Investdata Daily Sentiment Report as of February 19, 2019

NSEASI buy 46% sell 54% MFI 4.55
Access buy � MFI 27.42
Afrprud buy � MFI 28.60
Aiico buy 0% MFI 70.84
Eti buy 0% MFI 11.84
Fbnh buy 0% MFI 29.24
Fcmb buy 0% MFI 69.41
Fidelity buy � MFI 47.57
GT buy 0% volume index 0.75 MFI 26.83
Jaiz buy � volume index 1.18 MFI 59.83
Japaul buy 0% volume index 1.21 MFI 77.91
Lawunion buy � MFI 90.24
Lvstk buy � volume index 1.24 MFI 81.33
Neimeth buy 0% volume index 3.32 MFI 66.48
Sterling buy � MFI 29.93
Transcorp buy � MFI 15.26
Uacp buy � volume index 2.11 MFI 86.50
Uacn buy � MFI 56.98
Uba buy 0% MFI 21.48
Ucap buy 70% sell 30% volume index 2.79 MFI 69.14
Vitafoam buy � volume index 5.05 MFI 22.98
Wema buy � volume index 1.01 MFI 40.05
Zenith buy 50% sell 50% volume index 1.14 MFI 39.85

https://investdataltd..com/2020/02/investdata-daily-sentiment-report-as-of_19.html

Investdata Price, Earnings Tracking For Week Ending February 14, 2020

https://investdata.com.ng/2020/02/investdata-price-earnings-tracking-for-week-ending-february-14-2020/

Investors Hedge Against Inflation, Go For Stocks Promising Higher Dividend Yields
- February 20, 2020


Market Update for February 19
Nigerian stocks again declined at the midweek as players eagerly await more earnings reports and dividend news, especially from the large companies for a reversal of the lingering downtrend and mixed sentiments. Such announcements, if positive as expectedly, would likely propel the inflow of funds into equity assets at time inflation continues to ravage returns on investment in money market and short term fixed income instruments. This is particularly true of Federal Government bonds with yield now below its five-year low, with 91, 182 and 354-day Treasury Bills and FGN Bond primary market rates at 3%, 4%, and 6.54% respectively. Also, the five, 10 and 30-year bond yields are priced at 9.85%, 11.13%, and 12.56%.

United Capital Plc has given some ray of hope to investors, going by its recently released full-year earnings with 50 kobo dividend that translated to a yield of 17.06% as of the released date, a situation that attracted some inflows to the stock. This is to be expected, as income investors take advantage of the high payout at a time the yield is higher than the prevailing inflation rate as announced on Tuesday, by Nigeria’s National Bureau of Statistics. It is noteworthy that the high payout of United Capital has equally attracted funds inflow to its sister company- Africa Prudential, as well as parent company- the United Bank for Africa Plc during the trading session.

Investors should take note that in using stocks to hedge against inflation, companies that can pass their rising product costs to customers, such as those in the Consumer Goods sector and others that enjoy the Federal Government’s Value Added Tax-free policy as captured in the Finance Bill 2019 should be targeted for quick wins (READ MORE).
The slowdown in the spread of Coronavirus infections rate and injection of funds into the Chinese economy by its central bank, as well as its plan to cut short-term interest rates and in the process, stimulate productivity and encourage small businesses affected by the outbreak, has triggered prices of stocks and commodities in the global markets. Oil price, again, hit a three-week high on U.S government sanctioning a trading subsidiary of Russian oil giant Rosneft, accused of helping Venezuela transport oil to refineries in China and India.

Meanwhile, Wednesday’s trading on the Nigerian Stock Exchange started on the downside and maintained that direction throughout the session, but oscillated in the late afternoon to touch intraday low of 27,512.72 basis points, from its high of 27,556.13bps, before adjusting up marginally to close the session lower at 27,523.08bps on a high traded volume.
Midweek market technicals were negative but mixed, as volume traded was higher than the previous session, with breadth favouring the bears, amidst a high selling pressure as revealed by Investdata’s Sentiment Report showing 76% ‘sell’ volume and 24% ‘buy’ position. The total transaction volume index stood at 0.99, while the energy behind the day’s performance was seriously weak, with Money Flow Index flat at 4.55 points, from the previous day’s 4.55 points. This indicated that the market is still lacking in liquidity, despite the seeming entrance of funds into some stocks.

Index and Market Caps
At the close of midweek’s trading session, the All-Share Index lost 24.48bps, closing at 27,523.08bps from its 27.547.56bps opening, which represented a 0.09% decline, just as market capitalization lost N9.14bn, closing at N14.34 trillion, from the N14.35tr opening level, which also represented a 0.09% value 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 at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

The session’s decline was impacted by selloffs Guaranty Trust Bank, Forte Oil, Custodian Investment, NCR, Dangote Sugar, Oando, Fidelity Bank and Chams, among others. This impacted negatively on the NSE’s Year-To-Date gain, reducing it to 2.54%., while market capitalization YTD gain fell to N1.38tr representing 10.65% growth over the year’s opening value.

Bearish Sector Indices
All sectorial performance indexes closed in red, except for the NSE Industrial Goods that gained a marginal 0.46%, while the NSE Insurance index led the decliners with its 2.29% loss, followed by NSE Oil/Gas which fell by 1.12%, ahead of the NSE Banking and Consumer Goods that lost 0.55% and 0.13% respectively.

Market breadth remained negative as decliners outpaced advancers in the ratio of 17:13, while market activities in terms of volume and value traded were up by 72.6% and 132.9% respectively to 290.16m shares worth N5.03bn, as against the previous day’s 168.07m units valued at N2.16bn. Volume was boosted by trades in Guaranty Trust Bank, Zenith Bank, FBNH, Japaul Oil and UBA.
The best-performing stocks during the session were United Capital and Africa Prudential, which for reasons stated earlier, gained 9.9% each, closing at N3.22 and N5.12 per share respectively. On the flip side, AXA Mansard Assurance and Forte Oil lost 10% and 9.97% respectively at N1.80 and N16.70 on profit-taking and selloffs.

Market Outlook
We expect dividend news-driven reversal in the market, as the index continues to bounce around 61.8% Fibonacci retracement on a higher traded volume, with more audited earnings expected to hit the market any moment from now. This is despite the likely continuation of the mixed intraday movement in the midst of profit-taking, with investors buying increasing positions in high dividend-paying stocks ahead of dividend declaration. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020.

Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.
We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.

Is This Holding you Back?

I have been posting a lot about my Invest 2020 Summit Homestudy pack but I have not heard anything from you.

Sincerely, I know the reason why you have not taken any action yet although it may not be in detail, however, it is the foundation of all excuses and reasons for not taking action.

It is simply Fear-for ages, It is a deadly enemy that prevented a larger populace from achieving their goals whether you admit it or not; I know what I am saying. Let's drill down further. Your fear includes:

1. Fear of Knowledge acquisition: you are afraid to acquire more knowledge because the ones you have acquired in the past became obsolete without taking any action.

2. Fear of taking Risk: you are also afraid of taking risks despite the fact that all risk has been taken away through my membership site. In addition, you must have lost money before in the stock market which I did too. However, I never gave up.

I must confess that your fear is not your fault. It is just the way we have been wired. In any situation, we are afraid in 2 ways which are catastrophic fear which is afraid that something bad will go wrong while the other type inastrophic is a type of fear that revolves around positivism.

Hence, the only way to overcome your fear is to see yourself taking action by first buying the material as they are been released on a monthly, quarterly or annual basis because nothing is static in life.

Want to overcome fear and get the best out of 2020 Call NOW 08028164085,08032055467 or send an email to ambroseconsultants@yahoo.com for the INVEST 2020 SUMMIT HOMESTUDY PACK

Dedicated to Your Financial Success,
Ambrose Omordion

High Asset Quality Confirms Zenith Bank Nigeria’s Most Profitable Bank In 5 years


Zenith Bank Plc presented its 2019 full-year audited financials through the Nigerian Stock Exchange last week in line with the post-listing requirement of the Nigerian Stock Exchange, as well as global best practice in good corporate governance practice. The timely presentation is expected to allow investors and traders to plan and take investment decisions about the future performance of the bank. Comparatively, the earnings report came slightly late, when compared to the presentation date of the 2018 numbers. We observe that the bank has maintained its tradition of improving its earnings capacity over the last two decades, a situation that has supported its high dividend payout and share price. This is notwithstanding the marginal 1.1% rise in the cost of risk, owing to the bank’s aggressive approach to lending, given that loans and advances improved by 26.46%, while effective cost and risk management helped the bank to further reduce its non-performing loan ratio.
Zenith Bank’s NPL ratio has remained below the regulatory 5.0% since 2018, dropping to 4.30% in 2019 from 4.98%in the 2018 position, a reflection of its improved credit quality.

We note that this is the first report card of the management team, under the leadership of Ebenezer Onyeagwu. It shows a sustained commitment to creating value for stakeholders at all levels, as revealed by its operational performance that continues to drive profitability and other investment ratios. We note also that this is the first audited score-card after the Central Bank of Nigeria began tinkering with the Loan to Deposit Ratio, which analysts say will weigh down on banks’ earnings, going forward.
Zenith Bank’s full-year statistics show a mild performance driven by non-interest revenue especially from trading income, while gross earnings and profitability levels increased, resulting 665 kobo Earnings Per Share from its N208.84bn bottom line, which was equally supported by fee income for the period.

However, the bank has set another new record, becoming the first Nigerian bank to cross the N200bn net profit region to remain the industry leader. The earnings and dividend yields of 34.20% and 12.85% respectively remain the point of attraction for discerning investors, which accounts for the mild positive investor reaction on the release date.
Gross earnings for the period under review inched by a marginal 5.1%, to N662.25bn, from N630.34bn in 2018, while bottom-line rose by 7.97% from N193.42bn in 2018 to N208.84bn. The drop in market value for the period reflected on the earnings yield, following which it moved to 34.20% as of released date, from 24.30% in 2018.
Although the banks operating expenses rose by 2.8%, we note the improvement in operating efficiency with cost to income ratio declining by 100bps, reflecting following which profit margin ratio stood at 31.54%, irrespective of the provisions for loan impairment, which climbed within the period to 30.81%. This, therefore, significantly ate into the bottom-line as reflected in the profit margin that inched up by 2.77% to 31.54% from 30.69% in 2018.

Shareholders’ funds improved by 15.47% to N941.89bn, from N815.75bn in the prior year; just as the 12-month Price to Earnings ratio for the period is 2.92x, which is lower than the 4.11x posted in 2018.
Book Value for the period stood at N30 per share, while return on equity for the year fell slightly down to 22.17% from 23.71% in 2018, just as growth in deposit base, as well as loans and advances, are signs of aggressiveness by management to make more impact in the economy and stakeholders. There is also the LDR of 54.09%, from 49.40% in 2018, just as liquidity and capital adequacy ratio remain above regulatory thresholds of 57.3% and 22% respectively.

Source: NSE, Company Report and Investdata Research

The bank’s aggressiveness in retail banking, corporate and ICT space has continued to drive its earnings capacity as reflected in investment and profitability ratios to actually reveal the high margin of safety of 51.13% from the market price of Zenith Bank as at released date. The retained earnings of 58% that have boosted the bank’s net assets and balance sheet, with retained profit up by 28.15% to N412.95bn from N322.24bn in 2018, a pointer to the fact that Zenith Bank is liquid enough to acquire any bank and at the same time support future dividend growth. The bank’s declining cost-to-income ratio at 31.30x, as against the 32.72x of 2018, and consistent growth in its book value are encouraging and exciting for discerning investors and traders, considering the nature of its services.

Valuation
Looking at the bank’s consistent growth in earnings on a quarterly and yearly basis, and despite the mild increases in current numbers, it has reduced the waiting period of investors’ at its Price to Earnings Ratio of2.92x, from the 4.11x position in 2018. On the strength of the 2019 financial year result, we upgrade the target price to N28.50. This guidance is indicative of stronger performance posted. Meanwhile, the Book Value of N30reveals the underpriced state of the bank, which is fairly priced at N36.

Analysts Opinion/Recommendations
As predicted in our review of Zenith Bank’s Q3 numbers that trading and fee income will support their profit line which actually was obvious in the released earnings report, despite the low-interest rate prevailing in the money market. Consequently, the recent cut in the bank charges, CBN policy on the Cash Reserve Ratio and over-regulation of its sectors may stand as headwinds in the current financial year. Traders and investors with short, medium and long-term goals, who desire to preserve capital, should look the way of this stock. As investment in the stock for the next 90 days, will beat any form of returns from the money market, Treasury Bills and bonds. We recommend a BUY for Zenith Bank


Technical View


Zenith Bank’s price action over a three-year has been on the downtrend, breaking down various support levels to test a strong support level of N16, before rebounding and oscillating to breakout the downtrend line and the bearish channel. It is trending up within an up channel on a mixed sentiment. The candlestick formation at the bank’s financials signals reversal within the channel but depends on market forces in the new week. The bank’s RSI is reading 51.97 and Money Flow Index is looking down at 49.28 signal that funds are still exiting on a weekly time frame, but it is entering on a daily chart to read 55.83 indicating uptrend. For over six months, the bank’s price action has formed an upward trend pattern at the bull channel that supports the continuation of the trend. The bank is trading above its 20-day moving average on the weekly chart at N19.85per share.


Four-Year Performance (2016-2019)
A critical look at the bank’s performance for the past four years shows a consistent improvement on the top and bottom lines, except for 2018 where it recorded a slowdown in the investment and profitability ratios for the period under review. The high and low performance of the bank is revealed by the numbers in the tables below. Its gross income for the period oscillated to reflect the changes in the economy, moving from N508bn in 2016 to touch the highest top-line for the period atN745.19bn before falling in 2018 to N630.34bn before rebounding in 2019 toN662.25bn, while profitability level has constantly been on the uptrend for the last four years with a growth of 61.1%to N208.84bn from N129.65bn posted in 2016.00. Earnings Per Share remained strong and steady at N6.65 regardless of the level of overregulation in the industry and the unfriendly economic situation, especially with the high Monetary Policy Rate (MPR), tight liquidity, rising inflation rate, dwindling discretionary income, and falling naira value. The bank’s earnings capacity rose from 413 kobo in 2016 to 566 kobo in 2017, and 616kobo and 665 kobo in 2018 and 2019 respectively, despite the various headwinds in the banking during the years. Its stable movement in Earnings Yield is a plus, despite the decline from 28.03% in2016 to 18.25% in 2017 and uptrend since then to 24.3% in 2018 and 34.20% in 2019.

Source: NSE, Company Report and Investdata Research

The bank’s strategic risk and cost management efforts are paying off in its efforts to reduce non-performing loan ratio and improved profit margin to support the steady growth in terms of profitability, dividend payout and impacting the economy through its social responsibilities. Also, the bank has demonstrated its doggedness in retail banking and other factors that continually supports and drives profit. The bank’s branches within and outside the country, helped by the professionalism in service delivery at all levels, have demonstrated their capacity through the financials released over the past four years. Its innovations in its ICT platforms have contributed to making all the figures green. Investors, on the other hand, have followed the outstanding performances of Zenith Bank over time, taking strategic positions which continue to reveal value in its stock, while creating wealth as investors smile to the banks on biannual bases. Similarly, over the years, its Book Value has grown in the same direction from N22.44 per share in 2016 to N26.15 in 2017 to N25.98in 2018 and finally N30.00. On consistent earnings growth and Investor confidence, which is expected to support the price, given that valuation tools place the bank’s stock at N36per share.

https://investdata.com.ng/2020/02/high-asset-quality-confirms-zenith-bank-nigerias-most-profitable-bank-in-5-years/

Amidst Attractive Dividend Yields, Speculations May Shape Market Direction, Despite Mixed outlook

Market Update for the Week Ended February 21 and Outlook for Feb 24-28
Trading on the Nigerian Stock Exchange last week was dominated by mixed sentiment, as selloffs continued among highly capitalized stocks on negative economic news as the inflation rate in the country soared higher, amidst the heightening insecurity, among others.
In the past four consecutive weeks of decline, the market has almost given up all it gained in the first three trading weeks of January after the Central Bank of Nigeria’s Monetary Policy Committee deflated the new year rally by raising Cash Reserve Ratio for the banks by 500 basis points from 22.5% to 27.5%. This triggered an increased outflow of funds from the stock market at a time published unaudited Q4 numbers of listed companies were mixed in performance, dampening investor confidence to the extent that the few audited accounts so far from early filers like Nigerian Breweries, United Capital and Zenith Bank are yet to elicit positive sentiments. Not even their high dividend payout of N1.51, N0.50 and N2.50 respectively, has so far elicited the kind of behavior expected of the market, due to low liquidity in the system, arising from recent regulatory measures.

We expect that the rising inflation rate would induce speculation and increased patronage of the stock market going forward, as discerning investors seek to hedge against inflation, as audited financials and dividend news continue to hit the market. As earlier mentioned, the Q4 unaudited reports have given insight to investors as to where they should position for dividend income on the strength of company earnings that support payout. Investdata expects that such discerning investors would have started positioning in such stocks a week or two before the release date of their targets.
Last week also, stock markets around the world were mixed, as investors sought safety in gold while avoiding risky assets, bearing in mind the impact of inflation and coronavirus outbreak across the global economy. Chinese policymakers are offering to help companies hurt by the fast-spreading outbreak, with the hope of further monetary stimulus to mitigate the impact of the coronavirus epidemic on the global economy. Emerging and Frontier markets are not immune to the virus fears, which weighed down their respective indices.

Movement Of NSEASI
Still, on the Nigerian Stock Exchange, the last week experienced what is popularly called a dead cat bounce, as the composite All-Share Index suffered another bearish performance with four sessions of a down market. Tuesday and midweek’s session were flat at 0.08% and 0.09%, after the first trading session of the week closed also 0.67% down, after which the index gained 0.17% on Thursday, before pulling back on Friday shedding 0.69%, due to the continued selloffs in Guaranty Trust Bank, Zenith Bank, and Nestle to close the week in red.

The NSEASI opened the week trading at 27,755.87bps, touching an intra-week high of 27,818.09bps and low of 27,23.53bps on a flight for safety, in search of other investment windows offering high dividend yield. The index closed the period at 27,288.62ps, representing a 1.32% decline on a higher traded volume when compared to the previous week. Also, market capitalization fell to N14.27tr, from an opening value of N14.46tr, representing a 1.30% value loss. The difference in parentage change of the index and market cap was due to the listed of additional 4.4bn ordinary shares of AIICO Insurance at N1.20 (READ MORE). We note that last week’s rate of decline was higher than the previous 1.11% loss,
Low and medium cap stocks dominated the week’s advancers table, with continued sell pressure on high cap companies, while the accumulation of high dividend-paying stocks persisted in the midst of few audited corporate earnings that are yet to impact the market. Investors have also continued to trade cautiously in the expectation of more audited accounts and corporate actions.

Also, the prevailing mixed sentiment was evident in the market breadth which was down over the period, with decliners’ outnumbering advancers in the ratio of 28:24. The energy behind the week’s performance was strong, even if declining, as revealed by Money Flow Index reading 59.23bps, compared to the 67.68bps of the previous week.
The high volume of trade indicates a sell down among traders and investors as they position in medium and small-cap companies, even as Investdata’s Sentiment Report for the week was negative at 26% ‘buy’ volume, and 74% ‘sell’ position, on a transaction volume index of 1.17.

NSEASI Weekly Time Frame
From the above weekly chart of the NSE Index, the money flow index continues to indicate that funds are leaving the market while momentum indicators vary in their directional movement, with the index breaking down the Fibonacci retracement line of 61.80%.
It is clear that fund managers are holding cash in expectation of economic data like the 2019 Q4 GDP report slated for release on Monday, February 24, 2020, to see if there would be any silver linen in Nigeria’s economic sky after inflation rate for January hit 21-month high of 12.13% on the back of the continued border closure and insecurity that continues to fuel a rise in the prices of food item. The waiting game is expected to help investors determine which windows they will be considering, whether equity or fixed income especially against the ongoing assets repricing in the financial market.

The bearish stance and dominant trading patterns during the period reveal a dicey market, despite the earnings expectations that are likely to support a reversal if the numbers beat market forecast. The index broke down the 27,538.17bps within the period, an indication of weak inflow into the market as institutional investors and fund managers await the audited earnings reports.
The index, on a weekly time frame, is trading below its 20-Day Moving Average; the Relative Strength Index reads 45.47.

Bearish Sectoral Indices
All the sectoral indexes were in red during the week, except for the NSE Industrial Goods that closed in green at 1.02%, while the NSE Consumer Goods Index led the decliners, after shedding 6.75%, followed by the NSE Banking, Insurance and Oil/Gas indexes that were down by 2.62% 2.12% and 1.28%, respectively.
Market activities, in terms, of volume and value for the week, were up by 64.84% and 47.65% respectively, as investors exchanged 1.5bn shares worth N17.91bn, as against the previous week’s 912.18m units valued at N12.13bn. This volume was mainly driven by trades in financial services stocks, especially Zenith Bank, Sovereign Trust Insurance and Guaranty Trust Bank.
The best-performing stocks for the week were C & I Leasing and AIICO Insurance, which gained 26.85% and 26.25% respectively, closing at N6.85 and N1.01 per share on impressive earnings and expectation of dividend news. On the flip side, Law Union and AXA Mansard lost 36.52% and 10% respectively, closing at N0.73 and N1.80 per share on profit-taking and market forces

Market Outlook
We expect more audited earnings reports and dividend news to dictate the market direction in the midst of profit-taking and repositioning by market players, as more maturing OMO and bonds mature, making more funds available for equity investment, even as we noted the fact that funds managers are holding cash. This is just as more liquidity flows to high Dividend Yield stocks with sound fundamentals, which will also be based on the seemingly positive outlook for the domestic economy, and despite the mixed outlook for 2020 from various analysts.
While discerning investors should take advantage of the current low stocks valuation to position for the medium to long-term, it is noteworthy that the Nigerian equity market is selling at a discount and therefore offers high upside potential.
We should, however, not overlook the possibility of a bargain-hunting motive supporting positive performance, especially with many fundamentally sound stocks remaining underpriced. With a 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 mixed outlook.

Again, the current undervalued state of the market offers investors opportunities to position for the short to long-term, which is why investors should target fundamentally sound and dividend-paying stocks for possible capital appreciation in the New Year. This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Opportunities & Trade Ideas Summit.
Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, CBN directives and its impact on the economy in the nearest future.

Meanwhile, we thank all the participants of the PHC Invest 2020 Summit last weekend, as we also welcome you all to a bullish 2020. The home study packs of Invest 2020 Opportunities and Trade Ideas Summit containing the 10 Golden Stocks for 2020 are available with an average return of 13.37% in less than 30 days. To obtain your pack send ‘Yes’ or ‘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/2020/02/amidst-attractive-dividend-yields-speculation-may-shape-ngse-direction-despite-mixed-outlook/#more

Investdata Daily Sentiment Report as of February 21, 2020

NSEASI buy 84% sell 16% volume index 1.69 MFI 4.39
Access buy 0% MFI 36.47
Afrprud buy 29% sell 71% volume index 8.79 MFI 78.81
Aiico buy � volume index 1.31 MFI 88.42
Chams buy � volume index 0.75 MFI 42.42
Cileasing buy � volume index 3.65 MFI 39.00
Fbnh buy 50% sell 50% volume index 1.77 MFI 26.29
Fcmb buy � volume index 0.96 MFI 72.49
Fidelity buy 33% sell 67% MFI 43.70
Fmn buy � MFI 85.23
GT buy 29% sell 71% volume index 2.18 MFI 5.40
Jaiz buy 0% volume index 1.14 MFI 37.01
Linkass buy 0% volume index 3.74 MFI 24.85
Nahco buy � volume index 2.50 MFI 24.10
Oando buy 0% volume index 1.01 MFI 36.74
Sterling buy 0% MFI 33.00
Transcorp buy 0% MFI 28.84
Uba buy 33% sell 67% volume index 1.40 MFI 41.04
Wapco buy 0% MFI 48.64
Wema buy 0% MFI 35.00
Zenith buy 25% sell 75% volume index 0.92 MFI 42.32

https://investdataltd..com/2020/02/investdata-daily-sentiment-report-as-of_23.html

Investdata Weekly Sentiment Report as of February 22, 2020

NSEASI buy 26% sell 74% volume index 1.18 MFI 59.23
Abc buy � volume index 1.68 MFI 30.76
Access buy 0% MFI 48.85
Afrprud buy 66% sell 34% volume index 7.92 MFI 72.21
Aiico buy 75% sell 25% volume index 2.01 MFI 71.62
Caverton buy � volume index 5.81 MFI 65.18
Chams buy 0% MFI 46.33
Chiplc buy 0% MFI 23.92
Corner buy 0% MFI 53.14
Courtville buy � MFI 45.94
Custodian buy 33% sell 67% volume index 0.74 MFI 34.59
Cutix buy � MFI 81.37
Dangsugar buy 0% MFI 78.14
Eterna buy � volume index 1.03 MFI 18.19
Eti buy 0% MFI 28.02
Fbnh buy 38% sell 62% volume index 1.12 MFI 44.91
Fcmb buy � volume index 1.48 MFI 54.39
Fidelity buy 80% sell 20% MFI 57.26
Fidson buy 96% sell 4% volume index 7.87 MFI 15.19
Fmn buy � volume index 4.31 MFI 65.26
Fo buy 0% MFI 61.02
Glaxo buy � MFI 17.89
GT buy 15% sell 85% volume index 1.50 MFI 58.28
Honyflour buy 0% MFI 71.75
Jaiz buy 75% sell 25% MFI 52.58
Japaul buy 0% volume index 3.64 MFI 46.33
Jberger buy � volume index 1.12 MFI 95.82
Lawunion buy 0% MFI 63.07
Linkass buy 29% sell 71% volume index 2.45 MFI 34.70
Lvstk buy 38% sell 62% volume index 2.86 MFI 82.96
Mansard buy 0% MFI 73.44
M&B buy 0% MFI 61.79
Nahco buy � volume index 1.93 MFI 55.04
Neimeth buy 20% sell 80% volume index 1.58 MFI 60.62
Nem buy � MFI 70.29
Nestle buy 0% volume index 1.47 MFI 39.99
Npf buy � volume index 1.75 MFI 46.02
Oando buy 27% sell 73% volume index 1.13 MFI 37.62
Prestige buy 0% volume index 5.73 MFI 88.08
Royalex buy � MFI 80.89
Stanbic buy � volume index 1.37 MFI 40.81
Sterling buy 0% MFI 45.38
Transcorp buy 33% sell 67% MFI 48.84
Uacp buy � MFI 57.04
Uacn buy 0% MFI 83.91
Uba buy 0% volume index 1.02 MFI 55.02
Ubn buy � volume index 0.88 MFI 62.35
Ucap buy 66% sell 34% volume index 6.58 MFI 80.75
Unity buy � volume index 1.75 MFI 23.35
Vitafoam buy 50% sell 50% volume index 2.93 MFI 73.46
Wapco buy 50% sell 50% MFI 71.22
Wapic buy � MFI 82.08
Wema buy 0% volume index 0.72 MFI 56.76
Zenith buy 59% sell 41% volume index 1.52 MFI 49.28


https://investdataltd..com/2020/02/investdata-weekly-sentiment-report-as_23.html

Investors Expect Reversal, With More Earnings Release, Dividend News On NGSE

Market Update for February 20
The nation’s stock market, on Thursday, resisted further decline as its composite All-Share index closed marginally higher, halting five consecutive sessions of losses on a higher traded volume that signals an improving buying interest and in hope of the major earnings reports. During the session also, selling pressure and profit-taking subsided as the market enters into the 2019 financial year dividend declaration season.
Despite, the mixed sentiments and losses suffered by the NSEASI since the last Monetary Policy Committee meeting of the Central Bank of Nigeria owing to the upward adjustment in the Cash Reserve Requirement to 27.50% from 22.50%. This deflated the rally recorded at the beginning of the year as funds flowed from equity assets, even as the release of Q4 unaudited numbers which were mixed, in the midst of different regulations removed the speculative tendencies that this period of the year is known for.

The changing wave and thinking in the nation’s financial market also calls for a change in investing strategies and portfolio rebalancing, at a time many investible funds are lying idle at a time of rising inflation. It is long established that under this circumstance, investors can only hedge by investing in dividend-paying stocks, especially now that earnings season has commenced.
Market recovery will continue when the 2019 full-year audited results release season fully takes off.
Before now, we noted that, despite the correction, a good number of listed equities did not follow the NSEASI movement pattern and trend as accumulation continues in stocks with high dividend expectations.

We, therefore, advise investors to take advantage of low-priced equities as an intelligent investment strategy. It is important to note that such equities should be selected after establishing the possibility of receiving cash dividends when the expected full-year audited result is finally made available to the market.
Meanwhile, Thursday’s trading opened on the upside in the morning and pulled back by the mid-morning to the early afternoon before oscillating in the late afternoon on increasing buying interests in Industrial Goods and financial services providers as NSE index touched intraday high of 27,622.42 basis points, from its low of 27,292.61bps. Thereafter, the index rebounded marginally, and closed the day higher at 27,568.91bps on a high traded volume.

Market technicals for the session were positive and strong, as volume traded was higher than the previous session, with breadth favouring the bull, amidst a high buying pressure as revealed by Investdata’s Sentiment Report showing 84% ‘buy’ volume and 16% ‘sell’ position. The total transaction volume index stood at 1.69, but momentum behind the day’s performance was seriously weak, with Money Flow Index sliding down to 4.39 points, from the previous day’s 4.55 points. This indicated that the market is still lacking in liquidity, despite the upmarket.

Index and Market Caps
The composite index, at the end of Thursday’s trading, gained 45.83bps, closing at 27,568.91bps from its 27.523.08bps opening, which represented a 0.17% rise just as market capitalization climbed by N23.87bn, closing at N14.36tr, from the N14.34tr opening level, which also represented a 0.17% value gain.
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 at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

Thursday’s upturn was impacted by buying interest in BUA Cement, UBA, UBN, United Capital, Africa Prudential, FCMB, Fidelity Bank and Wapic Insurance, among others, which impacted mildly on the NSE’s Year-To-Date gain. This increased to 2.71%, while market capitalization YTD gain inched up to N1.4tr representing 10.83% growth over the year’s opening value.

Mixed Sector Indices
The sectorial performance indexes were largely bearish, except for the NSE Industrial Goods and Insurance that closed higher by 1.65% and 1.30% respective, while the NSE Oil/Gas index led the decliners with its 0.86% loss, followed by NSE Banking and consumer goods which fell by 0.51% and 0.04% respectively.
Market breadth turned positive as advancers outnumbered decliners in the ratio of 19:10, while market transactions in terms of volume and value traded were mixed as volume rose 67.2% up to 484.99m shares from the previous day’s 290.16m units, whereas value was down by 28.6% to N3.59bn, from midweek’s N5.03bn. This volume was driven by trades in Sovereign Trust Insurance, Guaranty Trust Bank, Zenith Bank, UBA and FBNH.
Aiico Insurance and Ikeja Hotel were the best-performing stocks for the session as they topped the table after gaining 10% each, closing at N0.99 and N1.21 per share respectively on dividend expectations and market forces. On the flip side, Law Union and Champion Breweries lost 10% and 9.28% respectively at N0.81 and N0.88 on profit-taking and selloffs.

Market Outlook
We expect dividend news-driven reversal in the market, as the index continues to bounce around 61.8% Fibonacci retracement on a higher traded volume, with more audited earnings expected to hit the market any moment from now. This is despite the likely continuation of the mixed intraday movement in the midst of profit-taking, with investors buying increasing positions in high dividend-paying stocks ahead of dividend declaration. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020.

Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.
We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.
Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.

https://investdata.com.ng/2020/02/investors-expect-reversal-with-more-earnings-release-dividend-news-on-ngse/#mor

The Nigerian money market has gone bonkers!

It's just crazy!

I called my account officer in GTB to enquire about deposit rates and he confirmed that GTB is offering 1% interest rates on all fixed-term deposits up to 50m naira!

Meanwhile, the same term deposit in a bank in Canada or the US can get one at least 2.5%.
Nigerian Treasury bill (NTB) rates went down as low as 2.5%!

I checked on Stanbic-Ibtc circular this morning and long term instrument - FGN Bond rates in the secondary market are down to almost 6%.

I checked on the FGN bond primary auction results as of 19th February 2020 and the bid for the highest tenure bond is almost 600% higher than the allotted securities, which shows a lot of parties are scrambling to buy these securities with no success.

This means many financial institutions have billions of Naira sitting idle!

Meanwhile, the Nigerian inflation rate this morning is 12.13%...

So if you have Naira sitting idle in a bank account or even in a fixed deposit, you are losing value as fast as Ben Johnson!
This is the outcome of the FGN borrowing trillions from the pension fund instead of borrowing from the public.
If this trend continues, there will be a lot of Naira chasing the USD...which means the likelihood of a market devaluation of the Naira is inevitable.

Folks with cash deposit depending on interest payouts for livelihood - just a few months ago - will be forced to dip into the principal to pay bills...in addition to suffering the devaluing effect of a 12.13% inflation.

The thrust of the FGN's tough monetary policy is clear - folks should use the money to build businesses and create employment...but the environment is a tough one to risk one's money building a business!

Yeah...It's a tough economic world in Naija today.

https://investdataltd..com/2020/02/the-nigerian-money-market-has-gone.html

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's download.

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

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

However, if you have not joined the buying and selling signal membership, kindly indicate your interest so that one of our team members will call you immediately on how to get started immediately

To Your Success
Investdata Consulting.


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

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

Hello Investors and Traders,

A lot really happened last week. Especially, in the aspect of the monetary policies by the CBN.

As a result, I took my time to respond to the event because that is the only way to ensure that you make the right decision.

Usually, I would have highlighted what is in the video however, I won't do it again because I want you to go through every aspect of the Market Update for the week ended.

I mentioned some vital and crucial points that will help you with the easy decision making this week.

So, click on the above video to watch now.

However, to have a full understanding of the market, get the INVEST 2020 SUMMIT Home study pack. Everything has been done there.

Call 08028164085, 08032055467 to place your order and get started.

Ambrose Omordion.


https://www.youtube.com/watch?v=O8bt4FQ5gDc

Hello Investors and Traders,

A lot really happened last week. Especially, in the aspect of the monetary policies by the CBN.

As a result, I took my time to respond to the event because that is the only way to ensure that you make the right decision.

Usually, I would have highlighted what is in the video however, I won't do it again because I want you to go through every aspect of the Market Update for the week ended.

I mentioned some vital and crucial points that will help you with the easy decision making this week.

So, click on the above video to watch now.

However, to have a full understanding of the market, get the INVEST 2020 SUMMIT Home study pack. Everything has been done there.

Call 08028164085, 08032055467 to place your order and get started.

Ambrose Omordion.


https://www.youtube.com/watch?v=O8bt4FQ5gDc

Low Confidence Drags NGSE Index Further Down, As Dividend News May Bring Respite


Market Update for February 24
Indices on the Nigerian Stock Exchange (NSE) again took a deep drive on Monday to start the week on the back of serious negative sentiments, which wiped all that the composite index gained in January which ranked it among bourses with the best returns on investment for that month.

The pullback occurred on a day Mrs. Zainab Shamsuna Ahmed, Nigeria’s Minister of Finance, Budget and National Planning visited the exchange to rub minds with capital market stakeholders, as investors continue to ponder on the impact of the Central Bank of Nigeria’s unconventional monetary policy initiatives. This is made worse by such global uncertainties as to the spread of the Coronavirus which is threatening economic outlook, oil price, insecurity and a lack of clear economic policy from the Nigerian government.

Monday’s decline also coincided with the release of the country’s better-than-expected Gross Domestic Product, showing that the economy grew by 2.55% year-on-year, the highest since the days of the last economic recession in 2016 (READ MORE). This was despite the unfavourable global economic conditions that hit both developed and emerging economies, with the economy expanding by 2.27% for the entire 2019, beating the 2.1% projection for the period by the International Monetary Fund (IMF). It was also healthier than the 1.91% growth rate recorded in 2018.

The NSE index was weighed down significantly for the second consecutive session on Monday by the negative sentiment that hit banking stocks, as Money flowed into bonds and Treasury Bills, as investors ignored the prevailing low yield in those windows. However, with more clarification expected from the CBN, discerning investors should take advantage of this pullback, especially in dividend-paying stocks that have lost value, due to the general bear market.

Monday’s trading opened on the upside in the early hours, before pulling back between midmorning to the early afternoon and oscillating in the late afternoon on market forces as the NSE’s composite All-Share index touched intraday low of 27,000.85 basis points, from its high of 27,515.75bps. Thereafter, it inched up slightly but closed the session lower than the previous session at 27,041.03bps on a very high traded volume.

Monday’s market technicals were negative and mixed, with volume traded higher than the previous session, on a negative breadth and high selling pressure as revealed by Investdata’s Sentiment Report showing 92% ‘sell’ volume and 8% ‘buy’ position. The total transaction volume index stood at 1.45, but the momentum behind the day’s performance was absolutely weak, at a time Money Flow Index stayed flat at 4.02points, same as the previous day. This indicated that the market is lacking liquidity, amidst the persistent selloffs.

Index and Market Caps
At the end of Monday’s trading, the composite index shed 347.59bps, closing at 27,041.03bps from its 27.388.62bps opening, which represented a 1.27% decline, just as market capitalization lost N181.08bn, closing at N14.09tr, from the N14.27tr opening level, which also represented a 1.27% depreciation in investors’ portfolio.
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 at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.
Monday’s decline was impacted by selloffs in banking stocks and others like Nigerian Breweries, Cadbury and Honeywell, further dragging down the NSE’s Year-To-Date gain to just 0.74%, while market capitalization YTD gain fell to N1.13tr, representing 8.71% growth over the year’s opening value.

Bearish Sector Indices
All the sectorial performance indexes were in red to start the week, as NSE Bankingindex led the decliners after losing 4.74%, followed by NSE Industrial goods with 0.85%, while Consumer Goods, Insurance and Oil/Gas fell by 0.72%, 0.47%, and 0.45% respectively.

Market breadth was negative, with decliners outnumbering advancers in the ratio of 33:5, while market activities in terms of volume and value traded rose by 1.83% and 31.53% respectively to 429m shares worth N7.3bn, from the previous day’s 421.28m units valued at N5.55bn. This volume was driven by trades in Guaranty Trust Bank, Zenith Bank, FBNH, Zenith Bank, UBA and United Capital.

Law Union Insurance and Linkage Assurance were the best-performing stocks during the session, after gaining 9.59% and 4.65% respectively, closing at N0.80 and N0.45 per share on market sentiments. On the flip side, GSK and NCR lost 10% each to close at N4.50 and N2.43 on selloffs.

Market Outlook
We expect the losing momentum to moderate on dividend news and resist further decline as more audited earnings hit the market any moment from now. This is despite the likely continuation of the mixed intraday movement in the midst of profit-taking, with investors buying increasing positions in high dividend-paying stocks ahead of dividend declaration. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020.

Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.
We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.

Meanwhile, the Investdata team welcomes you to a bullish 2020. The home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing the 10 Golden Stocks for 2020 are available. To obtain your pack send ‘Yes’ or ‘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/2020/02/low-confidence-drags-ngse-index-further-down-as-dividend-news-may-bring-respite/#more

Fidelity Bank: When Strong Numbers Support Possible High Payout, Price Rally

Fidelity Bank Plc recently presented an impressive 2019Q4 unaudited financials, arising from improved risk management which may support higher dividend payout, as will be confirmed by in the expected full-year audited scorecard.
This is also noticeable in its 4.8% Non-Performing Loan ratio, which is below the 5% regulatory threshold and has been successfully brought down from 5.70% in the corresponding full-year of 2018. This is despite the increase in total loan book by 26%, as the bank’s 92% Loan to Deposit Rate, which is significantly above the Central Bank of Nigeria’s 65% benchmark, leading other banks in the industry.
Fidelity Bank’s price action is currently trading 20-Day Moving Average on a daily and weekly time frame.
The stock started its recent rally mid-September 2019 to remain above the 20-DMA, which placed it in a buy range of N1.79 to N2.22, on the expected full-year earnings report.

There is a huge potential for banking stocks, and indeed, the nation’s stock market, with recovery insight over the coming weeks and months, especially as investors analyze the implications of the 2.55% 2019Q4 GDP, beating market projections.
Fidelity Bank’s share price looks attractive for any portfolio in the short to long-term, given that the stock is ready to reverse upward after this pullback because it has formed a cup and handle chart pattern that supports an uptrend. Investors should watch closely to take the position before the bank’s numbers finally hit the market.

According to Fidelity Bank’s historical data, its average dividend payout ratio over the last five years has been 26.92%, even as the full-year Earnings Per Share according to the unaudited Q4 stood at N1.02 each. The expected dividend is projected to be in the region of between N0.18 and N0.25 on a Price to Earnings Ratio of 2.08x, and Earnings Yield of 48.19%.

This was discussed extensively as part of the 10 golden stocks during the Invest 2020 Traders & Investors Summit held in Lagos last December.
Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.
Meanwhile, the Investdata team welcomes you to a bullish 2020. The home study packs of Invest 2020 Opportunities and Trade Ideas Summit containing the 10 Golden Stocks for 2020 are available. To obtain your pack send ‘Yes’ or ‘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/2020/02/fidelity-bank-when-strong-numbers-support-possible-high-payout-price-rally/

Investdata Daily Sentiment Report as of February 27, 2020

NSEASI buy 64% sell 36% volume index 0.83 MFI 4.27
Afrprud buy � volume index 1.13 MFI 69.76
Aiico buy 0% volume index 0.78 MFI 69.03
Courtville buy � volume index 0.78 MFI 18.69
Eti buy � MFI 7.84
Fbnh buy 33% sell 67% MFI 13.11
Fcmb buy � MFI 82.56
Fidelity buy � volume index 0.76 MFI 48.31
GT buy0% MFI 3.22
Honyflour buy � volume index 1.36 MFI 47.45
Jaiz buy 0% MFI 25.71
Lasaco buy � volume index 2.15 MFI 73.07
Sterling buy 38% sell 62% volume index 1.66 MFI 43.86
Transcorp buy � volume index 1.37 MFI 15.71
Uacp buy 50% sell 50% volume index 4.54 MFI 66.68
Uba buy 79% sell 21% volume index 3.27 MFI 39.35
Ucap buy 11% sell 89% volume index 1.30 MFI 40.44
Wapic buy 0% volume index 1.81 MFI 32.11
Wema buy 0% volume index 2.90 MFI 19.92
Zenith buy 50% sell 50% volume index 0.73 MFI 39.56

https://investdataltd..com/2020/02/investdata-daily-sentiment-report-as-of_27.html

NGSE Indicators Slide Further, On Weakening Confidence, Poor Liquidity

Market Update for February 25
Once again, the composite All-Share index of the Nigerian Stock Exchange (NSE) extended its losing streak and negative sentiment on Tuesday, although with less intensity, closing lower, amidst the continued selling pressure among large-cap stocks. The index suffered the third straight negative session even as early filers continued to present their audited score-cards to the market.
One such score-card was Africa Prudential Plc’s 2019 audited financials, with net earnings decreasing to N1.68 billion from N1.95 billion in 2018, just as the gross earnings were down to N3.90 billion in 2019 from N4.49 billion in 2018. The directors of the company has recommended a dividend of 70 kobo for its shareholders from an earnings per share of 84 kobo, which translates to a yield of 14.28% as of the released date (READ MORE).
Technically, the NSE’s index action shows a market decline all these days, but now it is sitting on a key support level that might be a breakdown, or reversal, depending on market forces today. We have observed that the index movement has broken down the first support line and is now on the second support line of 27,033.10 basis points, any further breakdown of which will lead to the next support level at 26,189.80bps.
Looking at the state of the economy, especially the fundamental flaws caused by the heightened insecurity challenge within the country, it is not certain that the bulls will help the market before the said support.

Nevertheless, we expect some level of positive response to dividend news, following which we believe that taking advantage of low priced equities presented by the long bearish moves is a wise investment decision.
Meanwhile, Tuesday’s trading started on the upside and oscillated in the green into midday, before pulling back between early and late afternoon on selling pressure that dragged down the NSE index to intraday low of 27,031.71bps, from its high of 27,105.46bps. Thereafter, it inched up slightly but closed the day lower at 27,033.10bps on a low traded volume.

Market technicals for the session were negative and mixed, with volume traded lower than the previous session, on a negative breadth and high selling pressure as revealed by Investdata’s Sentiment Report showing 98% ‘sell’ volume and 2% ‘buy’ position. The total transaction volume index stood at 0.86, but the energy behind the day’s performance was absolutely weak, despite a marginal rise in Money Flow Index to 4.15points, from the previous day 4.02points. This is an indication that the market is lacking in liquidity, amidst the persistent selloffs.

Index and Market Caps
At close of the session, the NSEASI shed 7.93bps, closing at 27,033.10bps from its 27.041.03bps opening, representing a 0.03% drop, just as market capitalization lost N4.13bn, closing at N14.08tr, from the N14.09tr opening level, which also represented a 0.03% value 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 at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

The session’s downturn was impacted by selloffs in small, medium and large company stocks like Nigerian Breweries, Guaranty Trust Bank, Zenith Bank, and Honeywell, which further cut the NSE’s Year-To-Date gain to 0.71%, while market capitalization YTD gain fell to N1.12tr, representing 8.68% growth over the year’s opening value.

Mixed Sector Indices
The sectorial performance indexes were largely bearish, except for NSE Banking that closed 0.11% up, while the NSE Insurance index led the decliners after shedding 2.03%, followed by NSE Consumer Goods which lost 0.38%, while Industrial Goods and Oil/Gas indexes were flat.
Market breadth was negative, with decliners outnumbering advancers in the ratio of 22:8, while market transactions in terms of volume and value traded were down by 43.66% and 51.64% respectively as stockbrokers crossed 241.71m shares worth N3.55bn, from the previous day’s 429m units valued at N7.3bn. This volume was driven by trades in Zenith Bank, Guaranty Trust Bank, UBA, Transcrop and UPDCREIT
Law Union Insurance and Cadbury were the best-performing stocks during the session, after gaining 10% and 9.76% respectively, closing at N0.88 and N9.00per share on market forces. On the flip side, SFSREIT and SKYAVN lost 9.94% and 9.75% respectively to close at N69.30 and N2.13 on profit-taking and selloffs.

Market Outlook
We expect the losing momentum to moderate on dividend news and resist further decline as more audited earnings hit the market any moment from now. This is despite the likely continuation of the mixed intraday movement in the midst of profit-taking, with investors buying increasing positions in high dividend-paying stocks ahead of dividend declaration. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020.
Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.
We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.
Meanwhile, the Investdata team welcomes you to a bullish 2020. The home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing the 10 Golden Stocks for 2020 are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

https://investdata.com.ng/2020/02/ngse-indicators-slide-further-on-weakening-confidence-poor-liquidity/#more

Investdata Daily Sentiment Report as of February 28, 2020

NSEASI buy 8% sell 92% volume index 1.54 MFI 15.50
Access buy 8% sell 92% MFI 31.31
Afrprud buy 0% volume index 0.70 MFI 67.36
Aiico buy 50% sell 50% volume index 1.05 MFI 75.12
Bua buy 40% sell 60% volume index 0.79 MFI 33.19
Chams buy 0% MFI 54.00
Courtville buy � MFI 17.66
Fbnh buy 0% volume index 3.03 MFI 31.53
Fcmb buy 12% sell 88% MFI 84.10
Fidelity buy 36% sell 64% volume index 1.23 MFI 45.28
Glaxo buy 0% volume index 2.68 MFI 25.43
GT buy 0% volume index 4.77 MFI 28.79
Lawunion buy � MFI 54.81
M&B buy 0% volume index 3.21 MFI 58.96
Oando buy 0% volume index 0.73 MFI 25.37
Transcorp buy 50% sell 50% volume index 1.24 MFI 19.68
Uba buy 17% sell 83% volume index 1.58 MFI 47.11
Ucap buy 38% sell 62% volume index 1.98 MFI 45.50
Vitafoam buy � volume index 1.58 MFI 14.64
Wema buy 0% volume index 2.59 MFI 33.93
Zenith buy 5% sell 95% volume index 1.35 MFI 49.70

https://investdataltd..com/2020/03/investdata-daily-sentiment-report-as-of.html?m=1

UBA Plc Nets N89.08bn 2019 Profit, Offers N0.80 Dividend

As Contributions From African Operations Rise Further
Despite the seemingly unfriendly operating environment, the board of United Bank for Africa Plc, on Friday published its audited financials for the year ended December 31, 2019, indicating double-digit growth in earnings income and net profit.
The result showed that while the bottom-line could have been relatively more robust, were it not for the 303% rise in allowance made by the group for credit loss on financial and non-financial instruments which jumped from N4.529bn to N18.252bn. The impact was however slightly mitigated by the 21.17% reduction in tax expenses.

Specifically, gross earnings for the period jumped 13.3% up from N494.464bn in 2018 to N559.805bn, of which N400.803bn was derived from its Nigerian operations, as against the previous N338.798bn; followed by N166.267bn from the rest of Africa, from N151.977bn; just as other parts of the world contributed N17.771bn, as against N14.179bn.
A further breakdown of the group’s earnings, according to the operating segments revealed that the retail and commercial business took the lead with N303.161bn, up from N283.865bn; followed by corporate banking wit N156.75bn, as against the previous N122.951bn; while treasury and financial markets garnered N99.894bn from N87.229bn.

The amount was boosted by the interest income of N404.83bn, up by 11.55% from the prior year’s N362.922bn, lifted by N162.274bn derived from term loans, up from N146.577bn; followed by N162.274bn earned from overdrafts, which fell slightly from N37.551bn. while investments in treasury bills contributed N123.47bn, from N107.137bn; and N40.209bn from bonds, a decline from N47.021bn in 2018.
Interest expense increased by 16.33% to N182.955bn, up from N152.276bn, the lion’s share of which was the N125.046bn interest paid on customer deposits, compared to the previous N106.01bn; and N41.408bn on borrowings, which rose from N35.151bn.
This left a net interest income of N221.875bn, an increase of 7.89% from N205.646bn in the preceding year, just as net interest income after impairment on financial and non-financial instruments stood at N203.623bn, slightly above the previous year’s N201.117bn.

Fees and commission income grew by 17.62% to N110.561bn from N93.997bn, boosted by the N38.766bn income from electronic bank, which rose from N27.923bn; ahead of the N15.155bn commissions on transactional services, as against the previous N13.009bn; while trade transactions income fell from N19.492bn to N14.127bn; among others. Fees and expense rose marginally from N28.551bn to N30.557bn, with electronic banking expense alone gulping N28.454bn, from N23.758bn; after trade-related expenses dropped to N1.541bn from N4.391bn; following which net fee and commission income stood at N80.004bn, as against the preceding full-year’s N65.446bn, representing a 22.24% notch.

Net trading and foreign exchange income climbed to N37.627bn, from N31.675bn, of which foreign exchange trading income contributed N24.563bn, down from N29.872bn; while net fair value gain on derivatives slowed down from N26.58bn to N12.594bn. The figure would have been even more robust but for the forex revaluation loss of N10.171bn, down from N31.482bn. Other operating income was up 24.54% from N5.451bn to N6.787bn; just as total non-interest income improved by 21.3% to N124.418bn from N102.572bn. Operating income, therefore, increased by 8.02% from N303.689bn to N328.041bn.

Employee benefit expenses inched 5.54% up to N75.099bn from N71.158bn; depreciation and amortization, at N15.49bn increased by 31.26% from N11.801bn; other operating expenses notched 10.66% from N114.383bn to N126.578bn. Total operating expenses also increased by 10.05% to N217.167bn from N197.342bn, mainly driven by the N23.057bn spent on fuel, repairs, and maintenance, which rose marginally from N22.053bn; ahead of the N19.992bn banking sector resolution cost, rising from N16.628bn.

Profit before tax for the period was up 4.23% from N106.76bn to N111.287bn; while the drop in tax expense from N28.159bn to N22.198bn left net profit at N89.089bn from N78.607bn, which translated to N2.52 earnings per share, up from N2.20 in the similar period of 2018.
A breakdown of the net profit showed that the percentage contribution from the group’s Nigerian business stood at N55.946bn, or 62.79%; up from N39.41bn while the rest of Africa pooled a significant N40.865bn, compared to the previous N31.736bn. Corporate banking, however, remained the most profitable operating segment with its N47.903bn, up from N34.373bn in 2018; ahead of the N24.355bn by the retail and commercial business, compared to N16.513bn; and N16.831bn by treasury and financial markets segment, down from N27.721bn in the preceding year.

The directors have, therefore, proposed a dividend per share of 80 kobo for approval at the annual general meeting, which if approved as expected, brings total payout for the 2019 financial year to N1.00 per share, considering that the bank had paid an interim dividend of 20 kobo per share at half-year. The final dividend is also an improvement over the 65 kobo paid in 2018.

https://investdata.com.ng/2020/02/uba-plc-nets-n89-08bn-2019-profit-offers-n0-80-dividend/#more

Corporate Actions As Of Friday, February 28, 2020


https://investdata.com.ng/2020/03/corporate-actions-as-of-friday-february-28-2020/

NSE Index Plunges By 9.11%, As Investors’ Worth Lose N1.2tr In February


February Market Roundup 2020
With just two months into trading on the Nigerian Stock Exchange for the year 2020, the downturn has, however, totally wiped outgains of the robust growth in the benchmark All-Share index on the back of negative sentiments and the persistent selloffs that beset the market in the period under review.

The downturn defied otherwise positive factors such as the prevailing low rates and declining yields in the money and fixed income markets, or the better-than-expected GDP data, which h was however blighted by the continued soaring of the Consumer Price Index or inflation rate. This has been blamed on the continued border closure, at a time the insurgency in the northwest and heightened banditry and kidnapping in the northwest continue and indeed high-level insecurity in other parts of the country, that seem to suggest the collapse of the national security infrastructure.
With all of these apparently priced into the NSE’s market fundamentals, its performance indices remained mixed, while equity prices nosedived during the period to close lower. This followed the adjustments of the Cash Reserve Requirement of banks by the Central Bank of Nigeria (CBN) in January. There were also negative reactions to the 2019 unaudited full-year results, just as the audited financials released in February, came with corporate actions, unfortunately however, the high payout from these companies, did not influence their share prices. Instead, they continued south, making it clear from the money flow index that funds had left the equity market, following CBN actions and other happenings in the domestic and global space.
The selloffs in the market and pullbacks in the price of most stocks led resulted in the share prices of some companies hitting their 52-week lows, and in the process, changing the traditional direction of the market in January.

That is a month that remains unpredictable as investors are unemotional with their decisions to sell down and meet one commitment or the other such as school fees and accommodation, among others. The NSE attained a YTD return on investment of over 7.45% in January, before yielding to sell pressure that brought the market to a negative position of 2.33%.
After 20 trading sessions in a month during which the market was mostly bearish, as 16 sessions were down and just four of positive close, thereby halting the previous month’s bull run, as the NSEASI closed at 26.21646 basis points. This was made worse by Friday’s crash, driven possibly by the news of the Coronavirus has entered into the country. The Coronavirus outbreak induced selloffs in developed markets, which has extended to emerging economies impacting more stocks than people, as thousands of stocks are declining globally.
Market technicals for the period was negative as selling pressure of total transactions for the month was 100%, with volume index of 0.79 and money flow index at 38.71, to short-live the previous month’s upmarket.

Trading on the NSE occurred in 20 days during the month of February, of which the benchmark index closed red in 16 sessions and green for just four, halting the bull-run reported in January. The NSEASI closed February at 26.21646 basis points, worsened by the crash recorded on Friday, which coincided with the first trading session after the news of the first case of Coronavirus in the country, following which about 30 persons have so far been quarantined and a facility of Lafarge Africa, a major cement manufacturer shut, as part of measures to contain the virus.
During the month of February, the index touched a high of 28,843.53bps, which incidentally also was the opening figure for the period under review, representing a 9.11% decline for the month.

Similarly, market capitalisation declined by N1.2tr, after closing at N13.66tr, from N14.86tr, representing an 8.07% depreciation in value, with the difference in the index and market cap resulting from the listing of additional shares of Abbey building and AIICO Insuranceduring the month.
The dwindling fundamentals and investor confidence in the economy and market as a result of rising insecurity, inflation and lack of liquidity in the equity segment of the financial market have deflated the rally seen in January, piling selling pressure on the market. Despite the impressive dividend proposed by most companies that have published their results, which calls for new investment strategies by investors and traders determined to benefit from this trend by positioning in expectation of market recovery. A rallying and technology-driven stock market in an economy that is recovering with strong growth potentials has higher prospects of stimulating activities that support growth and development. Pullbacks here and there are part of equity investments.

The mixed economic data released so far already points to where the economy is headed, especially the latest stronger-than-expected 2019 full-year GDP of 2.27%, compared to the 1.94% reported for 2018. This is a signal that the nation’s economic recovery is on track, driven largely by improvements in Q4 2019 economic activities. We must, however, note that this latest GDP growth rate is still below that of the population at 2.7% in the period under review.
This is not forgetting the increased bank lending to the private sector, or the relatively low-interest rates in the money market which remain a boost to economic activities, coupled with the Central Bank of Nigeria’s continued intervention in the FX market which has stabilized the exchange rate of the Naira against major currencies. This is already also impacting positively on the country’s real sector.
Investdataurges the monetary and fiscal authorities not to wish away the latest comments from the Economic Advisory Council on the need for coordination between Ministries, Department, and Agencies of government. There is the urgent need for faithful implementation of the 2020budget to drive infrastructural development that will support this economic recovery, thereby ensuring that the gains of the early passage and signing into law do not amount to anything at the end.

Despite the negative sentiment before now, performance on the last trading day of February seemed to have worsened and deepened the negative outlook for the 2019 earnings reporting season, as good numbers and high dividend payout are not influencing price positively rather declining.
This last-minute meltdown dragged the NSE All-Share index’s year-to-date loss to 2.33%, just as market capitalisation growth arising from the aforesaid reason, during the same period dropped to N683.1bn, representing 7.50%.

Market breadth for the month was negative and weak as the number of decliners outpaced advancers in the ratio of 67:6 to short-live the previous month bull run and reversed the January rally induced by the high inflow of funds into the equity space in search of better returns.
The month’s biggest decliners were FBN Holdings, which was heavily impacted by the negative sentiment for banking stocks, following which it lost 33.33% of its opening price; followed byChams’ 31.43% loss; ahead of UACN’s 29.86% fall; while EcobankTransnational Incorporated followed with 29.41%; among others.

The advancers were led by Law Union & Rock Insurance, which closed 32.35% better, in what may be investors’ reaction to the acquisition of its entire share in issue by a venture capital firm (READ MORE); ahead of United Capital’s 21.43% gain; while Livestock Feeds garnered 12.50%; Union Bank of Nigeria, 10.17%; and Flourmills, 4.02%; among others.

Transaction volume in February dropped by 33.3% to 5.63bnshares, as against the 8.44bn exchanged in January.
During the month, Nigerian Breweries, Zenith Bank, Transcorp Hotel, United Capital and Africa Prudential, MTNN and UBA, released their 2019 full-year results, recommending dividend payment for shareholders’ approval.
As traders and investors position for earnings season amidst the downward movement in the market, the decision on whether to HOLD, BUY or SELL would depend on your investment objectives and whether earnings beat market expectation and shareholders are rewarded adequately in reports being expected by the market ahead of March end’s deadline.

Considering these factors, investors who understand the workings of the stock market should identify and position in good stocks among the over 110 quoted companies on the NSE with December 31, 2019, financial year-end which are due to release their audited reports on, or before March 31.
Also, since investment is against expectation and the price you are willing to pay for a stock is the value you hope to extract in the future, which is why when such expectation is not met there is a need to cut losses quickly to protect funds.

As investors, it is expected that you relate the current selling price of the stock on the floor of the exchange to its Q4 unaudited account, the previous year’s full Earnings Per Share and the last dividend paid, since the ongoing correction had made many stocks cheaper and boosted their yield. Such comparisons will help you project whether the company is likely to pay certain amount as a dividend or not, before buying into a stock. Earnings have always been a function of equity price movements, in addition to corporate actions of these companies, which are expected to attract more market players, dividend investors and possibly foreign players.

In the Nigerian stock market, the month of March is the peak period of the earnings season which suggests that traders should be in the market before now to benefit from the earnings season momentum. This has been further made easy by the recently released unaudited Q4 numbers given insight on the strength of the company’s position to guide your investment decision.
Technical View of the Market on Monthly Time Frame

The monthly chart above shows that the market has been bearish in the last 20 months as it below the 20 and 50 day moving average. The momentum behind the general market is low as reflected in low volume traded and money flow index for the period as pullbacks and correction have forced many who had taken position at the beginning of the year. We advise investors to hold and watch the corrective wave that is going on.
What to expect

•The oscillating trend of equity prices due to profit-taking and disappointment in some results. Also, the source of funds brought to the market may cause fluctuations as local and foreign institutional investors’ trade in the market. The up and down movement will continue.
•More audited and quarterly earnings would be released into the market this period. Earnings from blue-chip companies may strengthen market fundamentals if such beat expectations.
• As investors reshuffle their portfolios and go for strong and fundamentally sound stocks with high Dividend Yield and the possibility of bonus, we expect stock prices to go in the upward direction.
• A more vibrant market may be ahead, as market players position for the last month of the first quarter and taking profit, while repositioning for the second quarter. While expecting liquidity to improve.
• Managing risk and protecting capital at this point is very important, as you determine when to buy or sell by watching the stocks and the market, using technical analysis.
• Let numbers emanating from companies and dates, guide you into a profitable investment.
Also, expect volatility and repositioning to continue, while profit-taking will reduce the strength of expected payout and earnings surprises.
However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing.
We advise investors to allow numbers to guide their decisions while repositioning for the year trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.

Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.
Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.
Meanwhile, the Investdata team welcomes you to a bullish 2020. The home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing the 10 Golden Stocks for 2020 are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

https://investdata.com.ng/2020/03/nse-index-plunges-by-9-11-as-investors-worth-lose-n1-2tr-in-february/#more

UBA 2019FY: High-Profit Profile That Supports Earnings, Dividend Growth


United Bank for Africa Plc, on Friday, February 28, 2020, after trading hours on Friday released its full-year audited scorecard for the period ended December 31, 2019, becoming the second deposit money bank to have provided its financials to the investing public. The numbers came earlier when compared to that of the previous year.
A close look at the numbers shows it is an impressive performance across its top and bottom lines, with the diversified banking network and operations that have reflected on its numbers due to the effective synergy between the Nigerian operation and offshore business offices. There are also the effects of UBA’s innovation in its retail banking and customer service delivery.

The group’s bottom line for the period under review closed at N89.09bn, a growth of 13.35% from N 78.6bn in 2018, this momentum was sustained throughout the quarterly result of the full-year under consideration. There is also the high possibility of higher profit in the future, because the bank grew its interest income, despite the prevailing low yield environment.
The group has grown its earnings steadily over the past three years, due to the increasing contribution of offshore operations to its earnings and profit, just as its improved retail banking supported its profitability and investment ratios to make the bank’s shares price attractive.
The accelerated revenue growth led by interest and non-interest income, despite the high provision for bad loans; and improved cost management as shown in the group’s profit margin.

Loan-to-Deposit Ratio (LDR) improved from 49.12% at the end of 2018 to 52.91% but remains below the Central Bank of Nigeria’s 65% benchmark as of December 31, 2019. This is was despite the increase in the bank’s loans and advances to N2.06tr, from N1.72tr in 2018.
UBA increased earnings capacity and profit line is expected to support its price and dividend payout in the months and years ahead, which are factors expected to trigger a reversal in price movement.
We note that the management of UBA Plc has kept its promise of impressive performance expected to create better value for investors, with the offer of N1.00 dividend per share, considering that the final dividend of 80 kobo and 20 kobo interim dividend paid earlier.
The bank’s gross earnings for the period stood at N560.22bn, compared to N494.46bn in a similar period of 2018, representing a 13.3% rise, while profit hit N89.09 billion, from N78.6bn in 2018.

Impairment charges on financial assets for the period jumped to N18.25bn, from N4.53bn in 2018, resulting in a 302.87% growth in loan loss provision, which has slowed down the bank’s profit for the year.
Earnings Yield stood at 38.88%, compared to the 30.85% recorded in 2018, while the 12-month Earnings Per Share (EPS) increased by 13.04% to N2.60, from N2.30 in 2018, following which the up-trend in UBA’s financials is yet to impact the share price, due to the general market downturn as it currently trades at N6.70per share as of Friday- the released date.

Considering the Book Value of N17.49 per share, UBA Plc’s share price is currently trading at 161.04% below its book value, an indication that it is grossly undervalued, as a result of which it should command the attention of, and be attractive to discerning investors and traders. Also, Price-Earnings ratio is 2.57x, following which investors’ waiting period in the stock has reduced, due to the low price and stronger earnings that signaled brighter prospects capable of supporting a price rally and payout in the future.

SOURCES: COMPANY DATA & INVESTDATA RESEARCH

Despite the challenging business environment here in Nigeria and other emerging economies which are under less pressure, given that the inflow of funds has remained very low, irrespective of the oscillating oil price and trade wars that have slowed down global growth momentum. This situation is already reflecting on the region, with a return on equity slowing down to 14.90% from 15.64%.
UBA’s Return on Assets (RoA) stood at 1.59% from 1.61%; just as other profitability ratios for the year closed green as evidence of real improvements in the bank’s earnings power. The improved customer service delivery, new banking products/services that are innovative and technology-driven will further enhance performance by increasing deposits and profit, given that operating expense to gross earnings dropping to 38.76% from 2018 position of 39.90%.

Technical View

Price action for UBA has been on a decline for almost two years, forming a bearish channel before breaking out of the downtrend line in September 2019 to form a bullish channel that prevailed between the last quarter of 2019 to early 2020. This was before the current pullback that had created a ‘buy’ opportunity amid mixed sentiments on strong financials likely to support upward reversal which is imminent. The recent strong support level of the bank is N6.30 on a weekly chart.
Investors should watch out for a breakout of N7.00 for a reversal as accumulation in the stock continued with the money flow index looking down at 46.12. The momentum of the trend is STRONG above ADX of 20 at 29.25.

Forecasts
The bank’s Q1 2020 gross earnings is forecast at N131.58bn, representing an 8.1% improvement, relative to the comparable period of 2019, while our net income estimate for the first quarter is N31.43bn, which translates to a 12% growth over the corresponding period profit level. This yields an EPS of N0.91 and a forward P/E of 3.86X
Analysts Opinion/Recommendations
The share price of UBA Plc is undervalued, judging by 2019 actual numbers. The stock is currently trading at a 169% discount to our Fair Value estimate of N18. The bank has a book value above the current market price which shows a high margin of safety and a higher upside potential for future growth.
After using various valuation models to arrive at the above fair value, we are also impressed by the steady rise in the bank’s Book Value position and earning power over the past years to record the highest earnings yield of 38.88% in the industry. However, UBA Plc must be proactive with its profit margin (PM) growth which was flat at 15.90% in the review period.
However, we recommended a BUY on the shares of UBA Plc.


Expanding the operational network to boost earnings and push prices higher in the long run
The bank is expected to double its efforts and strategic risk/cost management to maintain this tempo of profit growth, given that gross earnings and net assets have crossed the N500bn mark, to set a record of higher performance. More so, UBA Plc has been very proactive with its balance sheet deployment in the review period, while remaining diversified with 46% of its profit coming from its operations outside of Nigeria. The relative stability in the local currency also remains a plus for the bank, while its offshore earnings power from its operating network has supported bottom-line.

Four-Year Performance (2016-2019)
The bank’s numbers for the years under consideration show a healthy dose of resilience, despite the weak and unstable economic conditions, coupled with the industry overregulation, just as credit and assets quality has remained high.
Gross earnings over the four-year period grew by 44.24% to N560.22bn, from N388.65bn in 2016, even as the profit line for the period was stable, irrespective of the challenging business environment and changing policy regime of its primary regulator. The bottom line for the same period was up by 23.3% to N89.09bn from N72.26bn in 2016.

The profitability and investment ratios for the years under review had fluctuated, beginning with the Return on Equity which declined from 16.13% in 2016 to 14.68% in 2017, and then inched up in 2018 to 15.64%, but slipped down in 2019 to 14.90%. The net profit margin for the same period declined all through from 18.84%, 17.42%, 15.90% and 15.90%% respectively. It also grew Net Assets for the period by 33.46% from N448.07bn in 2016 to N597.98bn.


Investment Ratio Analysis
UBA has sustained an upward earnings trend that supports price performance as the EPS moved from N1.99 in 2016 to N2.27 in 2017, and then N2.30 by 2018; after which it posted N2.60 in 2019. Price to Earnings Ratio for the period was unstable, due to the up and down movement in the bank’s share price.
In arriving at our fair value price for the stock, we focused on its historical financial performance for the past four years, which was calculated using the Price to Book Value method of valuation as well as the Dividend Discount Model, comprising the recent dividend of the group, which was adjusted for the risk of investing in the Nigerian Financial Services Sector. We have placed a POSITIVE rating on the shares of UBA.

https://investdata.com.ng/2020/03/uba-2019fy-high-profit-profile-that-supports-earnings-dividend-growth/

I am surprised by This

I would love to send you all the usual conventional happy new month message which I will definitely do. However, now that we have entered the last month of the first quarter Q1, what have you really achieved?

If you have been following my series about goal settings, among the 3 tiers of goal settings, your financial freedom is my main concern.

In your internal discussion with yourself, you may think you don't really need to diversify your portfolio but let me ask show a classical example, have really ask yourself why do companies have a lot of products? Why didn't they stick with just one product they started with?

Less I forget, I want to use this medium to show you what others who go the Invest 2020 Summit Homestudy pack are saying:

Adebola Adeyemi,
Ambrose and others presentations were the simplest, clearest and best understood of the many that I have heard in my trading lifetime of nearly 25 years, please keep it up.

Bala Muhammed
The Invest 2020 home study pack content was what attracted me to attend this chart summit today, it was so good that I just couldn’t stop watching. summit was the best class I have listened to in over 10 years. It’s going to make a big difference in my trading.

Back to our discussion, if you really want to be financially free, you need to diversify your income. That is, you need to have multiple sources of income. Hence, you need to have different income streams but you cannot just wish for it without acquiring knowledge unless you want to experiment with your money, irrevocable time and energy.

Three out of the 10 golden stocks for 2020 have met our target for the year in less than 90days. Don't miss this opportunity to take advantage of this low stock prices

As a result, I am offering the following:

Invest 2020 Summit USB home pack by calling 08028164085,08032055467 or send an email to ambroseconsultants@yahoo.com.

Happy new Prosperous month of joy, divine blessing and endless happiness to you and your family.

Happy Trading,
Ambrose Omordion

https://investdataltd..com/2020/03/i-am-surprised-by-this.html

February Market Roundup 2020

With just two months into trading on the Nigerian Stock Exchange for the year 2020, the downturn has, however, totally wiped outgains of the robust growth in the benchmark All-Share index on the back of negative sentiments and the persistent selloffs that beset the market in the period under review.

The downturn defied otherwise positive factors such as the prevailing low rates and declining yields in the money and fixed income markets, or the better-than-expected GDP data, which h was however blighted by the continued soaring of the Consumer Price Index or inflation rate. This has been blamed on the continued border closure, at a time the insurgency in the northwest and heightened banditry and kidnapping in the northwest continue and indeed high-level insecurity in other parts of the country, that seem to suggest the collapse of the national security infrastructure.
With all of these apparently priced into the NSE’s market fundamentals, its performance indices remained mixed, while equity prices nosedived during the period to close lower. This followed the adjustments of the Cash Reserve Requirement of banks by the Central Bank of Nigeria (CBN) in January.

There were also negative reactions to the 2019 unaudited full-year results, just as the audited financials released in February, came with corporate actions, unfortunately however, the high payout from these companies, did not influence their share prices. Instead, they continued south, making it clear from the money flow index that funds had left the equity market, following CBN actions and other happenings in the domestic and global space.
The selloffs in the market and pullbacks in the price of most stocks led resulted in the share prices of some companies hitting their 52-week lows, and in the process, changing the traditional direction of the market in January. That is a month that remains unpredictable as investors are unemotional with their decisions to sell down and meet one commitment or the other such as school fees and accommodation, among others. The NSE attained a YTD return on investment of over 7.45% in January, before yielding to sell pressure that brought the market to a negative position of 2.33%.

After 20 trading sessions in a month during which the market was mostly bearish, as 16 sessions were down and just four of positive close, thereby halting the previous month’s bull run, as the NSEASI closed at 26.21646 basis points. This was made worse by Friday’s crash, driven possibly by the news of the Coronavirus has entered into the country. The Coronavirus outbreak induced selloffs in developed markets, which has extended to emerging economies impacting more stocks than people, as thousands of stocks are declining globally.

Market technicals for the period was negative as selling pressure of total transactions for the month was 100%, with volume index of 0.79 and money flow index at 38.71, to short-live the previous month’s upmarket.
Trading on the NSE occurred in 20 days during the month of February, of which the benchmark index closed red in 16 sessions and green for just four, halting the bull-run reported in January. The NSEASI closed February at 26.21646 basis points, worsened by the crash recorded on Friday, which coincided with the first trading session after the news of the first case of Coronavirus in the country, following which about 30 persons have so far been quarantined and a facility of Lafarge Africa, a major cement manufacturer shut, as part of measures to contain the virus.
During the month of February, the index touched a high of 28,843.53bps, which incidentally also was the opening figure for the period under review, representing a 9.11% decline for the month.

Similarly, market capitalisation declined by N1.2tr, after closing at N13.66tr, from N14.86tr, representing an 8.07% depreciation in value, with the difference in the index and market cap resulting from the listing of additional shares of Abbey building and AIICO Insuranceduring the month.
The dwindling fundamentals and investor confidence in the economy and market as a result of rising insecurity, inflation and lack of liquidity in the equity segment of the financial market have deflated the rally seen in January, piling selling pressure on the market. Despite the impressive dividend proposed by most companies that have published their results, which calls for new investment strategies by investors and traders determined to benefit from this trend by positioning in expectation of market recovery. A rallying and technology-driven stock market in an economy that is recovering with strong growth potentials has higher prospects of stimulating activities that support growth and development. Pullbacks here and there are part of equity investments.

The mixed economic data released so far already points to where the economy is headed, especially the latest stronger-than-expected 2019 full-year GDP of 2.27%, compared to the 1.94% reported for 2018. This is a signal that the nation’s economic recovery is on track, driven largely by improvements in Q4 2019 economic activities. We must, however, note that this latest GDP growth rate is still below that of the population at 2.7% in the period under review.
This is not forgetting the increased bank lending to the private sector, or the relatively low-interest rates in the money market which remain a boost to economic activities, coupled with the Central Bank of Nigeria’s continued intervention in the FX market which has stabilized the exchange rate of the Naira against major currencies. This is already also impacting positively on the country’s real sector.

Investdataurges the monetary and fiscal authorities not to wish away the latest comments from the Economic Advisory Council on the need for coordination between Ministries, Department, and Agencies of government. There is the urgent need for faithful implementation of the 2020budget to drive infrastructural development that will support this economic recovery, thereby ensuring that the gains of the early passage and signing into law do not amount to anything at the end.
Despite the negative sentiment before now, performance on the last trading day of February seemed to have worsened and deepened the negative outlook for the 2019 earnings reporting season, as good numbers and high dividend payout are not influencing price positively rather declining.
This last-minute meltdown dragged the NSE All-Share index’s year-to-date loss to 2.33%, just as market capitalisation growth arising from the aforesaid reason, during the same period dropped to N683.1bn, representing 7.50%.

Market breadth for the month was negative and weak as the number of decliners outpaced advancers in the ratio of 67:6 to short-live the previous month bull run and reversed the January rally induced by the high inflow of funds into the equity space in search of better returns.
The month’s biggest decliners were FBN Holdings, which was heavily impacted by the negative sentiment for banking stocks, following which it lost 33.33% of its opening price; followed byChams’ 31.43% loss; ahead of UACN’s 29.86% fall; while EcobankTransnational Incorporated followed with 29.41%; among others.

The advancers were led by Law Union & Rock Insurance, which closed 32.35% better, in what may be investors’ reaction to the acquisition of its entire share in issue by a venture capital firm (READ MORE); ahead of United Capital’s 21.43% gain; while Livestock Feeds garnered 12.50%; Union Bank of Nigeria, 10.17%; and Flourmills, 4.02%; among others.

Transaction volume in February dropped by 33.3% to 5.63bnshares, as against the 8.44bn exchanged in January.
During the month, Nigerian Breweries, Zenith Bank, Transcorp Hotel, United Capital and Africa Prudential, MTNN and UBA, released their 2019 full-year results, recommending dividend payment for shareholders’ approval.
As traders and investors position for earnings season amidst the downward movement in the market, the decision on whether to HOLD, BUY or SELL would depend on your investment objectives and whether earnings beat market expectation and shareholders are rewarded adequately in reports being expected by the market ahead of March end’s deadline.

Considering these factors, investors who understand the workings of the stock market should identify and position in good stocks among the over 110 quoted companies on the NSE with December 31, 2019, financial year-end which are due to release their audited reports on, or before March 31.
Also, since investment is against expectation and the price you are willing to pay for a stock is the value you hope to extract in the future, which is why when such expectation is not met there is a need to cut losses quickly to protect funds.
As investors, it is expected that you relate the current selling price of the stock on the floor of the exchange to its Q4 unaudited account, the previous year’s full Earnings Per Share and the last dividend paid, since the ongoing correction had made many stocks cheaper and boosted their yield. Such comparisons will help you project whether the company is likely to pay certain amount as a dividend or not, before buying into a stock. Earnings have always been a function of equity price movements, in addition to corporate actions of these companies, which are expected to attract more market players, dividend investors and possibly foreign players.

In the Nigerian stock market, the month of March is the peak period of the earnings season which suggests that traders should be in the market before now to benefit from the earnings season momentum. This has been further made easy by the recently released unaudited Q4 numbers given insight on the strength of the company’s position to guide your investment decision.
Technical View of the Market on Monthly Time Frame

The monthly chart above shows that the market has been bearish in the last 20 months as it below the 20 and 50 day moving average. The momentum behind the general market is low as reflected in low volume traded and money flow index for the period as pullbacks and correction have forced many who had taken position at the beginning of the year. We advise investors to hold and watch the corrective wave that is going on.
What to expect

•The oscillating trend of equity prices due to profit-taking and disappointment in some results. Also, the source of funds brought to the market may cause fluctuations as local and foreign institutional investors’ trade in the market. The up and down movement will continue.
•More audited and quarterly earnings would be released into the market this period. Earnings from blue-chip companies may strengthen market fundamentals if such beat expectations.
• As investors reshuffle their portfolios and go for strong and fundamentally sound stocks with high Dividend Yield and the possibility of bonus, we expect stock prices to go in the upward direction.
• A more vibrant market may be ahead, as market players position for the last month of the first quarter and taking profit, while repositioning for the second quarter. While expecting liquidity to improve.
• Managing risk and protecting capital at this point is very important, as you determine when to buy or sell by watching the stocks and the market, using technical analysis.
• Let numbers emanating from companies and dates, guide you into a profitable investment.
Also, expect volatility and repositioning to continue, while profit-taking will reduce the strength of expected payout and earnings surprises.
However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing.

We advise investors to allow numbers to guide their decisions while repositioning for the year trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.
Meanwhile, the Investdata team welcomes you to a bullish 2020. The home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing the 10 Golden Stocks for 2020 are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

https://investdata.com.ng/2020/03/nse-index-plunges-by-9-11-as-investors-worth-lose-n1-2tr-in-february/#more

NGSE Loss Momentum May Slowdown On Improved Liquidity, As Benchmark Index Nears 3-Year Low

Market Update for March 2
It was another volatile and bearish session on the Nigerian Stock Exchange on Monday, with the composite All-Share index extending its decline on persistent selloffs in medium and high cap stocks even at the peak of the earnings reporting season. Stocks suffered losses as investors continued to sell down in the midst of impressive audited results and dividend payout from banks like UBA Plc and Guaranty Trust Bank during the trading session last Friday and Monday.

We note that the market has not reacted as expected to these scorecards as their share price even recorded loss, reflecting a lack of liquidity in the equity market as investors continue to exit on the back of increasing regulatory risks in the banking sector, oscillating oil prices and the fear of the Coronavirus, especially as Nigeria has recorded its first case last weekend, amidst fears that there may more.

With the market almost touching its three-year low, making the equity market more attractive to discerning investors who can now enter choice stocks at a generous discount to the book value as shown by companies’ performance still looking up. This is enhanced by the economy that is in recovery and having a low-interest environment, besides the possibility of excess liquidity in the system due to the fact that more OMO bills are due to mature, following which there will be some inflow to the market at a time that they cannot be rolled over. There is also the possibility that some of the Federation Account Allocation Committee (FAAC) disbursement will, one way or the other, flow in search of fundamentally sound stocks with high upside potentials.

The Coronavirus outbreak is a global problem and the World Health Organization and other stakeholders are working to develop vaccines and drugs capable of restoring peace in the global economy and markets. Already, there is a resistance to the further decline as seen in China, the US and other developed markets which rebounded on Friday and again on Monday, following which we expect that the Nigerian market’s losing momentum would slow down as more companies releases their full-year audited accounts this month.

Meanwhile, Monday’s trading opened on the downside and remained in that direction throughout the trading session on negative sentiments and selloffs that pushed the NSE index to intraday low of 25,816.57 basis points, from its high of 26,170.58bps. Thereafter, it finished the day lower at 25,816.57bps on a high traded volume.
Monday’s market technicals were negative and mixed, with lower traded volume than the previous session in the midst of a negative breadth and high selling pressure as revealed by Investdata’s Sentiment Report showing 100% ‘sell’ volume. The total transaction volume index stood at 1.15, but the energy behind the day’s performance was seriously weak, as Money Flow Index reads 3.91points, from the previous day 3.94points, an indication that the market is lacking in liquidity.

Index and Market Caps
At the end of Monday’s trading, the NSE All-Share Index lost 399.89bps, closing at 25,816.57bps from its 26,216.46bps opening, representing a 1.53% decline, just as market capitalization dropped by N208.32bn to close at N13.45tr, from the N13.66tr opening level, which also represented a 1.53% depreciation in investors portfolios.

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 at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

The decline was due to selloffs in high cap stocks like Nestle, Unilever, PZ Cussons, Lafarge Africa, Guaranty Trust Bank, Zenith Bank, Access Bank, UBA, Ecobank Transnational Incorporated, and Honeywell Flour. This expectedly impacted negatively on the NSE, as the Year-To-Date loss stood at 3.82%, while market capitalization YTD gain dropped to N546.45bn, representing 4.21% growth over the year’s opening value.

Bearish Sector Indices
The sectorial performance indexes were largely bearish, except for the NSE Insurance that closed 0.30% up, while the NSE Consumer Goods index led the decliners, after shedding 5.19%, followed by the NSE Banking and Industrial Goods with 3.66% and 1.22% respectively, while Oil/Gas index was flat.

Market breadth was negative, with decliners outnumbering advancers in the ratio of 28:11, while market activity in terms of volume and value traded were down by 21.87% and 2.58% respectively as investors traded 325.26m shares worth N6.03bn, from the previous day’s 416.3m units valued at N6.19bn. This volume was driven by trades in Guaranty Trust Bank, Zenith Bank, UBA, Fidelity Bank and FBNH.
The best-performing stocks for the session were Law Union & Rock Insurance and AIICO Insurance that topped table, after gaining 10% and 7.79% respectively, closing at N0.99 and N0.83 per share on market forces and dividend expectations. On the flip side, Nestle Nigeria and Unilever lost 10% each, closing at N1,017 and N13.50 each respectively on selloffs

Market Outlook
We expect the losing momentum to moderate as funds may flow the way of stocks, dividend news and resist further decline as more audited earnings hit the market in March. This is despite the likely continuation of the mixed intraday movement in the midst of profit-taking, with investors buying increasing positions in high dividend-paying stocks ahead of dividend declaration. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020.

Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.
We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.
Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.
Meanwhile, the Investdata team welcomes you to a bullish 2020. The home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing the 10 Golden Stocks for 2020 are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

https://investdata.com.ng/2020/03/ngse-loss-momentum-may-slowdown-on-improved-liquidity-as-benchmark-index-nears-3-year-low/#more

Investdata Daily Sentiment Report as of 2 March, 2020

NSEASI buy 0% volume index 1.15 MFI 14.62
Access buy 0% MFI 33.40
Afrprud buy 77% sell 23% volume index 0.81 MFI 62.30
Aiico buy � volume index 0.83 MFI 73.09
Berger buy 0% volume index 16.49 MFI 0.00
Chams buy 0% volume index 3.76 MFI 13.33
Courtville buy � volume index 4.67 MFI 1.81
Eterna buy � volume index 1.30 MFI 81.80
Eti buy 0% MFI 28.35
Fbnh buy 53% sell 47% volume index 0.83 MFI 29.46
Fcmb buy � MFI 78.03
Fidelity buy � volume index 2.34 MFI 33.65
GT buy 15% sell 85% volume index 2.24 MFI 24.58
Learn buy 0% volume index 14.03 MFI 6.58
Linkass buy 0% volume index 1.16 MFI 39.05
Lvstk buy � volume index 2.50 MFI 68.35
Nahco buy 0% volume index 3.32 MFI 14.69
Nem buy 0% volume index 1.65 MFI 18.30
Npf buy 0% volume index 3.82 MFI 33.67
Oando buy 90% sell 10% volume index 0.98 MFI 17.66
Red buy 0% volume index 6.78 MFI 4.53
Transcorp buy � volume index 1.17 MFI 23.22
Uacp buy 63% sell 37% volume index 11.40 MFI 14.96
Uba buy 0% volume index 0.76 MFI 46.83
Ucap buy 0% volume index 1.12 MFI 37.83
Wapic buy � volume index 2.38 MFI 19.94
Zenith buy 25% sell 75% volume index 1.05 MFI 38.58

https://investdataltd..com/2020/03/investdata-daily-sentiment-report-as-of_5.html

NGSE Loss Momentum May Slowdown On Improved Liquidity, As Benchmark Index Nears 3-Year Low

Market Update for March 2
It was another volatile and bearish session on the Nigerian Stock Exchange on Monday, with the composite All-Share index extending its decline on persistent selloffs in medium and high cap stocks even at the peak of the earnings reporting season. Stocks suffered losses as investors continued to sell down in the midst of impressive audited results and dividend payout from banks like UBA Plc and Guaranty Trust Bank during the trading session last Friday and Monday.

We note that the market has not reacted as expected to these scorecards as their share price even recorded loss, reflecting a lack of liquidity in the equity market as investors continue to exit on the back of increasing regulatory risks in the banking sector, oscillating oil prices and the fear of the Coronavirus, especially as Nigeria has recorded its first case last weekend, amidst fears that there may more.
With the market almost touching its three-year low, making the equity market more attractive to discerning investors who can now enter choice stocks at a generous discount to the book value as shown by companies’ performance still looking up. This is enhanced by the economy that is in recovery and having a low-interest environment, besides the possibility of excess liquidity in the system due to the fact that more OMO bills are due to mature, following which there will be some inflow to the market at a time that they cannot be rolled over. There is also the possibility that some of the Federation Account Allocation Committee (FAAC) disbursement will, one way or the other, flow in search of fundamentally sound stocks with high upside potentials.

The Coronavirus outbreak is a global problem and the World Health Organization and other stakeholders are working to develop vaccines and drugs capable of restoring peace in the global economy and markets. Already, there is a resistance to the further decline as seen in China, the US and other developed markets which rebounded on Friday and again on Monday, following which we expect that the Nigerian market’s losing momentum would slow down as more companies releases their full-year audited accounts this month.
Meanwhile, Monday’s trading opened on the downside and remained in that direction throughout the trading session on negative sentiments and selloffs that pushed the NSE index to intraday low of 25,816.57 basis points, from its high of 26,170.58bps. Thereafter, it finished the day lower at 25,816.57bps on a high traded volume.

Monday’s market technicals were negative and mixed, with lower traded volume than the previous session in the midst of a negative breadth and high selling pressure as revealed by Investdata’s Sentiment Report showing 100% ‘sell’ volume. The total transaction volume index stood at 1.15, but the energy behind the day’s performance was seriously weak, as Money Flow Index reads 3.91points, from the previous day 3.94points, an indication that the market is lacking in liquidity.

Index and Market Caps
At the end of Monday’s trading, the NSE All-Share Index lost 399.89bps, closing at 25,816.57bps from its 26,216.46bps opening, representing a 1.53% decline, just as market capitalization dropped by N208.32bn to close at N13.45tr, from the N13.66tr opening level, which also represented a 1.53% depreciation in investors portfolios.

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 at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

The decline was due to selloffs in high cap stocks like Nestle, Unilever, PZ Cussons, Lafarge Africa, Guaranty Trust Bank, Zenith Bank, Access Bank, UBA, Ecobank Transnational Incorporated, and Honeywell Flour. This expectedly impacted negatively on the NSE, as the Year-To-Date loss stood at 3.82%, while market capitalization YTD gain dropped to N546.45bn, representing 4.21% growth over the year’s opening value.

Bearish Sector Indices
The sectorial performance indexes were largely bearish, except for the NSE Insurance that closed 0.30% up, while the NSE Consumer Goods index led the decliners, after shedding 5.19%, followed by the NSE Banking and Industrial Goods with 3.66% and 1.22% respectively, while Oil/Gas index was flat.
Market breadth was negative, with decliners outnumbering advancers in the ratio of 28:11, while market activity in terms of volume and value traded were down by 21.87% and 2.58% respectively as investors traded 325.26m shares worth N6.03bn, from the previous day’s 416.3m units valued at N6.19bn. This volume was driven by trades in Guaranty Trust Bank, Zenith Bank, UBA, Fidelity Bank and FBNH.
The best-performing stocks for the session were Law Union & Rock Insurance and AIICO Insurance that topped table, after gaining 10% and 7.79% respectively, closing at N0.99 and N0.83 per share on market forces and dividend expectations. On the flip side, Nestle Nigeria and Unilever lost 10% each, closing at N1,017 and N13.50 each respectively on selloffs

Market Outlook
We expect the losing momentum to moderate as funds may flow the way of stocks, dividend news and resist further decline as more audited earnings hit the market in March. This is despite the likely continuation of the mixed intraday movement in the midst of profit-taking, with investors buying increasing positions in high dividend-paying stocks ahead of dividend declaration. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020.

Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.
We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.
Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.
Meanwhile, the Investdata team welcomes you to a bullish 2020. The home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing the 10 Golden Stocks for 2020 are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

https://investdata.com.ng/2020/03/ngse-loss-momentum-may-slowdown-on-improved-liquidity-as-benchmark-index-nears-3-year-low/#more

Investdata Daily Sentiment Report as of March 4, 2020

NSEASI buy 83% sell 17% volume index 1.35 MFI 46.82
Access buy � volume index 2.38 MFI 46.14
Aiico buy 0% MFI 73.75
Bua buy � volume index 0.72 MFI 28.85
Chams buy 50% sell 50% volume index 6.99 MFI 7.46
Dangsugar buy 0% volume index 4.24 MFI 0.00
Eti buy 0% volume index 1.08 MFI 33.62
Fbnh buy � volume index 1.54 MFI 33.56
Fcmb buy 50% sell 50% volume index 0.99 MFI 81.07
Fidelity buy 67% sell 33% volume index 1.97 MFI 39.43
GT buy 71% sell 29% volume index 1.87 MFI 32.81
Honyflour buy � volume index 2.08 MFI 21.39
Jaiz buy � MFI 42.80
Lawunion buy 0% volume index 2.20 MFI 51.99
Linkass buy 0% MFI 40.67
Lvstk buy 0% volume index 1.20 MFI 76.39
Oando buy � volume index 0.92 MFI 26.36
Pz buy � volume index 1.61 MFI 27.88
Royalex buy 0% volume index 3.09 MFI 27.43
Sterling buy � volume index 3.22 MFI 56.93
Transcorp buy � volume index 1.48 MFI 31.61
Uba buy 50% sell 50% volume index 1.52 MFI 49.82
Ucap buy 63% sell 37% volume index 1.12 MFI 40.79
Upl buy � volume index 2.96 MFI 47.63
Wapic buy � volume index 1.75 MFI 31.13
Wema buy � volume index 1.42 MFI 34.93
Zenith buy 87% sell 13% volume index 1.29 MFI 41.73

https://investdataltd..com/2020/03/investdata-daily-sentiment-report-as-of_49.html

NSE High Yields And Impressive Audited Financials To Attract Funds As Money Flow Index Remain Low

Trading on the Nigerian Stock Exchange on Tuesday had a very volatile session on improved buying interest to halt the seven successive days of decline as the composite index closed higher on a positive sentiment and very high traded volume. As the market recorded it highest daily gain that is more than 1% since the last MPC meeting when the CRR was adjusted up by 500 points to curtail inflation.

As NSE rally in January and pullbacks in February were actually an indication what the rest of the year will look like, especially in an environment where regulatory risk, insecurity and inconsistent policy are on the rise, despite the seeming economic recovery as shown by the positive GDP growth of 2.27% against 1.94% in 2018 and February PMI that stood at 58.3 point from January position of 59.2 points.

A technical indicator that track records of projection is 69% correct and when it is wrong, anything more than a 5% more, again the January high typically means higher prices to come. As at the end of February, NSE Index was trading below January opening to close lower for the month, if it regains the loses soon, this suggests there will be more rally to come.

But looking, at the rate of at which the market rebounded on Tuesday, in the midst of recent S &P downgrade of the Nigeria outlook from Stable to negative, CEO’s of stockbroking firms okaying NSE demutualisation to free dead capital that will impact on the market, low price attraction as audited account earnings season is ongoing. Also traders are already gaining confidence against the effect of CONVI-19. Even in China where the virus commenced, their capital market is already recovering, more so, news have it that, a vaccine had already been discovered in Israel to cure the strange virus. Back in Nigeria, the government had consistently proven to be in control.

The best thing to do now is put together a buy list. Chasing dividends is not a winning strategy in a bear market, except you are a long term investor because the companies could cut their payout and after share price adjustment for dividend prices will really go down.

We advise players to stick with the stocks and sectors that brought the rebound as recorded on Tuesday, however I only expect it to be a trading environment. That’s fine for me however because yesterday the market was up almost 2% in just one day.

Meanwhile, Tuesday’s trading started on the upside and it was sustained throughout the trading session despite its oscillation on market forces and buying interest that pushed the NSE index above the psychological line of 26,000 level to intraday high of 26,344.55 basis points, from its low of 25,816.56bps. Thereafter, it finished the day higher at 26,255.11bps.



Market technicals for the session were positive and strong, with higher traded volume than the previous session in the midst of postive breadth and high buying pressure as revealed by Investdata’s Sentiment Report showing 83% ‘buy’ volume and 17% sell position. The total transaction volume index stood at 1.35, as momentum behind the day’s performance was seriously weak, despite moving up as Money Flow Index reads 8.84points, from the previous day 3.19points, an indication that funds entered the market despite the prevailing low in liquidity.

Index and Market Caps

At the close of Tuesday’s trading, the benchmark index NSEASI gained 438.54bps, closing at 26,255.11bps from its 25,816.57bps opening, representing a 1.7% up, just as market capitalisation was up by N231.91 billion to close at N13.68 trillion, from the N13.45 trillion opening level, which also represented a 1.70% value gain.

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 at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

Tuesday upturn was impacted by the buying interest in low, medium and high cap stocks like MTNN, Nestle,, PZ Cussons, Guaranty Trust Bank, Zenith Bank, Access Bank, UBA, Ecobank Transnational Incorporated, UBN,FBNH, and Fidelity Bnak. This expectedly impacted posittively on the NSE, as the Year-To-Date loss as it reduce to 2.19%, while market capitalization YTD gain rise to N722.81 billion, representing 5.58% growth over the year’s opening value.

Mixed Sector Indices

The sectorial performance indexes were largely bullish, except for the NSE Industrial goods and Insurance that closed 4.27% and 1.57% lower, while the NSE Banking index led the advancers, after gaining 7.99%, followed by the NSE Consumer Goods with 1,87%, as NSE Oil/Gas index was flat.

Market breadth was turned positive, with advancers outnumbering decliners in the ratio of 23:12, while market activity in terms of volume and value traded were mixed as volume was up by 18.12% to 387.9 million shares from the previous 325.26 million units, while value of transaction drop by 21.23% to N5.08 billion from Monday position of N6.03 billon. This volume was driven by trades in FUGAZ.

PZ and SKYAVN were the best performing stocks for the session that topped table, after gaining 9.88% and 9.86% respectively, closing at N4.45 and N2.34 per share on market forces and low price attraction. On the flip side, ABC Transport and Dangote Sugar lost 10% and 9.92% respectively, closing at N0.27and N10.90 each respectively on selloffs and market forces.

Market Outlook

We expect the trend to be sustained as funds may flow the way of stocks, dividend news, as more audited earnings hit the market in March. This is despite the likely continuation of the mixed intraday movement in the midst of profit-taking, with investors buying increasing positions in high dividend-paying stocks ahead of dividend declaration. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020.

Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.

We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.

This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.

Meanwhile, the Investdata team welcomes you to a bullish 2020. The home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing the 10 Golden Stocks for 2020 are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now

https://investdata.com.ng/2020/03/nse-high-yields-and-impressive-audited-financials-to-attract-funds-as-money-flow-index-remain-low/#more

New York Stock Exchange trips circuit breaker. Stock trading has been halted for 15 minutes

The New York Stock Exchange has halted stock trading for 15 minutes after the S&P 500 fell 7% on Monday morning.

Stocks plummet amid coronavirus fears and oil selloff
From CNN Business' Anneken Tappe

Stocks plummeted on Monday as worries about the growing global coronavirus pandemic and an oil price race to the bottom weighed on global financial markets.

The selloff had begun in overnight futures trading, which was halted after futures contracts dropped nearly 5%.

The Dow opened 1,800 points, or 7%, lower.

The S&P 500 dropped 6.9%.

The Nasdaq Composite dropped 7.1%

All this comes after stocks managed to end the last turbulent week in the green. Despite three steep selloffs, the Dow also recorded its best point-gain on record last week.

https://edition.cnn.com/webview/business/live-news/stock-market-news-today-030920/h_92d9e012b331c593bfa9ec2b1226507d