Investors Await MPC Outcome, Amidst Hope Of Rate Cut, Budget Spending To Spur Growth

Market Update for September 19
Thursday’s trading activities slowed down on the Nigerian Stock Exchange (NSE), closing marginally in negative territory, after pausing previous day’s gains as profit booking engulfed banking stocks that rallied only recently.
Also, the seeming flat market could be attributed to investors waiting to see the outcome of the rescheduled Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting. We believe that should the meeting’s outcome, which will be known on Friday afternoon, go the way of the market and analysts, with a cut in benchmark rates, the recent rally in the market will continue ahead of third quarter-end window dressing and the Q3 earnings reporting season.

This is because the ensuing low cost of funds will translate to an enhanced market and system liquidity, which would be boosted by implementation of 2019 budget as Nigeria’s Federal Executive Council continues to approve funds for capital projects. The reduced cost of funds at a time many banks rush to meet the CBN’s 60% loan to deposit ratio that would force them to lend hundreds of billions of Naira, would undoubtedly support productivity and consumption in many ways, going into the near future, just as it could be the tunic needed to spike the country’s economy in the final quarter. The value of an asset that pays higher interest or returns will soar if the monetary policy rate is adjusted down further.

The gradual positioning of smart money at this stage of the market should give discerning investors and traders insight as to where, or how to invest wisely with all eyes on President Muhammadu Buhari’s newly constituted Economic Advisory Council to see their first move and the roadmap that further trigger buying interest among the investing public.
Meanwhile, Thursday’s trading started on a slight upside movement, but there was a pullback in the mid-morning to early afternoon on profit-taking in banking stocks like Access Bank, Guaranty Trust Bank, UBA, and Zenith Bank. This forced the index down to an intraday low of 27,577.69 basis points, from a high of 27,698.44bps, before retracing up, thereby reducing the losing momentum during the session on the buying interests in Ecobank Transnational Incorporated (ETI), Dangote Sugar, Dangote Flour, PZ Cussons, and UACN. The index, therefore, closed the day lower at 27,646.15bps on mixed sentiments.

The day’s market technicals were also mixed, with lower traded volume than previous day’s in the midst of market breadth that favoured the bulls, just as Investdata’s Daily Sentiment Report showed ‘buy’ volume of 57%, while ‘sell’ position stood at 43% on total daily transaction volume index of 1.08. The momentum behind the day’s performance was, nonetheless, weak, despite Money Flow Index at 45.07 points, from the previous session’s 39.07bps which indicated that funds entered some stocks and the market, despite the down market and decline in transaction volume.

Index and Market Cap
At the close of the day’s trading, the benchmark NSE All-Share Index (NSEASI) fell by 35.46bps, closing at 27,646.44bps after opening at 27,681.61bps, representing 0.13% drop, just as market capitalization lost N17.26bn, closing at N13.46tr, from an opening value of N13.48tr, which also represented 0.13% value loss. However, MACD and Money flow index remained bullish and positive respectively. Both indicators continue to look up despite the loss.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of 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 ahead of Q3 earnings reports portfolio reshuffling and repositioning ahead of fiscal and monetary policy catalysts.
The decline during the session resulted from traders cashing out profit in banking stocks, a situation that impacted negatively on the NSE’s Year-to-Date loss, which increased to 12.04%, even as YTD market capitalization gain dropped to N1.64tr, representing 14.69%, from the year’s opening level of N11.72tr.

Bullish Sector Indices
The sectoral performance indexes were largely bullish, except for the NSE Banking index that shed 1.50%. The NSE Insurance index led the advancers after gaining 2.90%, followed by Consumer Goods with 0.62%, with the Oil/Gas and Industrial goods indices inching up by 0.14% and 0.05% respectively.

Market breadth remained positive as advancers outnumbered decliners in the ratio of 23:16; while market activities in volume and value fell by 35.33% and 68.69% respectively to 245.56m shares worth N1.67bn, from the previous day’s 379.51m units valued at N5.35bn. The day’s volume was driven by transactions in FBN Holdings, Sterling Bank, UBA, GTBank, and Lafarge Africa.
Consolidated Hallmark Insurance and UACN were the best-performing stocks, after gaining 10% and 9.93% respectively to close at N0.33 and N7.75 each, on low market valuation and reactions to the planned divestment from UACN Property. On the flip side, University Press and Neimeth Pharmaceuticals lost 8.70% and 8.33% respectively, closing at N1.05 and N0.44 on profit booking.

Market Outlook
Despite being the last trading session for the week, Friday’s outlook remains mixed with the expected profit-taking from the short rally and ahead of the MPC meeting end and the announcement of its outcome, while bargain hunters take advantage of low stock prices to position, now that index had pulled back. Discerning investors should latch on it to average down and recoup their investment immediately a recovery stage is set through economic policies and things start to change gradually to influence equity prices positively, while investors watch these sectors that have become defensive recently like insurance, banking, industrial goods, services, and oil/gas that will go bullish in no distance time. Also, with all eye fixed on the newly appointed economic advisory council to settle down and kickoff.

https://investdata.com.ng/2019/09/investors-await-mpc-outcome-amidst-hope-of-rate-cut-budget-spending-to-spur-growth/#more

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.

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

Why Nigeria Cannot Make Money From Tax- Oyedele, PwC Nigeria

Despite seeming desperation by the Federal Government to rake in so much from taxing individuals and corporate bodies within its boundaries, Taiwo Oyedele, Head of Tax and Corporate Services, PwC Nigeria, said the country “cannot make money from tax.”
This, he said, is notwithstanding the fact that the country is today having one of the highest company income tax rates globally, which, in itself, is a disincentive for business growth.

Speaking as part of discussants at the Finance Correspondents Association of Nigeria (FICAN) annual workshop in Lagos on Saturday, with the theme “Unlocking Opportunities in Nigeria’s Non-Oil Sector,” Oyedele assured that he is not laying a curse on the country.
He urged the authorities to change around taxation insisting that the current approach only makes compliance difficult.
“Our thinking around taxation is completely upside down as a country. Nigeria does not seem to understand that you need to be prosperous so that you can pay tax. So, tax does not just fall from heaven.

“As a government, I should help you make money so that you can pay me tax… It’s just common sense. Nigeria has a tax system that does not allow businesses to thrive, whether you are small or big,” he added.

The reason why Nigeria cannot make all of the money it requires to run its budget from tax, he continued, is not farfetched, and only arises from the government “continues to beat up the people at the bottom of the ladder.”
Unfortunately, he continued, such lowly people “cannot give you (government) what they don’t have.”
“In societies where they think things logically,” he continued, the focus is “on the top 1% who are the rich and big companies and they will get the desired tax result,” he said.

“We pay Company Income Tax, CIT 30%, education tax, 2%, whatever is left; we pay withholding tax of 10%. If you add them together, it is more than 40% already. If you now make a mistake of having a group and you say it’s a holding company, another 30%. Who does that?!”
Speaking further, he said: “When you start a business today, there is something called commencement rule. It is supposed to punish you during commencement so that you pay tax twice. It does not make sense.”
To address this challenge, the tax expert advised operators in the private sector to focus on the demand for the removal of some of these disincentives that impact their business operations negatively.

“What I keep saying to government is that I can insist that I have a pot that is this small and I say I must get 60% of this pot by all means. Or I allow this pot to be big enough and then get 10% of it. The government must remove tax disincentives.
“One thing I am asking the business community is to stop asking the government for incentives because they will think they are doing you a favour. Ask them to remove the disincentives that are not allowing us to do business,” he said.

https://investdata.com.ng/2019/09/why-nigeria-cannot-make-money-from-tax-oyedele-pwc-nigeria/#more

MARKET REVIEW FOR THE WEEK ENDED SEPTEMBER 20, 2019

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

NGSE Indicators Bearish, But Insurance, Banking, Industrial Goods, Services Stocks Become Defensive


Market Update for September 23
Trading activities on the Nigerian Stock Exchange on Monday was again mixed and volatile, opening the week lower as negative sentiments overwhelmed trades with selloffs and profit-taking which hit high cap stocks and others, pulling back the key performance index on a low traded volume. This signalled the onset of yet another wait-and-see attitude among market players.

The low and dull mood of the market revealed that investors and traders are still interpreting and analyzing the decision by the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) to retain its benchmark rates, the nation’s emerging macroeconomic indices and policy statements from fiscal and monetary authorities so far. Also, all eyes are on the Federal Government’s newly-constituted Economic Advisory Council (EAC) to provide a workable roadmap.

This would be after a careful review of the administration’s Economic Recovery & Growth Plan (ERGP), among other policies capable of triggering productivity and consumption that will support and sustain national growth.

Meanwhile, the day’s trading opened slightly on the upside, but slowed down and oscillated between the mid-morning and midday, before pulling back by the afternoon on profit-taking and selloffs in highly capitalized stocks and others.

This pushed down the index to intraday low of 27,650.82 basis points, from a high of 27,704.62bps to close the session lower on a negative breadth.
On Monday, stocks like RT Briscoe, Guinness Nigeria, and Presco hit new lows of 12, 10 and two-year lows respectively.

Monday’s market technicals were negative as volume, value and number of deals was lower than previous day’s in the midst of market breadth that favoured the bears and high selling pressure as revealed by Investdata’s Daily Sentiment Report, which showed ‘buy’ volume of 88%, while ‘sell’ position stood at 12% on total daily transaction volume index of 0.45.

The impetus behind the day’s performance showed strength, despite the down market as Money Flow Index reads 52.24 points, from the previous session’s 46.14bps which indicated that funds entered some stocks and the market. This was, however,

notwithstanding the decline in transaction volume which indicates that smart money is up to something. Market players should nonetheless wait to confirm this as the market opens on Tuesday.

Index and Market Cap
At the close of the day’s trading, the composite Nigerian Stock Exchange (NSE) All-Share Index (ASI) shed 42.53bps, closing at 27,650.28bps from its 27,698.69bps opening level, representing a 0.17% decline. Market capitalization lost N22.1bn at N13.46tr, from an opening value of N13.48tr, which also represented a 0.17% value loss.

Meanwhile, the MACD and Money flow index remained bullish and positive respectively, as they continue to look up despite the negative sentiments.
Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of 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 ahead of Q3 earnings reports portfolio reshuffling and repositioning ahead of fiscal and monetary policy catalysts.

The session’s downturn was driven by profit booking and selloffs in stocks like Dangote Cement, Presco, Access Bank, NB, UACN, FBNH, Oando, Lafarge Africa, among others. This impacted negatively on the NSE’s Year-to-Date loss, which increased to 12.03%, even as YTD market capitalization gain dropped to N1.63tr, representing 14.59%, from the year’s opening level of N11.72tr.

Bearish Sector Indices
The sectoral performance indexes were largely bearish, except for the NSE Banking index which closed 0.15% higher. The NSE Insurance index led the decliners, losing 1.31%, followed by Oil/Gas with 0.25%, with the Industrial and Consumer Goods indices lost by 0.24% and 0.16% respectively.

Market breadth turned negative as decliners outnumbered advancers in the ratio of 24:18; while market activities in volume and value fell by 85.17% and 38.35% respectively to 109.56m shares worth N888.17m, from the previous day’s 177.57m units valued at N5.92bn. The day’s volume was driven by transactions in FBN Holdings, Transcorp, Access Bank, UACN and Wapic Insurance.

Trans-Nationwide Express and NCR were the best-performing stocks, after gaining 10% each to close at N0.77 and N4.50 each, on market forces. On the flip side, Presco and UACN Property lost 9.93% and 9.86% respectively, closing at N40.35 and N1.28 on profit-taking.

Market Outlook
The outlook remains mixed with the expected profit-taking, as investors position ahead of the quarter-end, while bargain hunters take advantage of low stock prices to position, now that the NSE index has pulled back.

Discerning investors should latch on it to average down and recoup their investment immediately a recovery stage is set through economic policies and things start to change gradually to influence equity prices positively, while investors watch these sectors that have become defensive recently like insurance, banking, industrial goods, services, and oil/gas that will go bullish in no distance time. Also, with all eye fixed on the newly appointed economic advisory council to settle down and kickoff...

https://investdata.com.ng/2019/09/ngse-indicators-bearish-but-insurance-banking-industrial-goods-services-stocks-become-defensive/#more

Outlook Remains Mixed On NGSE, As Investors Position Ahead Of Q3 Earnings Season

Market Update for September 24
Tuesday’s transactions on the Nigerian Stock Exchange maintained its volatile pattern as the composite All-Share index declined further, extending the negative sentiments for the second consecutive session amidst continued sell down and profit-taking ahead of quarter-end window dressing by fund managers and the onset of the Q3 earnings reporting season in October.

The seeming optimism and rekindled buying interest in the market seem to have disappeared in recent days as reflected in the massive selloffs witnessed in trading for the first two days of the week.

It is not impossible that investors are reacting seemingly to the decision by the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) to hold rates, just as other developments in the political space internally and externally. Also, on Tuesday, the CBN published its Purchasing Managers’ Index, which showed a slowdown in the manufacturing sector in the month of September to 57.7 points, from 57.9 points in August. Also, unemployment continues to rise on a daily basis which is reflecting in the weak demand as purchasing power remained seriously low.

The current battle between the bears and bulls remains a blessing in disguise for discerning investors and traders that know how to profit from this current market conduction, given that the last quarter of the year is the most active, due to the festivities and other seasonal patterns that go with it.
It is, therefore, necessary to ensure you are prepared for the next big move of a bull market after this prolonged bear dominance because these up and down movements are the beauty of stock market any time.

Meanwhile, Tuesday’s trading activities started on the downside, and sustained that mood throughout the session as highly capitalized stocks suffered losses, pushing the NSE index down to an intraday low of 27,352.24 basis points, from a high of 27,635.68bps, just as trading closed on a low traded volume.

Market technicals for the day were negative and mixed as volume traded was higher than previous day’s in the midst of a negative market breadth and strong selling pressure as revealed by Investdata’s Daily Sentiment Report, which showed ‘sell’ position of 100%, while ‘buy’ volume stood at 0% on total daily transaction volume index of 0.69. The momentum behind the day’s performance maintained a relative strength, regardless of the down market as Money Flow Index read 53.85 points, from the previous session’s 52.24bps, indicating that funds entered some stocks.

This, however, indicates that smart money is up to something and should be watched closely by discerning investors and traders. Traders need not panic, as Tuesday’s is yet another move to shake some people out position, while not also forget that timing is very important in stock trading and investing.

Index and Market Cap
At the end of Tuesday’s trading, the NSEASI lost 298.04bps, closing at 27,352.24bps from its 27,655.28bps opening level, which represented a 1.08% decline. Market capitalization shed N145.73bn, closing at N13.31tr, from an opening value of N13.46 trillion, which also represented a 1.08% loss position in investors’ portfolio.

As mentioned earlier, the MACD and Money flow index remained bullish and positive respectively. The behaviour of market forces at midweek’s trading will, however, confirm the direction for the next action.
Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of 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 ahead of Q3 earnings reports portfolio reshuffling and repositioning ahead of an economic roadmap from the new Economic Advisory Council to the government.

The day’s decline was driven by sell-down and profit booking in stocks like Dangote Cement, MTN Nigeria, Guaranty Trust Bank, Zenith Bank, Access Bank, Flourmills, UBA, Stanbic IBTC, Dangote Sugar, 11 PLC, FBNH, among others. This impacted negatively on the NSE’s Year-to-Date loss, as it increased to 12.98%, even as YTD market capitalization gain dropped to N1.59tr, representing 13.60%, from the year’s opening level of N11.72tr.

Bearish Sector Indices
All the sectoral performance indices closed red on Tuesday, with the NSE Banking index leading the decliners, after losing 2.40%; followed by the 1.44% drop in the Insurance index; just as Oil/Gas, Consumer, and Industrial Goods indexes lost 0.53%, 0.36%, and 0.17% respectively.

Market breadth remained negative as decliners outnumbered advancers in the ratio of 28:6; while market activities in volume and value rose by 40.59% and 218.09% respectively to 154.03m shares worth N2.83bn; from previous day’s 109.56m units valued at N888.17m. Volume was driven by transactions in Nigerian Breweries, Transcorp Plc, FBN Holdings, UBA and UACN Property.

The best-performing stocks for the session were ABC Transport and NPF Microfinance which gained 9.68% and 7.96% respectively to close at N0.34 and N1.22 each, on the back of market forces. On the flip side, Cadbury and Sterling Bank lost 9.91% and 8.64% respectively, closing at N10.45 and N2.01 on profit-taking.

Market Outlook
The outlook remains mixed with the expected profit-taking, as investors position ahead of the quarter-end, while bargain hunters take advantage of low stock prices to position, now that the NSE index has pulled back.

Discerning investors should latch on it to average down and recoup their investment immediately a recovery stage is set through economic policies and things start to change gradually to influence equity prices positively, while investors watch these sectors that have become defensive recently like insurance, banking, industrial goods, services, and oil/gas that will go bullish in no distance time. Also, with all eye fixed on the newly appointed economic advisory council to settle down and kickoff.

https://investdata.com.ng/2019/09/outlook-remains-mixed-on-ngse-as-investors-position-ahead-of-q3-earnings-season/#more

Highest Dividend Paying NGSE Stocks To Watch Ahead Of Year-end

Dividend Yield of companies listed on the Nigerian Stock Exchange (NSE) has, in recent times, continued to increase due to the persistent free-fall in equity prices owing to a bouquet of factors.
The prolonged market downturn has, however, boosted yield, especially of blue-chip stocks and other dividend-paying equities across the different sectors of the market.

Banking and other financial services stocks are powerhouses of any economy, just as they are intermediaries and agents of development. For investors interested in buying high dividend-paying stocks with yields above the prevailing inflation rate, the table below points where to look for companies that have seen the biggest jumps in yield over the recent weeks.
Dividend investing has become necessary in the post-general election Nigerian stock market that has been characterized by a free-fall in equity prices, which has eroded investors’ capital and confidence in the entire economy due to weak macro-economic indices and a lack of development and growth-stimulating policies from government to offer the much-needed direction.

Dividend Yield at any time measures how much cash flow you as an investor are getting for every Naira invested in a company’s equity. It also tells what percentage of net profit a company pays out in the form of a dividend.
This is one of the main factors you need to consider when investing in dividend-paying stocks, as a higher Dividend Yield has been considered desirable among investors today.

Also, know that when the share price of a company is low because of the general downturn in the market it has no effect on its payout, which is different from when weak or poor earnings performance results in some form of correction that manifests in form of the low share price. We must not forget that it is a company’s earnings that determine its dividend payout.

Note that, earnings determine what any company will pay because of ‘no earnings no dividend.’ The Nigerian Stock market’s average Dividend Yield currently stands at 4.8% and that of many stocks is trading well above that benchmark.
That is why you as an investor or trader should allow the current Earnings Per Share and the Dividend Yield percentage guide you as you study the numbers in the table above.

https://investdata.com.ng/2019/09/highest-dividend-paying-ngse-stocks-to-watch-ahead-of-year-end/

Amidst Mixed Outlook, Q3-end Window Dressing, NGSE Awaits Traders, Investors For Direction

Market Update for September 25
Negative sentiments persisted on the Nigerian Stock Exchange (NSE) at the midweek, There was however a seeming slowdown in the losing momentum on a very high traded volume with more selling pressure than buying interest during the session.
The faded optimism in the last three trading sessions, irrespective of the quarter-end balancing of trading accounts and repositioning by fund/portfolio managers did not reflect in the trading pattern due to indecision among market players and low market liquidity.

Technically, the market remains dicey at this point with MACD, and money flow index slowing down and looking south, while parabolic stop and reverse are looking positive. This suggests that trading activities on Thursday and Friday would confirm direction and how the month will end. The performance of Q3 early filers in the month of October will also be a factor in the market. Whether they will be positive or negative will depend on their actual results, given that earnings season is a time for investors to truly assess company performances and align their portfolio with positive results. While disposing the negative or poor performing companies ahead of the fiscal and financial year-end, investors, just like analysts will also seek to interpret available macro-economic indices. They will factor in also the expected corporate earnings that will give insight into how the companies had faired during the quarter, before the GDP figure in December.

Wednesday’s trading opened slightly on the upside in the early hours of trade, but pulled back at the mid-morning to midday on continued selloffs in bellwether stocks and oscillated in the afternoon. It then touched intraday low of 27,267.16 basis points, from a high of 27,371.59bps, before retracing up marginally to close the day lower at 27,283.05bps on a huge traded volume.
The market technicals were negative, but mixed as volume traded was higher than previous day’s in the midst of market breadth favouring the bears, while negative sentiment was revealed by Investdata’s Daily Sentiment Report, which showed ‘sell’ position of 85%, while ‘buy’ volume stood at 15% on total daily transaction volume index of 2,02.

The impetus behind the day’s performance was weak as Money Flow Index read 48.73 points, from the previous session’s 53.85bps, indicating that funds exited some stocks and the market. This, however, indicates a sell-down, making the situation somewhat dicey for market players and watchers. Discerning traders and investors need not panic out of position but wait.

Index and Market Cap
Midweek’s trading closed with the NSE All-Share Index shedding 69.19bps to 27,283.05bps, from its 27,352.24bps opening level, which represented a 0.25% drop. Market capitalization lost N33.68bn at N13.28tr, from an opening value of N13.31tr, which also represented a 0.25% value loss in investors’ portfolio. At the close of Wednesday’s trading, MACD and Money flow index closed south, a sign of weakness despite remaining in the bullish zone. Market forces at the end of the week’s trading will, however, determine the next direction and action of investing public.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of 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 ahead of Q3 earnings reports portfolio reshuffling and repositioning ahead of an economic roadmap from the new Economic Advisory Council to the government.

The day’s downturn followed sell-down in stocks like Dangote Cement, MTN Nigeria, Zenith Bank, Guinness Nigeria, Skypower Aviation and UACN Property, among others. This impacted negatively on the NSE’s Year-to-Date loss, as it increased to 13.20%, even as YTD market capitalization gain dropped to N1.57 trillion, representing 13.34%, from the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indexes were largely bullish, except for the NSE Industrial Goods that closed 0.55% lower, with the NSE Insurance index leading the advancers, after gaining 2.99%; followed by the 0.54% notch by the Consumer Goods index; just as the NSE Banking index gained 0.23%.
Market breadth remained negative as decliners outnumbered advancers in the ratio of 15:13; while market activities in volume and value were up by 200.14% and 180.51% respectively to 462.32m shares worth N7.92bn; from previous day’s 154.03m units valued at N2.83bn. This volume was boosted by transactions in Access Bank, Custodian Investment, Nigerian Breweries, FBN Holdings, and UBN.

Continental Reinsurance and Custodian Investment were the best-performing stocks for the session which gained 9.53% and 7.89% respectively, closing at N1.72 and N6.30 each, on the back of market forces and recapitalization in the insurance sector. On the flip side, Skypower and Uacn Property lost 9.89% and 9.84% respectively, closing at N4.19 and N1.10 on selloffs and profit-taking respectively.

Market Outlook
The outlook remains mixed with the expected profit-taking, as investors position ahead of the quarter-end, while bargain hunters take advantage of low stock prices to position, now that the NSE index has pulled back. Discerning investors should latch on it to average down and recoup their investment immediately a recovery stage is set through economic policies and things start to change gradually to influence equity prices positively, while investors watch these sectors that have become defensive recently like insurance, banking, industrial goods, services, and oil/gas that will go bullish in no distance time. Also, with all eye fixed on the newly appointed economic advisory council to settle down and kickoff.

https://investdata.com.ng/2019/09/amidst-mixed-outlook-q3-end-window-dressing-ngse-awaits-traders-investors-for-direction/#more

Outlook Remains Mixed On NGSE, As Investors Position Ahead Of Q3 Earnings Season

Market Update for September 24
Tuesday’s transactions on the Nigerian Stock Exchange maintained its volatile pattern as the composite All-Share index declined further, extending the negative sentiments for the second consecutive session amidst continued sell down and profit-taking ahead of quarter-end window dressing by fund managers and the onset of the Q3 earnings reporting season in October.

The seeming optimism and rekindled buying interest in the market seem to have disappeared in recent days as reflected in the massive selloffs witnessed in trading for the first two days of the week. It is not impossible that investors are reacting seemingly to the decision by the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) to hold rates, just as other developments in the political space internally and externally. Also, on Tuesday, the CBN published its Purchasing Managers’ Index, which showed a slowdown in the manufacturing sector in the month of September to 57.7 points, from 57.9 points in August. Also, unemployment continues to rise on a daily basis which is reflecting in the weak demand as purchasing power remained seriously low.

The current battle between the bears and bulls remains a blessing in disguise for discerning investors and traders that know how to profit from this current market conduction, given that the last quarter of the year is the most active, due to the festivities and other seasonal patterns that go with it.
It is, therefore, necessary to ensure you are prepared for the next big move of a bull market after this prolonged bear dominance because these up and down movements are the beauty of stock market any time.
Meanwhile, Tuesday’s trading activities started on the downside, and sustained that mood throughout the session as highly capitalized stocks suffered losses, pushing the NSE index down to an intraday low of 27,352.24 basis points, from a high of 27,635.68bps, just as trading closed on a low traded volume.

Market technicals for the day were negative and mixed as volume traded was higher than previous day’s in the midst of a negative market breadth and strong selling pressure as revealed by Investdata’s Daily Sentiment Report, which showed ‘sell’ position of 100%, while ‘buy’ volume stood at 0% on total daily transaction volume index of 0.69. The momentum behind the day’s performance maintained a relative strength, regardless of the down market as Money Flow Index read 53.85 points, from the previous session’s 52.24bps, indicating that funds entered some stocks. This, however, indicates that smart money is up to something and should be watched closely by discerning investors and traders. Traders need not panic, as Tuesday’s is yet another move to shake some people out position, while not also forget that timing is very important in stock trading and investing.

Index and Market Cap
At the end of Tuesday’s trading, the NSEASI lost 298.04bps, closing at 27,352.24bps from its 27,655.28bps opening level, which represented a 1.08% decline. Market capitalization shed N145.73bn, closing at N13.31tr, from an opening value of N13.46 trillion, which also represented a 1.08% loss position in investors’ portfolio. As mentioned earlier, the MACD and Money flow index remained bullish and positive respectively. The behaviour of market forces at midweek’s trading will, however, confirm the direction for the next action.

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The day’s decline was driven by sell-down and profit booking in stocks like Dangote Cement, MTN Nigeria, Guaranty Trust Bank, Zenith Bank, Access Bank, Flourmills, UBA, Stanbic IBTC, Dangote Sugar, 11 PLC, FBNH, among others. This impacted negatively on the NSE’s Year-to-Date loss, as it increased to 12.98%, even as YTD market capitalization gain dropped to N1.59tr, representing 13.60%, from the year’s opening level of N11.72tr.

Bearish Sector Indices
All the sectoral performance indices closed red on Tuesday, with the NSE Banking index leading the decliners, after losing 2.40%; followed by the 1.44% drop in the Insurance index; just as Oil/Gas, Consumer, and Industrial Goods indexes lost 0.53%, 0.36%, and 0.17% respectively.
Market breadth remained negative as decliners outnumbered advancers in the ratio of 28:6; while market activities in volume and value rose by 40.59% and 218.09% respectively to 154.03m shares worth N2.83bn; from previous day’s 109.56m units valued at N888.17m. Volume was driven by transactions in Nigerian Breweries, Transcorp Plc, FBN Holdings, UBA and UACN Property.

The best-performing stocks for the session were ABC Transport and NPF Microfinance which gained 9.68% and 7.96% respectively to close at N0.34 and N1.22 each, on the back of market forces. On the flip side, Cadbury and Sterling Bank lost 9.91% and 8.64% respectively, closing at N10.45 and N2.01 on profit-taking.

Market Outlook
The outlook remains mixed with the expected profit-taking, as investors position ahead of the quarter-end, while bargain hunters take advantage of low stock prices to position, now that the NSE index has pulled back. Discerning investors should latch on it to average down and recoup their investment immediately a recovery stage is set through economic policies and things start to change gradually to influence equity prices positively, while investors watch these sectors that have become defensive recently like insurance, banking, industrial goods, services, and oil/gas that will go bullish in no distance time. Also, with all eye fixed on the newly appointed economic advisory council to settle down and kickoff.

https://investdata.com.ng/2019/09/outlook-remains-mixed-on-ngse-as-investors-position-ahead-of-q3-earnings-season/#more

Nigeria Emerges Among Top-20 ‘Improvers’ On 2020 Ease Of Doing Business List

The World Bank Doing Business (DB) team has just announced Nigeria as one of the top-20 improvers in doing business out of 190 countries.
The announcement, according to Dr. Jumoke Oduwole, Special Adviser to the President, Ease of Doing Business and Secretary, Presidential Enabling Business Environment Council (PEBEC); comes ahead of the October 24 release of the 2020 World Bank Doing Business rankings.
The World Bank Doing Business Report is an objective assessment of prevailing business environments based on a number of ease of doing business indicators.

In Nigeria, the report assesses doing business conditions in the two largest commercial cities of Lagos and Kano.
The World Bank’s announcement acknowledges reforms spearheaded by the PEBEC in the areas of “operationalizing a new electronic platform that integrates the tax authority and the Corporate Affairs Commission (CAC)”.
It also acknowledges reforms carried out in some of the World Bank Doing Business indicator areas such as starting a business, registering property, getting construction permits, getting electricity, enforcing contracts, and trading across borders.

Speaking further on what contributed to the country’s improved ranking, she recalled that “the CAC also upgraded its name reservation platform and, in Kano, there is now an electronic platform for registering business premises online, eliminating the need to appear in person.
“In Lagos, land administration was made more transparent following the digitization of cadastral plans in a geographic information system; digital copies of cadastral plans are now easily obtainable. Nigeria also made getting electricity easier by allowing certified engineers to conduct inspections for new connections. Initiatives also made commercial litigation of smaller cases more efficient.”

Continuing, Dr. Oduwole noted that “the Chief Judges in Lagos and Kano issued practice directions for small claims courts introducing pre-trial conferences and limit adjournments. Finally, customs integrated more agencies into its electronic data interchange system, and port authorities launched an e-payment system, speeding up both exports and imports.”

Over the past three years, the statement said Nigeria’s score has steadily improved in the World Bank Doing Business Report, after years of decline in both score and ranking in the years preceding 2016. In 2017, Nigeria moved up by an unprecedented 24 places on the Doing Business rankings. For the first-ever, Nigeria was also recognised as one of the top 10 reformers in the area of doing business that year.

Welcoming the announcement, the Special Adviser to the President on Ease of Doing Business, Dr Jumoke Oduwole, said that “the recognition being given to Nigeria as one of the top 20 most improved countries, who have implemented the most reforms this year, is significant because we weren’t even able to achieve some of the key reforms we had pursued, but what we have done so far is being recognised. This validation confirms that our strategy is working and we will continue to push even harder.”

These improvements in the standing of Nigeria trail the reform agenda being implemented at national and sub-national levels across the country since the establishment of the PEBEC by President Muhammadu Buhari in July 2016. The PEBEC works towards the fulfilment of the projections of the Economic Recovery and Growth Plan (ERGP 2017-2020), which is striving to deliver sustainable economic growth in Nigeria by restoring growth, investing in our people, and building a competitive economy.

The PEBEC, through the Enabling Business Environment Secretariat, has carried out over 140 reforms so far in a bid to remove bureaucratic constraints to doing business in Nigeria and make the country a progressively easier place to start and grow a business.
With the impending ratification of the Companies and Allied Matters Bill and the introduction of the Business Facilitation (Omnibus) Bill, 2019 in view, along with other pending regulatory, judicial and sub-national reforms, Nigeria is poised to meet its goal of being a top 100 ranked economy by 2020. The announcement indicates that our goal of moving into the top 70 doing business destinations by 2023 remains achievable.

https://investdata.com.ng/2019/09/nigeria-emerges-among-top-20-improvers-on-2020-ease-of-doing-business-list/#more

Senate President Seeks Budget Cycle Legislation, Amendment Of Procurement Act

President of the Senate, Ahmad Lawan, on Friday, reiterated the need for a budget reform that will include a law on timelines in the budget passage.
Speaking on “Government Meets Business Dinner” of the Institute of Directors Annual Conference on Thursday in Abuja, Lawan said timelines and deadlines will give leaders focus and make them more definite on deliverables.
Lawan, who spoke on “Reforming the Budget Cycle: A First Step in Our Journey to the Next Level,” expressed the belief that Nigeria’s “budget cycle if there is a law on timeliness for budget passing.”
Reports, according to the Senate President, have shown that countries like the U.S, Canada, Austria, Brazil, France and India have more definite budget cycles through legislation.

A statement by Ola Awoniyi, Special Adviser (media) to President of the Senate, quoted Lawan as saying: “We have resolved to be reform minded in the ninth National Assembly and improving the budget cycle is one area of focus.
“Our attention will be on the areas where enhancements are needed and we are surely not going to look away from them in the interest of national growth, development, and wellbeing of our people,” Lawan said.

The Senate President said it is also important to improve on database showing the social-economic conditions of the country, adding that such would enhance better appreciation of financial projections.
This, he continued, is notwithstanding the current efforts by the National Bureau of Statistics and some multilateral agencies showing the sectoral performances of the economy.

The Senate President also called for the amendment of the Public Procurement Act 2007 adding that “we are of the firm belief that the Act has not provided the intended efficacy it should produce.”
“Related to this is the need to match budget projections with fund release if accountability is to be appreciable.
“Proper documentation of financial activities and reduced political Interventions in the budgetary process are additionally important steps to follow.
“We should try to reduce frivolous items on the recurrent expenditure list to increase our disposition to produce, ensure judicious expenditure process and to guarantee value-for-money,” Lawan said.

Recall that at the screening exercise for the final batch of ministerial nominees on Tuesday, July 30, 2019, Dr. Lawan, stressed the desire of the ninth National Assembly under his leadership for a return to the January-December budget cycle.
Investdata research shows that the earliest time Nigeria’s annual budget was signed into law since 2008, was in 2013 when it was assented to on February 16; followed by March 10, 2009 and April 14, 2008. The longest time it took was the 2018 law, which was signed on June 20.

Photo caption: President of the Senate and Special Guest, Ahmad Ibrahim Lawan (right) with President and Chairman of Governing Council of the Institute of Directors, Chief Chris Okunowo, during the dinner of the Institute of Directors in Abuja on Thursday, September 26, 2019.
Photo credit: Senate President Media Office

https://investdata.com.ng/2019/09/senate-president-seeks-budget-cycle-legislation-amendment-of-procurement-act/

Do You Know?

 In 2017, the Nigerian Equities Market gained 42.3%

 Year 2018 snatched off 17.8% of the gained Points in 2017, Meanwhile, Jan. 2019-Date had taken another 13.2% of 2017 gained Points

 In other words, only 11.3% is left of all gained points in 2017, that is, market already created opportunities for those who lost out in 2017 upbeat.

 Due to the long bearish moves, several listed equities now sells at very attractive prices

 Going by the readings of the chart, the market may engage in a recovery move around the current trading point

Why you must position now!!

 From the above introduction, it can be concluded that the market has reversed almost all gained points in 2017, this is a clear indication that listed equities are largely selling at cheaper prices at the moment

 In every market, goods are stocked when prices are cheap, Technically we say “Stock Your Goods when the Streets are bloody”.

 Smart Investors are now positioning for Q3 Earnings: The market currently awaits the 3rd quarter financial statistics of listed equities with December year end. Taking advantage of various market responses to these events will definitely impact portfolios positively.

 One major focus of the government are strategies to improve Foreign Direct Investment (FDI) which will indirectly increased liquidity around the market arena, thereby improving standing portfolio value

https://investdataltd..com/2019/09/do-you-know.html

Hope For NGSE On Speculators’ Return For Year-end Trading Activities, Positioning

September Market Roundup 2019
Trading on the Nigerian Stock Exchange officially closed for the month of September and, indeed, the third quarter on Monday recording a marginal decline at the close of that day, just as the period under consideration recorded mixed performance.

On the strength of events that occurred between the end of August and Monday, September 30, 2019, equities seemed to have fared better, as composite index resisted further decline, due to gradual improvements in investors’ buying interests. Recall that the market had been on a downtrend since the beginning of the year, despite various attempts at a rebound in February and May, before giving up on strong bearish sentiments, but hampered by the prevailing weak economic and market fundamentals.

During the month, the NSE’s benchmark All-Share index closed marginally positive on the strength of value gains by some high cap stocks and blue-chip companies, which were enough to halt three consecutive months of panic selloffs and profit-taking after many stocks hit their 52-week, five and even 10-year lows in August.

The low confidence and liquidity levels in the system, coupled with mixed macro-economic indices were due to the slow implementation of the capital component of Nigeria’s 2019 budget, which analysts and investors had expected will drive economic activities. It is noteworthy that Nigeria’s economy had continued to struggle over the last five years at the average national growth of below 1%.

Specifically, Nigeria’s GDP has grown at an average of 0.71% over the last 13 quarters (READ MORE), while the equity market growth has averaged 12.15% in all of 22 years, according to Investdata Research, notwithstanding the zigzag performance of the nation’s economy all through its 59-year history since independence in 1960.
The average of loss of 2.21% recorded on the exchange for third quarter despite the marginal gain of 0.38% in September, was attributed to post-election uncertainties that continue to trail the economy, as well as the weak Q2 corporate earnings, lack of economic direction, with government delaying the reconstitution of the Federal Executive Council, among others.

There was also the effect of the gloomy global economic outlook, despite which Nigeria’s stock market formed strong support level in August and the month under review. The marginal rebound in September, may also not be unconnected with the low price attraction of most stocks, ahead of their year-end score-card, a situation that has gradually triggered demand for blue-chip stocks now selling at a considerable discount to Book Value.

Looking at the just concluded Q3 performance and year-to-date, the market remained in negative position at 7.80% and 12.09% respectively, maintaining a bearish posture that started in 2018. This may likely continue, with the benchmark index closing flat, or suffering a margin loss, with market fundamentals expected to change in the last quarter of the year.

The recent rate cut in developed economies and markets may likely redirect the flow of funds to an emerging market like Nigeria, even as implementation of the 60% minimum Loans-Deposits ratio by the deposit money banks, implementation of the 2019 capital budget and end of year activities could give the market the needed liquidity boost. This is expected to impact equity prices because the market indices in Q4 have always risen by 1.8% on average over the past 22 years.

It is noteworthy also that although various sectors of the market closed positive for the month of September, they remained red for Q3 and year-to-date. Also, despite the seemingly improved performance in September, the NSE Industrial Goods Index recorded a marginal decline in the aftermath of the loss of value by Dangote Cement.

During the month, the composite index NSEASI gained 104.75 basis points to close at 27,630.56bps, from an opening figure of 27,525.81bps representing a 0.38% growth after it touching an intra-month high of 27,984.08bps. The index also touched a low of 26.895.56bps, and remained below the 28,000 psychological level in the period, after breaking down various times during the trading sessions of the period.

Market capitalization for the month also closed higher at N13.45tr from an opening value of N13.39tr representing a 0.45% value gain.
The mixed performance recorded in September resulted from cautious trading which dominated selling positions as investors took profit to meet growing needs, while mixed economic data released within the month by the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS) did not significantly impact the market, coming with fragile growth.

This was especially the case with the August inflation that only managed to decline by 0.06 points to 11.02% from July 11.08%; as well as the Q2 GDP figure which came in positive at 1.94%; while the Purchasing Managers’ Index (PMI) expanded slowly at 57.7 points in September from 57.9 points in August.
The rate of volatility for the period was high on low volume traded, reflecting the cautious trading and mixed sentiment that took over the market in the period, leading to 12 straight trading sessions of down markets and 9 sessions of bull-run.

Traded volume for the month was up by 13.98% to 4.81bn shares from 4.22bn shares in the preceding month.
Market breadth for the month was positive with advancers outnumbering decliners in the ratio of 41:29 to short-live a three-month bear transition with the declining magnitude on loses, as stock prices adjusted up slightly in the last three trading sessions of the month on apparent window dressing by fund managers.

This was an apparent market reaction to the decision of the CBN’s MPC meeting to hold all rates, against most analysts’ expectations, a decision the committee hinged on the need to observe unfolding developments in the global economic space. Market players are also on the look-out for a direction from the recently constituted Economic Advisory Council (EAC), as it swings into action.

The buying position of total transactions for the month was 68%, while the selling position was 32%, reversing the selling pressure in August, while the volume index for the period was 0.66.
Topping the sectoral index movement table for the period was the NSE Oil/Gas, which rose by 20.63%, thereby outperforming the overall market’s All Share index that closed high at 0.38%, followed by the 8.56% gain by NSE Insurance; even as the NSE Consumer goods and NSE Banking could only rise by 7.85% and 7.10% respectively.

Best Performing Stocks
All classes of stocks were active in the month under review as low and medium cap equities dominated the list of best performing stocks, led by Cornerstone Insurance, which gained all of 100% of its opening price for the period, galloping on the strength of market sentiments and planned right issue after the sale of its head office building. UACN followed, appreciating by 50%; while Continental Reinsurance rose 42.76%, after proposing to by buyout minority shareholders; just as Seplat chalked 39.55%. Other gainers on the table for the month included: Okomu Oil 32.41%; Total Nigeria 29.5%; International Brewery, 29.23%; Dangote Sugar, 21.11%; and NEM Insurance, 21.05%; among others.

Worst Performing Stocks
On the other hand, the worst performing stocks for the period was Champion Breweries, which lost 24.84%, as a result of poor earnings and selloffs; followed by Sterling Bank’s 20% loss, due to profit booking; even as Neimeth Pharm shed 20%; and Guinness Nigeria, 17.87% on the back of selloff as investors reacted to its weak numbers.

NSE ASI MONTHLY TIME FRAME FOR September
Looking at the opening graph above, you would notice that the NSEASI on monthly basis is side trending as revealed by the index action to form a bearish channel where the market closed within the channel trying to form strong support and resist breakdown. Also, the lower line of the channel, which has become the support, signals an imminent reversal, creating a new entering point for discerning investors. The candlestick formation for the month of August and September supports reversal, depending on market forces as we cross over to the last quarter of 2019, for which trading kicks off on Wednesday with high hopes that speculators will return to play the market ahead of year-end activities.

https://investdata.com.ng/2019/10/hopes-rising-on-ngse-as-speculators-return-for-year-end-trading-activities-positioning/#more

MARKET REVIEW FOR THE WEEK ENDED 27 SEPTEMBER 2019

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W’Bank President Calls For Investments Tailored To Needs Of Developing Nation

As Developing Nations’ Debt Hit $7.8tr In 2018
According to the latest international debt statistics of the World Bank, over half of the countries in Sub-Saharan Africa have seen their external debt stocks double since 2009.

The report, the World Bank’s International Debt Statistics 2020, noted that in 2018, countries in the region, excluding South Africa saw their total debts stocks swell by 8% on the average in 2018.
Commenting, World Bank Group President David Malpass said for many developing countries to grow faster at this time, what they need is more “investment that meets their development goals.”

For him, it is equally important that “debt transparency should extend to all forms of government commitments, both explicit and implicit. Transparency is a critical part of attracting more investment and building an efficient allocation of capital.”
These, he believes, are essential in the World Bank’s job of improving development outcomes.
According to the World Bank, total external debt of low- and middle-income countries climbed 5.3% to $7.8tr last year, even as “net debt flows (gross disbursements minus principal payments) from external creditors tumbled 28% to $529bn,” the reported added.

The report further explained that although the average external debt burden of low- and middle-income countries remained moderate, several countries have been on a deteriorating debt trajectory since 2009.
The share of low- and middle-income countries with debt-to-GNI ratios below 30% declined by 25%, from 42% 10 years ago, just as the share of countries with high debt-to-export ratios has climbed.

Debt stocks were driven up by a 15% jump in China, fueled by investor appetite for renminbi-denominated assets.
With the exception of the 10 largest borrowers, namely Argentina, Brazil, China, India, Indonesia, Mexico, the Russian Federation, South Africa, Thailand, and Turkey, the report noted that external debt stocks rose 4%.

Recall that members of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) have lamented repeatedly at various meetings about the nation’s ballooning total public debt which at the end of 2018, “stood at N24.387tr with external debts accounting for 32%.”

At that level, they had warned that the country could return to the pre-2005 era of an external debt crisis, without exercising control over future foreign borrowing, while consciously growing and diversifying the economy, while mobilizing significant nonoil revenue.

https://investdata.com.ng/2019/10/wbank-president-calls-for-investments-tailored-to-needs-of-developing-nation/#more

Welcome to Last Quarter of the Year. Happy Independent Day

“Dost thou love life, then do not squander time, for that’s the stuff life is made of.” Benjamin Franklin

Time is the most important resource in the entire universe. It is more important than precious stones gold, diamond etc. and it is simply because everything in life requires time.

However, the question I want to ask you now is; how have you been spending your indispensable and irreplaceable time? Are you spending it on those activities that matters. Precisely, activities that will help you achieve your goals in life.

For instance, you have set a goal to be financially independent at a particular date. The question is, have you gone for the necessary training needed? Have you bought the necessary material? have you attempted to practice what you have learned so far? Have you seek expert opinion? Did you subscribe to a community group? Are you prepared for the new season either bull or bear? Etc. If you don’t ask yourself this questions then your goal is just a mere expression or wish

Hence, I want you to examine yourself and make amendment because time is running out fast.

Less I forget, I want to use this opportunity to wish you a happy independent Day and a Happy new prosperous month.

Happy Trading,
Ambrose Omordion
https://investdataltd..com/2019/10/happy-independence-day-nigeria.html?m=1

Again, CBN Reviews Loan-Deposit Ratio Of Deposit Money Banks Upward To 65%

Even while stakeholders are awaiting the compliance rating of its recent efforts to force more lending to the nation’s productive sector whose deadline expired on September 30, the Central Bank of Nigeria (CBN), has raised Loan to Deposit Ratio of deposit money banks to 65%.
The move, according to the CBN, is part of efforts to encourage SMEs, retail, mortgage, and consumer sector lending, all of which shall be assigned a weight of 150% in computing the LDR for this purpose.

This means of every N100 mobilized as deposits, a minimum of N65 must now be granted as a loan to customers, with effect from December 31, 2019.
In a circular dated September 30, 2019, with reference: BSD/DIR/GEN/LAB/12/049, to all banks, titled Re: Regulatory measures to improve lending to the real sector of the Nigerian economy,” while referring to the previous letter of July 3, 2019, announced the upward review from 60%, whose deadline ended on September 30.

The upward review, even before the banks settled down to the reality of the 60% LDR, the CBN in the letter signed by Bello Hassan, for the Director of Banking Supervision, said is “in order to sustain the momentum and in line with the provisions of our earlier letter.”
While acknowledging the success of the previous hike to 60%, the CBN noted “the appreciable growth in the level of the industry gross credit, which increased by N829.4bn or 5.33% from N15,567.66bn at end-May 2019, to N16,397.06bn as at September 26, 2019, following its pronouncements on the above initiative.”

This ratio, the apex bank noted, “shall be subject to quarterly review.
The apex bank warned that “failure to meet the above minimum LDR by the specified date shall result in a levy of additional Cash Reserve Requirement equal to 50% of the lending shortfall implied by the target LDR.”
Notwithstanding the urge for increased lending and facilitate greater investment in the real sector of the Nigerian economy, the apex bank warned DMBs to continue strengthening “their risk management practices, particularly with regards to their lending operations.”
It promised to continue “promoting a safe, sound and resilient financial system.”

The decision to force increased lending to the real sector is part of efforts to discourage the concentration of bank deposits on government debt instruments, with the CBN threatening to bar DMBs from trading in treasury bills and bonds. For example, at the end of the 2019 half-year, for example, Guaranty Trust Bank reported LDR of 49.94%, down from 54.53% in the corresponding period of 2018. While banks like
Analysts had expected that the 60% benchmark could immediately translate to between N1.3 and N1.4tr more loans to real sector operators in the country by the September 2019 deadline.
Recall that as part of boosting bank lending to the real sector, the CBN had on July 10, 2019 letter, set maximum Standing Deposit Facility (SDF) at N2bn, with effect from Thursday, July 11, 2019. This means that from that date, any bank deposit with the CBN in excess of N2bn shall be at zero interest.

Although the prescribed LDR is still less than the 90% and 75% that obtains in South Africa and Kenya, analysts say there are downsides to the directive (READ MORE).
To avoid the problems associated with the new directive, Investdata had earlier enjoined the CBN to follow through by further empowering the credit bureau to make them more effective to help weed serial debtors from the system, even as the Asset Management Corporation of Nigeria (AMCON) continues struggling to recover its N5tr debt mountain.

However, the CBN directive will, besides boosting market liquidity, drive productivity, create jobs and enhance disposable income needed to increase consumption, while oiling the macro-economic space. The banks will ultimately compete for the same borrowers; interest rate will slightly go down; a situation which in the long-run impact positively on the economy and stock market.

https://investdata.com.ng/2019/10/again-cbn-reviews-loan-deposit-ratio-of-deposit-money-banks-upward-to-65/

Investors, Traders Position For Full-Year, As 2019Q3 Earnings Season Begins

Market Update for October 2
Trading activities on the Nigerian Stock Exchange for the month of October started on a note at the midweek, extending the previous session’s loss position on the back of continued volatility and mixed pattern. It is clear that discerning traders and market players who have positioned earlier are waiting for actual company numbers to start hitting the market, despite profit-taking reflected in the low volume traded.
As most traders and investors know, October is when other quarterly earnings reporting season beckons and as such would have an increased tendency for volatility.

The table below provides a clear illustration of that trend or movement in the month of October, in all of two decades.
Within the period, specifically, since 1998, according to Investdata Research, the Nigerian Stock Exchange All-Share index closed positive in 12 years and negative over a nine-year period. Over the period, the NSE composite ASI has averaged 5.71% gain.

October Market Performance Since 1998-2018 (%)
1998 -0.50
1999 3.10
2000 1.50
2001 8.00
2002 -3.00
2003 13.60
2004 2.70
2005 6.20
2006 1.30
2007 -0.80
2008 -23.40
2009 -3.70
2010 5.70
2011 1.20
2012 2.20
2013 2.30
2014 -9.20
2015 -4.70
2016 -3.60
2017 4.50
2018 -2.20
2019 ? ?

In preparation for the 2019Q3 earnings season, many listed companies kept the NGSE platform and, indeed, the investing public busy with notification of their closed period and board meetings to approve the September-end financial reports. As we have always noted, the Q3 scorecards are very important to investors as they make investment decisions in the final quarter of the year and ahead of the 2019 full-year financial reports in the first quarter of 2020.

At the end of Wednesday’s trading, Infinity Trust Mortgagee Bank became the first to release its Q3 numbers, kicking off the season’s earnings report with impressive numbers, with its top and bottom lines rising by 38.54% and 32.63% respectively.
It does seem that the market is struggling to resist further decline in recent times, a situation that may snap anytime soon, except there are positive economic news or policy statements enough to boost investor confidence. It is also clear that the members of the Federal Government’s Economic Advisory Council (EAC) know the nation’s economic woes and the needed solutions to proffer that would change the dynamics and position it on the path of progress and sustainability, at least from statements ascribed to them.

It is, therefore, expected that these Q3 numbers, implementation of the Central Bank of Nigeria (CBN) minimum 60% Loan to Deposit ratio and the 2019 capital budget would provide liquidity and trigger buying interests in the equity market and indeed, the Nigerian economy in general. Going further, the adjustment of LDR to 65% by December 31, 2019 (READ MORE), could force interest rates down, thereby spiking productivity and consumption across the country and given that the banks would want to lend in their bid to meet the regulatory threshold. This is also likely to help the creation of more consumer lending products.

Meanwhile, trading activities of Wednesday opened on the downside and were sustained throughout on selloffs and profit-taking in high and medium cap stocks. From its high of 27,645.40 basis points, the NSEASI touched intraday low of 27,261.25bps, before rising slightly to close at 27,314.87bps on negative market breadth.
Wednesday’s market technicals were negative and mixed, with volume traded lower than previous day’s on high selling pressure, as revealed by Investdata’s Daily Sentiment Report, which showed ‘sell’ volume of 86%, while ‘buy’ position stood at 14% on total daily transaction volume index of 0.79.
The momentum behind the day’s performance was strong but slowed down with Money Flow Index reading 60.09 points, down from the previous session’s 67.08bps, indicating that funds exited some stocks and the market, amidst repositioning ahead of quarterly earnings reports with investors taking advantage of the pullback.

Index and Market Cap
The NSEASI lost 316.69bps, closing at 27,314.87bps from its 27,630.60bps opening level, representing a 1.14% decline, just as market capitalization lost N153.68bn to close at N13.3tr, from an opening value of N13.48tr, which also represented a 1.14% value loss in investor’s portfolios. The daily time frame MACD, however, remained bullish, while the Money flow index remained relatively strong but looking down.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of 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 ahead of Q3 earnings reports portfolio reshuffling and repositioning ahead of an economic roadmap from the new Economic Advisory Council to the government.

The day’s decline was due to selloffs and profit-taking in stocks like Dangote Cement, Total Nigeria, Zenith Bank, Access Bank, UBA, FBN Holdings, UACN, Ecobank Transnational Incorporated, GTBank, NB, Dangote Sugar, Dangote Flour and Transcorp, among others. This impacted negatively on the NSE’s Year-to-Date loss, which increased to 13.09%, while YTD market capitalization gain fell to N1.58tr, representing 13.45% improvement over the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indexes closed largely bearish, led by the NSE Banking index which lost 4.51%; followed by Oil/Gas and Consumer Goods index which lost 2.01% and 1.24% respectively; while NSE Insurance and Industrial Goods indexes chalked 2.86%, and 0.08% respectively.

Market Outlook
We expect the trend to continue due to profit-taking, as bargain hunters take advantage of low stock prices to position ahead quarterly financials now that the NSE index has resisted further decline. Discerning investors should latch onto it as a way of averaging down and recouping their investment immediately a recovery stage sets in, helped by economic policies and things start to change gradually. In the process, equity prices will be influenced positively, while investors watch for sectors that have become defensive recently like insurance, banking, industrial goods, services, and oil/gas that will go bullish in no distant time. Also, all eyes are on the newly appointed economic team to settle down to churn out policies capable of turning things around.

https://investdata.com.ng/2019/10/investors-traders-position-for-full-year-as-2019q3-earnings-season-begins/#more

Union Bank Secures US$200 million in OPIC Funding for SMEs and Women’s Initiatives

Lagos, NIGERIA - Union Bank of Nigeria Plc. (“Union Bank”) is pleased to announce that it has secured US$200 million in funding via a partnership with sub-Saharan Africa financial services group, Atlas Mara Limited, in agreement with Overseas Private Investment Corporation (“OPIC”), the U.S. government's development finance institution. Under the terms of the agreement, Union Bank will receive a ten-year term credit facility of up to US$200 million from OPIC for investments in digitization, on-lending to Small and Medium Enterprises (SMEs) and funding for women-led businesses, as part of OPIC’s 2X Women’s initiative which aims to catalyse US$1 billion for investment in women across developing nations.

The agreement is consistent with Union Bank’s long-standing commitment to enabling enterprise and empowering women-owned businesses. Earlier this year, Union Bank launched Alpher (α), a dynamic proposition aimed at uplifting women across all segments of the Nigerian society through capacity building opportunities, networking platforms, scholarships, and tailored financial services for women.

Last year, Union Bank also introduced an innovative business acceleration program, ‘Startup Connect’, which enables Nigerian businesses creating technology-based solutions to be more competitive in the rapidly expanding African technology market. Union Bank has been steadfast in providing innovative services where SMEs can access up to US$20,000 per quarter for importation without opening Letters of Credit or Bills for Collection under the Form Q scheme.

Speaking on the funding milestone, Emeka Emuwa, CEO of Union Bank said, “We welcome this partnership with OPIC as we are well-positioned in Nigeria to further advance lending to key segments of the population, especially SMEs. The 10-year tenor of the OPIC facility provides flexibility to maximize impact across key sectors of the Nigerian economy as we continue to advance proven initiatives including those focused on women’s banking and financial inclusion.”

David Bohigian, Acting President and CEO of OPIC also noted that "OPIC is delighted to partner with Atlas Mara and the team at Union Bank to drive inclusive lending in Nigeria. This funding benefits SMEs and women and will help serve the needs of underbanked and unbanked individuals and businesses while fostering entrepreneurship and economic development across Nigeria."

https://investdataltd..com/2019/10/union-bank-secures-us200-million-in.html

Reversal Imminent, As NGSE Index Resists Further Decline, Rebounds After Touching New Lows

Market Update for October 3
The nation’s stock market on Thursday recorded another strong blow, extending its negative sentiment for the third consecutive session on persisted selloffs and dwindling confidence in the global economic outlook which clouded the domestic market. This arose from the fact that liquidity flowing into the equity market remained relatively low, given that fund managers had slowed down their buying interest on news of a weak global manufacturing sector.

The slowdown in economic activities in developed economies is a pure reflection of the impact of the lingering U.S-China trade war on confidence. Weakening confidence, as know, ultimately leads to weaker economic activities, heightened by the recent closure of the Nigeria-Republic of Benin border at Seme by the Nigerian government. Without adequate preparation, this action will, in several ways, further harm the real sector and consumption as prices of goods are on the rise while purchasing power is on the decline.

Until this year, the strategy from global central banks had been to ignore it all, while assuming that they could keep normalizing interest rates and shrinking their balance sheets while riding the wave of fiscal stimulus. They had imagined that for as long as economic data stayed solid, their mistakes were hidden. With this contraction or slow growth in the global manufacturing sector, the central banks have now positioned themselves to absorb potential shocks and economic weakness from an indefinite trade war.

With that, let’s take a look at the expectations building for another move by the Fed at their meeting slated for October 30, for another chance of a quarter-point cut, even as the probability of another rate cut has jumped to 88%, following this week’s ISM data.
In the domestic environment, banks must implement the Central Bank of Nigeria (CBN) directive to further increase their minimum Loan-Deposit Ratio (LDR) further from the 60% threshold set in July to 65% by December 31, 2019. Reports on Thursday are that some 12 banks in Nigeria have been penalized heavily for failing to meet the initial September 30 deadline. The further increase could naturally reduce lending rates among banks while they compete for borrowers who, as the new brides, would naturally ask for lower rates, as the banks rush to meet the set regulatory benchmark (READ MORE). This will naturally make more liquidity available to the real sector of the economy, especially the SMEs, while the quantum of funds available for the banks to play in the government securities’ market shrinks. At the moment, while the benchmark Monetary Policy Rate (MPR) has been retained at 13.5%, banks lending rates in Nigeria hovers between 23% and 26% after the various charges, but with this move by CBN, the banks can afford to push down their lending rates to 16% or 18%, so as to attract borrowers while meeting the set target. This could result in banks reporting far lower trading incomes in the coming quarters.

Meanwhile, Thursday trading started out on the downside and was sustained throughout on selloffs and profit-taking in high and medium cap stocks, thereby forcing the benchmark Nigerian Stock Exchange (NSE) All-Share Index to break the year’s strong support of 26,789 basis points. It, however, rallied on the back of last minutes ‘buy’ interests in Dangote Cement and 11 Plc, which reduced the loss momentum, as the ASI closed the day slightly above the 27,000bps mark on a low traded volume that signaled indecision among players.
Market technicals for the session were negative and mixed, as volume traded was lower than the previous day in the midst of negative market breadth and on high selling pressure.


Index and Market Cap
The benchmark NSEASI, at the end of the day’s trading, shed 229.18bps, closing at 27,085.69bps from its 27,314.87bps opening level, representing a 0.84% decline, just as market capitalization lost N111.56bn to close at N13.19tr, from its opening value of N13.3tr, which represented 0.84% value depreciation. The daily time frame MACD, however, remained bullish, while the Money flow index remained relatively strong, even if looking down.
Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of 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 ahead of Q3 earnings reports portfolio reshuffling and repositioning ahead of an economic roadmap from the new Economic Advisory Council to the government.

Thursday’s downturn was driven by the losses suffered by stocks like Nestle, Dangote Cement, Zenith Bank, Access Bank, BetaGlass, FCMB, FBN Holdings, UACN, Oando, Dangote Sugar and Honeywell, among others. This impacted negatively on the NSE’s Year-to-Date loss, which heightened to 13.82%, while YTD market capitalization gain fell to N1.47tr, representing 12.60% improvement over the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indexes closed largely bearish, led by the NSE Consumer Goods Index, which suffered a 5.42% slump; followed from afar by Insurance and Oil/Gas indexes at 0.35% and 0.09% respectively; while the NSE Industrial Goods and Banking indexes managed to stay 0.79% and 0.16% up respectively.

Market breadth remained negative as decliners outnumbered advancers in the ratio of 18:12; while market activities in volume and value were down by 13.78% and 1.85% respectively to 151.2m shares worth N2.52bn; from previous day’s 175.78m units valued at N2.57bn. The day’s volume was driven by transactions in Guaranty Trust Bank, FBN Holdings, Fidelity Bank, Transcorp and Access Bank.
Niger Insurance and Neimeth Pharmaceuticals were, however, the best-performing stocks for the day, after gaining 10% and 9.09% respectively, and closing at N0.22 and N0.48 each, on the back of the ongoing industry recapitalisation and market forces respectively. On the flip side, Nestle Nigeria and Beta Glass lost 9.99% and 9.96% respectively, closing at N1255.50 and N53.80 on sell down.

Market Outlook
Today’s, being the last trading session of the week, we expect the mixed performance to continue as bargain hunters take advantage of the pullback to position ahead of quarterly financials, especially now that the NSEASI has resisted further decline, after touching a new low and rebounded on the same day, which is a good sign of imminent reversal. However, let the interplay of market forces on Friday and Monday confirm this recovery. Discerning investors should latch onto this, meanwhile, as a way of averaging down and recouping their investment immediately a recovery stage sets in, helped by economic policies, when things start to change gradually. In the process, equity prices will be influenced positively, while investors watch for sectors like insurance, banking, Industrial Goods, services, as well as oil/gas that have become defensive in recent times and could go bullish in no distant time.

Furthermore, we note that all eyes are on the newly appointed economic advisory team to settle down quickly and begin churning out policies capable of turning things around.

https://investdata.com.ng/2019/10/reversal-imminent-as-ngse-index-resists-further-decline-rebounds-after-touching-new-lows/#more

CBN makes statement move on intention to drive lending….

By CardinalStone Research,
In line with its recent drive to stimulate domestic economic growth by igniting bank lending, the Central Bank of Nigeria (CBN) has taken a raft of actions to achieve its goal over the last few days.

Precisely, on 30 September 2019, the apex bank released a circular mandating an increase in banks’ minimum LDR requirement to 65.0% from 60.0%, with a compliance deadline of 31 December 2019. Days later, several media outlets revealed that the CBN also debited 12 banks who failed to meet the initial deadline of 60.0% LDR by September 30, 2019, in line with the penalty stipulated in the initial circular. ZENITH BANK (N135.6 billion), UBA (N99.7 billion) and FBNH (N74.7 billion) were the worst hit of the 12 sanctioned banks. GUARANTY (N25.1 billion) and FCMB (N14.4 billion) were the other affected banks within our coverage. While we await more clarity on some prevailing issues surrounding the sanctions, we highlight the following key themes:

• The CBN is serious!
The decision to not only increase the minimum LDR requirement but also penalize banks that failed to meet the initial deadline suggests that the CBN is very deliberate about its plan to support growth. With CBN’s body language suggesting limited scope for rate cuts in the near term, we believe that the apex bank is being strict on the enforcement of regulatory measures to enhance credit creation

•The CBN’s assessment is likely based on overall net stable funding, not just deposits.
It appears that the CBN uses a broader definition of the loan to deposit ratio (LDR), which encapsulates other sources of funds such as borrowings, shareholders’ funds, and deposits. This, possibly, explains why a bank like FCMB, which had an LDR of 75.1% at the end of H1’19, was also penalized. As at H1’19, the bank’s loan to funding ratio was at 51.7%. This may also partly explain ZENITHBANK’s early redemption of part of its $500 million Eurobond in September

• Banks will likely be antsy in their strategies to grow loans.
The new measures are also likely to force banks to anxiously re-evaluate their loan growth strategies. Based on the H1’19 numbers of our coverage banks, only ACCESS (+37.8% — reflecting the impact of its merger with Diamond Bank), FIDELITYBK (+15.8%), and STANBIC (+6.0%) reported YTD loan growths. Unsurprisingly, none of these banks were negatively impacted by the recent sanction

• Asset quality concerns may re-emerge.
We see this as a possibility given the prevailing weakness in macro fundamentals, which likely explains banks’ cautious approach to loan growth. With the near term outlook for most consumer and manufacturing firms looking largely unfavorable on the back of recent fiscal measures, we believe that a desperate push to increase lending could lead to growth in non-performing loans

• Net interest margins are likely to be depressed on banks’ reaction.
We see this as a possible negative consequence of CBN’s latest push as banks may be forced to reprice loans lower in competition for scarce quality obligors. This implied weakness in NIMs, as well as the opportunity cost of relinquishing 50.0% of the lending shortfall to the CBN, could also negatively impact earnings. We expect that banks who have already been punished will be unwilling to get caught up in the storm again, as that will be a negative signal to investors.

All in, we believe this development is largely negative for the banking sector, which has only just recovered from the weak asset quality issues prevalent since 2016. We also believe that the macro-environment is still too fragile to support strong growth in lending.

https://investdata.com.ng/2019/10/cbn-makes-statement-move-on-intention-to-drive-lending/

Vibrant Commodities Exchange Will Improve Forex Earnings, Says Osinbajo

Vice President Yemi Osinbajo, on Thursday, stressed the need for the development of a vibrant commodities trading ecosystem in the country, as part of diversifying the economy away from dependence on crude oil to boost government revenue and foreign exchange earnings.
Speaking at a Roundtable on the Nigerian Commodities Trading Ecosystem hosted by the Securities and Exchange Commission (SEC) in Lagos, Thursday, Osinbajo said such an ecosystem is of paramount interest based on the abundance of natural resources in Nigeria.
Added to this, according to the Vice President, who was represented by Dr. Yemi Dipeolu, Special Adviser to the President on Economic Matters, said the commodities trading ecosystem and a comparative advantage in agriculture, solid minerals, and oil and gas.

This is why, he continued, the government’s emphasis, in the immediate term, is the agricultural sector.
Osinbajo said the Federal Government attaches great importance to an active and vibrant capital market which will contribute to national growth and development.

To achieve this objective, he stressed that the capital market has to operate at an optimum level, which is why the implementation of the 10 year Capital Market Master Plan remains a key priority.
Agriculture, he pointed out, “accordingly occupies a pride of place in Federal Government policy, as stated on numerous occasions by the President and as articulated in the Economic Recovery and Growth Plan (ERGP). The importance of agriculture was underscored during the last recession as its growth then of about three to four percent prevented a steeper decline. Agriculture is also important for food security and as a means of generating a quick production response.

“The agricultural sector is also important for job creation and employment and for producing the raw materials that go into agro-processing. Indeed, the subsisting Agriculture Promotion Policy specifically aims to ‘integrate agricultural commodity value chains into the broader supply chain of Nigerian and global industry.”
Osinbajo added that a vibrant commodities trading ecosystem is therefore essential to underpin an agricultural transformation in Nigeria as organising production in the agricultural sector would ensure that every part of the value chain contributes to its growth.
Welcoming participants to the event, Acting Director-General of the SEC, Ms. Mary Uduk said the commission is collaborating with all relevant stakeholders to implement the 10-year Capital Market Master Plan with the aim of making Nigeria’s capital market one of the world’s deepest and most liquid as well as the largest in Africa by 2025

One of the crucial initiatives of the plan she said, is to develop a thriving commodities trading ecosystem. Nigeria is well endowed in agricultural, metals and energy commodities.
“Currently, our potential as a nation is grossly underutilised in the area of commodities. There is, therefore, the need for these commodities to be efficiently harnessed to the benefits of our consumers, industries, and governments.
“We believe that if we can develop and institutionalise a vibrant commodities trading ecosystem in Nigeria, we can substantially address problems such as lack of storage, poor pricing, non-standardization as well as low foreign exchange contribution affecting our agriculture and other commodities sub-sectors”.

To achieve this, Uduk said the roles of commodity exchanges are very critical as they bring price transparency and value addition to farmers; they ensure quality products for buyers, provide investment opportunities across the value chain, provide additional class of asset for investors and help diversify the nation’s economy in line with the current administration’s agenda.
Uduk said the nation still has the challenging task of transitioning from a grossly informal commodity trading system to one consummated on the platforms of commodity exchanges. Currently, the transactions through commodity exchanges are insignificant compared to what takes place in the informal markets, even among industrial commodities users.

“In laying down the foundations of our formal commodities market therefore, we have to ensure that the spot commodity market is efficient as we move into the futures market.
“No doubt, this will entail a robust education and enlightenment process, continuous engagement and cooperation among key stakeholders, favourable government policies and strengthening of legal and regulatory frameworks,” she added.

Photo caption: Ms. Mary Uduk (right), acting Director-General of the SEC welcoming guests to the roundtable on Nigerian Commodities Trading Ecosystem in Lagos on Thursday.

https://investdata.com.ng/2019/10/vibrant-commodities-exchange-will-improve-forex-earnings-says-osinbajo/

Bargain Hunting, Speculative Trading In Under-Priced Blue-chips, May Support Rebound On NGSE

Market Update for The Week ended October 4 and Outlook for 7-11
The Nigerian stock market recorded four trading sessions of losses over the past week, which was laced with volatility as it extended three consecutive weeks of downtrend despite the seeming attempt by the NSE composite All-Share index to resist further decline. This however failed, owing to the lack of a positive stimulus needed to drive demand for stocks as policy statements emerging from the government remains a source of concern among investors and keen watchers of the economy, amidst fears that stagflation signals are already in the horizon.
This is an indication that investors and traders on the exchange are still nervous, especially with continued selloffs in blue-chips and large-cap stocks as government moves to boost public revenue by hiking tax rates despite the evident slowdown in economic growth. This move will negatively impact company profits, as well as the purchasing power of Nigerians due to the multiplicity of taxes.

Already, while the government’s proposed increase of Value Added Tax (VAT) rate from 5% to 7.5% is still struggling to get the approval of the National Assembly, it is already proposing a reintroduction of toll gates on some high ways in the country, a situation that will see the cost of transportation and movement of goods and services balloon further. In the coming days too, the government seeks to impose a communication services tax, a situation capable of reducing consumption, at a time the nation’s monetary policy authorities are pushing to trigger productivity. This is seen in the recent hike in Loan-Deposit Ratio first to 60% by September 30 and 65% by December 31, 2019, which is aimed at forcing bank lending to the real sector (READ MORE). These and other efforts could become wasted unless there is a rethink, which is while the fiscal and monetary authorities must collaborate to avoid such policy clashes.

Investdata expects that the newly constituted Economic Advisory Council, led by Prof. Adedoyin Salami and peopled with erudite personalities in their individual rights should interface between both the Federal Government and the Central Bank of Nigeria (CBN) for the good of Nigeria’s economy. We would expect that they immediately come up with a workable roadmap of economic growth and development that will ensure both authorities complement each other, just like the various government agencies to deliver a prosperous and progressive economy.

The failing volume and value of international trade among developed economies continue to threaten the global economic outlook as the lingering trade war between the U.S and China has now been extended to the European Union, with the U.S planning to impose tariffs of 10% and 25% on some products like aircraft and wines. When this is added to the weak manufacturing sector data, there is more than glaring evidence that all is not well with the U.S economy, as the ISM index has remained below 50 points for two consecutive months, indicating that a recession could well be on the underway.

With this contraction or slow growth in the global manufacturing sector, the central banks have now positioned themselves to absorb potential shocks and economic weakness from an indefinite trade war. Expectations are, therefore, building for another move by the Feds at their October 30 meeting for another chance of a quarter-point cut, even as the probability of another rate cut has jumped to 88%, following this week’s ISM data.

Movement Of NSEASI
It was a free fall for equities on the Nigerian Stock Exchange (NSE) during the period under review, following which the benchmark NSEASI started the week’s trading on a negative pedestal, halting previous session’s gains, beginning with the 0.16% loss on Monday to close the quarter. The negative sentiment continued when trading began at the midweek after the public holiday on Tuesday as the nation celebrated its 59th independence anniversary, shedding 1.09%. The loss followed selloffs in high cap stocks like MTN Nigeria and Nestle, among others. The market’s key performance indices maintained a downtrend on Thursday and Friday when the index lost 0.84% and 0.36% respectively on the back of a massive selloff that brought the week’s cumulative loss to 2.48%, as the index closed at 26,987.45 basis points, from 27,675.04bps it opened. The drop is coming one after the NSEASI lost 0.09%.

The volatility and sell down during periods were evident on the advancers table which was dominated by low cap stocks after highly capitalized and blue-chip stocks suffered huge losses. The expected Q3 numbers are likely to start hitting the market from the midmonth, according to the historical pattern of the companies (READ MORE).

Market breadth for the week closed negative with decliners outnumbering advancers in the ratio of 22:15.
The energy behind the week’s performance remained weak despite inched up as shown in the 31.99bp Money Flow Index, compared with 29.39bps in the previous week, indicating that funds entered some stocks due to the mixed sentiment. This was just as some traders and investors took advantage of the low prices of fundamentally sound stocks to position in expectation of the earnings season. Investdata sentiment report for the period revealed mixed sentiment as ‘Buy’ volume was at 37%, while ‘sell’ position was 63% on a transaction volume index of 0.46.

During the week, Infinity Trust Mortgage Bank and Interlinked Technologies released their Q3 and full-year earnings report respectively, for the period ended September 31, and June 30, 2019. The numbers were mixed with the bank posting impressive earnings, while the ICT company results came below expectations.
Also, during the week, many companies released their closed period and board meeting dates in preparation of making their quarterly results available to the investing public. Beta Glass informed the investing community of it capacity expansion investment of $30m (READ MORE). Cornerstone insurance also notified the market of the sale of its head office building.

NSEASI Weekly Time Frame
The chart above shows that the NSE index tested a new support level before retracing to close lower on negative sentiment to slow down the expected reversal, signaling the likely continuation of a downtrend as MACD signal line cross to bearish zone on a daily and weekly time frame. At this point, it is the interplay of market forces in the new week and outcome of the Federal Executive Council (FEC) meeting on Wednesday. We expect bargain hunting to gather momentum in the weeks ahead of Q3 earnings reporting season.
Though the NSEASI is still trading below the 20-Day Moving Average on a weekly time frame, the index action has formed a rectangular chart pattern that equally supports a reversal or continuation of the trend, just as the Relative Strength Index reads 34.71. However, money flow is reading 31.99 points on the weekly chart.

Mixed Sectoral Indices
The sectorial performance indexes were largely bearish as three of the five sectors closed lower led by the NSE Consumer Goods losing 4.92%, while Banking and Oil & Gas sectors followed respectively after shedding 3.94% and 2.25%. Meanwhile, the NSE Insurance and Industrial Goods Indices closed 5.71% and 0.14% higher respectively.

Market activities for the week in volume and value were down by 40% and 44.94% respectively, as investors traded 660.56m shares worth N9.19bn, compared to previous week’s 1.09bn units valued at N16.69bn. This volume was majorly driven by Guaranty Trust Bank, Access Bank and FBN Holding.
The best-performing stocks for the week were Continental Reinsurance and Law Union & Rock Insurance, which led the advancers’ table with 20.11% and 12.82% gains respectively, closing at N2.27 and N0.44 per share on the proposed buyout of minority shareholders, as well as the recapitalization exercise in the industry, ahead of their Q3 numbers. On the flip side, Fidson Healthcare and Ecobank Transnational Incorporated lost 18.89% and 14.61% respectively, closing at N3.65 and N7.60, on selloffs and profit-taking.

Market Outlook
We expect a mixed performance in the new week, amid the gloomy global outlook, lack of positive catalyst in the domestic macroeconomy, at a time fund, tends to by flowing towards fixed income instruments. However, discerning investors should take advantage of the current low stocks valuation to position for the earnings season, and inequities that have strong potentials to rebound with the general market. It is noteworthy that the market is seemingly resisting further decline while awaiting a positive statement and/or policy direction to move northward.
We would, however, not overlook the possibility of a bargain-hunting motive supporting positive performance, especially with many fundamentally sound stocks remaining under-priced. With dividend yield of major blue-chips continuing to look attractive in recent weeks, we expect speculative trading to shape the market’s direction, despite the seeming negative outlook.

https://investdata.com.ng/2019/10/bargain-hunting-speculative-trading-in-under-priced-blue-chips-may-support-rebound-on-ngse/#more

Investdata Research: Expected 2019Q3 Earnings Release Dates Of Companies On NGSE

Another quarterly earnings reporting season beckons for companies quoted on the Nigerian Stock Exchange (NSE), with the announcement of their closed period, following which Investdata Research has estimated expected release dates based on the historical report dates of each. Equity trading for the month of September and indeed the third quarter of the fiscal year closed last Monday. Investors would expectedly rely on numbers presented by the various companies to take informed decisions and correctly determine how to position ahead of the final quarter and indeed, the year.

It is expected that every company listed on the NSE, according to the post-listing rules, should submit their scorecards for the period ended September 31, 2019, through the bourse within 30 days for the end of quarter performance report. This is why companies with December 31 financial year-end must present their Q3 results to the market on, or before October 31, while those with March year-end accounts should publish their Q2 numbers; just as June year-end companies like Guinness Nigeria, are to provide Q1 earnings reports. Those with September year-end will, like Vitafoam Nigeria Plc, however, are to release their full-year earnings reports within the last quarter of the year, up till December 31.
Most companies on the NSE have December as year-end, especially given that all financial service providers, including banking, insurance, and other financial services.

Knowledge of the importance of earnings to equity investments and the economy at large is likely to add more momentum to the market for the Q3 earnings season as investors look forward to rebalancing their portfolios on the strength of actual numbers that will reveal the state of the various companies. It will also give insight into what the full-year accounts of the companies would look like.
However, market reactions to these numbers will depend on the strength of the earnings reported and the level of liquidity available to the market.
This year, the earliest filer of third-quarter accounts for the period ended September 31, 2019, was Infinity Trust Mortgage Plc which released its earnings report to the market on Wednesday. The numbers posted were impressive, as Gross Earnings for the period grew by 38.54% to N993.86m, while profit rose by 34.63% to N293.46m.

As we know, the economy has not been friendly to most companies, Nigerians and, indeed, business operators. Investing should, therefore, not expect positive surprises as such, but a mix of mild performance and utter disappointment. This is because the nation’s productivity and consumption levels have continued to struggle, a situation that is expected to reflect on their performance.
Worthy of note is the high cost of funds and operations associated with doing business or running these companies, with infrastructure remaining poor and worsening on a daily basis.

Research shows that an increasing number of companies with their shares listed on the NSE are complying with their post-listing requirements, thereby boosting investor confidence, while at the same time helping them plan their investment and ensure appropriate pricing of the stocks.

The tables above and below shows the expected release date of various company results to guide you:

https://investdata.com.ng/2019/10/investdata-research-expected-2019q3-earnings-release-dates-of-companies-on-ngse/

Mixed Trend, Patterns, May Continue On NGSE, As Bargain Hunters Position For Q3 Scorecards

Market Update for October 8
The Nigerian Stock Exchange (NSE) continued to downtrend on Tuesday as its benchmark All-Share index extended its sixth trading session of back-to-back losses on negative sentiments and selloffs as revealed by trade patterns and Investdata’s sentiment report. However, the loss momentum was seemingly slower in pace.
We note that the news of President Muhammadu Buhari presenting the 2020 Appropriation Bill, showing that with a size of N10.33tr, the Federal Government’s intends to spend 7% more than it did in 2019, to a joint session of the National Assembly was not enough to trigger investors buying interest on Tuesday, as selling pressure persisted (READ MORE).

Investdata notes the resolve by the National Assembly to pass the budget in December, thereby stabilizing the countries budget cycle by returning to the January-December fiscal year (READ MORE). We are also not unaware, just as the market, that Nigeria’s annual budget has seen become a mere ritual with scant impact on an economy that needs help to stop performing below its potential and start translating to prosperity for Nigerians. It is no news that the 2019 budget has hardly had any positive impact on the economy as at the beginning of the last quarter (October to December) 2019 when just less than 25% of the capital budget has been disbursed to finance projects captured therein. The total amount released so far for capital expenditure is N264bn, an amount the President assured while presenting the 2020 Appropriation Bill, will jump to N648bn before December 31, 2019.
These are part of the factors and government economic policies that have worsened the hardship faced daily by Nigerians while keeping foreign investors away from the real sector and the capital market.

These, Investdata believes, are among key issues hindering the country’s potential for fast-paced economic recovery. The depressed private consumption and investors’ wait-and-see attitude kept economic growth in the first half of the year below 2%, a rate significantly below population growth. This is likely to continue with the effect of multiple taxes on businesses and Nigerians. These and many more, we expect will feature as the President meets members of his newly constituted Economic Advisory Council (EAC), chaired by Prof. Adedoyin Salami. Some have however argued that the meeting is similar to putting the cart before the horse, since the erudite economist should have been allowed to have a say in the budget, before Tuesday’s presentation to the NASS, besides giving their own opinion of Nigeria’s economic direction and at what speed it should travel for the desired recovery to be attained quickly.

Meanwhile, the NSE’s benchmark index started the day on a slightly upside direction but changed direction between mid-morning to midday on selloffs in MTN Nigeria and Dangote Flour. This situation lingered throughout the afternoon session, with the index touching intraday low of 26,809.30 basis points, from its high of 26,896.09bps. The index, however, inched up marginally at the last minutes, closing at 26,809.92bps on a low traded volume that confirmed the wait-and-see attitude of investors and traders for 2019Q3 company scorecards, even as sectoral indexes resisted further decline.

Market technicals on Tuesday remained negative and mixed, with higher traded volume than the previous day in the midst of negative market breadth and high selling pressure. This was revealed by Investdata sentiment reports showing a sell position of 99% and a ‘buy’ volume of 1% with a transaction volume index of 0.90. Also, the daily time frame- MACD remained bearish, while the Money flow index was relatively weak and flat on a sideways range.

Index and Market Cap
At the end of Tuesday trading, the composite NSEASI shed 56.49bps, closing at 26,809.92bps from its opening point of 26,866.41bps, representing a 0.21% decline, just as market capitalization fell by N27.49bn, closing at N13.05tr, from its opening value of N13.08tr, which also presented 0.21% value loss at the close of the session.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of 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 ahead of Q3 earnings reports portfolio reshuffling and repositioning before the government economic advisory team starts rolling out their plans or advises to stimulate and re-track the economy again.

The day decline resulted from selloffs and profit booking in stocks like MTNN, Dangote Flour, Dangote Sugar, UBA, UACN and Wema Bank among others. This impacted negatively on the NSE’s Year-to-Date loss, which heightened to 14.74%, while YTD market capitalization gain reduced to N1.25tr, representing 11.80% improvement over the year’s opening level of N11.72tr.

Bullish Sector Indices
All the sectoral performance indexes were largely bullish during the session, except for the NSE Consumer Goods index that closed lower at 0.09%, while NSE Oil/Gas index led the advancers, after gaining 1.04%, followed by the NSE Insurance and Banking indexes at 0.06% and 0.05% respectively, just as the NSE Industrial goods close flat.
Market breadth was negative as decliners outnumbered advancers in the ratio of 14:12; while market activities in volume and value rose by 22.56% and 68.66% respectively to 185.95m shares worth N2.54bn; from previous day’s 151.72m units valued at N1.5bn. The day’s volume was driven by transactions in Zenith Bank, FCMB, Guaranty Trust Bank, FBN Holdings and UBA.

Nascon Allied and NPF Microfinance were the best-performing stocks for the day, after gaining 10% and 9.09% respectively to close at N14.85 and N1.20 each, on low price attraction and earnings expectations respectively. On the flip side, Champion and Courtville Business Solutions lost 9.37% and 9.09% respectively, closing at N1.04 and N0.22 on selloff and profit-taking.

Market Outlook
We expect the mixed trend and patterns to continue on reducing selloffs, as bargain hunters took advantage of the pullback to position ahead of quarterly scorecards, especially now that the NSEASI recently tested a new low and rebounded on that same day, a good sign of imminent reversal if supported by positive sentiments. However, let the interplay of market forces determine direction.

Discerning investors should latch onto this, meanwhile, as a way of averaging down and recouping their investment immediately a recovery stage sets in, helped by economic policies, when things start to change gradually. In the process, equity prices will be influenced positively, while investors watch for sectors like insurance, banking, Industrial Goods, services, as well as oil/gas that have become defensive in recent times and could go bullish in no distant time.

Furthermore, we note that all eyes are on the newly appointed economic advisory team to settle down quickly and begin churning out policies capable of turning things around.

https://investdata.com.ng/2019/10/mixed-trend-patterns-may-continue-on-ngse-as-bargain-hunters-position-for-q3-scorecards/#more

NGSE Index Loses 19% YoY, As Large Cap Stocks Hit New 52-Week Lows

Market Update for October 9
The free fall of equities on the Nigerian Stock Exchange (NSE) continued and even worsened at the midweek, as benchmark All Share index extended its seventh consecutive day of losses, breaking down its October 3, 2019, strong support level of 26,789.38 basis points. In the process, the exchange made new lower lows on persisted selloffs in high cap stocks, despite the oncoming earnings reporting season.
The market recorded a 52-week loss of 19.01%, confirming the bearish state of the general market, with more stocks, including heavyweights- Dangote Cement, Nigerian Breweries, Presco, Guinness and AXA Mansard Insurance, making new 52-week lows.

The manufacturing companies made new lows due to indecision among investors, arising from their unimpressive earnings reports before now.
The declining investor confidence has become even stronger, with the negative sentiments that now dominate trades in recent days in the absence of positive news and policy statement from the government or its agencies. Market players are seemingly concerned over the slow implementation of the 2019 budget, a situation that has affected the economy, making the 2020 budget. The proposed budget was submitted by President Muhammadu Buhari to a joint session of the National Assembly on Tuesday, October 8, 2019, less attractive (READ MORE). This is despite the fact that it is an expansionary budget, with the debt servicing component higher than the capital expenditure budgeted to finance infrastructure in 2020.
Invesdate notes that there is no provision for new projects in the proposed budget presented to the National Assembly, just as we align with the submission of the Senate Leader, during deliberations on the President’s presentation, that the capital component of the Bill is not enough to stimulate as much growth as the country needs at this time (READ MORE).

Trading on Wednesday opened slightly on the downside and maintained the trend till mid-morning to afternoon amidst continued selloffs in highly capitalized stocks and blue-chip companies. This dragged the index to an intraday low of 26,489.42bps, from its high of 26,817.30bps. However, at the last minutes of the session, the index retraced up marginally to close at 26,598.94bps on a very high traded volume that signaled that something is underway for discerning investors and traders.
Midweek’s market technicals were negative and mixed, with higher traded volume than the previous day in the midst of negative market breadth and mixed sentiments, as revealed by Investdata’s sentiment reports showing a sell position of 63% and a ‘buy’ volume of 37%. The transaction volume index for the day stood at 1.17, just as the Daily Timeframe- MACD remained bearish, while Money Flow Index remained weak while looking down.

Index and Market Cap
The composite NSEASI at the end of Wednesday’s transactions lost 210.98bps, closing at 26,598.94bps from its opening point of 26,809.92bps, representing a 0.79% decline, just as market capitalization fell by N102.71bn at N12.95tr, from its opening value of N13.05tr, which also presented 0.79% depreciation in value. The capitalization, therefore, fell below N13tr for the first time in many months.
Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of 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 ahead of Q3 earnings reports portfolio reshuffling and repositioning before the government economic advisory team starts rolling out their plans or advises to stimulate and re-track the economy again.

Midweek’s downturn was due to high selloffs in medium and high cap stocks like Dangote Cement, Nestle, Nigerian Breweries, Guinness Nigeria, Dangote Flour, FBNH, Zenith Bank, Presco, PZ, and UCap, among others. This impacted negatively on the NSE’s Year-to-Date loss, which increased to 15.37%, while YTD market capitalization gain reduced to N1.15tr, representing a 10.98% improvement over the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indexes were largely bearish at the end of the day, except for the NSE Banking and Oil/Gas Index that closed higher at 0.35% and 0.10% respectively, while the NSE Consumers Goods index led the decliners, after shedding 1.80%, followed by the NSE Industrial goods and Insurance indexes at 1.63% and 0.77% respectively,.
Market breadth was negative, as decliners outnumbered advancers in the ratio of 15:12; while market activities in volume and value rose significantly by 217.85% and 191.55% respectively to 591.04m shares worth N7.4bn; from previous day’s 185.95m units valued at N2.54bn. The day’s volume was driven by transactions in Custodian Investment, Access Bank, Lafarge Africa, Guaranty Trust Bank, and Guinness Nigeria.
The best-performing stocks for the day were Learn Africa and Chams, which chalked gaining 9.80% and 8.33% respectively to close at N1.12 and N0.26 each, on market forces. On the flip side, PZ Cussons and NCR lost 10% and 9.09% respectively, closing at N6.30 and N4.50 on selloffs.

Market Outlook
We expect the mixed performance to continue on selloffs, as bargain hunters take advantage of the pullback to position ahead of quarterly scorecards, especially now that the NSEASI had broken down the recent support level to test a new lower low of 26,489.42bps. However, let the interplay of market forces determine direction.
Discerning investors should latch onto this, meanwhile, as a way of averaging down and recouping their investment immediately a recovery stage sets in, helped by economic policies, when things start to change gradually. In the process, equity prices will be influenced positively, while investors watch for sectors like insurance, banking, Industrial Goods, services, as well as oil/gas that have become defensive in recent times and could go bullish in no distant time.
Furthermore, we note that all eyes are on the newly appointed economic advisory team to settle down quickly and begin churning out policies capable of turning things around.

Take Action
Investdata INVEST 2020: Opportunities and Trade Ideas Summit
Over the years, we have received requests from our followers, concerning our annual Traders & Investors Summit scheduled for December, where experts and analysts would x-ray investment and trading opportunities in the New Year.
At the forthcoming summit, participants would:
• Learn from some of the best professionals in the market
• Share Trading ideas and investment opportunity/strategies
• Offer opportunities to network with peer value investors and investment professionals who share your passion for investing
• Understand more about using Investdata Buy & Sell Signal setup strategies and research tools to improve outcomes
Expected Takeaways
• Pinpointing chart patterns for Profitable Trades and investing opportunities in an uncertain market environment
• Investment analysis and theses behind these ideas
• Special Earnings and Dividend Game Plan for 2020 investment opportunities
• Understanding the changing economy and trend for profitable investment
• How successful value fund managers research into and evaluate companies
• Exclusive insight and actionable value strategies from world-class professional Traders
• Over 10 Trading and investing tips for identifying undervalued Stocks you can buy now

Date: December 7, 2019
Venue: Ostra Hall & Hotels Ltd, Opposite NNPC Gas Plant, AlausaIkeja Lagos, Nigeria

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/2019/10/ngse-index-loses-19-yoy-as-large-cap-stocks-hit-new-52-week-lows/#more

NGSE: Mixed Performance Still, As Investors Await 2019Q3 Earnings, Amidst Liquidity Hiccups

Market Update for October 10
Market bears again stepped forward on the Nigerian Stock Exchange (NSE), but at a slower pace, as selloff followed through by bearish minded institutional and fund managers selling down their positions due to the nation’s weakening economic fundamentals and divergence in monetary and fiscal policy formulation.
The slowdown in the losing momentum may not be unconnected with investors, analysts and economists studying the proposed 2020 budget estimates, even as they continue to x-ray the impact of the 2019 Appropriation bill yet.

The U.S consumer price index for the month of September and the associated inflation recorded a decline. This position, therefore, supports the call for a third interest rate cut, as the reported decline still points to the impact of the ongoing trade war with China, the second-largest economy in the world, which has dented business investment. Growth is also being restricted by the fading stimulus from last year’s $1.5tr tax cut package, just as the core CPI readings for the month were moderated by the growth recorded in healthcare costs.
A lot of attention has been given to trade quotas, intellectual property theft and the challenges encountered by U.S. companies while accessing the Chinese markets. What hasn’t been talked about as much is the currency issue. Yet China’s Yuan is at the core of it all.
China has used a weak currency to leapfrog almost the entire world over the past 30+ years, capturing 15% of the global economic market share and rising to economic power. They’ve gone from a $350 billion economy in the early 80s, to a $13 trillion economy today.
That’s how they got here, and we’ve talked in recent weeks how they are attempting to stay here, going back to what they know, weakening the currency, as a tool to fight the impact of the tariff hikes.

Meanwhile, Thursday’s trading on the NSE started marginally on the downside and was sustained throughout the session, amidst selling pressure on high cap and blue-chip stocks reduced. However, the index touched an intraday low of 26,578.03 bps, from its high of 26,599.87bps, before finishing the day at 26,583.75points on negative sentiments.
Market technicals for the session were negative and mixed, with lower traded volume than the previous day in the midst of market breadth favoring the bears, and selling pressure, as revealed by Investdata’s sentiment reports showing a ‘sell’ volume of 74% and a ‘buy’ position of 26%. The transaction volume index for the day stood at 1.69. The Daily Timeframe- MACD remained bearish, while Money Flow Index remained weak as it looking down.

Index and Market Cap
At the end of Thursday, the NSE All-Share Index shed 15.19bps, closing at 26,583.75bps from its opening point of 26,598.94bps, representing a 0.06% drop, just as market capitalization lost N7.39bn at N12.94tr, from an opening value of N12.95tr, which also presented 0.06% value loss. If you measure from the beginning of 2019, till now, it seems as though stocks have suffered serious losses, shedding around 20% for the year.
Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of 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 ahead of Q3 earnings reports portfolio reshuffling and repositioning before the government economic advisory team starts rolling out their plans or advises to stimulate and re-track the economy again.

The day’s downturn resulted from selloffs in stocks like Flour Mills, UBA Plc, Ecobank Transnational Incorporated, Custodian Investment, Fidson Healthcare, Transcorp Plc, and Honeywell, among others. This impacted negatively on the NSE’s Year-to-Date loss, which increased to 15.42%, while YTD market capitalization gain reduced to N1.14 trillion, representing a 10.92% improvement over the year’s opening level of N11.72tr.

Bearish Sector Indices
All the sectoral performance indexes were in red at the close of business, led by the NSE Insurance index which lost 1.17%; followed by the NSE Banking and Consumer goods indexes that were down by 0.24% and 0.07% respectively. The NSE Industrial Goods shed 0.01% while NSE Oil/Gas was flat.
Market breadth remained negative, as decliners outnumbered advancers in the ratio of 15:8; just as market activities in volume and value were mixed. While volume was down 38.54% to 363.26m shares, compared to the previous day’s 591.04m units, whereas transaction value rose by 157.03% to N19.02bn from midweek’s N7.4bn. The day’s volume was driven by transactions in Dangote Cement, Access Bank, FCMB, Zenith Bank and Africa Alliance Insurance.
Learn Africa and Livestock Feeds Plc were the best-performing stocks, as they topped the advancers’ table after gaining 9.82% and 9.30% respectively to close at N1.23and N0.47 each, on market forces. On the flip side, WAPIC Insurance and Linkage Assurance lost 8.57% and 7.84% respectively, closing at N0.32 and N0.47 on market sentiment.

Market Outlook
Despite, being the last trading day of the week, we expect the mixed performance to continue Friday on selloffs, as bargain hunters take advantage of the pullback to position ahead of quarterly scorecards, especially now that the NSEASI has broken down the recent support level to test a new lower low of 26,489.42bps. However, let the interplay of market forces determine direction.
Also, traders and investors will from on Friday, begin to adjust to a review of the NSE’s pricing methodology, introduced 21 months ago on January 29, 2018. The import of the review is that unlike in the past, where volume required to change stock prices were graduated according to its price (N100 and above per share, below N100 and then N5 each), investors now need a uniform 100,000 units to effect any price changes. This may be the part of efforts to mitigate the persistent price decline that has seen many stocks trading at between their five and ten-year lows and even more, in recent times (READ MORE).

Discerning investors should latch onto this, meanwhile, as a way of averaging down and recouping their investment immediately a recovery stage sets in, helped by economic policies, when things start to change gradually. In the process, equity prices will be influenced positively, while investors watch for sectors like insurance, banking, Industrial Goods, services, as well as oil/gas that have become defensive in recent times and could go bullish in no distant time.
Furthermore, we note that all eyes are on the newly appointed economic advisory team to settle down quickly and begin churning out policies capable of turning things around.

https://investdata.com.ng/2019/10/ngse-mixed-performance-still-as-investors-await-2019q3-earnings-amidst-liquidity-hiccups/#more

Investdata Weekly Sentiment Report for the week ended 13 October, 2019

NSEASI buy 9% sell 91% MFI 34.97
Abc buy � volume index 0.85 MFI 53.00
Access buy � volume index 0.76 MFI 69.91
Afrprud buy � MFI 46.45
Aiico buy � MFI 56.16
Ccnn buy 0% MFI 56.45
Chams buy 67% sell 33% MFI 37.66
Continsure buy 60% sell 40% volume index 4.95 MFI 76.69
Cornest buy � MFI 38.32
Courtville buy 0% MFI 53.26
Custodian buy 0% MFI 5.52
Cutix buy 33% sell 67% volume index 0.71 MFI 62.25
Dangcem buy 14% sell 86% volume index 2.80 MFI 16.80
Dangflour buy 17% sell 83% MFI 90.48
Dangsugar buy 0% MFI 40.98
Eti buy 0% MFI 59.58
Fbnh buy � MFI 45.84
Fcmb buy � volume index 3.58 MFI 38.27
Fidelity buy 40% sell 60% MFI 41.33
Fidson buy 0% volume index 2.53 MFI 15.12
Fmn buy 0% MFI 61.05
Fo buy � MFI 18.66
GT buy 15% sell 85% MFI 43.39
Honyflour buy 80% sell 20% MFI 40.57
Jaiz buy � MFI 56.08
Lasaco buy 50% sell 50% MFI 83.85
Learn buy � volume index 1.50 MFI 61.94
Lvstk buy � MFI 27.55
Mansard buy 0% volume index 0.96 MFI 36.02
Mobil buy � MFI 6.39
Mtnn buy � MFI 91.97
Nahco buy 0% MFI 40.24
Nascon buy � volume index 2.10 MFI 26.72
Neimeth buy 0% volume index 0.94 MFI 23.23
Nestle buy 28% sell 72% volume index 1.75 MFI 52.03
Npf buy 90% sell 10% volume index 1.71 MFI 50.64
Oando buy 0% MFI 59.79
Presco buy 0% MFI 0.00
Pz buy 0% volume index 1.78 MFI 51.08
Sterling buy � MFI 56.69
Transcorp buy � volume index 0.84 MFI 44.90
Uacp buy 78% sell 22% MFI 58.84
Uacn buy � MFI 60.44
Ucap buy 87% sell 13% volume index 1.18 MFI 42.84
Wapco buy 67% sell 33% volume index 1.49 MFI 61.50
Wapic buy 60% sell 40% MFI 10.83
Wema buy 40% sell 60% MFI 67.12
Zenith buy 17% sell 83% volume index 0.78 MFI 36.93

https://investdataltd..com/2019/10/investdata-weekly-sentiment-report-for.html

Investdata Price & Earnings Tracking For Week Ended October 11, 2019

https://investdata.com.ng/2019/10/investdata-price-earnings-tracking-for-week-ended-october-11-2019/#more

Corporate Actions As At Friday, October 11, 2019

https://investdata.com.ng/2019/10/corporate-actions-as-at-friday-october-11-2019/#more

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.

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


To Your Success
Investdata Consulting.

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