Investdata Daily Sentiment Report as of July 18, 2019

NSEASI buy 0% MFI 15.34
Access buy 0% MFI 52.77
Chiplc buy 0% volume index 0.86 MFI 61.17
Dangcem buy 0% volume index 2.25 MFI 18.05
Dangsugar buy 0% volume index 0.89 MFI 43.52
Fbnh buy � volume index 1.90 MFI 0.00
Fcmb buy 0% volume index 1.58 MFI 22.34
Fidelity buy 67% sell 33% volume index 1.42 MFI 25.84
Fmn buy 0% volume index 1.21 MFI 71.69
Fo buy � MFI 15.09
GT buy 40% sell 60% volume index 2.75 MFI 39.09
Honyflour buy 20% sell 80% volume index 2.63 MFI 37.89
Lasaco buy 50% sell 50% volume index 4.10 MFI 96.29
Mansard buy 0% volume index 1.01 MFI 54.87
Mben buy � volume index 6.57 MFI 73.11
Oando buy 0% volume index 1.00 MFI 69.83
Transcorp buy � MFI 39.32
Uacn buy 67% sell 33% MFI 35.89
Uba buy 33% sell 67% volume index 0.85 MFI 11.66
Ubn buy 44%…
[9:27 AM, 7/18/2019] Investdata 2: NSEASI buy 0% MFI 15.34
Access buy 0% MFI 52.77
Chiplc buy 0% volume index 0.86 MFI 61.17
Dangcem buy 0% volume index 2.25 MFI 18.05
Dangsugar buy 0% volume index 0.89 MFI 43.52
Fbnh buy � volume index 1.90 MFI 0.00
Fcmb buy 0% volume index 1.58 MFI 22.34
Fidelity buy 67% sell 33% volume index 1.42 MFI 25.84
Fmn buy 0% volume index 1.21 MFI 71.69
Fo buy � MFI 15.09
GT buy 40% sell 60% volume index 2.75 MFI 39.09
Honyflour buy 20% sell 80% volume index 2.63 MFI 37.89
Lasaco buy 50% sell 50% volume index 4.10 MFI 96.29
Mansard buy 0% volume index 1.01 MFI 54.87
Mben buy � volume index 6.57 MFI 73.11
Oando buy 0% volume index 1.00 MFI 69.83
Transcorp buy � MFI 39.32
Uacn buy 67% sell 33% MFI 35.89
Uba buy 33% sell 67% volume index 0.85 MFI 11.66
Ubn buy 44% sell 56% volume index 3.74 MFI 36.10
Wapco buy 25% sell 75% MFI 78.82
Wapic buy � volume index 0.72 MFI 49.44
Wema buy 20% sell 80% MFI 21.73
Zenith buy 0% MFI 29.21

https://investdataltd..com/2019/07/investdata-daily-sentiment-report-as-of_18.html

Stocks Bleed Further, NGSE Indicators Approach October 2016 Lows, As FG Keeps Investors Waiting

Market Update for July 17
Stock prices nosedived further on the Nigerian Stock Exchange (NSE) at the midweek with the All Share Index extending its losing streak for the sixth consecutive session to close lower amidst the prolonged confidence crisis that has been deepened by political risk, as well as weak and mixed economic fundamentals. These have triggered continued volatility and selloffs on the exchange, given that the stock market cannot be divorced from the systemic problems in the nation’s politico-economic sphere.

Despite the seeming slowdown in the inflation rate in the month of June at 11.22% and the earnings reporting season entering its peak period with just a few companies releasing their scorecards so far, investors and traders are worried over the possible signals of weak and disappointing earnings by listed companies. If not, the argument goes, the announcement of their half-year numbers would not take this long.
The composite index opened for Wednesday’s trading on a slight upside in the morning and then pulled back between mid-morning and afternoon, before stair-stepping lower to consolidate the rest of the session. During the period, it tested a strong support level to make lower lows after touching intraday low of 28,042.69 basis points from its high of 28,259.78bps, before finishing the day at 28,043.32bps on above-average traded volume.

Midweek’s market technicals were negative as volume traded was higher than the previous day’s, with breadth favoring the bears on a negative sentiment as revealed by Investdata’s Daily Sentiment Report. The session’s ‘sell’ volume was 100%, while ‘buy’ position was 0% of the total daily transaction volume index of 0.58.
The momentum behind the day’s performance remained seriously weak, despite inching up, as Money Flow Index read 15.34 points, which was higher than the previous day’s 14.97bps, an indication that funds are moving around some stocks, amidst the continued selloff in high and low cap stocks on prevailing low liquidity in the market.

Index and Market Cap
At the end of Wednesday’s trading, the benchmark NSEASI shed 158.08bps to close at 28,043.32bps after opening at 28,200.88bps, representing a 0.56% drop, while market capitalization lost N77.05bn to close at N13.67tr, from its opening value of N13.74 trillion, which also represented 0.56% 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 session’s downturn for was driven by selloffs and profit-taking in Dangote Cement, Nestle, Zenith Bank, Julius Berger, Guaranty Trust Bank, Flour Mills, Forte Oil, and UBA among others, which further heightened the negative position of the market. The loss dragged the NSE’s Year-to-Date loss to 10.78%, just as YTD market capitalization gain dropped to N1.95tr, or 16.60%, above the year’s opening level of N11.72tr.

Bearish Sector Indices
All the sectoral performance indexes were in red, led by the NSE Insurance index which dropped by 1.54%, followed by banking with 1.44%; while Consumer, Industrial Goods, and oil/gas slipped 0.77%, 0.69% and 0.05% down respectively.
Market breadth was negative as decliners outnumbered advancers in the ratio of 26:8; market activities were up in volume and value traded by 13.48% and 120.77% respectively to 243.72m shares worth N3.89bn, from the previous day 217.13m units valued N1.8bn. The day’s volume was driven by trades in financial services stocks such as Guaranty Trust Bank, FBN Holdings, UBA, Zenith Bank and Lasaco.
The best-performing stocks for the day were AG Leventis and Chams which led the advancers’ table with 10% and 8.30% gains respectively to close at N0.33 and N0.27 per share, on market forces. On the flip side, Julius Berger and Nahco lost 9.77% and 9.62% respectively to close at N18.00 and N2.35 on bearish mood and selloff.

Market Outlook
We expect the market trend to slow down at this point and reverse, any breakdown of this level will take the market back to 2016 October position. But 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 the government announces its much-awaited new cabinet, just as 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.

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.

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/stocks-bleed-further-ngse-indicators-approach-october-2016-lows-as-fg-keeps-investors-waiting/

Investdata Daily Sentiment Report s at July 19, 2019

NSEASI buy 0% MFI 6.74
Access buy 0% volume index 0.72 MFI 53.54
Aiico buy � volume index 2.76 MFI 49.03
Chams buy � MFI 30.08
Chiplc buy � volume index 1.01 MFI 56.19
Dangsugar buy � volume index 0.77 MFI 48.66
Eti buy � MFI 55.69
Fbnh buy 0% volume index 2.03 MFI 10.87
Fcmb buy � volume index 0.70 MFI 31.61
Fidelity buy � volume index 0.85 MFI 26.06
GT buy � MFI 13.86
Lasaco buy � volume index 1.10 MFI 92.64
Mben buy 0% volume index 1.29 MFI 75.38
Nem buy 0% volume index 2.46 MFI 14.47
Oando buy � volume index 0.71 MFI 60.51
Sterling buy � volume index 2.04 MFI 28.57
Transcorp buy 0% MFI 39.68
Uacn buy 75% sell 25% volume index 0.96 MFI 19.26
Ucap buy � MFI 26.80
Wapco buy � MFI 90.40
Zenith buy 0% MFI 29.02

https://investdataltd..com/2019/07/investdata-daily-sentiment-report-as-of_21.html

NGSE Index Hits 26-month Low, Touches October 2016 Levels, As YTD loss Rises To 11.35%


Market Update for July 18
The free fall of equity prices on the Nigerian Stock Exchange (NSE) continued on Thursday with the benchmark All Share index breaking down its last strong support level of 28,019.97 basis points to touching new 26-month lower lows of 2016 October market position. The index has defied all the Fibonacci retracement levels on strong selloffs across all sectors to extend its seventh successive days of losing on less than average traded volume.

The continued market decline is a clear indication that something is critically wrong with the Nigerian economy, especially looking at the mixed macroeconomic indices revealing weak economic fundamentals, in the form of low market liquidity, the absence of a policy direction. Also, it is clear that the market got to this sorry state, because the government failed to do the needful at the right time and rather has occupied itself with things that have very little socio-economic impact on Nigerians and the need to remove the mass of its citizens from multi-dimensional poverty, according to a recently released UNDP report (READ MORE).

As, we have noted in the past, corporate earnings will, and have indeed started revealing the weak state of the Nigerian economy, giving insights into what Q2 GDP figure will look like, after the Q1 witnessed slow growth, against the backdrop of the fact that two successive quarters of decline amounts to a recession. On Thursday evening, two members of Tony Elumelu’s Heirs Holdings- Transnational Corporation of Nigeria (Transcorp- a conglomerate) and United Capital Plc (a non-bank financial services group) published their half-year result which showed significant over 50% drops in their bottom-lines, reflecting the gloomy state of the economy. Transcorp’s top and bottom-lines were down by 30.2% and 57.6% respectively to N37.76bn and N4.66bn; which those of United Capital for the same period, dropped 16.52% and 15.98%.
The NSE All-Share index opened to the downside on Thursday morning and moved farther between midday to afternoon to consolidate, and touched the session intraday lows at 27,864.49bps, from a high of 28,067.62bps, forming a descending triangle and wedge chart pattern, after which it closed the day lower at 27,864.49bps on a negative breadth.

Market technicals were negative and weak as traded volume was lower than the previous day’s, while breadth favored the bears on a high selling pressure as revealed by Investdata’s Daily Sentiment Report. The session’s ‘sell’ volume was 100%, while the ‘buy’ position was 0% of the total daily transaction volume index of 0.42.
The impetus behind the day’s performance remained seriously weak, as Money Flow Index read 6.74 points, which was lower than the previous day’s 15.34bps, an indication that funds left some stocks and the market, as selloff persisted in high cap and blue-chip stocks.

Index and Market Cap
At the end of trading, the composite NSEASI lost 178.31bps to close at 27,864.49bps after opening at 28,043.32bps, a 0.64% decline, as it broke down the psychological line of 28,000bps. Market capitalization shed N86.9bn to close at N13.58tr, from its opening value of N13.67tr, which also represented 0.64% 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. Four stocks to retire rich was just selected from the watchlist.

The day’s decline was due to selloffs and profit-taking in MTNN, Seplat, Zenith Bank, NB, Access Bank, International Brewery, Forte Oil, UBN, Stanbic IBTC, and UBA, among others, which further heightened the negative position of the market. The loss dragged the NSE’s Year-to-Date loss to 11.35%, just as YTD market capitalization gain dropped to N1.86 trillion, or 15.85%, above the year’s opening level of N11.72tr.

Bearish Sector Indices
All the sectoral performance indexes were lower except for NSE Industrial which closed higher by just 0.06%, while the decliners were led by NSE Oil/Gas index after shedding by 4.74%, followed by insurance with 1.69%; next were Banking and Consumer goods that dipped by 1.19% and 0.37% respectively.

Market breadth remained negative as decliners outnumbered advancers in the ratio of 19:12, while transaction volume and value fell by 28.1% and 30.2% respectively to 175.36m shares worth N2.71bn, from the previous day 243.72m units valued N3.89bn. Volume was driven by trades in financial services stocks such as FBN Holdings, Zenith Bank, Sterling Bank, UBA and Access Bank.
Conoil and Dangote Sugar were the best-performing stocks of the day, leading the advancers’ table with 9.76% and 9.22% gains respectively to close at N20.25 and N11.25 per share, on the proposed dividend and market forces respectively. On the flip side, Berger Paints and International Brewery lost 10% each, closing at N6.30 and N15.30 each on bearish trend and selloff.

Market Outlook
Being the last trading day after straight seven sessions of decline, we expect the market trend to slow down at this point and reverse, despite breaking down into the 2016 October position. But 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 the 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.

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/ngse-index-hits-26-month-low-touches-october-2016-levels-as-ytd-loss-rises-to-11-35/

Investdata Weekly Sentiment Report as of July 20, 2019

NSEASI buy 15% sell 85% MFI 17.50
Access buy 69% sell 31% MFI 68.19
Afrprud buy 0% MFI 36.09
Aglev buy 67% sell 33% volume index 1.91 MFI 42.11
Aiico buy 14% sell 86% volume index 0.86 MFI 55.42
Berger buy 0% MFI 27.51
Cadbury buy 0% MFI 75.44
Cap buy 0% MFI 19.44
Ccnn buy 0% MFI 7.17
Chams buy � MFI 64.27
Chiplc buy 60% sell 40% volume index 1.00 MFI 53.29
CIleasing buy 0% MFI 0.21
Conoil buy 60% sell 40% volume index 4.08 MFI 31.48
Custodian buy 50% sell 50% MFI 27.40
Cutix buy 0% MFI 30.25
Dangcem buy 17% sell 83% volume index 1.69 MFI 49.66
Dangflour buy � MFI 65.94
Dangsugar buy � MFI 20.10
Eterna buy 0% MFI 39.16
Eti buy 44% sell 56% MFI 16.37
Fbnh buy 55% sell 45% volume index 1.92 MFI 18.21
Fcmb buy 89% sell 11% MFI 55.84
Fidelity buy 20% sell 80% MFI 41.66
Fmn buy 18% sell 82% volume index 0.77 MFI 46.06
Fo buy 77% sell 23% volume index 0.84 MFI 61.39
GT buy 20% sell 80% volume index 1.26 MFI 62.09
Honyflour buy � volume index 0.76 MFI 39.88
Japaul buy 50% sell 50% MFI 67.15
JBerger buy 0% MFI 39.08
Lasaco buy 40% sell 60% volume index 3.86 MFI 89.47
Lawunion buy 0% MFI 89.65
Mansard buy 0% MFI 68.76
Mben buy 0% volume index 2.76 MFI 38.58
Nahco buy 0% MFI 61.07
Nascon buy 0% volume index 1.81 MFI 5.98
Neimeth buy 0% MFI 46.86
Nem buy 0% MFI 64.92
Nestle buy � volume index 1.11 MFI 51.12
Oando buy 30% sell 70% volume index 1.12 MFI 33.74
Okomu buy 0% MFI 13.21
Pz buy 0% volume index 1.90 MFI 15.34
Red buy 16% sell 84% MFI 53.59
Seplat buy 0% volume index 0.82 MFI 47.84
Sovereins buy � MFI 31.08
Stanbic buy 0% volume index 3.74 MFI 21.95
Sterling buy � MFI 63.08
Total buy 0% volume index 1.40 MFI 0.00
Transcorp buy 67% sell 33% MFI 48.49
Uacp buy 0% MFI 59.23
Uacn buy 0% MFI 52.98
Uba buy 11% sell 89% volume index 1.19 MFI 35.34
Ubn buy 14% sell 86% MFI 88.87
Ucap buy 43% sell 57% MFI 25.14
Unilever buy 0% MFI 48.78
Uniondac buy 0% MFI 23.47
Unity buy 83% sell 17% MFI 34.29
Vitafoam buy � MFI 55.00
Wapco buy 8% sell 92% volume index 0.90 MFI 86.82
Wapic buy 0% MFI 28.80
Wema buy 50% sell 50% MFI 98.80
Zenith buy 7% sell 93% MFI 16.17

https://investdataltd..com/2019/07/investdata-weekly-sentiment-report-as_21.html

Investdata Price & Earnings Tracking For Week Ended July 19, 2019

https://investdata.com.ng/2019/07/investdata-price-earnings-tracking-for-week-ended-july-19-2019/#more

Nestle, Seplat, UBA, Okomu, PZ, Hit New 52-Week Low On NGSE

https://investdata.com.ng/2019/07/nestle-seplat-uba-okomu-pz-hit-new-52-week-low-on-ngse/

Hello Investors,

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

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

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

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

To Your Success
Investdata Consulting.

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

26-Month Bear-run: Caution Still, As Investors Await Q2 Earnings, Fiscal Stimulus, To Rescue NGSE Index


Market Update for the week ended July 19 and Outlook for July 22-26
Stocks closed lower on the Nigerian Stock Exchange (NSE) over the past week, despite Friday’s marginal gain as the benchmark All-Share index closed the period on a negative note after touching a new lower low of 27,803.57 basis points. It extended its third consecutive week of decline on a low volume amidst selling pressure across all market sectors.

The absence of economic reforms policies and direction by the government has finally dragged the benchmark NSE index below the 28,000 mark as investors review the political risk associated with the failure by government to appoint a cabinet almost two full months after President Muhammadu Buhari took his oath of office for the second four-year term. The situation becomes even worse when the severe insecurity situation is factored into the equation, as well as weak government earnings, low liquidity, and low purchasing power, all of which are showing in the nation’s mixed economic fundamentals. These have, so far, also played out in the ongoing selloffs and volatility on the NSE, given that the stock market as a leading economic barometer had suffered losses in the last 26 months, which can be appropriately termed a recession. The market’s prolonged bear-run is an indication that something is indeed wrong with the Nigerian economy, given that it cannot be separated from the systemic problems in the nation’s socio-economy.

The market and economy have been rocked back and forth in recent years on a mixed outlook on the global economic sphere, the prevailing negative sentiment and low confidence in the system. Considering the ongoing trade dispute between the U.S and China, the Fed’s plan to cut rates in the face of oscillating crude oil price has slowed down pressure on emerging markets currency. This is expected to pave way for the nation’s monetary policy to further reduce the benchmark Monetary Policy Rate (MPR) so as to make funds cheap while increasing credit flows that will boost productivity and consumption as desired by Central Bank of Nigeria (CBN).

The key macroeconomic indicators suggest that a cut in interest rate will help ongoing CBN efforts at stimulating economic growth and development. For instance, the Purchasing Managers Index (PMI), which measure of the rate of expansion in the nation’s manufacturing activities, eased from 57.8 points in May 2019 to 57.4 points in June, which suggests weakening expansion in the sector, attributable to the high cost of capital and the poor state of critical infrastructures like power and transportation.
We, however, believe a further cut in MPR at this time will result in an expansion of the PMI in the coming months due to a reduced cost of capital.

We also believe that the spillover effects of a further cut in the MPR will increase the production and employment capacity of the real sector, as well as the purchasing power of many consumers in the near term to oil the macro-economy. This will, in turn, impact the performance of the equity market as surplus economic agents will likely consider making new investment decisions, while producers (taking advantage of the reduced cost of funds) will declare better dividends.
Election season is over and harvest season is here to help keep inflation under check and ahead of the minimum wage implementation.

Movement Of NSEASI
Meanwhile, the composite NSEASI opened last week on a negative note losing 0.81%, an extension of the previous session’s loss as selloffs continued. This trend was maintained on Tuesday, Wednesday, and Thursday as stocks shed 0.41%, 0.56%, and 0.64% respectively, before Friday’s rebound, gaining 0.20%. This brought the week’s total loss to 2.27% which was slightly lower when compared to the previous week’s 2.41% decline.

The market witnessed a huge selloff during the period to further push the NSE’s year-to-date loss to 11.17%; while market breadth was yet negative, as selling pressure increased due to a lack of liquidity and economic direction, as investors continue to adopt the wait-and-see attitude ahead of the Q2 earnings reporting season, especially for interim dividend-paying stocks.
Kobo stocks and low cap equities were the week’s top gainers, dominating the advancers table, while highly capitalized and blue-chip stocks remained under intense ‘sell’ pressure in the midst of a low traded volume and the prevailing low liquidity.
The momentum behind the week’s performance was weak, as shown by the money flow index at 17.50 basis points, compared to 17.00bps in the previous week, indicating that new funds are not entering the market but moving among some stocks. Also, sentiments remain negative and mixed, with a sell position at 85% and ‘buy’ volume, 15% on a transaction volume index of 0.63.

NSEASI Weekly Time Frame
The selling pressure in medium and high cap stocks increased as many touched their new 52 weeks low in the midst of free fall in equity prices and the Q2 earnings season on a low transacted volume which reveals accumulation and indecision among traders as money flow index remained weak, even though it managed to inch up (READ MORE). The poor liquidity and negative market breadth supported the pullback, but Friday’s rebound signals that bargain hunters are repositioning, a situation which may support recovery, especially as more company are expected to release their numbers in this last full week of the month. However, the expected reversal will be a function of liquidity and the strength of half-year scorecards

Nonetheless, the low transaction volume in the market raises hope for a bull run in a bearish market.
The current chart pattern on the NSEASI supports a reversal, as it trades below its 20-Day Moving Average and on top of the lower Bollinger band, line, while RSI is reading ‘oversold’ at 32.68. But then, Money flow at 17.50 points remains weak.

BearishSectoral Indices
All the sectoral performance indexes for the week were in red, with the NSE Oil/Gas led the decliners after shedding 5.70%, followed by the NSE Industrial Goods index with 5.17%, just as the banking, insurance and Consumer Goods indexes closed at 4.30% , 3.77% and 0.01% down respectively.

The selling sentiment across all sectors is coming at the peak of earnings reporting season and a negative market breadth with decliners outnumbering advancers in the ratio of 52:15, to withstand the down market.
Market activities were mixed as volume was up by 10.10% to 1.09bn shares, compared to 988.49m units traded in the prior week, while value slipped by 3.25% to N13.39bn from N13.84bn in the preceding week.
The best-performing stocks for the week were LASACO and Abbey Mortgages that topped the advancers’ chart with 13.79% and 10% gains respectively, to close at N0.33 and N0.99 per share on 3kobo dividend and market forces. On the flip side, McNichols and CCNN lost 18.18% and 17.24% respectively, closing at N0.45 and N12.00, on profit-taking.

Market Outlook
We expect bargain hunting at this point and repositioning for half-year earnings reporting season to change the market direction this week, considering the positive inflation data for June ahead of the MPC meeting slated for Monday and Tuesday, as discerning investors take advantage of low valuation to buy into interim dividend stocks and undervalued equities.
They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as plans by the 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.

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/2019/07/26-month-bear-run-caution-still-as-investors-await-q2-earnings-fiscal-stimulus-to-rescue-ngse-index/#more

Transcorp Plc H1 Comes Below Market Expectations, Betrays Sorry State Of Nigeria’s Economy

Transnational Corporation of Nigeria Plc, one of the country’s fastest-growing conglomerates on the Nigerian Stock Exchange (NSE), recently released its earnings report for the 2019 half-year ended June 30, as it continues to raise its game in the area of corporate governance, remaining a consistent early filer on a yearly and quarterly basis.

The numbers revealed declining top and bottom lines, thereby disappointing investors, especially considering its years of restructuring, capacity building and investment which has not reflected on the earnings reports under consideration.
The group seemed to be silent on how far it has gone in its ongoing oil prospecting which it said last year would begin to impact its books positively from February this year, long before the news of its bid for Afam Energy plants.
It may be necessary, going forward, for the management of Transcorp Plc to re-strategize and reposition its services and boost performance, while creating value for all its stakeholders.

Transcorp earnings for the period under review was deflated by low sales in its energy business segment, with capacity charge and profit fell to N17.84 billion and N10.56 billion respectively, from N29.79 billion and N16.24 billion in the corresponding period of 2018, following which the marginal growth recorded by the hospitality business segment pale into insignificance.
Turnover for the period dropped by 30.19% to N37.76 billion, from the previous year’s N54.09 billion, despite the seemingly decline in cost of sales, while profit before tax slipped to N5.05 billion from N11.94 billion, a significant 57.71% decline below the 2018 position. Provisions for tax stood at N435.73 million, as against the N1.06 billion reported in 2018, just as net profit stood at N4.61 billion, representing 57.63% decline when compared to N10.88 billion in 2018. This followed the continued increase in cost component as shown in the Net Profit Margin ratio of 12.22%, down significantly from the previous 20.11%.


The group produced actual Earnings Per Share (EPS) of 11kobo, down from 27kobo in the first half of 2018, which translates to Earnings Yield of 11.24% when benchmarked against the current market price as at the release date of the financials.
Within the period, Book Value however improved marginally to N2.69, up from the N2.60 achieved in the corresponding period of 2018, which means the stock is still undervalued and has a high margin of safety, while investors waiting period increased slightly on the strength of the weak earnings power to 2.22x6x, from 1.18x.
On the current mood of the macroeconomic environment and unimpressive numbers from the group’s track record in the last two quarters of 2019, on the strength of the company’s Price/Earnings ratio of 2.22x and Book Value of N2.69 per share, we have conservatively valued shares of Transform Plc at N2.10 per unit. We also recommend a BUY for all investment objectives, considering the nature of its services and sectors in which it operates.


The price action above shows a downtrend since the last week of February when Transcorp Plc released its 2018 full-year earnings report and offered a dividend a three kobo dividend. The stock continues to oscillate and side trended on low volume traded before the recent pull-back that has created an entry opportunity for short and long term investors. Transcorp Plc resisted further decline after forming a multiple bottom chart pattern since August 24, 2018, before finally breaking down the yellow line recently. Market sentiments before the ongoing earnings season had been negative due to the low market liquidity and weak economic fundamentals. The stock’s upside potential is high and recovery is underway.


Company History
In the power sector, Transcorp Power Limited (TPL) is the resultant entity from the November 2015 merger of Ughelli Power Plc (UPP) and Transcorp Ughelli Power Limited (TUPL), both located in Delta State.
In 2012, TUPL won the bid to acquire UPP, one of the six power generation companies of the unbundled Power Holding Company of Nigeria (PHCN) during the Federal Government’s privatization exercise. TPL has successfully increased the plant’s functional capacity from the pre-acquisition level of 169megawatts in November 2013 to 634mw, which is close to a pre-acquisition maximum capacity of 670mw set by the Bureau of Public Enterprises (BPE). There are plans to further grow its capacity to over 3,000mw over a five-year period.

Transcorp Hotels Plc is the group’s hospitality subsidiary and currently owns Transcorp Hilton Abuja and Transcorp (Metropolitan) Hotels Calabar. In addition, it signed a management agreement with Hilton Worldwide to commence the development of a Transcorp Hilton Ikoyi, Lagos, as well as the Transcorp Hilton Port Harcourt. The completion of strategic expansion projects to upgrade current hotels and develop new hotels will result in Transcorp having the largest number of hotel rooms by any investor in Nigeria.
In the oil & gas sector, Transcorp Energy Limited, a fully owned subsidiary, established in 2008, oversees a joint venture agreement with Sacoil Holdings Limited (Sacoil) to develop its OPL 281 asset in collaboration with Energy Equity Resources Limited (EER). Production is yet to commence on this asset.

Five-Year Performance Analysis
The performance of Transcorp Plc over the past five years has been mixed and unstable, reflecting the different challenges it faced under the previous owners and management, especially in its tortuous formative years during which its price collapse from N10 each, to the then floor of 50 kobo. There was however a turnaround in 2017, which was sustained in 2018 when the company posted its most outstanding performance so far in its history. Revenue CAGR stood at 30.39% between 2014 and 2018, with growth impacted by the contribution from its power division.
Profit has been unstable also, rebounding to N10.61 billion in 2017 after a negative 2016 account, as it recorded 94.46% growth to N20.63 billion in 2018.
Book Value expanded by a 5-year CAGR of 17.38% from N89.75bn in 2014, while historical dividend payout also showed inconsistency, given that it only started paying in 2013. The company has rewarded shareholders in five of the last six financial years.


Estimated Performance Ratios
Transcorp Plc’s Earnings Per Share for the five-year period has been undulating, reflecting the unstable business environment in the various sectors of operation. But with the continued capacity building and investment over the years, the group’s earnings power is gradually becoming stable. Earnings per share increased from 0.09 kobo in 2014 to 51 kobo in 2018 after declining first to 5 kobo in 2015, following which it slipped into a negative position of three kobo in 2016, before the 2017 rebound to EPS of 26 kobo. The relatively low price and improved earnings have reduced investors’ waiting period to 3.37x at the market value as at released date, from a high Price/Earnings Ratio of 41.01x in 2014.
Book value for the period has grown from N2.32 in 2014 to N2.59, reflecting that it is undervalued, considering its market price. Other performance ratios were mixed, with Price to Earnings ratio, Return on Equity and Profit Margin indicating improvement in the company’s performance since 2017.

https://investdata.com.ng/2019/07/transcorp-plc-h1-comes-below-market-expectations-betrays-sorry-state-of-nigerias-economy/

Notification of Lifting of Suspension Placed on the Trading of the Shares of Continental Reinsurance Plc

We refer to our Market Bulletin dated 31 December 2018, with Reference Number: NSE/RD/LRD/MB7/18/12/31 wherein we notified Dealing Members of the suspension of Continental Reinsurance Plc (the Company) as requested by the Issuer through its Stockbroker, Chapel Hill Denham Securities Limited for the purpose of determining the shareholders that will qualified to receive the scheme consideration following the resolutions passed by the shareholders of CRE at the Court-Ordered Meeting held on 20 December 2018 in favour of the proposal by CRE African Investments Limited (a major shareholder of the CRe) to acquire all the outstanding and issued shares of CRE for cash or shares.

The Securities and Exchange Commission has directed that the Company reconvene another Court-Ordered Meeting to consider the Scheme of Arrangement thereby invalidating the Court Ordered Meeting held on 20 December 2019. Hence, the condition upon which the suspension was earlier placed ceased to subsist. Consequently, the Suspension on the trading of the shares of Continental Reinsurance Plc was today; Thursday, 18 July 2019 lifted to allow shareholders trade on their shares pending the reconvening of the meeting and announcement of a new effective date by the company

https://investdataltd..com/2019/07/notification-of-lifting-of-suspension.html

Investdata Daily Sentiment Report as of 23 July 2019

NSEASI buy 0% MFI 15.28
Access buy 33% sell 67% MFI 66.17
Afrprud buy � volume index 0.95 MFI 23.49
Aiico buy 0% volume index 0.99 MFI 44.08
Chiplc buy 0% volume index 1.10 MFI 50.48
Dangcem buy 28% sell 72% volume index 2.16 MFI 24.25
Dangflour buy � volume index 1.62 MFI 69.59
Fbnh buy 0% MFI 11.76
Fcmb buy � volume index 0.87 MFI 38.97
Fidelity buy 0% volume index 1.03 MFI 19.00
Fmn buy 0% volume index 1.20 MFI 20.60
GT buy 0% MFI 24.58
Honyflour buy 0% volume index 0.80 MFI 30.83
Japaul buy � volume index 6.49 MFI 40.48
Lasaco buy 0% volume index 0.95 MFI 87.12
Nahco buy 70% sell 30% volume index 3.44 MFI 0.00
Nascon buy 0% volume index 3.77 MFI 7.83
Nestle buy � volume index 1.24 MFI 19.60
Oando buy 0% volume index 1.84 MFI 59.62
Prestige buy 0% MFI 83.19
Pz buy � volume index 1.25 MFI 36.93
Sterling buy � volume index 4.94 MFI 58.30
Transcorp buy 17% sell 83% volume index 3.18 MFI 30.40
Uacn buy 0% MFI 23.33
Uba buy � volume index 2.16 MFI 18.74
Ubn buy � volume index 7.21 MFI 16.97
Ucap buy 62% sell 38% volume index 4.07 MFI 15.92
Wapco buy 29% sell 71% MFI 83.20
Wapic buy 0% MFI 49.39
Zenith buy 33% sell 67% MFI 34.87

https://investdataltd..com/2019/07/investdata-daily-sentiment-report-as-of_23.html

Investors Bet On FG’s Cabinet List, MPC Outcome, Earnings Reports, Amidst Liquidity Constraints

Market Update for July 22
The negative sentiment and selloff narrative on the Nigerian Stock Exchange (NSE) continued on Monday, the first trading session of the week, with the composite All-Share index closing lower to wipe clean previous day’s gain on an above-average traded volume.
The failure of the government to assemble a cabinet five months after President Muhammadu Buhari was re-elected and almost two months after his inauguration for a second and final four-year term in office shows the seeming confusion of the country’s leadership. This has continued to dampen investor confidence, just as the proposed reintroduction of Value Added Tax (VAT) charges on all capital market transactions is bound to negatively impact cost and returns on investment.

The VAT charge is billed to begin on Thursday, July 25, and could mean double taxation on investors who already pay VAT on their dividend which could further discourage investment and wealth creation through the trading of securities. This is a further threat to the already fragile economy.

We would not be surprised, judging from the President’s body language, that more of the Ministers who served in the previous tenure will be reappointed, and as such there will little or no element of surprise.
Meanwhile, it was a very volatile and mixed session as the NSEASI started marginally on the upside till the mid-morning before pulling back sharply by the afternoon after touching intraday low of 27,808.69 basis points from a high of 28,070.43bps. This was as investors anticipated more corporate earnings and outcome of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting.

Investors and traders will this morning react to the half-year numbers from Lafarge Africa Plc, which hit the market after trading hours on Monday. The numbers were not disappointing despite the mixed performance with flat top-line and significant improvement in the bottom-line, as it continues with the divestment from its South African operation (READ MORE).
Monday’s market technicals were negative and mixed, with higher volume traded than the previous day’s, amidst negative breadth. There was also a high selling pressure as revealed by Investdata’s Daily Sentiment Report, with the session’s ‘sell’ position at 100% of the total daily transaction volume index of 0.68.

The forces behind the day’s performance remained seriously weak, despite inching up, as Money Flow Index read 15.28 points, higher than previous day’s 6.39bps, indicating that funds are moving around some stocks, despite the continued selloff in high and low cap stocks in the phase of low liquidity in the market.

Index and Market Cap
At the end of trading, the benchmark NSEASI lost 110.81bps to close at 27,808.69bps after opening at 27,919.50bps, representing a 0.40% decline, while market capitalization shed N54.01bn, closing at N13.55tr, from its opening value of N13.61tr, which also represented 0.40% 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 persisted decline was driven by selloffs in MTNN, Nigerian Breweries, Guaranty Trust Bank, Zenith Bank, Flour Mills, FBN Holdings, Oando, Nascon, Honeywell, and Transcorp Plc whose directors reported a less than expected half-year score-card (READ MORE), among others. This further intensified the negative position of the market, with the NSE’s Year-to-Date loss rising to 11.52%, just as YTD market capitalization gain dropped to N1.83tr, or 15.63%, above the year’s opening level of N11.72tr.

Mixed Sectoral Indices
The sectoral performance indexes were largely down, except for the NSE Banking and Insutraial goods that closed higher by 0.42% and 0.24% respectively, while the Insurance index led the decliners after dropping 1.18%, followed by Consumer Goods with 0.94%, just as oil/gas slipped 0.16%.

Market breadth remained negative as decliners outnumbered advancers in the ratio of 19:14; while market activities were mixed, with volume traded rising by 6.52% to 285.76m shares, from previous day’s 268.34m units, as transaction value fell to N2.24bn from the previous day N2.81bn. The session’s volume was driven by trades in financial services, ICT and Conglomerates stocks such as Courville Business Solution, Sterling Bank, UBA, Transcorrp, and Zenith Bank.

The best-performing stocks for the day were African Prudential and United Bank for Africa which led the advancers’ table with 8.82% and 8.18% gains respectively, closing at N3.70 and N5.95 per share, on improved numbers and low price attraction ahead of the expected interim dividend payout. On the flip side, NASCON and Consolidated Hallmark Insurance lost 10% and 9.65% respectively to close at N13.50 and N0.28 on selloff and profit.

Market Outlook
We expect the market to reverse in the coming days as more earnings are announced and depending on the outcome of the MPC meeting that would be announced today to determine whether bargain hunters will take advantage of the prolonged bearish trend and buy as the half-year earnings reporting season enters peak period. 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 7.28x, 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 the 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.

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/investors-bet-on-fgs-cabinet-list-mpc-outcome-earnings-reports-amidst-liquidity-constraints/

For us to continue to serve you better, we at investdata Ltd will appreciate if you can take a minute out of your busy schedule to drop a review about our services on the link below.

https://g.page/Investdata/review

Thank you.

Investdata Daily Sentiment Report as of 24 July, 2019

NSEASI buy � MFI 20.31
Access buy 57% sell 43% MFI 64.47
Ccnn buy � volume index 1.44 MFI 41.74
Dangcem buy 83% sell 17% volume index 1.76 MFI 33.34
Dangsugar buy 0% MFI 50.11
Eti buy � MFI 27.24
Fbnh buy � MFI 12.53
Fcmb buy � volume index 0.90 MFI 35.93
Fidelity buy 0% MFI
21.82
GT buy 90% sell 10% MFI 24.31
Japaul buy 0% volume index 1.31 MFI 42.03
Nahco buy 89% sell 11% volume index 1.31 MFI 16.55
Nestle buy � MFI 25.44
Oando buy � MFI 56.92
Stanbic buy � volume index 1.28 MFI 10.62
Sterling buy � volume index 81.41
Transcorp buy � MFI 35.33
Uacn buy � MFI 30.61
Uba buy 33% sell 67% MFI 20.81
Ucap buy 33% sell 67% volume index 2.11 MFI 14.04
Wapco buy � volume index 1.17 MFI 84.37
Wapic buy 0% volume index 0.71 MFI 51.10
Zenith buy 20% sell 80% MFI 41.88

https://investdataltd..com/2019/07/investdata-daily-sentiment-report-as-of_26.html

NGSE Index Looks Towards Emerging Earnings Reports, As July’s Last Full Week Ends

Market Update for July 25
Thursday’s session on the Nigerian Stock Exchange (NSE) was a floppy and rough as its composite All-Share index consolidated back-to-back losses on a higher traded volume with earnings reporting season further dampening the market’s momentum. This was not unexpected mixed and weak scorecards emanating from listed companies thereby extending the bearish sentiments.
The Q1 and Q2 numbers so far released from companies like University Press, 11 Plc, Ikeja Hotel, Flour Mills (READ), Chemical & Allied Products and Julius Berger (READ), were weak and below market expectation. Beyond every other thing, it reflects the gloomy state of the nation’s economy, despite the fact that oil prices at the international market are on the upswing, with September-dated crude futures up 1% at $56.40 per barrel.

Two major factors are consistently working against the Nigerian market, giving the bears an upper hand since early 2018 when volatility started to trend down. They are the weak economy and political uncertainty, both of which have affected breadth, and specifically the index’s cumulative A/D line. Each time the benchmark index has made a new low, breadth has confirmed the move, and in each of the declines coming out of rallies, breadth has consistently lead price.

The extended bear market even after the release of the Ministerial list may be the result of the widespread dissatisfaction over the calibre of the nominees, restoration of Value Added Tax (VAT) charges that has heightened transaction costs in the market, as well as the poor numbers so far released. There is also the fear of a continued decline or slowdown in Q2 GDP being expected from the National Bureau of Statistics (NBS), given the quality of results already presented by the companies.

Trading on Thursday opened slightly up in the morning, oscillated in the mid-morning to midday, but stayed flat by early afternoon before pulling back at midafternoon to touch intraday low of 27,985.62 basis points from its high of 28,103.69bps, propelled by the continued selloff in high cap stocks. It then retraced up marginally to close the day at 27,990.81bps
Market technicals during the session were negative but mixed as volume traded was higher than previous day’s, amidst negative breadth and sentiment as revealed by Investdata’s Daily Sentiment Report, with the day’s ‘sell’ position at 96% and buy volume at 4% of total daily transaction volume index of 0.86.

The impetus behind the day’s performance remained weak and flat as Money Flow Index read 25.39 points, higher than previous day’s 25.79bps, indicating that funds left some stocks for another and for cash as factors militating against the market continue to increase in the face of already weak market and economic fundamentals.

Index and Market Cap
The All-Share Index at the end of Thursday trading lost 98.13bps to close at 27.990.61bps, after opening at 28,088.74bps, representing 0.35% decline, just as market capitalization fell by N47.82bn to close at N13.64tr, from an opening value of N13.69tr, also representing 0.35% 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 with stocks making new lows, but has a high margin of safety ahead of the expected fiscal stimulus.
The day’s decline was due to the persistent selloffs in high cap stocks like Dangote Cement, MTNN, Zenit Bank, FBNH, Access Bank, CCNN, Forte Oil, Oando, and Transcorp, which impacted negatively on the NSE’s Year-to-Date loss position raising it to 10.94%. Also, YTD market capitalization gain dropped to N1.92tr, or 16.64%, above the year’s opening level of N11.72tr.


Sector Indices
The sectoral indices had a mixed performance that was largely bullish, except for the NSE Oil/Gas and Banking that closed lower by 0.81% and 0.39% respectively, while the Insurance index led the advancers after gaining 0.27%, followed by Industrial Goods with 0.26% and next was Consumer Goods with 0.16%.
Market breadth slipped into negative as decliners outnumbered advancers in the ratio of 16:15; market activities were mixed as volume traded was up by 127.59% to 357.11m shares from previous day 157.79m units, while value declined to N1.89bn from midweek’s N2.52bn. The day’s volume was driven by trading in financial services, Conglomerates and ICT stocks such as Courtville Business Solution, FCMB, UBA, Transcorp, and Zenith Bank.

FCMB and Chams were the best-performing stocks for the day, as they topped the advancers’ table with 8.81% and 8% gains respectively, closing at N1.73 and N0.27 per share, on earnings expectation and market forces. On the flip side, Wapic Insurance and GSPECPLC lost 10% and 9.57% respectively to close at N0.36 and N5.20 on profit-taking and market forces.

Market Outlook
Being the last trading day of the week, the current trend is expected to continue as half-year numbers miss expectation to propel the prolonged bearish run as more companies release reports to the market.
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 7.28x, 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.


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/ngse-index-looks-towards-emerging-earnings-reports-as-julys-last-full-week-ends/#more

Investdata Daily Sentiment Report as of 25 July, 2019

NSEASI buy 8% sell 92% MFI 25.79
Access buy � MFI 59.66
Dangcem buy 71% sell 29% MFI 35.22
Dangsugar buy 0% volume index 2.04 MFI 27.22
Fbnh buy 0% MFI 14.48
Fcmb buy � volume index 0.70 MFI 31.79
Fidelity buy 50% sell 50% MFI 28.28
Fo buy � volume index 2.75 MFI 3.61
GT buy 44% sell 56% volume index 1.31 MFI 22.07
Japaul buy � volume index 1.91 MFI 49.05
Nascon buy � volume index 2.24 MFI 6.37
Nestle buy 0% volume index 0.95 MFI 33.58
Transcorp buy � volume index 0.92 MFI 33.87
Uacn buy 0% MFI 26.09
Uba buy 33% sell 67% volume index 1.86 MFI 20.15
Ucap buy 0% volume index 2.13 MFI 24.85
Wapco buy 0% MFI 72.10
Zenith buy 0% MFI 44.11

https://investdataltd..com/2019/07/investdata-daily-sentiment-report-as-of_19.html

Investdata Daily Sentiment Report as of July 26 July, 2019

NSEASI buy 4% sell 96% volume index 0.86 MFI 25.39
Access buy 0% MFI 56.58
Aiico buy 0% MFI 41.30
Caverton buy 0% volume index 5.64 MFI 0.00
CIleasing buy � volume index 0.92 MFI 19.67
Cutix buy 0% volume index 0.70 MFI 85.25
Dangflour buy � volume index 1.09 MFI 92.16
Eti buy � volume index 3.61 MFI 5.55
Fbnh buy 0% MFI 16.21
Fcmb buy � volume index 13.82 MFI 81.52
Fidelity buy � volume index 0.75 MFI 30.73
Fmn buy � MFI 17.50
Fo buy 0% MFI 3.55
GT buy 67% sell 33% MFI 22.04
Japaul buy � volume index 0.93 MFI 45.88
Mben buy � volume index 1.13 MFI 94.21
Transcorp buy 0% volume index 1.12 MFI 39.33
Uacn buy � MFI 24.84
Uba buy 20% sell 80% volume index 2.11 MFI 32.04
Ucap buy � volume index 1.49 MFI 28.26
Wapco buy 83% sell 17% MFI 71.49
Zenith buy 20% sell 80% MFI 42.51

https://investdataltd..com/2019/07/investdata-daily-sentiment-report-as-of_27.html

Selloffs Continue On NGSE, Despite Attractive 7.28% P/E Ratio, Q2 Earnings Season

Market Update for July 24
It was yet another negative midweek, as the Nigerian Stock Exchange (NSE) reversed the positive close of the previous session ahead of Thursday’s reintroduction of Value Added Tax (VAT) to all capital market transactions, which remains a source of serious concern to investors, given that it increases cost borne by investors.
This, investors note, has further weakened buying interest and confidence, among other factors militating against the market, one of which is the mixed feelings over the list of proposed cabinet members submitted by President Muhammadu Buhari for clearance to the Senate on Tuesday. It is noted that the list is dominated by “ex-this and ex-that” politicians who have been recycled since 1999 in so many cases, at a time the nation’s economy is begging for attention and seriously deteriorating daily due to ineffective economic policies, insecurity, a lack of infrastructure and multiple taxations.

The composite NSE All-Share index is currently indicating a tentative breakout or down of its recent consolidation pattern as we have noted a few days ago. Any further follow-through from here to the up or downside would be a function of the expected corporate earnings and market liquidity, given that the market is now seeing new lows across the sectors and individual stocks. When a market behaves like this, momentum and fearful bearish investor sentiment often continue to fuel a downtrend. Sadly, market players, daily find more reasons to sell and not many reasons to buy as events unfold at all level of governance, despite the low valuation and prevailing low prices of equity.
At the end of midweek’s trading, NASCON Allied, Total Nigeria, and Unity Bank made new 52- week low, while Boc Gases made a new 52-week high.

Wednesday’s trading was a very volatile and mixed session as the index started slightly on the downside and reversed up between mid-morning to early afternoon, taking off the previous high and touching intraday high of 28,292.44 basis points from the low of 28,070.65bps. It then pulled back to finish the day at 28,088.74 basis point on less than average traded volume.
Market technicals for the session were negative and mixed, even as volume traded was higher than previous day’s, amidst a flat breadth and high selling pressure as revealed by Investdata’s Daily Sentiment Report, with the day’s ‘sell’ volume at 92% and buy position at 8% of total daily transaction volume index of 0.38.

The energy behind the day’s performance remained weak, despite looking up, as Money Flow Index read 25.79 points, higher than previous day’s 20.31bps, indicating that funds enter some stocks and the market irrespective of resume selloff among the high cap stocks.

Index and Market Cap
At the end of midweek’s trading, the All-Share Index shed 56.13bps to close at 28,088.74bps, after opening at 28,144.87bps, representing 0.20% drop, just as market capitalization lost N27.36bn to close at N13.69tr, from an opening value of N13.72tr, also representing 0.20% 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 with stocks making new lows, but has a high margin of safety ahead of the expected fiscal stimulus.
The day’s downturn was driven by selloffs in high cap stocks like Dangote Cement, Nestle Nigeria, Guaranty Trust Bank, Total Nigeria, WAPCO, Dangote Sugar, UBA and FBN Holdings. This negatively impacted the NSE’s Year-to-Date loss, which inched up to 10.63%, just as YTD market capitalization gain fell to N1.94 trillion, or 16.63%, above the year’s opening level of N11.72tr.

Sector Indices
The sectoral performance indexes were largely bullish, except for the NSE Industrial goods and banking that closed in red by 1.20% and 0.20% respectively, while the Oil/Gas index led the advancers after gaining 4.51%, followed by Consumer Goods with 0.34% and next was insurance with 0.12%.
Market breadth was balanced, as advancers equaled decliners in the ratio of 16:16; market activities were up in volume and value traded by 16.72% and 20.55% respectively to 157.79m shares worth N2.52bn from previous day’s 135.18m units valued at N2.09bn. The day’s volume was boosted by trading in financial services and conglomerates stocks such as Guaranty Trust Bank, UBA, Zenith Bank, Sterling Bank, and Transcorp.

The best-performing stocks during the session were Japaul Oil and Boc Gas which topped the advancers’ table with 10% and 9.96% gains respectively, closing at N0.22 and N5.07 per share, on market forces. On the flip side, Unity Bank and Prestige Assurance lost 9.30% and 6.25% respectively to close at N0.58 and N0.48 on selloffs and market forces.

Market Outlook
We expect a mixed performance depending on market forces and more earnings as bargain hunters take advantage of the prolonged bearish market, just as the half-year earnings reporting season enters peak period. 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 7.28x, 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 the 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.


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/selloffs-continue-on-ngse-despite-attractive-7-28-p-e-ratio-q2-earnings-season/

Hello Traders and Investors,

Here is the Market update the week ended July 19, 2019


In this post, you will discover

1.Market Trend Movement from
2018 to date.

.The need to Invest in retirement
stocks
3.Concise Stocks to Invest in
whether you are planning you
retirement or not
4 Different Economic policies that
will help boost the economy
5.The main factor responsibility
for the Market Downtrend
6. Etc

For further clarification call NOw
08028164085,08032055467
or send an email to
ambroseconsultants@yahoo.com

Dedicated to your Financial
Success
Ambrose Omordion


https://www.youtube.com/watch?v=Tg9-LI3q7D4

Caverton Offshore Support Grows Half-year Net Profit By 78%

Caverton Offshore Support Group at the weekend presented its unaudited half-year ended June 30, 2019, to the Nigerian Stock Exchange (NSE), showing that profit before and after-tax rose at a faster pace than revenue, helped by jump in other operating income, in what may ensure shareholders get higher dividends at year-end, if the management and board sustain the current tempo.

Revenue for the period rose by N2.681bn or 18.85% from the N14.222bn reported in the corresponding period of 2018 to N16.904bn, with helicopter and airplane contract remaining the group’s cash-cow, contributing N15.989bn, representing an otherwise unhealthy 94.59% of the total, compared with the previous N13.827bn or 97.22% of the previous total. Helicopter charter pooled N803.384m, up from N310.922m previously; followed by N54.181m from vessel agency services, up from N28.852m; the N51.64m earned from vessel time charter and boat income, as against the previous N49.85m; and the N5.469m earnings from helicopter maintenance, up from N4.673m.

Operating expenses inched by N1.443bn or 15.26%; following which operating profit stood at N6.004bn from N4.766bn, representing an increase of N1.238bn or 25.94%, the biggest of which was the N4.404bn spent on aviation fuel and spare parts, from N3.038bn; followed by N3.621bn in crew salaries, an increase from N2.698bn; even as right to use-aircraft depreciation cost N2.395bn, soaring from N645.002m.
Aircraft insurance premium accounted for N374.283m, compared to N352.261m; landing and navigational expenses dropped from N122.081m to N43.094m. The group also did not incur expenses by way of aircraft rentals during the review period, compared to N2.587bn last year.

Administrative expenses rose by N781.654m or 39.18% to N2.776bn from N1.994bn, principally the N1.147bn employee benefits expense, which rose from N568.901m; other expenses and overheads dropped marginally to N534.254m from N573.04m; transport and travels slipped to N256.801m from N265.927m; even as management expenses rose from N188.035m in 2018 to N294.33m.

Other operating income however soared by N432.792m or 823.52% from N52.554m in 2018 to N485.346m, swelled by ‘others,’ which climbed to N371.643m, compared to N17.335m in the 2018 half-year; N92.356m grant income, which rose from N24.872m; just as interest income rose from N10.347m to N20.558. This resulted in a total operating profit of N3.713bn, compared to the N2.824bn in the prior half-year.

Finance cost, which was entirely the interest on debts and borrowings, dropped from N1.267bn to N1.088bn; profit before tax rose to N2.625bn, N750.119m or 77.92% up from N1.556bn. Income tax expense jumped by N318.916m or 53.67% to N913.103m from N594.187m; leaving a net profit of N1.712bn, an improvement of N750.119m or77.93% from N962.451m. which translated to Earnings Per Share of 51 kobo from 29 kobo in the similar period of 2018.

https://investdata.com.ng/2019/07/caverton-offshore-support-grows-half-year-net-profit-by-78/

Q2 Season Enters Final Days, As Bargain Hunters Reposition, Await Improved Liquidity

Market Update for the week ended July 26 and Outlook for July 29-August 2

Nigeria’s equity market during the past week had a flat performance, just as the economy witnessed a lot of activities, ranging from the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting which left all of its monetary instruments unchanged; and release of the ministerial list by President Muhammadu Buhari. Also last week, the Senate immediately commenced screening, even when portfolios were not assigned to the nominees, even as investors and commentators have expressed disappointment over the recycling of the same old politicians.

Within the week also, over 30 companies released their quarterly earnings reports to investors, most of which came mixed and weak, except for a few that posted impressive numbers, thereby further reducing confidence and expectations among investors and citizens. The situation has not been helped by the process of screening the cabinet ministers, with the legislators making a joke of the Ministerial exercise by asking the bulk of nominees to take a bow, at a time Nigeria’s economy urgently needs reforms to turnaround the situation.

The mixed sentiment and low traded volume in the period is a sign of the confusion and indecision existing among traders and investors, despite the superlative entry opportunities presented by the current state of the market, given its low valuation.
Also, at the end of last week, Okomu Oil Palm, Livestocks Feeds, International Brewery, NASCON Allied, Total Nigeria, and Unity Bank made new 52-week lows, while Boc Gases touched its new year-high.

However, looking at the various half-year numbers of companies so far released, especially those in the consumer goods sector, there are signs of rekindling confidence. This will, however, materialise if managers of the economy do the needful, not minding the fact that the sector has suffered a year-to-date loss of 22.76%, worse than the 11.17% decline of the benchmark NSE All-Share index, as emerging earnings continue to miss expectations across sectors.

The situation is not altogether new, given what we saw early in the Q1 and Q2 earnings seasons from companies in the petroleum marketing, conglomerates, and consumer and industrial goods sectors.
During the week also, Caverton and Cement Company of Northern Nigeria set a new barometer for the services sector recording above 20% year-over-year earnings growth; and 30% sales revenue growth respectively over the same period of last year. Recall that earnings reports of stocks in the consumer goods sector have been in this bad and mixed state since 2018, due to the prevailing low purchasing power and weak economic fundamentals, in the face of the confidence crises in the country.

Movement Of NSEASI
Meanwhile, trading closed on the first day of last week on a negative note, reversing the previous gain with the NSEASI losing 0.40% on selloffs and mixed sentiments, a trend that was short-lived when the index gained a spectacular 1.21% Tuesday on positive sentiment. The day’s transaction volume was however low on a day the MPC voted to keep rates unchanged and the long awaited minister list was announced in the green chamber (the Senate). This gain was however short-lived as it was reversed on Wednesday, Thursday, as well as Friday, when the NSE composite ASI shed 0.20%, 0.35%, and 0.26% respectively. These, however, dragged the index flat, compared to the previous week’s 2.27% decline.

The market resisted further decline on the strength of indecision among traders and investors during the period as the NSE’s year-to-date loss climbed to 11.17%; while market breadth turned positive, as selling pressure subsided as investors continued to interpret the impact of the MPC decision. We note that some companies like Ikeja Hotel and MTNN have joined the interim dividend stocks with half-year payout of 3 kobo and N2.95 respectively.

Once again, low cap stocks dominated the week’s advancers gainers’ table, while highly capitalized and blue-chip stocks fell in the midst of a low traded volume and the prevailing low liquidity.
The energy behind the week’s performance was weak, as shown by Money Flow Index at 12.98 basis points, compared to 17.50bps in the previous week, indicating that funds left some stocks and the market, despite the indecision among market players. Also, sentiments remained negative and mixed, with a sell position at 75% and ‘buy’ volume, 25% on a transaction volume index of 0.64.

NSEASI Weekly Time Frame
The negative sentiment and selling pressure seem to however slowed down marginally as many stocks maintained flat position with few touching their new 52 weeks low at the peak of half-year earnings reporting season. Despite the cautious trading and seeming accumulation in some stocks, the mixed numbers currently being released to the market are likely to impact positively considering the prevailing low prices of equity, if right policies are put place. The positive market breadth and candlestick pattern for the week is a sign that bargain hunters are repositioning, a situation that supports reversal, especially as more companies release their numbers in this week.

However, the expected reversal will be a function of liquidity and analyses of half-year earnings position.
The current chart pattern on the NSEASI supports a reversal, as it trades below its 20-Day Moving Average and on top of the lower Bollinger band, line, while RSI is reading ‘oversold’ at 32.68. But then, Money flow at 12.98 points remains weak.

Mixed Sectoral Indices
The sectoral performance indexes for the week were largely bearish, except for the NSE Industrial and Consumer Goods that closed higher by 1.79% and 0.71% respectively, while the NSE Insurance led the decliners after losing 0.94%, followed by the NSE Banking with 0.39% and next was NSE Oil/Gas with 0.19%.

The slowdown in selling pressure was across all sectors at the peak of earnings reporting season and a positive market breadth with advancers outnumbering decliners in the ratio of 31:29, to halt the three-down market.
Market activities were down in volume and value by 1.83% and 14.94% respectively to 1.07bn shares worth N11.39bn, from prior week’s 1.09bn units valued at N13.39bn.

NPF Microfinance and BOC Gas were the best-performing stocks for the week, as they topped the advancers’ chart with 14.16% and 11.67% gains respectively to close at N1.29 and N5.07 per share on improved Q2 numbers and market forces. On the flip side, Linkage Assurance and International Brewery lost 20.31% and 18.36% respectively, closing at N0.51 and N12.50, on profit-taking and selloff.

Market Outlook
We expect the market to maintain the same trend, while portfolio reshuffling and repositioning will be on the half-year earnings strength and fundamentals, as discerning investors take advantage of low valuation to buy into interim dividend stocks and undervalued equities.
They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as plans by the 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.

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.

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/q2-season-enters-final-days-as-bargain-hunters-reposition-await-improved-liquidity/

Investdata Daily Sentiment Report as of June 30th, 2019

NSEASI buy 59% sell 41% MFI 28.26
Access buy 33% sell 67% MFI 51.62
Aiico buy � volume index 1.03 MFI 42.11
Caverton buy 0% volume index 4.43 MFI 34.42
Ccnn buy 75% sell 25% volume index 1.97 MFI 32.85
Cutix buy � volume index 0.98 MFI 66.85
Dangflour buy � volume index 1.81 MFI 93.62
Eti buy 0% MFI 5.07
Fbnh buy � MFI 18.43
Fidelity buy 0% volume index 1.18 MFI 33.07
Fmn buy 0% MFI 45.84
GT buy � MFI 27.16
Jaiz buy � volume index 1.05 MFI 26.44
Japaul buy 100 MFI 39.30
Lasaco buy � volume index 2.41 MFI 82.56
Linkass buy � volume index 2.20 MFI 0.00
Mben buy 0% MFI 88.51
Nahco buy � volume index 1.47 MFI 15.72
Total buy 0% volume index 5.27 MFI 0.00
Transcorp buy 25% sell 75% volume index 0.94 MFI 41.09
Uba buy � MFI 32.74
Ucap buy � MFI 38.60
Wapic buy � MFI 62.73
Wema buy � MFI 31.06
Zenith buy 0% MFI 52.32

https://investdataltd..com/2019/08/investdata-daily-sentiment-report-as-of.html

Investors Review Portfolios On NGSE, Amidst Depressed Half-year Earnings Reports, Poor Liquidity


Market Update for July 30
Stock prices were pulled further down on the Nigerian bourse Tuesday, as volatility continued due to the lingering low liquidity and the prevailing confidence crisis arising from the political risk and unwavering insecurity situation in the country, all of which worsened the country’s already unfriendly business environment and investment space. These have altogether manifested in the mixed and weak half-year earnings reports from quoted companies which have fueled the negative sentiments, wiping away marginal gains from a positive outlook on Monday.
The selling pressure in major sectoral indexes was also due to the mixed and disappointing earnings from players in these sectors, even as scorecards from the banking industry have been weak and mixed, with the exception of interim dividend payers who traditionally audited their half-year reports that are yet to release their numbers.

The consumer goods and oil/gas earnings were weak and below market expectation, except for few companies that posted above-average performance for the half-year. The impressive performance of Lafarge Africa and Cement Company of Northern Nigeria; in addition to the shareholding structure of the companies in this sector have supported the industrial goods index. The insurance index has stayed relatively stable on the strength of the planned recapitalization exercise in the industry, even as half-year numbers have been mixed.
Notwithstanding the disappointment various expressed over the ministerial list for which the investors were disappointed, all 43 nominees have been cleared by the Senate. All eyes are now on President Muhammadu Buhari to assign them portfolios so that implementation of the 2019 budget can commence immediately, as they settle down for the business of governance and policy formulation.
Meanwhile, crude oil prices extended its rebound on Tuesday amidst the prospects of a lower rate and the potential of the U.S-China trade deal providing a brighter outlook for oil demand on the horizon. The hope is based on the influence of oil price movements on the Nigerian stock market, economy, and its external reserves.

The benchmark Nigerian Stock Exchange (NSE) All-Share index started Tuesday on a marginal upside position as the end of the month window dressing moves lasted to till midday before pulling back by early afternoon with more disappointing and mixed earnings hitting the market. This pushed the index down to intraday low of 27,814.13 basis points from a high of 28,028.27bps, before retracing up slightly to close the session lower at 27,820.57 on below traded average volume.

Tuesday’s market technicals were negative but mixed, as volume traded was higher than the previous day’s, amidst negative breadth and sentiment as revealed by Investdata’s Daily Sentiment Report of ‘sell’ volume at 97% and buy position of 3% total daily transaction volume index of 0.67.
The impetus behind the day’s performance remained weak, as Money Flow Index read 21.41 points, lower than previous day’s 28.26bps, indicating that funds left some stocks and the market as selloff resume among the high and low cap stocks at the peak of earnings season and month-end.

Index and Market Cap
At the end of Tuesday trading, the composite index shed 129.79bps to close at 27,820.57bps after opening at 27,950.36bps, representing 0.46% decline, just as market capitalization lost N63.25 billion to close at N13.56 trillion from N13.62tr, which also represented 0.46% 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 decline was driven by selloff in highly capitalized stocks like Nestle Nigeria, Guaranty Trust Bank, Zenith Bank, Nigerian Breweries, Stanbic IBTC, UBA, Access Bank, and FBN Holdings, which pushed the NSE’s Year-to-Date loss to 11.49%, just as YTD market capitalization gain drop to N1.52 trillion or 15.81% from the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indexes were largely bearish, except for the NSE Insurance and Industrial goods that closed 0.02% and 0.57% higher respectively, while the Consumer goods index led the decliners’ after losing 2.07%, followed by Banking and Oil/Gas with 0.72% and 0.16% respectively.

Market breadth turned negative as decliners outnumbered advancers in the ratio of 20:11; market activities were up in traded volume and value by 66.7% and 101.23% respectively to 155.21m shares worth N2.23bn, from the previous 93.11m units valued at N1.11bn. Volume was driven by trading in financial services stocks such as Guaranty Trust Bank UBA, Zenith Bank, FBNH and African Alliance Insurance.
The best-performing stocks for the day were Mutual Benefit and Ikeja Hotel that topped the gainers’ chart with 10% and 8.96% respectively, closing at N0.22and N1.46 per share, on market forces. On the flip side, Japaul Oil and Nigerian Breweries lost 8.72% and 8.33% respectively to close at N0.21 and N55.00 on profit-taking and unimpressive earnings.

Market Outlook
We expect a positive outing being the last trading day of the month as traders balance their trading account and interpretation of earnings reports released so far continued ahead of more earnings in expectation as bargain hunters take advantage of the prolonged bearish market, just as the half-year earnings reporting season peaks. 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 7.23x, which is well below the 11x average of its peers and a five-year average of 13.x. 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.

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.


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/poor-liquidity-weak-transaction-value-volume-still-as-investors-digest-q2-earnings/

Poor Liquidity, Weak Transaction Value, Volume Still, As Investors Digest Q2 Earnings


Market Update for July 29
The Nigerian Stock Exchange (NSE) recorded a seeming rebound on Monday to start the week positive, as the disappointing half-year earnings reporting season enters its peak with mixed and weak numbers, despite the financial engineering apparent in some of the scorecards released recently.

The continued interpretation of corporate earnings made available so far by market players will determine the next direction, going forward, depending on the level of liquidity available in the market as the results of many high cap stocks came below expectations.
The prevailing low trades and mixed sentiment are clear reflections of the wait-and-see attitude of traders and investors, especially when the earnings are not sufficient motivation to reverse the negative market emotions, even as betrayed weak fundamentals.
The increase in the cost of trading due to the reintroduction of Valued Added Tax (VAT) on stock market transactions and delayed release of the half-year score-cards of banking stocks may further dampen investor confidence in the market and economy. Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, is however positive that the VAT waiver on the stock market transaction will be restored when the Finance Minister resumes office soon. He seems to agree with analysts arguments that the basis for the waiver is still very real in today’s market.

But, just as we have said earlier, the weak Q2 corporate earnings have given an insight into what Nigeria’s Q2 GDP numbers could look like when released eventually by the National Bureau of Statistics (NBS).
At the end of Monday’s trading, more companies published their financials including Ecobank Transnational Incorporation, Okomu Oil Palm, Total Nigeria, and others, with their stocks suffering a decline in value to hit 52 weeks low.
Monday’s trading opened slightly on the upside as buying interest in companies that posted surprising earnings increased in the early hours, before pulling back by the midday to early afternoon as more corporate earnings missed expectation. This pushed the NSE All-Share index down to intraday low of 27,912.70 basis points from a high of 27,976.14bps, before finishing the session higher at 27,950.36bps on a very low traded volume.

Market technicals for the day were positive but mixed, as volume traded was lower than the previous day’s, as the breadth favours the bulls, with mixed sentiment as revealed by Investdata’s Daily Sentiment Report of ‘buy’ volume at 51% and sell position of 49% total daily transaction volume index of 0.29.
The momentum behind the day’s performance remained weak, despite moving up, as Money Flow Index read 28.26 points, higher than previous day’s 26.21bps, indicating that funds entered some stocks and the market as selloff slowdown and high cap stock prices inched up in the phase of prevailing low liquidity and indecision.

Index and Market Cap
The benchmark NSEASI closed Monday’s trading slightly up by 31.77bps to close at 27,950.36bps after opening at 27,918.59bps, representing 0.11% growth, just as market capitalization rose N15.48bn up to close at N13.62tr, from N13.61tr, which also represented 0.11% growth.
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 upturn was helped by position taking in stocks like Nestle Nigeria, Guaranty Trust Bank, Stanbic IBTC, UBA, CCNN, FBN Holdings, Wema Bank and Honeywell, which reduced the NSE’s Year-to-Date loss to 11.07%, just as YTD market capitalization gain inched to N1.65tr or 15.34% from the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indexes were largely bullish, except for the NSE Banking and Oil/Gas that closed 0.02% and 1.25% lower respectively, while the Insurance index led the advancers’ after gaining 0.63%, followed by Consumer and Industrial Goods with 0.20%resectively.
Market breadth turned positive as advancers outnumbered decliners in the ratio of 21:14; market activities were down in transaction volume and value by 28.84% and 58.05% respectively to 93.11m shares worth N1.11bn, from the previous 130.85m units valued at N2.64bn. The session’s volume was driven by trading in financial services and conglomerates stocks such as Zenith Bank, Transcorps, Lasaco Guaranty Trust Bank and Access Bank.

C & I Leasing and Vitafoam were the best-performing stocks, as they gained 10% and 9.95% respectively, closing at N5.50 and N4.09 per share, on market forces and improved Q3 numbers. On the flip side, Total Nigeria and Chams lost 9.96% and 7.14% respectively to close at N114.80 and N0.26 on unimpressive earnings and profit-taking.

Market Outlook
We expect mixed trend as players digest the earnings reports released so far, in expectation of more earnings as bargain hunters take advantage of the prolonged bearish market, just as the half-year earnings reporting season peaks. 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 7.23x, which is well below the 11x average of its peers and a five-year average of 13.x. 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.


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/poor-liquidity-weak-transaction-value-volume-still-as-investors-digest-q2-earnings/

Investdata Monthly Sentiment Report as of 1st August 2019

NSEASI buy 2% sell 98% MFI 22.90
Access buy 60% sell 40% MFI 23.00
Afrprud buy 83% sell 17% MFI 65.06
Aiico buy 40% sell 60% MFI 58.47
Berger buy 0% volume index 2.06 MFI 14.05
Cadbury buy 62% sell 38% MFI 61.58
Cap buy 0% MFI 59.02
Caverton buy 67% sell 33% volume index 0.72 MFI 58.42
Ccnn buy 25% sell 75% volume index 0.81 MFI 14.54
Chams buy 29% sell 71% MFI 92.58
Chiplc buy 83% sell 17%
CIleasing buy 90% sell 10% MFI 59.58
Conoil buy 26% sell 74% volume index 2.79 MFI 14.11
Custodian buy 0% MFI 60.87
Cutix buy 41% sell 59% volume index 1.53 MFI 57.40
Dangcem buy 21% sell 79% volume index 1.07 MFI 28.15
Dangflour buy 92% sell 8% MFI 77.06
Dangsugar buy 0% MFI 53.10
Eterna buy 0% MFI 36.50
Eti buy 8% sell 92% MFI 5.12
Fbnh buy 24% sell 76% volume index 0.92 MFI 38.76
Fcmb buy 48% sell 52% MFI 30.13
Fidelity buy 24% sell 76% MFI 54.29
Fidson buy 0% MFI 82.20
Fmn buy 51% sell 49% volume index 0.75 MFI 30.09
Fo buy 27% sell 73% volume index 1.63 MFI 34.04
Glaxo buy 19% sell 81% MFI 14.61
GT buy 38% sell 62% volume index 0.96 MFI 34.98
Honyflour buy 33% sell 67% MFI 15.98
Jaiz buy 62% sell 38% MFI 40.35
Japaul buy 20% sell 80% MFI 68.63
JBerger buy 67% sell 33% volume index 0.77 MFI 41.87
Lasaco buy 50% sell 50% volume index 1.09 MFI 27.87
Lawunion buy 0% MFI 46.78
Learn buy 0% volume index 1.49 MFI 58.38
Linkass buy 10% sell 90% MFI 15.65
Lvstk buy 11% sell 89% volume index 0.74 MFI 13.99
Mansard buy 0% MFI 37.94
M&B buy 0% MFI 63.23
Mben buy � volume index 2.16 MFI 36.55
Mobil buy 0% MFI 37.79
Nahco buy 40% sell 60% volume index 0.81 MFI 23.16
Nascon buy 4% sell 96% MFI 53.18
Neimeth buy � MFI 26.89
Nem buy 33% sell 67% MFI 86.58
Nestle buy 27% sell 73% MFI 45.45
Npf buy � volume index 1.01 MFI 35.70
Oando buy 7% sell 93% MFI 12.49
Okomu buy 0% volume index 0.84 MFI 39.90
Presco buy 0% MFI 24.40
Prestige buy 40% sell 60% MFI 80.88
Pz buy 17% sell 83% volume index 0.81 MFI 29.20
Red buy 43% sell 57% MFI 34.46
Royalex buy 0% volume index 1.55 MFI 23.94
Seplat buy 20% sell 80% MFI 29.58
Sovereins buy 0% MFI 68.03
Stanbic buy 9% sell 91% MFI 33.70
Sterling buy 64% sell 36% volume index 0.74 MFI 73.76
Total buy 0% volume index 0.76 MFI 35.00
Transcorp buy 24% sell 76% MFI 51.04
Uacp buy 0% volume index 0.77 MFI 47.13
Uacn buy 33% sell 67% volume index 0.82 MFI 3.18
Uba buy 55% sell 45% volume index 0.96 MFI 23.96
Ubn buy 57% sell 43% MFI 75.71
Ucap buy 42% sell 58% MFI 54.59
Unilever buy 57% sell 43% MFI 33.23
Uniondac buy 0% MFI 80.45
Unity buy 80% sell 20% MFI 40.72
Vitafoam buy 99% sell 1% volume index 0.71 MFI 56.52
Wapco buy 96% sell 4% volume index 4.67 MFI 54.92
Wapic buy 55% sell 45% volume index 1.99 MFI 92.97
Wema buy 67% sell 33% MFI 8.30
Zenith buy 0% volume index 0.74 MFI 28.17

https://investdataltd..com/2019/08/investdata-monthly-sentiment-report-as.html

July: Month Of Low Liquidity, Negative Breadth, New Lows, As NGSE Suffers Deepest Cut


Market Roundup for July 2019
The month of July ended lower on the Nigerian Stock Exchange (NSE), extending its 18-month of decline as the benchmark All-Share index kicked started the second half of the year on a strong negative note as selling pressure heightened on weak market and economic fundamentals.

Add this to the heightening insecurity situation in the country and weak earnings reports from quoted companies that have revealed the weak fundamentals of the economy which have fueled the negative sentiments and outing in the period under review when many stocks suffered huge losses, as many hit new 52-week lows. The market, therefore, recorded what has become its worst monthly performance year-to-date and over even in many years, with the NSEASI shedding all of 7.5%%, more than double the 3.55% it lost in the month of June on the back of the decreasing transaction volume.
This is a reflection of low confidence and liquidity in the market and the economy at large, as consumer confidence and stock prices continue to look downward.

This continued rapid fall in stock prices since the inauguration of President Muhammadu Buhari for a second and final four-year term in office, with the sustained stock market lull or bear run- further deepened by the worsening confidence crisis. This has been propelled by the political risk, which became much talked about in February after the Presidential and National Assembly elections were postponed amidst a tinge of suspicion. Since then, the level of insecurity at a time government said it had decimated the Boko Haram insurgents; a seeming lack of direction for the economy and the calibre of 43 Ministerial nominees, all of which have been cleared by the Senate, have all but assuaged the fears of investors that a change is in the offing any time soon.

Also noteworthy, is the weak corporate earnings that tell the weak state of economic fundamentals, especially the lowering purchasing power among Nigerians that has only grown worse beginning from 2018 into the year 2019, despite the seemingly mixed economic data. The low purchasing power in the country was confirmed by CBN’s Purchasing Managers’ Index for July at 57.6 points, confirming the constraining expansion in Nigeria’s manufacturing sector during the period.

The low consumer and investor confidence persisted during the month under review, notwithstanding the seeming rise in oil prices as well as the sustained Central Bank of Nigeria (CBN) interventions in the foreign exchange market which has supported the Naira.
Recall that the rebound of the market in May was due to the listing of telecommunication giant MTN Nigeria by way of introduction, when demand by investors was unmatched, with the stock not available for the local investors, among other issues, including free-float deficiency, etc.
The company’s first earnings report to the NSE last month, however, shows strength with top and bottom lines in green, laced with an offer of N2.95 per share interim dividend, while Airtel Africa Plc, which was listed in the month under consideration by introduction, did not impact the market. It only gained 10% on the day it was listed and reversed the following day and went on to trade for as low as N323, from its N363 per share listing price.

Meanwhile, in the 23 trading sessions of July, the composite NSE index oscillated to close lower, recording 18 days of the down market and only five up-markets. The composite NSEASI, during the month, shed 2,248.61 basis points, closing at 27,718.26bps from its opening figure of 29,966.87bps, representing a 7.5% decline over the period.
The ‘sell’ volume of total transactions for the month was 98% while buying position stood at 2% to continue the previous month’s downmarket with volume index for the period at 0.64. Market capitalization for the month was up significantly by 23.26% as a result of Airtel Africa listing, closing at N13.51tr, amidst negative sentiments and Q2 earnings that came weak and below market and analysts expectations.
The month’s traded volume was down by 49.84% at 4.67bn shares, compared to 9.31bn in the previous month.
The NSEASI’s year-to-date negative position stood at 11.81%, just as market capitalization was up by N1.28tr, representing 14.38% YTD gain from the opening value.

Market breadth for July was negative as decliners outpaced advancers in the ratio of 72:21 to continue the bear transition, despite the fact that over 68% of quoted company’s shares are undervalued, even with the market price to earnings ratio of 6.21x lower than the previous month position 7.35x.
The sectoral performance chart below shows that the NSE Consumer Goods sector depressed the market the most in the period under review, losing 11.85%, compared to a loss by the benchmark NSEASI. It was followed by the NSE Oil with 10.80%. The NSE Banking index followed with a decline of 9.19%, ahead of the NSE Insurance and Industrial Goods index, which fell by 6.47% and 1.30% respectively.


The month’s best-performing stock was Academy Press, which is finding its true market value, following its recently announced three kobo dividend which was paid, despite the huge debt sitting in its books, as well as the mixed numbers. Consolidated Hallmark Insurance closed the month 26.52% better; followed by NPF Microfinance Bank with 22.86% on the impressive quarterly numbers and despite the lean 5kobo dividend; BOC Gases chalked 22.76% owing to its improved performance and high payout; while Lafarge Africa grabbed 20.83% due to improving numbers and expected sales of its South Africa operation; while LASACO Assurance rose 13.79% purely on market forces; among others (READ MORE).


The worst performing stock for the period was International Brewery (READ), which lost 31.69%, linked to poor and weak earnings performance of the company since it merger three years ago (READ MORE). Linkage Assurance shed 26.96% due to its seemingly weak Earnings Per Share and the pull by market forces; Forte Oil declined by 26.68% as a result of its weak earnings and exit of the major shareholder, Femi Otedola; Ecobank Transnational Incorporated, 25.45%; and Eternal, 24.05% on the back of mixed earnings and market forces.


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.

Happy New Month of August. How are your Investment Goals?Happy New Month of August. How are your Investment Goals?

It's Ambrose Here,

"You have greatness in you, insure it"

Actually it’s amazing, when babies are learning how to walk, irrespective of the number of time they fall down even after sustaining injury they still stand up & try to walk over and over again until they are perfect. Can you remember those days?

However, we don’t really practice this mentality as we grow up “never give up mentality" maybe because of other problems that life throws at you even though you really need more of that now because it is more like consistency & perseverance which plays an important role in achieving any success in life including growing your finance on a daily basis.

By implications, you must force yourself to learn something new in your field even when you don't feel like. After all, slow and steady wins the race.

So, never give up and be optimistic about getting a positive result.

Remember the 2nd quarter of the year is gone and maybe you are yet to achieve some of the goals you set for yourself this year. Hence, focus on adding more value to yourself so that you can avoid making the same mistake you made last year.


Happy New Month !!!
Ambrose Omordion

P.S. Time is the greatest resources on earth and time is the material from which everything in life is made. Therefore, time equals life. Hence, time wasters are life wasters because every success achieve in life is as a product of time. So, you can grow your finance to any length depending on how you convert your time. The choice is yours!!!

NGSE Index Rebounds After Touching 3-year Intra-day Low, On Weak Market Breadth

Market Update for August 1
Thursday’s trading on the Nigerian Stock Exchange (NSE) was a continuation of its mixed performance so far, even though on a slower momentum as the composite NSE All-Share index closed marginally up to reverse the previous session’s negative outing on a very low traded volume and negative market breadth.
So far, the half-year earnings released have been weak, with most of them missing expectations and forecasts prompting negative price reactions in the midst of the prevailing low liquidity and even confidence crisis.

These are certainly major factors that have prolonged the negative market sentiments, in addition to the weak productivity and consumptions as earnings reporting season officially closed with the month of July on Wednesday. This is however except for interim dividend-paying companies, mostly banks that have to audit their accounts and await regulatory approval from the Central Bank of Nigeria (CBN).
The seeming improvement in the July Purchasing Manager Index, according to the CBN report, stood at 57.6 points as against the 57.4 points of June, showing that 11 businesses out of 14 covered recorded growth for the period under consideration.

The FBNQuest report on the manufacturing PMI for the same of July was below 50 points and reading 49.5 points lower than 49.9 points recorded in June. The slower contraction as revealed by this report shows that all is not well with Nigeria’s real sector which reflected in the Q2 corporate earnings from the manufacturing sector, because nothing has changed in the economy. Let us hope that the positive report from the CBN is sustained, with all the new initiative to make funds available for the private sector, so as to stimulate the nation’s production and consumption levels to oil the macro wheel of the economy at large.

Meanwhile, the NSEASI opened for the day’s trading on the downside as the negative sentiment arising from the numbers released so far dampened demand for stocks until midday and early afternoon. It then retraced up in the last minutes to close the session positively at 27,748.46 basis points, after touching a three-year intraday low of 27,615.46bps from high of 27,748.46bps
Market technicals for the day were positive but mixed, with volume traded lower than the previous day’s, as breadth favoured the bears, with high buying pressure as revealed by Investdata’s Daily Sentiment Report of ‘buy’ volume at 100% and sell position of 0% total daily transaction volume index of 0.43.

The energy behind the day’s performance remained weak, despite inching up, as Money Flow Index read 21.03 points, higher than previous day’s 20.98bps, indicating that funds entered some stocks as selloff slowdown among the high cap stocks.

Index and Market Cap
The benchmark NSEASI closed Thursday’s trading slightly up by 30.20bps at 27,748.46bps after opening at 27,718.26bps, representing 0.11% growth, just as market capitalization rose N14.73bn up to close at N13.52tr, from N13.51tr, which also represented 0.11% value gain.
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 upturn was helped by position taking in stocks like MTN Nigeria, Flour Mills, CCNN, Dangote Sugar, NASCON Allied, Berger Paints and Fidson Healthcare, which reduced the NSE’s Year-to-Date loss to 11.71%, just as YTD market capitalization gain inched to N1.38tr or 14.34% from the year’s opening level of N11.72tr.

Bearish Sector Indices
The sectoral performance indexes were largely in the red, except for the NSE Consumer goods that closed 0.08%, while the Banking index led the decliners’ after shedding 0.96%, followed by Insurance index with 0.62% and followed by Oil/Gas and Industrial Goods after dropping by 0.54% and 0.08%respectively.
Market breadth turned negative as decliners outnumbered advancers in the ratio of 16:12; market activities were down in traded volume and value by 61.36% and 57.16% respectively to 97.36m shares worth N1.79bn, from the previous 251.93m units valued at N4.13bn. The day’s volume was driven by financial services, industrial goods and conglomerates stocks such as Zenith Bank, UBA, Lafarge Africa, Guaranty Trust Bank, and Transcorp.

Fidson Healthcare and Berger Paints were the best-performing stocks, gaining 9.76% and 9.65% respectively, closing at N4.50 and N6.25 per share, on market forces. On the flip side, Eterna and NCR lost 10% and 8.62% respectively to close at N2.70 and N5.20 on mixed earnings and market forces.

Market Outlook
Being the last trading session of the week, we expect the mixed performance to continue as investors continue to digest the earnings reports released so far, in expectation of earnings reports from interim dividend-paying stocks, as bargain hunters take advantage of new 52-week low prices. 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 6.21x, which is well below the 11x average of its peers and a five-year average of 13.x. This revealed value and high upside potentials for a rally.

They may also take into consideration the expected economic reforms as the government is set to assign portfolio to the screened minsters, just as Central Bank of Nigeria (CBN) had earlier 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.

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/2019/08/ngse-index-rebounds-after-touching-3-year-intra-day-low-on-weak-market-breadth/#more

Investdata Weekly Sentiment Report as of 5 August 2019

NSEASI buy 4% sell 96% MFI 13.29
Access buy 8% sell 92% MFI 61.22
Afrprud buy � MFI 41.09
Aiico buy 33% sell 67% volume index 0.96 MFI 50.39
Berger buy � volume index 2.71 MFI 39.28
Caverton buy 50% sell 50% volume index 0.77 MFI 82.73
Ccnn buy � volume index 0.78 MFI 7.66
Chams buy � MFI 44.51
Cileasing buy � MFI 2.14
Conoil buy 18% sell 82% volume index 2.98 MFI 33.13
Custodian buy 37% sell 63% MFI 28.10
Dangcem buy � volume index 1.88 MFI 39.20
Dangflour buy 48% sell 52% volume index 1.25 MFI 66.65
Dangsugar buy 16% sell 84% MFI 10.22
Eterna buy 0% volume index 1.04 MFI 18.83
Eti buy 0% MFI 16.52
Fbnh buy 57% sell 43% volume index 0.73 MFI 17.35
Fcmb buy 56% sell 44% MFI 66.91
Fidelity buy 0% MFI 36.26
Fidson buy � volume index 0.94 MFI 85.74
Fmn buy 89% sell 11% volume index 0.76 MFI 46.22
Fo buy 81% sell 19% volume index 1.29 MFI 53.23
Glaxo buy � MFI 50.81
GT buy 27% sell 73% MFI 55.65
Honyflour buy � MFI 29.24
Jaiz buy 20% sell 80% MFI 30.70
Japaul buy 67% sell 33% MFI 42.79
JBerger buy � MFI 44.46
Lasaco buy 25% sell 75% volume index 0.89 MFI 85.40
Learn buy � volume index 1.62 MFI 78.13
Mben buy 50% sell 50% volume index 1.67 MFI 42.50
Nahco buy � volume index 0.92 MFI 60.71
Nascon buy � MFI 9.05
Nestle buy 0% volume index 0.79 MFI 39.94
Oando buy � MFI 28.21
Prestige buy � MFI 97.51
Stanbic buy 0% MFI 13.12
Sterling buy 67% sell 33% MFI 60.98
Total buy 0% volume index 1.61 MFI 0.00
Transcorp buy 27% sell 73% MFI 43.86
Uacn buy 73% sell 27% volume index 0.97 MFI 56.81
Uba buy 50% sell 50% MFI 35.16
Ubn buy � MFI 41.57
Ucap buy 17% sell 83% MFI 23.91
Uniondac buy � MFI 15.98
Unity buy � volume index 1.40 MFI 35.90
Vitafoam buy 98% sell 2% volume index 1.25 MFI 57.67
Wapco buy 67% sell 33% volume index 2.29 MFI 91.73
Wapic buy 0% MFI 30.08
Wema buy 0% MFI 98.80
Zenith buy 29% sell 71% MFI 9.11

https://investdataltd..com/2019/08/investdata-weekly-sentiment-report-as.html

Trend, Or Reverse: Investors Determine Market Direction, As All Eyes On Cabinet List

Market Update for the week ended August 2 and Outlook for August
At the end of Friday’s trading, the composite All-Share index of the Nigerian Stock Exchange (NSE) closed lower, extending the five consecutive weeks of free falls in the equity prices of many medium and high cap stocks hit new their 52-week lows in the midst of weak and mixed earnings performance of listed companies. This, expectedly, weighed in on investor sentiments.
Notwithstanding the negative trend, Investdata believes that the market is near to its moment of truth of whether the trend will reverse or the downtrend continues.

Already, the just concluded earnings season has revealed the true earnings power and direction of listed companies, even as the global monetary policy stance is looking down with a rate cut likely to impact many markets and economies, especially the emerging and frontier markets. Expectedly, the rate of capital outflows will slow down as the 10-year U.S Treasury yield hit its new four-year lows, coupled with oil price relatively stable above $60 that had supported Nigeria’s external reserves and the foreign exchange market.
This is just as investors await the allotment of portfolios to the cabinet ministers who were last week cleared by the Senate to jumpstart governance and implementation of the 2019 budget. The off-take of the Federal Executive Council will equally complement the various initiatives of the monetary authorities, which seeks to enhance lending to stimulate the productive sectors of the economy, as well as consumption thereby indicating a clear direction in no distance time.

The mixed global economy outlook as a result of the trade dispute between the U.S and China, multiple global trade, technology transfer, and geopolitical tension has forced monetary authorities of the Peoples Bank of China, the European Central Bank, the Bank of England, and other major central banks across the world to keep interest rates at historic lows since the commencement of the trade spat in 2018. We believe, therefore, that CBN’s Monetary Policy Committee may consider a further rate cut in its next meeting slated for September.

Movement Of NSEASI
Meanwhile, trading opened for the week on a positive note with the NSEASI gaining 0.11% at the end of Monday’s session amid price appreciation in medium and high cap stocks. This momentum was reversed on Tuesday and Wednesday when the benchmark index shed 0.46% and 0.37% respectively under heavy sell pressure. The trend was halted on Thursday with the market notching 0.11%, before sliding on Friday with 0.43% as selloffs resumed among highly capitalized stocks, among others, bringing the week’s cumulative loss to 1.03%, compared to the previous week’s flat position.

With the official close of the earnings season in the month of July, over 80 companies have presented their quarterly scorecards, most of which came mixed.
Nonetheless, there were some companies that presented outstanding score-cards. So far, they are Wema Bank, Unity Bank, Jaiz Bank, FCMB, Caverton, Cement Company of Northern Nigeria (CCNN), Lasaco, AIICO, Forte Oil, Northern Nigerian Flour Mills, Cadbury, as well as C& I Leasing. Investors and traders are waiting to see whether the interim dividend-paying companies, which are being expected anytime soon, will release earnings reports different from the part.
Also, at the end of last week, the prices of UACN Property, Nigerian Breweries, Transcorp, International Brewery, Dangote Sugar, NASCON Allied, Total Nigeria, Eterna, Ucap, Ecobank Transnational Incorporated and University Press, made new 52-week lows, while BOC Gases, on the other hand, touched a new year-high.

Despite, the negative market sentiment that was propelled by the mixed performances of many of the major bellwether’s half-year earnings result, we expect short-term speculative trading to shape the direction of market performance. The market breadth was positive with advancers outnumbering decliners in the ratio of 32:27, to continue its five-week down market.
Market activities for the week were mixed, with volume traded down by 28.97% to 759.23m shares, from the previous 1.07bn units, while value grew by 23.27% to N14.04bn from the previous week’s N11.3bn.
The best-performing stocks for the week Unity Bank and C &I Leasing, which topped the advancers’ chart with 27.59% and 21.10% gains respectively to close at N0.74 and N6.05 per share on positive Q2 earnings and market reactions. On the flip side, Eterna and Nigerian Breweries lost 19.40% and 16.67% respectively, closing at N2.70 and N50, on selloff and unimpressive earnings.

Where To Invest On NGSE, Outlook For August and September
The reversal of inflation rate month-on-month and the seemingly positive economic data may support the market, going forward, depending on government policy and faithful implementation of the 2019 budget. This is especially true of the improvement in Purchasing Managers Index (PMI) for the first month in Q3, which should also give insight as to where the economy is heading, if the economic managers do the needful to sustain this tempo.

With the Q2 earnings season officially ended, the half-year company scorecards will help investors ascertain the health and wellbeing of listed companies as they make investment decisions on which to hold or sell. This is especially true as equity prices remain low.
Traders and investors who understand the operations of the stock market should take this opportunity to position in some sectors for medium to long-term gains, especially in the services, industrial goods, banking, insurance and consumer goods which signals recovery move.
The actual Q2 numbers of these companies will help to project whether they are likely to post better Q3 earnings or not, which is the most important quarterly earnings since it foreshadows how the full year could pan out. At the same time, it pictures economic activities as measured by the GDP.

August As Unpredictable month
Although the market is currently at a crossroad of reversal or continued downtrend, the performance of the market in the month of August over the last five years has been negative on the NSE, according to INVESTDATA research. There may be pockets of oscillation going into the month; investors must keep their gaze on market trend and happenings for quick action. This notwithstanding, however, portfolio reshuffling is underway since more than 70% of listed companies have released their numbers.

What to expect in August and September
• Implementation of new CBN initiatives to stimulate productivity and consumption.
• Few quarterly and full-year earnings would be released during the period, which may not make much impact on market fundamentals, whether they are good or bad numbers.
• Few Interim dividend expectations, especially from stocks of in financial services sector.
• There will be high market volatility as a result of portfolio rebalancing after digesting the numbers released so far. Also, the source of funds flowing into the market may cause fluctuations, giving that both local and foreign institutional investors trade thereon. There is the factor of the Federal Government crowding the private sector out of the financial market, with their offer of high and mouth-watering rates as they borrow to fund the budget.
• Investors are expected to reshuffle their portfolios and invest in equities with strong fundamentals and prospects of growing their earnings, going forward.
• A more vibrant market as a result of players positioning for Q3 and Q4 reports, even as we expect liquidity to improve more.
• Market outlook for these months are dicey but invest wisely, using fundamental and technical tools like bids, offers, and volume, when making decisions.
• Managing risk and protecting capital at this point is very important, so you can determine when to buy or sell, by watching the stocks and the market, using technical analysis tools.

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/2019/08/trend-or-reverse-investors-determine-market-direction-as-all-eyes-on-cabinet-list/