MFI 70.37
Mben buy 0% volume index 4.14 MFI 37.65
Nahco buy 0% MFI 61.97
Nestle buy 0% volume index 0.76 MFI 51.46
Npf buy � volume index 1.06 MFI 19.83
Oando buy 33% sell 67% volume index 0.77 MFI 27.85
Pz buy 11% sell 89% volume index 1.07 MFI 16.96
Red buy 0% MFI 45.49
Sovereins buy � MFI 40.53
Stanbic buy 0% volume index 3.17 MFI 21.74
Sterling buy 40% sell 60% MFI 78.85
Transcorp buy 14% sell 86% MFI 62.13
Uacp buy 14% sell 86% volume index 1.17 MFI 61.45
Uacn buy 50% sell 50% MFI 52.96
Uba buy 20% sell 80% MFI 36.16
Ubn buy � MFI 89.26
Ucap buy 48% sell 52% volume index 1.16 MFI 30.87
Unilever buy � MFI 48.68
Unity buy 0% MFI 33.82
Vitafoam buy 21% sell 79% volume index 0.97 MFI 53.43
Wapco buy 30% sell 70% volume index 1.34 MFI 90.96
Wapic buy 0% volume index 5.77 MFI 33.75
Wema buy 0% MFI 98.74
Zenith buy 13% sell 87% volume index 0.98 MFI 15.61

https://investdataltd..com/2019/07/investdata-weekly-sentiment-report-as_15.html?m=1

NGSE Ranked Among World’s Worst Performing Markets YTD

https://investdata.com.ng/2019/07/ngse-ranked-among-worlds-worst-performing-markets-ytd/

Reversal Imminent On NGSE, Despite Low Volume, Indecision, As Investors Position For Q2 Earnings

Market Update for the week ended July 12 and Outlook for July 15-19
The nation’s equity market had a mixed performance last week, extending its gloomy state after stock prices declined further to new lows. This forced the benchmark Nigerian Stock Exchange All-Share Index (NSEASI) to make sharp lower lows, closing below the 29,000 psychological line on a continued selloff in highly capitalized stocks that pull the market down. Not even the euphoria of the cross-border listing of 3.76bn ordinary shares of Airtel Africa by way of introduction at N363 each, after an initial public offering through book building.

The increasing uncertain outlook of the economy, especially as the security situation has gone worse in the midst of low liquidity and negative sentiments. This has been of serious concern to both international and domestic investors as revealed by the prevailing low volume of trades. The absence of a cabinet months after the general polls and inauguration of President Muhammadu Buhari for a second and final four-term is another sign that Nigerian leaders do not take the task of repositioning the nation’s economy towards greatness with the required seriousness or protecting the lives and properties of Nigerians. The unsafe business environment will continue to damper confidence and economic activities as the government fails to do needful. The bear run which has so far pushed the nation’s stock market to the ignominious club of the worst performing in the world today, further depicting the state of the economy. So far, the government has only mouthed the need to boost the stock market without doing the needful in real terms, even as the monetary authorities continue its plan to ensure lending to critical sectors capable of boosting jobs and GDP growth.

As earlier noted by Investdata Research, the month of July is a very dicey period that kicks off the second part of the year in the midst of the quarterly earnings reporting season for half-year results. Already, the benchmark NSE index has suffered huge losses so far, recording lows over the last 14 weeks. This week, the second quarter earnings will start flowing in, beginning with big consumer goods making companies.

The monetary authority realizes that the only way to drive economic prosperity is to boost national productivity, hence the recent rollout by the Central Bank of Nigeria (CBN) in times of policy initiatives to stimulate production and consumption needed to oil the wheel of macroeconomic activities. This is expected to impact the economy positively if all the frameworks are put in place and the government reduces its dominance of the debt market, and instead partner monetary to fix the economy quickly.

Movement Of NSEASI
The week started on a positive note, reversing the previous session’s loss, as the NSEASI recorded a marginal 0.07% gain on a resumed cautious trading. This was extended to Tuesday when the index inched up further by 0.10% on a buying interest in the newly listed Airtel Africa Plc. This trend was, however, short-lived at the midweek session as selloff hit the newly listed telecommunication company following the index lost 0.20%. The selling pressure continued on Thursday and Friday, with the index losing 1.9% and 0.51% respectively on massive selloffs in high cap stocks like Nestle Nigeria, MTNN, Dangote Cement and Airtel Africa, the four largest companies on the bourse by market capitalization. This dragged the week’s total loss to 2.41%, bigger when compared to the previous week’s 1.98% slide.

The increase in the losing momentum for the period pushed the year-to-date loss by the NSEASI to 9.11%. Market breadth was negative yet, as selling pressure increased due to the lack of economic direction, even as investors rebalanced their portfolios ahead of the second quarter earnings reporting season, especially for interim dividend-paying stocks.

Low and medium cap stocks were the week’s top gainers, dominating the advancers table after blue-chip remained under intense ‘sell’ pressure in the midst of a low traded volume and the prevailing low liquidity.
The impetus behind the week’s performance was weak, as shown by the money flow index at 17.00 basis points, compared to 15.24bps in the previous week. This indicates that funds are moving among some stocks, even as sentiments remain negative and mixed, with sell volume at 100% and buy position, 0% on a transaction volume index of 0.57.

NSEASI Weekly Time Frame
The negative sentiment for medium and highly capitalized stocks has increased the market’s losing momentum on low transaction volume that reveals accumulation and indecision among players in the midst of a weak money flow index. There were also poor liquidity and negative market breadth that supported the pullback and has formed double bottom signals a rebound any time soon. However, the expected reversal will be a function of the strength of expected half-year results.

Nonetheless, the low transaction volume in the market raises hope for a bull reversal in a bearish trend.
The current chart pattern on the NSE All-Share index supports reversal while trading below its 20-Day Moving Average on the lower Bollinger band, line, while RSI is reading ‘oversold’ at 35.61. But then, Money flow at 17.00 points remains weak.

Bearish Sectoral Indices
All the sectoral performance indexes for the period closed lower, except for the NSE Banking that notched 0.78% higher. The NSE Consumer Goods, however, led the decliners after losing 5.91%, in a week Flour Mills submitted weak numbers for its year-ended March 31, 2019. It was followed by the NSE Oil/Gas index with 3.13%, just as the insurance and industrial goods index closed 2.42% and 2.02% down respectively.
This reflected a selling sentiment, at a time market breadth was negative with decliners outnumbering advancers in the ratio of 39:18, to sustain the down market.

Market activities were mixed as volume was down by 3.88% to 988.49m shares, compared to 1.03bn units traded in the prior week, while value rose by 39.66% to N13.84bn from N9.91bn in the preceding week.
Sovereign Trust Insurance and Union Bank were the best-performing stocks for the period, topping the advancers’ chart with 9.52% and 9.49% gains respectively, to close at N0.23 and N7.50 per share on market forces and low price attractions. On the flip side, Forte Oil and GSK lost 23.33% and 18.33% respectively, closing at N20.70 and N8.30, on selloff and profit-taking.

Market Outlook
We expect bargain hunting and repositioning for half-year earnings reporting season to improve the market outlook this week. This will slow down the southward trend as inflation report for June is expected to hit the market, while discerning investors are taking advantage of low valuation to buy into interim dividend stocks.

They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as plans by the Central Bank of Nigeria (CBN) to reduce banks’ participation in government securities is expected to boost private sector lending to drive economic activities and investment.

Profit taking may persist in highly capitalized stocks due to portfolio restructuring. Hence, overall market performance to remain mixed amidst positive sentiments and negative breadth.
Market players should maintain a cautious outlook due to low confidence, liquidity and the wait for major economic triggers. Hence, we advise investors to trade cautiously in the short-term, with their gaze fixed on blue-chip stocks that are selling more than 40% below their 52 weeks high. As we look out for a positive catalyst to drive market recovery.

That notwithstanding, we would not overlook the possibility of a bargain-hunting motive supporting positive performance, especially with many fundamentally sound stocks remaining underpriced. With the prices of major blue chips continuing to drop in recent weeks, we expect speculative trading to shape the market’s direction this week, despite the seeming negative outlook.

The sustained volatility will continue as investors and fund managers rebalance their portfolios, with eyes fixed on the political space and post-inauguration market dynamics. Investors should review their positions in line with their investment goals, the strength of 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 and 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/2019/07/reversal-imminent-on-ngse-despite-low-volume-indecision-amidst-positioning-for-q2-earnings/#more

Dear investors and potential investors.

The way you handle assets and liabilities will determine if you will have financial freedom or financial disaster.

Think about it
Many are poor not because the creator made them poor .They are poor because they eat up their future only in buying liabilities without assets .The choice is yours.

Good morning and have a great day,

Investdata Daily Sentiment Report as of 16 July, 2019

NSEASI buy 1% sell 99% MFI 14.07
Access buy � MFI 63.21
Afrprud buy 0% volume index 0.82 MFI 38.33
Aiico buy � volume index 2.01 MFI 49.97
Chiplc buy 0% volume index 1.31 MFI 71.85
Conoil buy 0% volume index 1.29 MFI 56.38
Dangcem buy � volume index 1.44 MFI 1.57
Dangsugar buy � volume index 1.16 MFI 45.93
Fbnh buy 0% volume index 0.95 MFI 0.00
Fcmb buy 0% MFI 34.15
Fidelity buy � MFI 40.71
GT buy 0% MFI 53.47
Nestle buy � volume index 3.44 MFI 25.19
Sterling buy � MFI 11.21
Transcorp buy � volume index 1.72 MFI 31.16
Uba buy 50% sell 50% volume index 1.38 MFI 19.97
Ucap buy 60% sell 40% MFI 30.42
Zenith buy 40% sell 60% MFI 28.16

https://investdataltd..com/2019/07/investdata-daily-sentiment-report-as-of_16.html

Mixed Trading Still On NGSE, As Uncertainties Over Q2 Earnings Unsettle Investors

Market Update for July 15
Trading activities on the Nigerian Stock Exchange on Monday was sloppy and volatile, consolidating its fourth consecutive day of negative outing as cautious trading and indecision continued ahead of the earnings reporting season that entered its mid-period for full kick off this week.

Transaction volume remained low as selloffs persisted, even as the seemingly positive inflation numbers came in better than expected for the month of June at 11.22%, from 11.40% in the previous month, released at noon on Monday by the National Bureau of Statistics (NBS). On a year-on-year basis, the Consumer Price Index represents the lowest rate in the last 12 months, indicating that key components of core inflation slowed down due to low consumption arising from low purchasing power. This will likely be supported the harvest season which kicks off this period expected to further push the inflation figure down around 11.05%, before a rebound when payment of the new minimum wage kicks off.

The prices of stocks fell, amidst mixed and relatively flat trading on Monday, as investors remained cautious as they await the onset of a highly uncertain earnings season.
Generally, earnings would expectedly be affected by the major market themes of the past several months – a slowdown in productivity, the lack of direction economic direction yet by government, arising from the absence of a federal cabinet to implement the 2019 budget at a time the seventh calendar month of the year 2019 is more than halfway gone. These factors would, without doubts have impacted earnings for the second quarter, possibly drag down revenue and profits.

At this current market situation, trading earnings announcement with gaze fixed on expected economic policies from the government is one way to profit from the market volatility.
However, it can be difficult, at times, getting all the required data needed to make smart trades, especially with the inconsistent release dates of some companies. As an investor or trader, it is expected that you take position before the results are released to the market, and should the numbers be positive and beat expectation, better for you. But note that in a bear market earnings influence on prices are minimal, compared to a bull situation. If the reports are below forecast sell-off immediately to cut loss and protect your capital.

Meanwhile, Monday’s trading opened slightly on the downside in the morning and oscillated in the mid-morning before pulling back between midday and afternoon, touching intraday low of 28,337.52 basis points from its high of 28,577.41bps, before retracing up marginally in the last minutes to close the session at 28,341.03bps on a low traded volume.

Market technicals were negative despite volume traded being higher than the previous day’s, amidst the negative breadth and sentiment as revealed by Investdata’s Daily Sentiment Report. The session’s ‘sell’ position was 99%, while ‘buy’ volume was just 1% of the total daily transaction volume index of 0.41.
The momentum behind the day’s performance remained seriously weak and flat, as Money Flow Index read 14.07 points, which was higher than the previous day’s 13.69bps, an indication that funds are moving around some stocks, amidst the continued selloff in high cap stocks on weak market fundamentals and low liquidity.

Index and Market Cap
The benchmark NSE All-Share index lost 228.76bps at the end of trading, closing at 28,341.03bps after opening at 28,566.79bps, representing a 0.79% decline. Market capitalization shed N110.02bn, closing at N13.81tr, from its opening value of N13.92tr, which also represented 0.79% value loss.
Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the most revered traders and investors in corporate Nigeria to our watchlist, these stocks are with double potentials. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right during this portfolio reshuffling and repositioning ahead of Q2 numbers and fiscal stimulus.
The downturn was driven by selloffs and profit-taking in MTN Nigeria, Dangote Cement, Total Nigeria, Zenith Bank, Guaranty Trust Bank, FBN Holdings, UBA, Access Bank, Lafarge Africa, and Dangote Sugar. This heightened the negative position of the Year-to-Date loss, bringing it to 9.83%. YTD market capitalization gain stood at N2.09 trillion, or 17.84%, above the year’s opening level of N11.72tr.

Bearish Sector Indices
All the sectoral performance indexes were down, except for the NSE Consumer Goods that closed 0.16% green, while the banking index led the decliners, losing 1.56%, followed by industrial Goods’1.03% slide; while Oil/Gas and Insurance followed with 0.74% and 0.33% slip respectively.
Market breadth was negative as decliners outnumbered advancers in the ratio of 21:10; market activities were up in volume and value traded by 70% and 43% respectively at 175.17m shares worth N2.09bn, from the previous day’s 100.37m units valued at N1.46bn. Volume was driven by trades in financial services and conglomerates stocks such as Wapic Insurance, UBA, Guaranty Trust Bank. Lasaco and Transcorp.
Insurance stocks led both divides of the price movement table, with Cornerstone Insurance and AIICO Insurance closing as the best-performing stocks of the day after topping the advancers’ table with 10% and 7.69% gains respectively to close at N0.22 and N0.70 per share, on market forces. On the flip side, Consolidated Hallmark Insurance and Sovereign Trust Insurance lost 9.09% and 8.70% respectively, closing at N0.30 and N0.21, on profit-taking.

Market Outlook
We expect this trend to reverse very soon, as bargain hunters take advantage of the prolonged bearish trend and buy ahead of the half-year earnings reporting season and MPC meeting. Discerning investors should target value stocks considering the current low valuation to position for dividend income and capital gain, especially as the market’s Price to Earnings ratio is 7.4x, which is well below the 11.1x average of its peers and a five-year average of 13.2x. This revealed value and high upside potentials for a rally.

They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as Central Bank of Nigeria (CBN) had rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.
There is also the likely impact of portfolio repositioning for the second half of the year in the midst of expected Q2 numbers, especially banking stocks.

https://investdata.com.ng/2019/07/mixed-trading-still-on-ngse-as-uncertainties-over-q2-earnings-unsettle-investors/#more

Mixed Trading Still On NGSE, As Uncertainties Over Q2 Earnings Unsettle Investors

Market Update for July 15
Trading activities on the Nigerian Stock Exchange on Monday was sloppy and volatile, consolidating its fourth consecutive day of negative outing as cautious trading and indecision continued ahead of the earnings reporting season that entered its mid-period for full kick off this week.

Transaction volume remained low as selloffs persisted, even as the seemingly positive inflation numbers came in better than expected for the month of June at 11.22%, from 11.40% in the previous month, released at noon on Monday by the National Bureau of Statistics (NBS). On a year-on-year basis, the Consumer Price Index represents the lowest rate in the last 12 months, indicating that key components of core inflation slowed down due to low consumption arising from low purchasing power. This will likely be supported the harvest season which kicks off this period expected to further push the inflation figure down around 11.05%, before a rebound when payment of the new minimum wage kicks off.

The prices of stocks fell, amidst mixed and relatively flat trading on Monday, as investors remained cautious as they await the onset of a highly uncertain earnings season.
Generally, earnings would expectedly be affected by the major market themes of the past several months – a slowdown in productivity, the lack of direction economic direction yet by government, arising from the absence of a federal cabinet to implement the 2019 budget at a time the seventh calendar month of the year 2019 is more than halfway gone. These factors would, without doubts have impacted earnings for the second quarter, possibly drag down revenue and profits.

At this current market situation, trading earnings announcement with gaze fixed on expected economic policies from the government is one way to profit from the market volatility.
However, it can be difficult, at times, getting all the required data needed to make smart trades, especially with the inconsistent release dates of some companies. As an investor or trader, it is expected that you take position before the results are released to the market, and should the numbers be positive and beat expectation, better for you. But note that in a bear market earnings influence on prices are minimal, compared to a bull situation. If the reports are below forecast sell-off immediately to cut loss and protect your capital.

Meanwhile, Monday’s trading opened slightly on the downside in the morning and oscillated in the mid-morning before pulling back between midday and afternoon, touching intraday low of 28,337.52 basis points from its high of 28,577.41bps, before retracing up marginally in the last minutes to close the session at 28,341.03bps on a low traded volume.

Market technicals were negative despite volume traded being higher than the previous day’s, amidst the negative breadth and sentiment as revealed by Investdata’s Daily Sentiment Report. The session’s ‘sell’ position was 99%, while ‘buy’ volume was just 1% of the total daily transaction volume index of 0.41.
The momentum behind the day’s performance remained seriously weak and flat, as Money Flow Index read 14.07 points, which was higher than the previous day’s 13.69bps, an indication that funds are moving around some stocks, amidst the continued selloff in high cap stocks on weak market fundamentals and low liquidity.

Index and Market Cap
The benchmark NSE All-Share index lost 228.76bps at the end of trading, closing at 28,341.03bps after opening at 28,566.79bps, representing a 0.79% decline. Market capitalization shed N110.02bn, closing at N13.81tr, from its opening value of N13.92tr, which also represented 0.79% value loss.
Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the most revered traders and investors in corporate Nigeria to our watchlist, these stocks are with double potentials. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right during this portfolio reshuffling and repositioning ahead of Q2 numbers and fiscal stimulus.

The downturn was driven by selloffs and profit-taking in MTN Nigeria, Dangote Cement, Total Nigeria, Zenith Bank, Guaranty Trust Bank, FBN Holdings, UBA, Access Bank, Lafarge Africa, and Dangote Sugar. This heightened the negative position of the Year-to-Date loss, bringing it to 9.83%. YTD market capitalization gain stood at N2.09 trillion, or 17.84%, above the year’s opening level of N11.72tr.

Bearish Sector Indices
All the sectoral performance indexes were down, except for the NSE Consumer Goods that closed 0.16% green, while the banking index led the decliners, losing 1.56%, followed by industrial Goods’1.03% slide; while Oil/Gas and Insurance followed with 0.74% and 0.33% slip respectively.

Market breadth was negative as decliners outnumbered advancers in the ratio of 21:10; market activities were up in volume and value traded by 70% and 43% respectively at 175.17m shares worth N2.09bn, from the previous day’s 100.37m units valued at N1.46bn. Volume was driven by trades in financial services and conglomerates stocks such as Wapic Insurance, UBA, Guaranty Trust Bank. Lasaco and Transcorp.

Insurance stocks led both divides of the price movement table, with Cornerstone Insurance and AIICO Insurance closing as the best-performing stocks of the day after topping the advancers’ table with 10% and 7.69% gains respectively to close at N0.22 and N0.70 per share, on market forces. On the flip side, Consolidated Hallmark Insurance and Sovereign Trust Insurance lost 9.09% and 8.70% respectively, closing at N0.30 and N0.21, on profit-taking.

Market Outlook
We expect this trend to reverse very soon, as bargain hunters take advantage of the prolonged bearish trend and buy ahead of the half-year earnings reporting season and MPC meeting. Discerning investors should target value stocks considering the current low valuation to position for dividend income and capital gain, especially as the market’s Price to Earnings ratio is 7.4x, which is well below the 11.1x average of its peers and a five-year average of 13.2x. This revealed value and high upside potentials for a rally.

They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as Central Bank of Nigeria (CBN) had rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.
There is also the likely impact of portfolio repositioning for the second half of the year in the midst of expected Q2 numbers, especially banking stocks.

https://investdata.com.ng/2019/07/mixed-trading-still-on-ngse-as-uncertainties-over-q2-earnings-unsettle-investors/#more

Reversal Imminent On NGSE, Despite Low Volume, Indecision, As Investors Position For Q2 Earnings

Market Update for the week ended July 12 and Outlook for July 15-19
The nation’s equity market had a mixed performance last week, extending its gloomy state after stock prices declined further to new lows. This forced the benchmark Nigerian Stock Exchange All-Share Index (NSEASI) to make sharp lower lows, closing below the 29,000 psychological line on a continued selloff in highly capitalized stocks that pull the market down. Not even the euphoria of the cross-border listing of 3.76bn ordinary shares of Airtel Africa by way of introduction at N363 each, after an initial public offering through book building.

The increasing uncertain outlook of the economy, especially as the security situation has gone worse in the midst of low liquidity and negative sentiments. This has been of serious concern to both international and domestic investors as revealed by the prevailing low volume of trades. The absence of a cabinet months after the general polls and inauguration of President Muhammadu Buhari for a second and final four-term is another sign that Nigerian leaders do not take the task of repositioning the nation’s economy towards greatness with the required seriousness or protecting the lives and properties of Nigerians. The unsafe business environment will continue to damper confidence and economic activities as the government fails to do needful. The bear run which has so far pushed the nation’s stock market to the ignominious club of the worst performing in the world today, further depicting the state of the economy. So far, the government has only mouthed the need to boost the stock market without doing the needful in real terms, even as the monetary authorities continue its plan to ensure lending to critical sectors capable of boosting jobs and GDP growth.

As earlier noted by Investdata Research, the month of July is a very dicey period that kicks off the second part of the year in the midst of the quarterly earnings reporting season for half-year results. Already, the benchmark NSE index has suffered huge losses so far, recording lows over the last 14 weeks. This week, the second quarter earnings will start flowing in, beginning with big consumer goods making companies.

The monetary authority realizes that the only way to drive economic prosperity is to boost national productivity, hence the recent rollout by the Central Bank of Nigeria (CBN) in times of policy initiatives to stimulate production and consumption needed to oil the wheel of macroeconomic activities. This is expected to impact the economy positively if all the frameworks are put in place and the government reduces its dominance of the debt market, and instead partner monetary to fix the economy quickly.

Movement Of NSEASI
The week started on a positive note, reversing the previous session’s loss, as the NSEASI recorded a marginal 0.07% gain on a resumed cautious trading. This was extended to Tuesday when the index inched up further by 0.10% on a buying interest in the newly listed Airtel Africa Plc. This trend was, however, short-lived at the midweek session as selloff hit the newly listed telecommunication company following the index lost 0.20%. The selling pressure continued on Thursday and Friday, with the index losing 1.9% and 0.51% respectively on massive selloffs in high cap stocks like Nestle Nigeria, MTNN, Dangote Cement and Airtel Africa, the four largest companies on the bourse by market capitalization. This dragged the week’s total loss to 2.41%, bigger when compared to the previous week’s 1.98% slide.

The increase in the losing momentum for the period pushed the year-to-date loss by the NSEASI to 9.11%. Market breadth was negative yet, as selling pressure increased due to the lack of economic direction, even as investors rebalanced their portfolios ahead of the second quarter earnings reporting season, especially for interim dividend-paying stocks.

Low and medium cap stocks were the week’s top gainers, dominating the advancers table after blue-chip remained under intense ‘sell’ pressure in the midst of a low traded volume and the prevailing low liquidity.
The impetus behind the week’s performance was weak, as shown by the money flow index at 17.00 basis points, compared to 15.24bps in the previous week. This indicates that funds are moving among some stocks, even as sentiments remain negative and mixed, with sell volume at 100% and buy position, 0% on a transaction volume index of 0.57.

NSEASI Weekly Time Frame
The negative sentiment for medium and highly capitalized stocks has increased the market’s losing momentum on low transaction volume that reveals accumulation and indecision among players in the midst of a weak money flow index. There were also poor liquidity and negative market breadth that supported the pullback and has formed double bottom signals a rebound any time soon. However, the expected reversal will be a function of the strength of expected half-year results.

Nonetheless, the low transaction volume in the market raises hope for a bull reversal in a bearish trend.
The current chart pattern on the NSE All-Share index supports reversal while trading below its 20-Day Moving Average on the lower Bollinger band, line, while RSI is reading ‘oversold’ at 35.61. But then, Money flow at 17.00 points remains weak.

Bearish Sectoral Indices
All the sectoral performance indexes for the period closed lower, except for the NSE Banking that notched 0.78% higher. The NSE Consumer Goods, however, led the decliners after losing 5.91%, in a week Flour Mills submitted weak numbers for its year-ended March 31, 2019. It was followed by the NSE Oil/Gas index with 3.13%, just as the insurance and industrial goods index closed 2.42% and 2.02% down respectively.
This reflected a selling sentiment, at a time market breadth was negative with decliners outnumbering advancers in the ratio of 39:18, to sustain the down market.

Market activities were mixed as volume was down by 3.88% to 988.49m shares, compared to 1.03bn units traded in the prior week, while value rose by 39.66% to N13.84bn from N9.91bn in the preceding week.
Sovereign Trust Insurance and Union Bank were the best-performing stocks for the period, topping the advancers’ chart with 9.52% and 9.49% gains respectively, to close at N0.23 and N7.50 per share on market forces and low price attractions. On the flip side, Forte Oil and GSK lost 23.33% and 18.33% respectively, closing at N20.70 and N8.30, on selloff and profit-taking.

Market Outlook
We expect bargain hunting and repositioning for half-year earnings reporting season to improve the market outlook this week. This will slow down the southward trend as inflation report for June is expected to hit the market, while discerning investors are taking advantage of low valuation to buy into interim dividend stocks.

They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as plans by the Central Bank of Nigeria (CBN) to reduce banks’ participation in government securities is expected to boost private sector lending to drive economic activities and investment.

Profit taking may persist in highly capitalized stocks due to portfolio restructuring. Hence, overall market performance to remain mixed amidst positive sentiments and negative breadth.
Market players should maintain a cautious outlook due to low confidence, liquidity and the wait for major economic triggers. Hence, we advise investors to trade cautiously in the short-term, with their gaze fixed on blue-chip stocks that are selling more than 40% below their 52 weeks high. As we look out for a positive catalyst to drive market recovery.

That notwithstanding, we would not overlook the possibility of a bargain-hunting motive supporting positive performance, especially with many fundamentally sound stocks remaining underpriced. With the prices of major blue chips continuing to drop in recent weeks, we expect speculative trading to shape the market’s direction this week, despite the seeming negative outlook.

The sustained volatility will continue as investors and fund managers rebalance their portfolios, with eyes fixed on the political space and post-inauguration market dynamics. Investors should review their positions in line with their investment goals, the strength of 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 and 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.

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Tel: 08028164085, 08032055467

https://investdata.com.ng/2019/07/reversal-imminent-on-ngse-despite-low-volume-indecision-amidst-positioning-for-q2-earnings/#more

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Reversal Ahead, As Investors Target NGSE Value Stocks, Position For Q2 Score-cards


Market Update for July 16
Tuesday’s was yet another selloff session on the Nigerian Stock Exchange (NSE) as the benchmark All-Share Index extended its bearish run for the fifth consecutive day on negative sentiment and high selling pressure in blue-chip stocks, as the political risk arising from the lack of direction from the government continues to constrain investment decision. This, among others, has been further worsened by the rising insecurity challenges across the country.
The continued failure of the Federal Government to provide economic direction through reform policies that can stimulate productivity, just as the absence of a cabinet for effective governance has taken a toll on the economy, even as the business environment remains largely unfriendly.

Meanwhile, the Central Bank of Nigeria (CBN) has over the past two years focused on monetary stability, resulting in a 7.5% decline in consumer price index over the period; a rise in foreign exchange reserve; and currency stability. In this regard, the bank has done well, helped by a slowdown in prospects for U.S$ denominated interest rate, which has taken the pressure off emerging market currencies for now, despite the fluctuating crude oil price.
However, the nation’s stock market continues to reverberate in the sliding indices following which is daily reflecting in the very volatile and mixed sessions. The composite NSE index started slightly down in the morning and oscillated between midday to afternoon, before pulling back and touching intraday low of 28,138.50 basis points from its high of 28,566.41bps. It finally retraced up marginally to close the day at 28,200.88bps on lower than the average trading volume.
Market technicals for the day were negative and mixed as volume traded was higher than the previous day’s, amidst negative breadth and high selling pressure as revealed by Investdata’s Daily Sentiment Report. The session’s ‘sell’ volume was 85%, while ‘buy’ position was just 15% of the total daily transaction volume index of 0.52.

The energy behind the day’s performance remained seriously weak and flat, as Money Flow Index read 14.97 points, which was higher than the previous day’s 14.07bps, an indication that funds are moving around some stocks, amidst the continued selloff in high cap stocks on weak market fundamentals and profit-taking in kobo stocks.

Index and Market Cap
At the end of Tuesday’s trading, the composite index lost 140.15bps to close at 28,200.88bps after opening at 28,341.03bps, representing a 0.49% decline, while market capitalization lost N68.3bn, and closing at N13.74tr, from its opening value of N13.81tr, which also represented 0.49% depreciation in value.
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The day’s decline was due to selloffs and profit-taking in MTN Nigeria, Zenith Bank, CCNN, FBN Holdings, Flour Mills, Forte Oil, UBA, Access Bank and Stanbic IBTC, which further heightened the negative position. The loss dragged the NSE’s Year-to-Date loss to 10.28%, just as YTD market capitalization gain dropped to N1.76 trillion, or 17.32%, above the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indexes were largely bearish, except for the NSE Consumer Goods and Insurance that closed higher by 0.54% and 0.06% respectively, as Industrial index led the decliners after losing 2.16%, followed by Oil/Gas wit 0.97%; and next was banking index that slipped by 0.78%.
Market breadth was negative as decliners outnumbered advancers in the ratio of 32:10; market activities were mixed as volume traded was up by 25.31% to 217.13m from the previous day’s 175.17m units, while value fell by 15.61% to N1.8bn from Monday’s N2.09bn. Volume was driven by trades in financial services, ICT and conglomerates stocks such as FBN Holdings, Courtville, UBA, Transcorp, and Zenith Bank.
Redstar Express and LASACO were the best-performing stocks for the day after topping the advancers’ table with 9.81% and 9.69% gains respectively to close at N5.71 and N0.34 per share, on dividend payout. On the flip side, CAP and CCNN lost 10% each to close at N24.75 and N13.05 respectively on the selloff.

Market Outlook
We expect the market mood to likely change, as bargain hunters take advantage of the prolonged bearish trend and buy ahead of the half-year earnings reporting season and next week’s meeting of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC), as the NSE index had gradually formed a double bottom that supports reversal. Discerning investors should target value stocks considering the current low valuation to position for dividend income and capital gain, especially as the market’s Price to Earnings ratio is 7.4x, which is well below the 11.1x average of its peers and a five-year average of 13.2x. This revealed value and high upside potentials for a rally.
They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as Central Bank of Nigeria (CBN) had rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.
There is also the likely impact of portfolio repositioning for the second half of the year in the midst of expected Q2 numbers, especially banking stocks.

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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/2019/07/reversal-ahead-as-investors-target-ngse-value-stocks-position-for-q2-score-cards/

Investdata Daily Sentiment Report as of July 17, 2019
Investdata Daily Sentiment Report as of July 17, 2019
Investdata Daily Sentiment Report as of July 17, 2019

NSEASI buy 15% sell 85% MFI 14.98
Access buy 50% sell 50% MFI 65.51
Aiico buy 0% volume index 1.90 MFI 35.73
Ccnn buy 0% volume index 2.41 MFI 79.29
Chiplc buy 40% sell 60 volume index 1.70 MFI 60.73
Conoil buy 0% volume index 2.76 MFI 47.00
Dangcem buy 5% sell 95% volume index 1.62 MFI 14.49
Fbnh buy 0% volume index 3.15 MFI 0.00
Fcmb buy � MFI 39.84
Fidelity buy � volume index 0.95 MFI 39.24
GT buy � MFI 57.65
Japaul buy 0% volume index 1.11 MFI 49.95
Oando buy � MFI 50.34
Pz buy � volume index 2.03 MFI 49.81
Stanbic buy 0% volume index 7.15 MFI 8.03
Sterling buy � MFI 11.57
Transcorp buy 0% volume index 1.42 MFI 30.08
Uacn buy 0% MFI 44.30
Uba buy 50% sell 50% volume index 1.42 MFI 19.22
Ucap buy � MFI 32.15
Wapco buy 0% MFI 83.33
Zenith buy 83% sell 17% MFI 28.03

https://investdataltd..com/2019/07/investdata-daily-sentiment-report-as-of_17.html

Flour Mills of Nigeria Plc has announced its corporate actions for the period ended 31st March 2019.

Proposed Dividend: Final dividend of ₦1.20 per 50 kobo ordinary share

Closure of Register: 12th August 2019 to 16th August 2019

Qualification Date: 9th August 2019

Payment Date: 6th September 2019

Date of AGM: 4th September 2019

Venue of AGM: The Grand Ball Room, Eko Hotel & Suites, Adetokunbo Ademola street, Victoria Island

Time of AGM: 12 noon

CBN Intervenes In Forex Market With $210m

The Central Bank of Nigeria (CBN), on Tuesday said it injected another $210m into the interbank segment of the Foreign Exchange Market.
According to figures obtained from the CBN, authorized dealers in the wholesale segment of the market were again offered $100m, while the Small and Medium Enterprises (SMEs) window received $55m, just as customers requiring foreign exchange for invisibles like tuition fees, medical payments and Basic Travel Allowance (BTA), among others.

The Director, Corporate Communications Department at the CBN, Isaac Okorafor, who confirmed the sales, reaffirmed the bank’s commitment to sustaining the level of stability in the foreign exchange market.
Recall that at the last intervention on Friday, July 12, 2019, the CBN injected all of $298.7m and CNY39.6m into the Retail Secondary Market Intervention Sales (SMIS) segment.
Meanwhile, the rate of exchange between the Naira and the US$ in the BDC segment of the market on Tuesday, July 16, 2019, was N360/$1.

https://investdata.com.ng/2019/07/cbn-intervenes-in-forex-market-with-210m/#more

Currency In Circulation Drops By 4.63% To N2.014tr In June- CBN

New data by the Central Bank of Nigeria (CBN), on Tuesday, showed that the value of currency outside of bank vaults in the country fell to its lowest in the seven months since November 2018 in the month of June 2019.
Curiously, data on the CBN’s website showed that unlike in other months when the figures are given as of month-end, currency in circulation stood at N2.104tr, on June 28, 2019, representing N97.775bn or 4.63% decline from the N2.111tr recorded on May 31.
The June figure, representing the second month-on-month decline, represented a year-on-year drop of N113.402bn or 5.96% from the N1.9tr recorded on June 28, 2018.

The latest figure also represents N227.24bn drop from the year’s N2.241tr peak achieve in February, the peak of Nigeria’s Presidential election season.
The drop may not, however, be unconnected with the non-implementation of the country’s Federal budget which is being delayed by the absence of a cabinet almost eight months into the year and five months after President Muhammadu Buhari was elected for a second and final four-year term.

https://investdata.com.ng/2019/07/currency-in-circulation-drops-by-4-63-to-n2-014tr-in-june-cbn/#more