High Dividend Yields Continue To Attract Buying Interests, Amidst Mixed Intraday Trading

Market Update for April 2
Equity prices on the Nigerian Stock Exchange (NSE) pointed higher on Thursday as key performance All-Share index closed marginally up, despite the persistent mixed trend and volatility in this Coronavirus (COVID-19) induced bear market. It, therefore, halted three consecutive sessions of heavy losses.
The dicey situation today has scared away fearful and novice investors from the market, as they sold off their positions at a loss, due to low confidence and weak economic fundamentals, even as the ongoing remote trading has limited participation due to the lockdown aimed at stemming the spread of the virus.

Savvy and investors and traders with large risk appetite have, however, taken this as a window of opportunity to cherry-pick stocks although cautiously at these new low prices.
Also, even if the recent trading sessions have recorded low traded volumes, reflecting the ongoing lockdown in the state, the intervention by the Federal and state governments, as well as the Central Bank of Nigeria (CBN) in the form of economic stimulus packages are yet to start reflecting on the economy.
The seeming rebound in oil prices, as a result of ongoing talks among the US, Russia, and Saudi on the proposed production cut may affect the global economy positively and avert the imminent recession. This, it is believed, will happen, if oil price crosses Nigeria’s new oil benchmark price of $30 per barrel.

We should not forget that the global lockdown will continue to affect oil price until normalcy return to the world and many factories currently shutdown are reopened.
Meanwhile, Thursday’s trading opened on the downside and oscillated seriously throughout the session on selloffs and position taking in the shares of large and medium-scale companies, which pushed the NSE’s composite index to intraday low of 20,790.71 basis points, from its high of 21,170.00bps. It thereafter closed the day higher at 21,121.20bps on a negative breadth.
Market technicals were negative and mixed, with higher volume traded than the previous day, while breadth favoured the bears on improved buying sentiment as revealed by Investdata’s Daily Sentiment Report, showing ‘buy’ volume of 87%. ‘Sell” position stood at 13% on a total daily transaction volume index of 0.57. The energy behind the day’s performance was seriously weak, despite Money Flow Index inching up to 17.64 points, from the previous session’s 16.19ps, indicating that funds entered the market and some stocks.

Index and Market Caps
At the end of the day’s trading, the composite NSEASI gained a marginal 20.66bps, closing at 21.121.20ps, from its opening figure of 21,100.54ps, representing a 0.10% gain, just as market capitalization rose by N10.77bn, closing at N11.01tr from the N10.99tr it opened, which also represented a 0.10% value gain.
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 rally considering their current market prices.

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 the buying interest in Dangote Cement, Flour Mills, Wema Bank, Sterling Bank, Access Bank, Cadbury and Livestock Feeds, which impacted mildly on the NSE index, slightly reducing its Year-To-Date loss to 21.31%. Market capitalization YTD loss stood at N1.95tr representing a 15.03% decline over the year’s opening value.

Bearish Sector Indices
The sectorial performance indexes remained largely bearish except for the NSE Industrial Goods index that closed 2.37% higher, while the NSE Banking index led the decliners after shedding 2.19%, followed by the NSE Consumer Goods and Insurance that closed 1.89% and 0.84% down respectively.

Market breadth turned negative as decliners outnumbered advancers in the ratio of 19:7, just as market activity in volume and value terms improved by 65.38% and 62.14% respectively as investors exchanged 255.57m shares worth N2.86bn, from the previous day’s 151.55m units valued at N1.82bn. The day’s volume was boosted by trades in Zenith Bank, Guaranty Trust Bank, FBNH, Transcorp, and UBA.
Dangote Cement and Livestock Feeds were the best-performing stocks, after gaining 9.93% and 9.38% respectively, closing at N128.40 and N0.70 per share on low price attraction and market forces. On the flip side, Nigerian Breweries and Honeywell lost 9.27% and 8.16% respectively, closing at N22.50 and N0.90 respectively on selloffs and profit-taking

Market Outlook
We expect mixed intraday performance to continue, as trading sessions in the remaining days of lockdown are still dicey, with market players likely to position ahead of Q1 2020 earnings reports and impact of the stimulus package on the economy in the midst of more companies notifying the exchange and investing public of its closed period 2020 first-quarter earnings report.
However, the high dividend yields continue to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of the selloffs, with investors buying to increase their positions in undervalued 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 undervalue 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 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/2020/04/high-dividend-yields-continue-to-attract-buying-interests-amidst-mixed-intraday-trading/#more

Corporate Actions On NGSE As Of Tuesday, March 31, 2020

https://investdata.com.ng/2020/04/corporate-actions-on-ngse-as-of-tuesday-march-31-2020/#more

Mixed Session Ahead, As Investors Position For 2020Q1 Earnings, Impact Of Stimulus Packages

Market Update for March 30
Panic selling again resurfaced on the Nigerian Stock Exchange on Monday as the key performance indicators closed lower on negative sentiment and low traded volume ahead of the 14-day lockdown of two states of Lagos and Ogun, as well as the Federal Capital Territory, Abuja, as part of measures to check the spread of the Coronavirus (Covid-19).

Monday’s loss wiped out the previous sessions seems gains, amidst weak sentiment and indecision among players, which dampened the day’s performance as investors sold off positions in high cap stocks especially in the banking sector that recorded gains last week. The attempted recovery failed to follow through on the ravaging coronavirus that had upset stock markets and economies across the world.

The loss also occurred on a day new cases of Covid-19 in Nigeria increased to 131, with a second death recorded also on Monday.
The ongoing capital outflow from the emerging and frontier markets is due to the imminent global recession as the benchmark indexes of many stocks markets, are down by over 20% since February. In Nigeria, owing to Monday’s decline, the market has lost 18.6% and 20.5%, Month-to-Date and Year-to-Date respectively.

The market’s outlook remains unstable during this lockdown period and beyond, due to the notably high volatility in developed and developing markets, the seeming positive sentiment on quarter-end window dressing and the bouquet of stimulus packages have been unable to support the market. There is no clear road map for implementing these fiscal and monetary measures and ensuring that it is devoid of the usual bottlenecks, or even ensuring that the stimulus package unveiled by the Central Bank of Nigeria (CBN) gets to the end-users seamlessly.

Meanwhile, Monday’s trading opened on the downside in the morning and was sustained throughout the session as selloffs hit large companies, irrespective of the seeming undervalued prices. This pushed the NSE’s benchmark index to an intraday low of 21,330.79 basis points, from its high of 21,828.65bps, before closing the session lower at 21,330.79bps on a negative breadth.

Monday’s market technicals were negative and mixed, as volume traded was higher than previous day’s in the midst of breadth that favored the bears, and high selling pressure as revealed by Investdata’s Daily Sentiment Report, showing ‘sell’ volume of 100%. ‘Buy” position stood at 0% on a total daily transaction volume index of 1.03, just as momentum behind the day’s performance was seriously weak, despite Money Flow Index inching up to 12.19 points, from the previous session’s 11.88ps, indicating that funds entered the market and some stocks, despite the down market.

Index and Market Caps
At the end of trading on Monday, the NSE’s All-Share Index lost 530.99bps, closing at 21.330.79ps, from its opening figure of 21,861.78ps, which represented a 2.43% decline, just as market capitalization shed N276.73bn, closing at N11.12tr from the N11.39tr it opened, which also represented 2.43% depreciation in value.

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 rally considering their current market prices.
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 and profit-taking in stocks like MTNN, Guaranty Trust Bank, Zenith Bank, Access Bank, UBA and FBNH which impacted negatively on the NSE index, increasing its Year-To-Date loss to 20.55%. Market capitalization lost YTD stood at N1.82tr, representing a 14.84% decline over the year’s opening value.

Mixed Sector Indices
The sectorial performance indexes were largely bearish except for the NSE Oil/Gas and Industrial goods that closed 1.77% and 0.01% higher, while the NSE Banking led the decliners after losing 3.62%, followed by the NSE Consumer Goods and Insurance which were down by 0.92% and 0.52% respectively.
Market breadth turned negative as decliners outnumbered advancers in the ratio of 15:11, just as market activity in volume and value were mixed as traded volume was up by 85.55% to 466.91m shares from the previous day’s 251.41m units, while value was down by 42.56% to N1.93bn from Friday’s N3.36bn. This volume was driven by trades in Meyer, Champion Breweries, Zenith Bank, UBA and FBNH.
The best-performing stocks for the session were Berger Paints and 11 Plc that chalked the advancers’ table with gains of 9.84% and 9.83% respectively, closing at N6.70 and N160.90 per share on market forces. On the flip side, MTN Nigeria and Wema Bank lost 10% and 9.62% respectively, closing at N90 and N0.47respectively on selloffs and profit-taking.

Market Outlook
We expect mixed intraday performance to continue, as two weeks trading sessions remain unclear till midweek to confirm direction, with market players are likely to position ahead of Q1 2020 earnings reports and impact of the stimulus package on the economy in the midst of dividend payment by the companies that postponed their Annual General Meetings and others.
However, the high dividend yields continue to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of the mixed intraday movement in the midst of selloffs, with investors buying increased positions in undervalued 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 undervalue 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/2020/03/mixed-session-ahead-as-investors-position-for-2020q1-earnings-impact-of-stimulus-packages/#more

Mixed Trading Lingers, Amidst Continued Lock Down As Investors Expect 2020Q1 Earnings

Market Update for April 1
The bear dominance in Q1 of 2020 was extended to the first trading day of April, which ushered in the second quarter at the midweek, as the Nigerian Stock Exchange’s composite All-Share index closed lower for the third successive session on negative sentiments and selloffs among highly capitalized stocks.

This, nonetheless, created new entry opportunities for buyers, even as the Coronavirus pandemic continues to spread, with the government announcing new cases that bring the total number to 179, with two deaths, while nine have been discharged at the end of Wednesday, April 1, 2020, amidst fears that many more are roaming the streets untested and undetected. The government is, however, enforcing the lockdown in key states of Lagos and Ogun, as well as the Federal Capital Territory, Abuja, while continuing contact tracing.

The pandemic has however left investors across the globe worried over increasing economic impacts of the economic lockdown that may force the world into another round of recession at a time oil is already selling below the Federal Government’s revised benchmark price of $30 per barrel.
The Nigerian equity market has remained under the heavy negative influence of the deadly virus as investors continue to play safe, despite the very attractive stock prices.

The truth, however, is that many funds are currently trapped by the bear, while few traders with trading capital take advantage of the induced drop in stock prices, even as the most discerning investment decision is to avoid panic selling at the current prices.
The power of economic productivity and consumption cannot be overemphasized, along with the importance of international trades at a time when the global lockdown continues to impact crude oil prices. This follows the drastic cut in consumption, pushing the commodity price to an 18-year low, thereby threatening many economies, especially Nigeria that is heavily dependent on oil revenue to run its economy.

Midweek’s trading started on the downside in the morning into the midday before oscillating seriously on selloffs in large companies and position taking in high cap stocks that pushed the NSE’s composite index below 21,000 basis points. The index tested an intraday low of 20,779.13 basis points, from its high of 21,317.98bps, and thereafter closed the day lower at 21,100.54bps on a low traded volume.
Market technicals at the midweek were negative and mixed, as volume traded was lower than the previous day in the midst of negative breadth and mixed sentiment as revealed by Investdata’s Daily Sentiment Report, showing ‘sell’ volume of 40%. ‘Buy” position stood at 60% on a total daily transaction volume index of 0.34, just as the impetus behind the day’s performance was seriously weak, despite Money Flow Index inching up to 16.19 points, from the previous session’s 13.99ps, indicating that funds entered the market and some stocks, despite closing lower.

Index and Market Caps
At the close of trading on Wednesday’s the NSE benchmark Index lost 199.93bps, closing at 21.100.54ps, from its opening figure of 21,300.47ps, which represented a 0.94% decline. Market capitalization shed N104.19bn, closing at N10.996tr from the N11.1tr it opened, which also represented a 0.94% value loss.
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 rally considering their current market prices.

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.
Wednesday’s decline was impacted by selloffs and profit-taking in stocks like Dangote Cement, Guaranty Trust Bank, Zenith Bank, Access Bank, UBA, ETI, Dangote Sugar, Flourmills and FBNH which impacted negatively on the NSE index, increasing its Year-To-Date loss to 21.39%. Market capitalization YTD loss stood at N1.96tr, representing a 15.14% decline over the year’s opening value.

Bearish Sector Indices
The sectorial performance indexes were largely bearish except for the NSE Insurance index that closed in the green by 0.08%, while the NSE Industrial Goods led the decliners after losing 2.57%, followed by the NSE Banking and Consumer Goods which closed 1.99% and 1.22% down respectively. While Oil/Gas ended the day flat.

Market breadth turned negative as decliners outnumbered advancers in the ratio of 26:6, just as market transactions in volume and value were mixed with traded volume dropping by 63.38% to 151.55m shares from the previous day’s 328.12m units, while value was up by 2.49% at N1.82bn from the previous day of N1.77bn. This volume was driven by trades in Zenith Bank, GTBank, FBNH, Access Bank and Fidelity Bank.
MTNN and International Brewery were the best-performing stocks for the session, topping the advancers’ table with gains of 9.37% and 9.18% respectively while closing at N98.40 and N5.35 per share on low price attraction and market forces. On the flip side, Unilever and Dangote Cement lost 10% and 9.95% respectively, closing at N9.90 and N116.80 respectively on selloffs.

Market Outlook
We expect mixed intraday performance to continue, as trading sessions in the remaining days of lockdown still dicey, with market players are likely to position ahead of Q1 2020 earnings reports and impact of the stimulus package on the economy in the midst of dividend payment by the companies that postponed their Annual General Meetings and others.

However, the high dividend yields continue to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of the mixed intraday movement in the midst of selloffs, with investors buying increased positions in undervalued 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 undervalue 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/2020/04/mixed-trading-lingers-amidst-continued-lock-down-as-investors-expect-2020q1-earnings/#more

Investdata Weekly Sentiment Report as of April 5, 2020

NSEASI buy 31% sell 69% volume index 1.04 MFI 31.43
Access buy 86% sell 14% MFI 32.37
Afrprud buy 0% MFI 46.06
Aiico buy 25% sell 75% volume index 1.04 MFI 71.61
Cadbury buy 67% sell 33% volume index 1.33 MFI 28.56
Caverton buy 0% MFI 59.14
Chams buy 0% MFI 10.08
Cileasing buy 0% volume index 0.90 MFI 43.10
Corner buy 0% volume index 0.87 MFI 39.59
Courtville buy � MFI 19.36
Custodian buy 0% MFI 21.64
Dangcem buy 66% sell 34% volume index 0.98 MFI 62.20
Dangsugar buy 0% MFI 38.01
Eti buy 0% MFI 34.98
Fbnh buy 56% sell 44% volume index 1.11 MFI 30.28
Fcmb buy 43% sell 57% MFI 45.28
Fidelity buy 24% sell 76% volume index 0.98 MFI 43.92
Fidson buy 42% sell 58% volume index 2.27 MFI 23.79
Fmn buy 75% sell 25% MFI 54.79
Glaxo buy � MFI 36.76
GT buy 44% sell 56% volume index 0.78 MFI 18.14
Honyflour buy 0% MFI 46.99
Jaiz buy 0% MFI 50.09
Lasaco buy 0% volume index 0.74 MFI 44.12
Lvstk buy � volume index 0.84 MFI 78.51
Mben buy 0% MFI 65.25
Mtnn buy 20% sell 80% volume index 0.71 MFI 41.39
Nahco buy � MFI 49.34
Nem buy � MFI 65.25
Oando buy 93% sell 7% MFI 24.53
Red buy 24% sell 76% volume index 1.05 MFI 24.81
Stanbic buy 25% sell 75% MFI 20.17
Sterling buy 50% sell 50% volume index 7.99 MFI 28.48
Transcorp buy 40% sell 60% MFI 50.19
Uacn buy 56% sell 44% MFI 61.57
Uba buy 29% sell 71% MFI 34.89
Ucap buy 84% sell 16% MFI 52.70
Unilever buy 9% sell 91% MFI 0.48
Uniondac buy � MFI 2.02
Wapco buy 0% MFI 64.44
Wapic buy � MFI 50.66
Wema buy 20% sell 80% MFI 38.55
Zenith buy 83% sell 17% volume index 1.00 MFI 32.73

https://investdataltd..com/2020/04/investdata-weekly-sentiment-report-as.html

Fidelity Bank: Improved Profit, Juicier Dividend, Asset Yield, Risk Management

The management of Fidelity Bank Plc recently submitted its audited financials for the full-year ended December 31, 2019, to the Nigerian Stock Exchange (NSE) earlier than the released date of the 2018 numbers. This early presentation of the result in line with the post-listing requirement of the exchange will help investors plan, given that consistency aids prediction and timing of investments.
Top and bottom-lines improved when compared with those of 2018. Specifically, Gross Earnings climbed 14.02% up from N189.01bn in 2018 to N215.51bn, while Profit rose at a faster 23.99% rate from N22.93bn in 2018 to N28.43bn.
The numbers which ranked Fidelity Bank as the most improved in the period under review were boosted by net interest income and credit writeback, following which Earnings Yield stood at 58.05%, compared to the previous year’s 38.41%.
This was driven by the 30% growth in loan and advances, even as Net Asset for the period improved by 20.37% to N234.03bn implies that Fidelity Bank is able to meet the planned recapitalisation in the banking industry as envisaged by the Central Bank of Nigeria (CBN) in its medium to long-term plan.

The drop in the bank’s Non-Performing Loan ratio to 3.3% from 5.7% in 2018 is a reflection of the improvement in Fidelity Bank’s asset quality and risk management, despite the strong growth in total loan book during the period. This was despite the challenging business environment sign-posted by the low-interest rates in Treasury Bills, the oscillating oil price for the period and other factors.
Earnings per share estimates from the said period resulted in 0.98 kobo, compared to the prior year’s 0.79 kobo, while the fall in its share price during the period has shortened the investment period to 1.72x, which has reduced investors waiting period from 2.60x. The said Earnings yielded 58.05% on the released day. This is above the 38.41% yield estimated in 2018, just as Return on Equity increased from 11.79% in 2018 to 12.15% in 2019. There was also a marginal improvement in Profit Margin of 13.19%, from 12.14% in the previous year.


Fidelity Bank Plc began operations in 1988 as Fidelity Union Merchant Bank Limited. By 1990, it had distinguished itself as the fastest growing merchant bank in the country. However, in 1999, it converted to commercial banking and changed its name to Fidelity Bank Plc and became a universal bank in February 2001, with a license to offer the entire spectrum of commercial, consumer, corporate and investment banking services. Fidelity Bank.


Four-Year Performance Analysis
The bank’s gross earnings over this period have grown consistently with an average growth of over 41.77% between 2016 and 2019, from N152.01bn in 2016 to N215.51bn in 2019. The years 2016 and 2017 were the period Nigeria slipped into economic recession and recovery, which impacted the bank’s figures negatively. The high NPL ratio, however, slowed down the dividend payout of 2017 and 2018, before the 20 kobo dividend reported in 2019, representing an 81.81% growth and yield of 11.96% as at released date.
Nevertheless, the noticeable improvement in operations in the 2018 and 2019 financial years was attributed to internal restructuring by the bank as it sought to drive deposit and provide satisfactory service to its customers.
Its profit level since 2016 continues to look up, remaining on the path of strong growth, which has supported the bank’s share price, despite fluctuations due to market dynamics and fundamentals.

Fidelity Bank’s earnings power has maintained an upward movement in the last four years as a result of strong leadership and commitment to deliver value at all levels and time.
Profit for the period rose from N9.73bn in 2016 to N18.86bn in 2017 which was more a 100% increase, a trend that was sustained in the 2018 and 2019 financial years, when climbed first to N22.93bn, from N28.43bn respectively.
Shareholders’ funds for the period maintained an uptrend growth of 26.23%, soaring from N185.4bn in 2016 to N234.03bn in 2019.


Estimated Performance Ratios
The bank’s Earnings Per Share for the period is a reflection of its earnings power, which grew from 34 kobo in 2016 to 98 kobo estimated from 2019 released financials. The said EPS is the same as 1.72x (times) of the market price at released date and yielded 58.05% of the market price from the Price to Earnings ratio of 2.5x in 2016. Its Book Value looks attractive at N8.08 per share, a growth that boosted confidence, while assuring investors of further growth, despite the fluctuation in price and market trend. The growth in EPS was attributed to an increase in Net Fee and Commission Income which, in our view, is the mainstay of the bank’s non-interest income. Key drivers of the improvement in net fees and commission were stronger credit fees and improved ATM and account maintenance charges. We note that the growth in non-interest income was stifled by weaker net FX gains.


Valuation
The Bank 2019 book value per share stands at N8.08 while the Price to Book Value (PBV) is 0.21. On the strength of its Price-Earnings-Ratio of 1.72x, which is relatively low in its sector. The share price of Fidelity Bank is fairly and technically placed at N4.00 per share.


As future earnings of the bank is expected to improve on the heels of its corporate banking business and increased focus on the retail market. The bank’s price action has been trending down, just as it broke down the strong support level at N1.65 trading between the high of N2.40 and low of N1.44 each. Investors are therefore advised to play within the said trading range.
In other words, the position can be taken at this appropriate price support level.
More importantly, Fidelity Bank is good for all investment goals, whether for short or long-term.
We note that this bank survived the meltdown and has consistently paid dividends on positive earnings that have supported its price.

https://investdata.com.ng/2020/04/fidelity-bank-improved-profit-juicier-dividend-asset-yield-risk-management/

Corporate Actions On NGSE As Of April 3, 2020

https://investdata.com.ng/2020/04/corporate-actions-on-ngse-as-of-april-3-2020/#more

Mixed Intraday Trend May Continue On NGSE, Amidst Cautious Trading, Short-term Profit Taking

Market Update for April 8
Equity prices on the Nigerian Stock Exchange at midweek continued its upward trend for the second day as buying interests in banking stocks and other large company shares ahead of their first-quarter earnings reports. This is even as the Coronavirus cases in Nigerian remained on the rise as testing continues to trend higher.
The seeming market rebound started on Tuesday with strong gains, which was sustained on Wednesday despite being at a slower pace. The majority of the sectorial indexes were up, closing the session higher. It is clear that low price attraction and dividend news have attracted investors back to the market in the midst of the ongoing coronavirus pandemic as crude oil prices oscillate ahead of Thursday’s meeting of the Organisation of Petroleum Exporting Countries to agree on production cut or not. Already, the global lockdown has affected the demand and consumption of oil with many factories across the world shut down.

Nigeria’s Minister of Finance has hinted on the progressive stimulus package that is currently being considered for the benefit of Nigerians and the economy but is yet to provide details of how over N2tr has been distributed to ‘vulnerable Nigerians’ as part of the administration’s Social Intervention Programme as palliative. On the strength of this, many Nigerians are already worried about how corporate organization and small scale businesses will benefit from the N500bn crisis intervention fund currently being proposed to the National Assembly. And other fiscal measures put in place by the government to ensure that the ripple effects of the global pandemic are curtailed.

There is no doubt that the Nigerian equity market is still suffering from the unfavourable effects of COVID-19, as investors continue to play safe, despite the very attractive equities prices and yields on offer at this time. The truth remains that, many funds are currently trapped by the bear, while few traders with capital are taking advantage of the induced decline in share prices. The most intelligent investment decision is to avoid panic selling at this time.

Midweek’s, trading opened on the exchange in green and was sustained throughout the session as positive sentiment for shares of financial service providers and manufacturing stocks pushed the key performance index to break out the 21,000 psychological level. It touched intraday highs of 21,150.01 basis points, from its low of 20,925.19ps, before finishing the session higher at 21,073.26bps on above-average traded volume.
Wednesday’s market technicals were positive and mixed as volume exchanged were lower than the previous day, as market breadth favored the bulls on mixed sentiment as revealed by Investdata’s Daily Sentiment Report, showing a ‘buy’ volume of 66% and sell position of 34%. This was on a total daily transaction volume index of 0.77, just as momentum behind the day’s performance was seriously weak, despite Money Flow Index moving up to 17.40points, from the previous session’s 9.26ps, indicating that funds entered the market.

Index and Market Caps
At the end of trading, the NSE’s composite All-Share index gained 148.07bps, closing at 21,073.26 after opening at 20,925.19ps, representing a 0.71% up, just as market capitalization rose by N77.17 billion to N10.98tr, from the N10.91tr it opened, also representing a 0.71% appreciation in investor’s portfolio.
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 rally considering their current market prices. 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 midweek rally was impacted by buying interests in medium and large companies stocks like MTNN, Nestle, Guaranty Trust Bank, Zenith Bank, UBA, Lafarge Africa, Stanbic IBTC, Flourmills, Dangote Sugar and Ikeja Hotel that impacted positively on the NSE index, by reducing its Year-To-Date loss to 21.33%. Market capitalization YTD decline stood at N1.88tr, representing a 15.13% drop from the year’s opening value.

Bullish Sector Indices
All the sectorial performance indexes were in the green, except for the NSE Oil/Gas Index that closed 0.55% down, while the NSE Banking index led the advancers after gaining 2.07%, followed by the NSE Consumer Goods, Industrial Goods, and Insurance that closed 0.99%, 0.97% and 0.14% up respectively.

Market breadth remained positive as advancers outnumbered decliners in the ratio of 25:8, just as market transactions in volume and value were down by 75.99% and 6.34% respectively, with investors exchanging 346.41m shares worth N5.22bn as against the previous session’s 1.44m units valued at N5.57bn. Volume was boosted by trades in Guaranty Trust Bank, FBNH, Zenith Bank, Lafarge Africa, and Fidelity Bank.
ETI and Ikeja Hotel were the best-performing stocks for the day, gaining 10% each closing at N4.40 and N0.99 per share on low price attraction. On the flip side, Skypower Aviation and Union Diagnostic lost 10% each, closing at N2.16 and N0.27 per stock, on profit-taking.

Market Outlook
We expect the mixed intraday trend to continue, as short term profit taking from this few sessions of a rally is underway. Just as market players’ take strategic positions ahead of Q1 2020 earnings reports and impacts of the stimulus package on the economy. Also, more companies are notifying the exchange and investors of their virtual annual general meetings and closed period for 2020 first-quarter earnings reports.
However, the high dividend yields continue to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of the selloffs, with investors buying to increase their positions in undervalued 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 undervalue 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 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/2020/04/mixed-trading-may-continue-on-ngse-amidst-cautious-trading/#more

Investdata Daily Sentiment Report as of April 9, 2020

NSEASI buy 3% sell 97% volume index 0.76 MFI 8.60
Access buy � MFI64.35
Afrprud buy 0% MFI 62.66
Aiico buy � MFI 32.94
Courtville buy � volume index 1.53 MFI 15.19
Dangcem buy 0% volume index 2.12 MFI 13.97
Fbnh buy � volume index 1.84 MFI 66.08
Fcmb buy � volume index 2.87 MFI 44.29
Fidelity buy � volume index 1.84 MFI 42.52
Fmn buy � volume index 1.69 MFI 51.64
GT buy 0% volume index 0.71 MFI 61.71
Learn buy 0% volume index 11.14 MFI 0.00
Mben buy 0% volume index 4.28 MFI 100.00
Mtnn buy 0% volume index 1.71 MFI 55.39
Oando buy � MFI 52.67
Stanbic buy 50% sell 50% volume index 3.16 MFI 57.38
Transcorp buy 0% MFI 24.78
Uba buy 0% MFI 55.56
Ucap buy 0% MFI 65.62
Unilever buy � volume index 3.33 MFI 71.81
Wapco buy � volume index 1.60 MFI 41.45
Wapic buy � MFI 9.90
Zenith buy 33% sell 67% MFI 36.75

https://investdataltd..com/2020/04/investdata-daily-sentiment-report-as-of.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.

I have added a further twist to it. This includes.
1. Long term sticks
2. Stocks to lead recovery
3. Defensive Stocks
4. Dividend Stocks with Strong Yields and Fundamentals
5. Low priced Stocks to Watch

However, 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,

Several event really
happened last week as
the market continues to
experience a downtrend.

Like I said the current bear
market is as a result of
the Pandemic Covid-19
which shutdown the world
economy. This is definitely
a phase so hang in there

As a result, I have taken
my time to give you the
steps that will guide you in
making decisions and the
possible outlook for the
week.

Please don't forget to stay
safe...

Best,

Ambrose Omordion
08028164085,
08032055467


https://www.youtube.com/watch?v=Txl-6R4I22c

Investdata Daily Sentiment Report As of April 10, 2020

NSEASI buy � volume index 0.71 MFI 24.89
Access buy � volume index 0.78 MFI 48.50
Aiico buy � volume index 0.77 MFI 43.80
Bua buy � volume index 2.61 MFI 7.14
Chams buy 0% MFI 50.03
Dangcem buy 0% volume index 7.92 MFI 67.42
Dangsugar buy � volume index 1.42 MFI 20.43
Fbnh buy 71% sell 29% volume index 0.99 MFI 78.47
Fcmb buy 17% sell 83% volume index 0.79 MFI 59.44
Fidelity buy 62% sell 38% volume index 1.91 MFI 69.96
Jaiz buy 0% MFI 37.97
Nestle buy � volume index 0.84 MFI 60.55
Oando buy 0% MFI 55.54
Stanbic buy � MFI 28.62
Sterling buy � MFI 6.88
Transcorp buy 67% sell 33% MFI 49.94
Uacn buy 50% sell 50% volume index 1.05 MFI 12.50
Uba buy � volume index 0.87 MFI 65.51
Wapco buy 54% sell 46% volume index 6.15 MFI 86.89
Wapic buy 0% MFI 56.78
Wema buy 71% sell 29% volume index 1.26 MFI 85.13
Zenith buy � MFI 42.24

https://investdataltd..com/2020/04/investdata-daily-sentiment-report-as-of_14.html

Four Simple Steps To Surviving This Bear Market On NGSE


1. Keep your confidence: In the first place, it was your confidence that the stock market will make money for you if you invest correctly that attracted you. Therefore, do not underestimate the importance of keeping a strong mind during a downtrend such as this.

I used to be discouraged, thinking that there would never be an uptrend again. Now, I am highly encouraged, because I know with 100% certainty that we would end this downturn with a brand new uptrend someday. The key here is to keep your mind at rest so as take advantage at the dawn of a healthier market condition.

2. Have a watch list: A watch-list in equity investment must contain stocks you plan to buy for one reason or another. The attraction could be the price, earnings performance, volume traded or the intrinsic value. When the market starts a new uptrend, it is important to be ready to jump in on the strongest stocks out there and make money. Many stocks are undervalued in the Nigerian stock market now. So, select the ones that should be on your watch list.

3. Keep a few positions: During a down-market, keep a few stocks in your portfolio for effective monitoring and revaluation. If you are used to buying 20 to 30 stocks, there is nothing wrong with buying just two or five. One reason is that it allows you to scale into some stocks you might like for a longer-term. Another reason is that smaller positions help you to deal with higher volatility and protect your capital. That way, you do not get stopped out of everything and bleed to death with the wide market fluctuation.

4. Hold cash: Cash is king at all times and in a bear market, it is better to hold cash, not stocks, because three out of four stocks move with the general direction of the market. When the market is going down, even the strongest companies with good fundamentals can get hit. For example, during the 2008-2009 financial crises, Nigerian Breweries’ price dropped from N120 to N23, not because the company’s products stopped selling, but the mood of the market and the trend which affected its share price. This same company recovered and surpassed its peak, touching N193 in 2017.

Avoid holding stocks, so you would not lose your hard-earned money with the market. There is nothing wrong with keeping some cash on the sidelines for healthier conditions. You don’t have to invest all your capital in the market at all times.

Again, the current undervalued state of the market offers 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. This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Opportunities & Trade Ideas Summit.

Meanwhile, 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/2020/04/four-simple-steps-to-surviving-this-bear-market-on-ngse/

Investdata Price, Earnings Track For Week Ended Thursday, April 9, 2020

Investdata Price, Earnings Track For Week Ended Thursday, April 9, 2020

Investdata Price, Earnings Track For Week Ended Thursday, April 9, 2020


https://investdata.com.ng/2020/04/investdata-price-earnings-track-for-week-ended-thursday-april-9-2020/

Despite Restrictions, NGSE Lists N29bn Flour Mills, Primero BRT Bonds

The Nigerian Stock Exchange continued to uphold its commitment to remaining in operation, despite the lockdown occasioned by raging Coronavirus (COVID-19) pandemic, after activating its business continuity plan that ensured continued trading via remote access, besides supporting companies to raise capital in these challenging times.

These efforts have resulted in the successful listing of Flour Mills of Nigeria Plc and Primero BRT Securitization SPV Plc bonds on the Exchange on Thursday, 9 April 2020, after both cumulatively raised N28.9bn.
While Flour Mills of Nigeria Plc listed its N12.499bn three-Years 10% Series 3 (Tranche A) Fixed Rate Senior Unsecured Bond due 2023; and the N7.5bn five-Year 11.10% Series 3 (Tranche B) Fixed Rate Senior Unsecured Bond due 2025; Primero BRT listed its N16.5bn Series 1; 17% Fixed Rate Bonds due 2026, under its N100bnMedium Term Bond Programme.

Commenting on the listing, Group Managing Director, Flour Mills Nigeria Plc, Peter Gbededo expressed are delight at the opportunity “to return to the capital market with such a successful outing, especially with the level of interest shown by investors.
“The response from the market vindicates our decision to have taken this additional step to diversify our financing options beyond short-term commercial bank debt,” he said.

Appreciating the efforts of the role NSE in deepening secondary market liquidity thus aligning the market with international best practices, he said the company looks “forward to enjoying the benefits of these efforts in our short and long-term instruments.”

Commenting also, Chief Executive of the NSE, Oscar Onyema, congratulated the management of Flour Mills Nigeria Plc and Primero BRT Securitization SPV Plc and the professional parties to the issue.
He reiterated the commitment of The Exchange to support its stakeholders by ensuring that its “operations and trading activities continue seamlessly throughout this period.

We have put in place the requisite measures to guarantee that our staff are able to provide requisite support, our stakeholders are able to conduct business digitally, and that all relevant information continues to flow into the market to spur capital market activity during the COVID-19 pandemic.”

Since the activation of its Business Continuity Plan in response to COVID-19 on Wednesday, 25 March 2020, The Exchange has transitioned to digital operations with its employees working remotely and Dealing Member Firms trading remotely. The Exchange has had no disruptions to its operations since the activation of the slow down efforts by state and federal governments to flatten the COVID19 curve.

https://investdata.com.ng/2020/04/despite-restrictions-ngse-lists-n29bn-flour-mills-primero-brt-bonds/#more

Mixed Trading, Profit Taking Ahead, Amidst COVID-19 Fears, Adjustments For Dividends, As Investors Weigh Options

Market Update for the Week Ended April 9 and Outlook for Apr 14-17
The performance of the Nigerian Stock Exchange (NSE) in the past week was mixed and strong, resisting further decline after the composite All-Share index hit a new low.

The recovery was driven by the increased bargain hunting among medium and large-cap shares, with sectorial indexes rising amidst optimism that the worst of the Coronavirus (COVID-19) pandemic could be over, or flattening cross the globe. The optimism is also supported by the rollout of economic stimulus packages by the government, their central banks, and multilateral agencies to mitigate the effects of the virus on economies across the world over.

Last week, for example, was particularly eventful, with the publication of a report Africa’s Pulse by the World Bank showing that Sub-Saharan Africa is headed for its first recession in 25 years amidst the spread of COVID-19. According to the report, the pandemic is expected to cost sub-Saharan Africa $37bn to $79bn in output losses this year due to trade and value chain disruption, among other factors, as the region’s economy contracts by between 2.1% and 5.1%, as against a robust 2.4% growth in 2019 .

There however announcements by the African Development Bank (AfDB) of a $10bn package to ensure that its members do not experience the worst-case scenario during this period (READ MORE), while the African Export-Import Bank (Afreximbank) is also gearing up to assist members out the murky waters.

Still on the NSE, it may be too early yet, technically so, to say the market has rebounded, despite the strong sentiment report for the period with more buying positions. We believe that there are some key levels from a technical perspective that will confirm the real market rebound and will attract more people to the market, despite the happenings in the system.

Investors are expected to study the market’s recovery pattern after the 2008/09 financial market meltdown and the regulatory induced crash, as well as the three consecutive years of decline from 2014 to 2016, before rebounding in 2017. This should guide investors and traders, as The COVID-19 induced down market attempts a recovering move.

Many analysts are of the view that market recovery will be long in coming this time, considering the rate at which it has declined, considering the oscillating oil price that has touched an 18-year low recently. This concern may have been taken care of reasonably by the outcome of last week’s meeting by members and non-members of the Organisation of Petroleum Exporting Countries (OPEC+), especially the slash in oil output across the board by 23%, which translates to 10m barrels per day in the first instance (READ MORE). There are reports that Mexico, a non-OPEC member, which was expected to voluntarily cut production by 400,000bpd, has opted out of the deal.

How fast the NSE index recovers would, however, be a function of how fast it fell and the sentiment behind the trend at the time. All factors considered Investdata expects the Nigerian stock market to look up before this year-end.
The short-term position you are taking now will not give much return compared with what long-term real gains could look like say in one or two years. Traders and investors should, therefore, keep an eye fixed on emerging economic trends to make good returns.

However, the Q1 earnings reports from Infinity Trust Mortgage Bank hit the market during the period under review, just as the 2019 full-year audited results from Lafarge Africa (READ MORE) and FBN Holdings (READ MORE), with dividend recommendation of N1.00 and 38 kobo respectively. The low price attractions and dividend news are factors driving the positive sentiments, as more companies notify the exchange of their Q1 closed period and AGM dates.

Movement Of NSEASI
The key performance index for the week under consideration looks impressive after recording three straight sessions of bull-run and one day of bearish outing before the public holiday of Friday and Monday declared by the Federal Government to celebrate the Christian feast of Easter.

Trading for the period had opened on a negative note, with the NSEASI losing 2.02% on Monday, a trend that was short-lived on Tuesday amidst the increased demand for financial services stocks and other medium and large caps that pushed the index up by 1.24%. This positive sentiment was sustained as investors reacted to dividend declarations, closed period and AGM dates announced to close higher on Wednesday and Thursday by 0.71% and 1.47% respectively.

These brought the week’s total gains to 1.37%, compared to the previous week’s 3.51% decline.
Specifically, the NSE index gained 289.41 basis points last week, after opening at 21,094.62bps, during which it oscillated between the intra-week high of 21,385.85bps and low of 20,651.59bps on seeming positive sentiments, and high volume. We note that during the week access to the NSE’s trading engine was entirely through remote platforms, following a shutdown of the trading floor following the Federal Government’s lockdown due to COVID-19. During the week, the benchmark index broke down the 21,000 mark to test 20,651.59 points, just as market capitalization climbed N148bn, closing at N11.14tr, from the N10.99tr it opened, representing a 1.37% decline.

The advancers table for the week was dominated by medium cap stocks as high buying interests in banking, insurance, manufacturing and telecommunication stocks and others that had suffered losses in recent times. This was revealed by the market breadth, as gainers outnumbered losers in the ratio of 35:18. The momentum behind the week’s performance was weak, as the Money Flow Index dropped to 25.98bps from 31.43bps in the previous week.

Transactions in terms of volume were higher than that of the previous week, as bargain hunters hit the market to take advantage of the low prices considering the high reward to risk currently prevailing in the equity segment of the financial market.
Meanwhile, discerning investors have continued to take advantage of the low prices in the midst of panic selling and confusion, to reposition their portfolios for the medium to long-term, as the earnings reporting season for Q1 and full-year 2019 has been extended to May. The positive and strong sentiment during the period was confirmed by Investdata’s Sentiment Report for the week, showing 100% ‘buy’ volume, on a transaction volume index of 0.87.

Mixed Sectoral Indices
The sectoral performance indexes for the week were largely bullish, except for the NSE Industrial Goods and Oil/Gas indices that closed lower by 6.59% and 4.76%, while NSE Banking led the advancers after gaining 12.65%, followed by the NSE Consumer Goods, and Insurance which were up by 6.56% and 0.18% respectively.
Market activity in terms of volume and value was up by 59.48%and 76.84% respectively to 2.44bn shares worth N19.93bn, as against the previous week’s 1.53bn units valued at N11.27bn.

The week volume was boosted by trades in financial services stocks, especially Omoluabi Mortgage Bank, Guaranty Trust Bank and FBN Holdings.
The best-performing stocks for the week were Lafarge Africa and Wema Bank, which gained 41.34% and 25.53% respectively, closing at N12.65 and N0.59 per share on low price attraction and the dividend announcement. On the flip side, Ardova (Formerly Forte Oil) and Skyway Aviation lost 18.48% and 15.61% respectively, closing at N11.25 and N2.00 per share on selloffs and market sentiment.

Market Outlook
We expect a mixed performance in the new week due to profit-taking from the recent rally, expected markdown for dividend declared and more inflows of 2019 full-year and 2020Q1 results, as the government implements measures to contain the COVID-19 spread while addressing the adverse effects on the economy. Already, we notice increased transactions in healthcare and other defensive stocks that are likely to survive this meltdown, even as global markets are on the recovery path already.

Also, do not forget to identify and play defensive stocks among the many fundamentally sound companies that remain depressed, making them attractive for bargain hunting among market players. This has also resulted in significant improvements in Dividend Yields of stocks, even as we note that fund managers who held cash before now, may have to rethink the strategy and go for value stocks with high upside potentials.

This is just as more liquidity flow to high Dividend Yield stocks with sound fundamentals, a situation that will also be based on the seemingly positive outlook for the domestic economy, 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.

On 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.

To position for the short to long-term, this 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.

://investdata.com.ng/2020/04/mixed-trading-profit-taking-ahead-amidst-covid-19-fears-adjustments-for-dividends-as-investors-weigh-options/#more

OPEC+ Meeting Fallout: Nigeria Expects Extra $2.8bn Revenue From Price Rebound

•Now To Produce 1.412mbpd Of Crude
Nigeria’s delegation led by its Minister of State for Petroleum Resources, Chief Timipre Marlin Sylva, on Thursday participated in the 9th meeting of OPEC/Non-OPEC Declaration Of Cooperation Ministerial Meeting to cut global crude oil output by as much as 10m barrels per day, as part of efforts to manage its price at the international market

This, according to a statement he personally signed, would see Nigeria raking in additional $15 per barrel in the worst-case scenario in the short term, thereby enhancing “the prospect of exceeding Nigeria’s adjusted budget estimate that is currently rebased at $30 per barrel and crude oil production of 1.7m barrels per day.

The rebound, arising from the agreement which will see Nigeria’s quota reducing to 1.412mbpd in May and June from 1.829mbpd of October 2018, in the historic bid to stabilize global crude oil price could translate to as much as US$2.8bn in additional revenue accrual to Nigeria’s Federation Account.
Going by the agreement at the meeting also attended by Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, oil producers in the OPEC+ deal are voluntarily giving up 23% of their quota in the first instance, which see Saudi Arabia and Russian Federation, biggest OPEC and non-OPEC members reducing their quotas to 8.492mbpd respectively.

Thereafter, the global crude oil output cut is to become eight million barrels per day from July to December; and 6mbpd from January 2021 to April 2022.
The deal will specifically see the total output from OPEC and non-OPEC members reducing from 43.853mbpd to 33.853mbpd. A further review of the template will see OPEC and non-OPEC cutting their outputs to 20.598mbpd and 13.255mbpd respectively between May and June 2020.

The OPEC curtailment does not, however. affect condensate production, of which Nigeria enjoys between 360-460 KBOPD.

Nigeria is participating, he noted, in line with the government’s “commitment to the framework of the Declaration of Cooperation entered on 10th December 2016 and further endorsed in subsequent meetings as well as the Charter of Cooperation signed in July 2019.”

“It is therefore pleasing to note that despite the production curtailments that this historic agreement will entail, all planned industry development projects will progress as they will be delivered after the termination of the 9th OPEC/Non-OPEC Ministerial Meeting Agreement on adjustments in April 2022,” the Minister added

https://investdata.com.ng/2020/04/opec-meeting-fallout-nigeria-expects-extra-2-8bn-revenue-from-price-rebound/#more

Investdata Weekly Sentiment Report as of April 14, 2020

NSEASI buy � volume index 0.88 MFI 25.98
Access buy � MFI 26.32
Afrprud buy 75% sell 25% volume index 0.74 MFI 44.23
Aiico buy 78% sell 22% MFI 43.80
Cadbury buy 86% sell 14% volume index 2.38 MFI 22.75
Caverton buy � volume index 0.70 MFI 60.01
Chams buy 0% MFI 12.05
Corner buy 17% sell 83% volume index 1.02 MFI 27.51
Courtville buy 0% volume index 1.62 MFI 18.07
Custodian buy 0% MFI 19.54
Dangcem buy 0% volume index 2.32 MFI 42.64
Dangsugar buy � MFI34.44
Eti buy � MFI 32.35
Fbnh buy 88% sell 12% volume index 2.04 MFI 32.78
Fcmb buy 86% sell 14% volume index 1.00 MFI 46.31
Fidelity buy 91% sell 9% volume index 1.93 MFI 52.72
Fmn buy � MFI 55.18
Glaxo buy 78% sell 22% MFI 31.83
GT buy 87% sell 13% volume index 2.03 MFI 21.79
Jaiz buy 0% MFI 57.24
Jberger buy � volume index 1.52 MFI 81.54
Lasaco buy � MFI 46.37
Learn buy 0% volume index 4.70 MFI 17.00
Linkass buy � MFI 14.54
Mansard buy 0% MFI 29.60
M&B buy � MFI 52.48
Mtnn buy 61% sell 39% volume index 0.93 MFI 38.95
Nahco buy 32% sell 68% MFI 46.73
Neimeth buy 44% sell 56% volume index 0.71 MFI 27.28
Nestle buy � volume index 2.41 MFI 12.35
Oando buy 92% sell 8% MFI 23.64
Red buy 34% sell 66% volume index 0.97 MFI 27.16
Seplat buy � MFI 56.08
Stanbic buy � volume index 1.97 MFI 20.72
Sterling buy � MFI 24.39
Transcorp buy 90% sell 10% MFI 39.33
Uacp buy 0% MFI 57.09
Uacn buy 67% sell 33% MFI 60.16
Uba buy � MFI 32.41
Ucap buy � MFI 53.41
Unilever buy � volume index 0.98 MFI 3.54
Unity buy 0% volume index 0.99 MFI 21.35
Upl buy 0% MFI 41.38
Wapco buy 92% sell 8% volume index 3.57 MFI 68.09
Wapic buy 0% MFI 54.14
Wema buy 80% sell 20% volume index 1.14 MFI 40.29
Zenith buy � MFI 31.46

https://investdataltd..com/2020/04/investdata-weekly-sentiment-report-as_15.html

Investdata Daily Sentiment Report as of April 15, 2020

NSEASI buy 99% sell 1% volume index 1.24 MFI 37.07
Access buy � MFI58.38
Afrprud buy 0% volume index 0.88 MFI 42.94
Ardova buy 0% volume index 3.17 MFI 15.48
Bua buy 91% sell 9% volume index 3.59 MFI 4.99
Caverton buy 0% volume index 2.00 MFI 76.32
Eti buy 75% sell 25% volume index 1.10 MFI 81.02
Fbnh buy 83% sell 17% volume index 0.91 MFI 87.99
Fcmb buy � volume index 1.16 MFI 62.34
Fidelity buy � volume index 1.74 MFI 57.75
Glaxo buy � volume index 1.22 MFI 75.33
GT buy 91% sell 9% MFI 80.55
Jaiz buy � volume index 1.76 MFI 61.43
Jberger buy 0% volume index 1.15 MFI 61.15
Lasaco buy 0% MFI 53.47
Nahco buy 87% sell 13% volume index 0.87 MFI 41.78
Oando buy � MFI 70.10
Sterling buy � MFI 9.06
Transcorp buy 18% sell 82% MFI 59.46
Uba buy � volume index 0.83 MFI 76.56
Ucap buy � volume index 0.78 MFI 65.34
Unity buy � MFI 82.54
Wapco buy 33% sell 67% volume index 2.77 MFI 73.64
Wema buy � MFI 89.21
Zenith buy 76% sell 24% MFI 54.06

https://investdataltd..com/2020/04/investdata-daily-sentiment-report-as-of_15.html

Market Review for the week
Ended April 9 and Confirmation
Market Direction



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

Bull-Run May Continue On NGSE, Amidst Strong Sentiments As Institutional Investors Realign Portfolios

Market Update for April 15
The composite All-Share index of the Nigerian Stock Exchange (NSEASI) closed higher at the midweek as smart money increased their buying interests, breaking out the recent double tops formation at 21,879.95 basis points on demand for equities that had suffered losses with strong fundamentals. These classes of stocks are toasts of foreign investors, as well as dividend-paying stocks, just as the markdown and payment dates of many companies are within this month and May.

This trend may not last for too long, given that positive sentiments in stock markets are temporary because the Nigerian economy is already challenged and heading towards a recession, as projected by the World Bank and the International Monetary Fund.

The projected global slowdown economic recession across the globe follows the shutdown owing to the widespread of the Coronavirus (COVID-19) pandemic. Already, many states across Nigeria, in many states across the country, including Lagos the commercial capital, neighbouring Ogun, and Abuja, the Federal Capital have been on lockdown for the third week already.

The ongoing stock market rebound which stated last week entered its fifth consecutive session of uptrend and demand for high dividend yields stocks on Wednesday after they had tumbled since the late January 2020 rally. Despite the seeming bull transition, the worst is not over for many stocks as an expected economic downturn is already knocking, meaning any position taking now should be in stages.

Here is how the heavyweight battle is playing out and how smart investors can win, either way, it is all good until it is over, but retail investors should trade with caution at this point because a pullback is imminent. The return of smart money is because they were unable to exit the Investor & Exporters window of the exchange market.

Midweek’s trading started on the upside and was sustained throughout the session on strong buying interests among medium and high cap stocks, a situation that pushed the NSE index to intraday highs of 22,543.48 basis points, after breaking out the 22,000bps psychological line from its low of 21,873.47ps, before closing the day higher at 22,539.14bps on above-average traded volume.

Market technicals on Wednesday were positive and mixed as traded volume was lower than the previous session, in the midst of positive market breadth and high buying pressure as revealed by Investdata’s Daily Sentiment Report, showing a ‘buy’ volume of 99%. Total daily transaction volume index stood at 0.73, just as the impetus behind the day’s performance was relatively weak, despite Money Flow Index moving up to 44.67points, from the previous session’s 37.07ps, indicating that funds entered the market and some stocks.

Index and Market Caps
At the close of the session, the NSEASI gained a further 659.99bps, closing at 22,539.94 points after opening at 21,879.95s, representing a 3.02% up, just as market capitalization rose by N343.96bn to N11.75tr, from the N11.4tr it opened, also representing a 3.02% growth in investors worth.

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 rally considering their current market prices. 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.

Wednesday’s advance was impacted by the demand for fundamentally sound stocks like Dangote Cement, Nigerian Breweries, Guaranty Trust Bank, Zenith Bank, UBA, Access Bank, Dangote Sugar, and Oando. This impacted positively on the NSE index, reducing its Year-To-Date loss to 15.47%, while market capitalization YTD reduced to N1.26 trillion, representing an 8.32% drop from the year’s opening value.

Bullish Sector Indices
All the sectorial performance indexes closed higher, except for the NSE Insurance Index that closed 0.50% lower, while the NSE Banking index led the advancers after rallying 4.46%, followed by the NSE Industrial goods, Consumer goods and Oil/Gas that garnered 3.02%, 2.51% and 1.12% up respectively.

Market breadth remained positive as advancers outnumbered decliners in the ratio of 28:11, just as market activity in terms of volume and value were mixed. Volume was down by 41.47% to 326.49m shares, as against the previous day’s 557.82m units, while value rose by 27.48% to N3.34bn from the previous day’s N2.62bn. This volume was boosted by trades in FBNH, Zenith Bank, Guaranty Trust Bank UBA and FCMB.
The best-performing stocks for the session were Dangote Cement and Champion Breweries, which gained 10% each, closing at N133.10 and N0.80 per share on low price attractions and high dividend yields. On the flip side, Arbico and Wema Bank lost 9.82% and 9.68% closing at N2.57 and N0.56 per share respectively, on market forces and profit-taking.

Market Outlook
We expect the trend to continue since there was a breakout of the double top on strong sentiment as market players and institutional investors load their portfolio ahead of more corporate earnings and macro-economic data from the National Bureau of Statistics. Also, more companies continue to notify the exchange and investors of their virtual annual general meetings and closed period for 2020 first-quarter earnings reports.

However, the high dividend yields continue to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of the selloffs, with investors buying to increase their positions in undervalued 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 undervalue 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 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/2020/04/bull-run-may-continue-on-ngse-on-strong-sentiments-as-institutional-investors-boost-portfolio/

NGSE Indicator Sustains Uptrend, Ahead Of Profit Booking, Mixed Trend, Portfolio Rebalancing

Market Update for April 14
Equity prices climbed higher on the Nigerian Stock Exchange (NSE) on Tuesday in continuation of positive sentiments among medium and large companies stocks, accompanied by high volatility, following through the fourth trading sessions of the rally on a higher volume traded. The benchmark NSE All-Share index gained a strong 2.32%, confirming the uptrend despite the Coronavirus induced bear market and gloomy economy, on a day the International Monetary Fund (IMF) projected that Nigeria’s economy is recession-bound and could slow down by as much as 3.5% this year (READ MORE).

The rising new coronavirus cases and oscillating crude oil prices in the international market as OPEC and its allies agreed to cut production so as to push the price up are still of concern to the investors. This is notwithstanding the interventions by the Central Bank of Nigeria (CBN) in its bid to stimulate the economy and maintain financial stability totaling N3.5tr so far now at 5% interest with a new one-year moratorium.

Meanwhile, the government’s palliative measures to mitigate the effect of the Coronavirus pandemic outbreak, seems non-existent with the commercial city of Lagos and Federal Capital Territory of Abuja on lockdown, despite the trillions of Naira reportedly disbursed. We would have expected an announcement of reduction or further tax rebate to help companies and individuals cushion the effects of the pandemic and help maintain their workforce and not worsen the unemployment situation in the country.

It is true that the general market direction is responsible for 50% of equity price movements, but in an already challenging economy like ours today, the follow-through witnessed so far may not suggest full rebound. This is because the composite index’s action has formed a double top at the end of Tuesday’s trading, which is already a sign of pullback and a high possibility of profit-taking.

In all these, the emerging new trend shows that uncertainties come with opportunities for discerning investors and traders as the market has resisted to breakdown its 17-year strong support level or last line of defense. Internally, the stock market may have started to heal.
We now need to see the market build on this with more evidence of active participation that more decisively turns momentum on the side of the bulls.
We caution traders and investors that the most popular trading and investing strategies are dead on arrival in the NSE, even as intelligent investors are actively trading against the bearish trend.

Meanwhile, Tuesday’s trading opened after the Easter Monday holiday on the upside till mid-morning and oscillated for the rest of the session on strong buying interest that pushed the NSE benchmark index to intraday highs of 21,883.39 basis points, from its low of 21,239.02ps. Thereafter, it finished the day higher at 21,879.95bps on positive breadth.

Tuesday’s market technicals were positive and strong with volume traded higher than the previous session, with breadth favoring the bulls, and high buying sentiment as revealed by Investdata’s Daily Sentiment Report, showing a ‘buy’ volume of 99% and sell position of 1% as total daily transaction volume index of 1.24. Just as momentum behind the day’s performance was seriously weak, despite Money Flow Index moving up to 37.07points, from the previous session’s 24.89ps, indicating that funds entered some stocks and the market at large.

Index and Market Caps
At the end of the trading session, the composite NSEASI gained 495.92bps, closing at 21,879.95 after opening at 21,384.04ps, representing a 2.32% growth, just as market capitalization grew by N2588.45bn to N11.14tr, from the N11.14tr it opened, also representing a 2.32% appreciation in value.

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 rally considering their current market prices. 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 upturn for the day was driven by buying interest in low medium and high cap stocks like Dangote Cement, MTNN, Guaranty Trust Bank, Zenith Bank, UBA, Stanbic IBTC, Honeywell, Ecobank Transnational Incorporated, Dangote Sugar and Oando. This impacted positively on the NSE index, reducing its Year-To-Date loss to 18.49%, while market capitalization YTD reduced to N1.64tr, representing an 11.34% drop from the year’s opening value.

Bullish Sector Indices
All the sectorial performance indexes closed in green, except for the NSE Insurance and Industrial Goods Index that closed 0.26% and 0.14% down respectively, while the NSE Banking index led the advancers after gaining 4.53%, followed by the NSE Consumer Goods and Oil/Gas that garnered 2.17% and 1.34% up respectively.

Market breadth remained positive as advancers outnumbered decliners in the ratio of 29:12, just as market transactions in terms of volume and value were mixed. Volume was up by 77.14% to 557.82m shares, as against the previous day’s 314.91m units, while value declined by 47.89% to N2.62bn from the previous day’s N5.02bn. This volume was driven by trades in Omoluabi MFB, FBNH, Zenith Bank, UBA and Fidelity Bank.

Oando and Nigerian Breweries were the best-performing stocks, gaining 10% and 9.91% respectively, and closing at N2.64 and N24.40 per share on low price attractions and market forces. On the flip side, PZ Cussons and Redstar Express lost 9.09% and 5.86% closing at N4.00 and N2.73 per share respectively, on market forces.

Market Outlook
The NSE’s index action has formed a double top, we expect profit booking and mixed trend as market players and institutional investors rebalance their portfolio ahead of more corporate earnings and macro-economic data from the National Bureau of Statistics. Also, more companies continue to notify the exchange and investors of their virtual annual general meetings and closed period for 2020 first-quarter earnings reports.

However, the high dividend yields continue to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of the selloffs, with investors buying to increase their positions in undervalued 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 undervalue 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 home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing the 10 Golden Stocks for 2020 are available.

https://investdata.com.ng/2020/04/ngse-indicator-sustain-uptrend-ahead-of-profit-booking-mixed-trend-portfolio-rebalancing/

Investdata Daily Sentiment Report as of April 17, 2020

NSEASI buy 69% sell 31% volume index 0.84 MFI 51.74
Access buy 0% MFI 57.98
Afrprud buy 0% volume index 0.86 MFI 59.97
Bua buy � volume index 1.51 MFI 6.01
Chams buy � volume index 0.88 MFI 57.64
Dangsugar buy 13% sell 87% volume index 2.74 MFI 54.18
Fbnh buy 0% volume index 1.09 MFI 78.26
Fcmb buy � volume index 0.70 MFI 49.01
Fidelity buy 36% sell 64% volume index 1.46 MFI 60.78
GT buy 27% sell 73% MFI 81.74
Jberger buy 50% sell 50% volume index 3.37 MFI 82.05
Lawunion buy � volume index 0.78 MFI 52.51
Nahco buy 0% volume index 0.86 MFI 43.02
Oando buy 0% MFI 78.50
Sterling buy 0% MFI 9.34
Transcorp buy 67% sell 33% volume index 0.80 MFI 52.94
Uba buy 0% MFI 72.80
Ubn buy � volume index 1.20 MFI 76.58
Ucap buy 0% volume index 1.20 MFI 62.99
Upl buy 50% sell 50% volume index 6.54 MFI 5.63
Wapco buy � MFI 70.93
Zenith buy 0% volume index 0.89 MFI 54.67

https://investdataltd..com/2020/04/investdata-daily-sentiment-report-as-of_17.html

Recession Inevitable, Recovery Depends On FG, CBN Actions- MPC Members

•Seek Suspension Of Hike In VAT, Import Tariffs, Utility Bills

The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) says although the nation’s economy would unavoidably slip back into recession, the second time in four years, propelled by the Coronavirus (COVID-19) pandemic now ravaging the global economy, thereby reversing gains of the past year when the economy showed signs of encouraging recovery. This culminated in an average 2.27% growth for the whole year.
The International Monetary Fund (IMF) in its latest edition of its World Economic Outlook released on Tuesday, says Nigeria’s GDP could fall by as much as 3.4% this year, compared to its 2.2% growth in 2019 (READ MORE), a situation the African Development Bank (AfDB) says it hopes to mitigate with a $10bn facility already set aside for member countries (READ MORE).

In their personal statements during the MPC meeting of March 23 and 24, released on Wednesday, members of the committee, variously lamented the situation has left Nigeria with very limited financial capacity by way of the lean Excess Crude Account and Sovereign Wealth Fund, to deal with the social and economic impact of the coronavirus.
They, nonetheless, expressed a belief that the possibility of recession also offers an opportunity for a national economic reset, while applauding actions so far by the CBN to mitigate the impact of the crisis, including ensuring the soundness and stability of the nation’s financial system. They urged the various tiers of governments to complement the efforts by engaging in cost-cutting in the face of dwindling revenues.
Members noted in particular, the various intervention funds already introduced by the CBN amounting to N3.5tr, which seek to provide funding to small and medium scale businesses at 5% interest rate, up from 9% over the next one year, while introducing time-limited regulatory forbearance for Deposit Money Banks to temporarily restructure terms of loans and tenors to businesses and households affected by the COVID-19 pandemic.
In his own personal assessment of the economy, leading to his decision at the meeting,

Aliyu Sanusi, a member of the committee, said for Nigeria at this time, the recession is “unavoidable,” given that “output will contract as firms either require workers to work from home or completely shut down in major cities.
“Because the supply chain is also disrupted, unaffected businesses would suffer rising costs and slower production activities. The stay-at-home measure also implies that household consumption would significantly fall not only because of the implied income losses, but also as many bases for expenditure are unfeasible.”
This, he continued, “suggests that the COVID-19 measures would reduce both aggregate supply as firms produce less, and depress the Aggregate Demand as consumption declines. The effect of this measure on output and inflation, therefore, depends on its relative impact on the Aggregate Demand and Aggregate Supply.”

Moreover, Sanusi continued, before the emergence of COVID-19, inflation in Nigeria was already trending on upward owing to the scarcity that followed the land border closure by the Federal Government, following which the effect would be disproportionally more significant on the aggregate supply. The situation, he believes, would further raise the inflationary pressure amidst contracting output (leading to stagflation), since production would certainly decline.
Dr. Kingsley Obiora, a deputy governor of the CBN and committee member, called for “coordinated and targeted policies… to ensure we do not waste the latent opportunities presented by this pandemic.”

The situation today as suggested by many financial sector indicators, he stressed, suggests “that the industry remains safe and sound, but several downside risks may materialize in the short term, particularly those related to loan exposures.
“This implies that both the Central Bank and Deposit Money Banks (DMBs) must be ready with nimble and effective strategies to contain and/or mitigate these risks,” which is a reason why he supports the recent CBN policies granting regulatory forbearance allowing DMBs to restructure existing loans, among others.
He also noted the provision of direct credit facility to the healthcare sector, while strengthening the LDR policy to ensure a greater flow of credit to other key sectors at this critical time.

“I believe that these measures are already helping to cushion the worst effects of the crisis on the economy,” he stressed further.
But in resetting Nigeria’s economy at this time, Folashodu Shonubi, another CBN deputy governor and committee member, says “actions must take cognizance of our economic fundamentals.
“The speed by which confidence is restored will depend on the effectiveness of policy implementation,” he added.
He encouraged the government “to explore aggressive expenditure rationalisation, including a significant reduction of recurrent expenditure, in the face of persistent revenue shortfall and consider opportunities to use excess liquidity in the banking sector for deficit financing.”
Also, Sanusi, in his review of the Banking System Stability Report, said shows that the Nigerian banking system remains stable and resilient, with industry Non-performing loan (NPLs) ratio dropping from 6.59% in January 2020 to 6.54% in February 2020, compared with 6.1% in December 2019, although still far from the 5% prudential limit.

That notwithstanding, according to Godwin Emefiele, CBN Governor and MPC chairman, it “represents a substantial improvement when compared with 11.3% in February 2019.”
Similarly, the industry average liquidity ratio of 44.2% at end-February 2020 is well above the prudential minimum of 30%, noting “with satisfaction, the positive impacts of the new LDR policy introduced in July 2019 to improve lending to the real sector.
“Total gross credit of the banking system increased by N1.997tr from N15.567tr at end-May 2019 to N17.565tr at end-December 2019 and recorded an additional growth of N353.85bn between end-December 2019 and March 17, 2020.
“The credit growth was mainly recorded in manufacturing, consumer credit, general commerce, information and communication as well as in the agricultural sectors. I continue to emphasize the importance of enhanced credit flows to strategic and high impact private sector ventures through an effective collaboration of all stakeholders,” Emefiele added.
He reiterated that the CBN will continue to propel credits to the private sector, mindful of the risk aversion among “banks to supposedly high-risk real sector ventures.

“In my consideration, I affirm that the objective of price and exchange rate stability remain sacrosanct. I note the emergent pressure in the FX market due to oil price softening and the need to unify the exchange rate across all segments.”
Given the weakened short-term growth outlook arising from the impact of the pandemic, the CBN governor noted “the need to adequately support domestic productivity and buoy aggregate demand.”
This is why he said the CBN has taken measures in recent times “to support critical private sector businesses and earmarked stimulus packages to assist households and Micro, Small and Medium Enterprises (MSMEs).”

Prof. Mike Obadan, another member of the committee, in his own intervention says the CBN has its work perfectly cut out already, given the presence of certain factors in the Nigerian economy at the moment including the sharp drop in government revenue arising from slump in oil price and exports. This, he recalled, resulted to the increased borrowing to finance fiscal deficits, leading to public debt accumulation and an overall Federal Government fiscal deficit of N4.838tr, and net overall deficit of N3.925tr, among others.
The N3.5tr CBN funds, in the words of Prof. Festus Adenikinju, a member of the committee, “more than compensates the expected reduction of N1.5tr in the 2020 Federal Government’s budgetary expenditure,” despite not being enough to cover individuals and families and those largely in the informal sector.

However, for the efforts of the monetary authorities to have the desired impact, he wants the fiscal side to consider putting in place complementary trade and income policies, including the reduction in tariff rates on imported raw materials, intermediate and capital goods.
The biggest impact may however come should the government defer implementation of the 50% increase in Value Added Tax (VAT) from 5% to 7.5%; putting on hold plans to raise utility prices this year; while offering compensation package for vulnerable households and individuals.

https://investdata.com.ng/2020/04/recession-inevitable-recovery-depends-on-fg-cbn-actions-mpc-members/

NGSE Indicators Slowdown, As Investors Position Ahead Of Impending Economic Recession

Market Update for April 16

Thursday’s transactions on the Nigerian Stock Exchange (NSE) were mixed and volatile, slowing down the gaining momentum, even as market sentiment remained positive with the composite All-Share index closing marginally high amidst profit booking in banking stocks. There was also buying interest among highly-priced equities to extend the positive stance for the sixth successive session, although on a negative breadth.
The mixed performance is likely to continue because the positive sentiment and seeming market rally is the opposite of current realities, with the Nigerian economy on a slowdown, just as the global and African economies. The uptrend is also happening at a time there is a consensus among analysts- local and international that the nation’s economy is headed for a recession arising from the turmoil caused by the Coronavirus (COVID-19) pandemic. The International Monetary Fund (IMF) sees Nigerian economy tumbling as low as 3.5% (READ MORE), amidst oil price shocks and shutdown of most economies, even as members of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) in their personal comments at the last meeting had warned that given the telltale signs already visible, a recession for the Nigerian economy has become inevitable (READ MORE).

On the NSE, more companies have released schedules preparatory to the publication of their 2020Q1 results, while Africa Prudential became one of the earliest filers. The performance was mild with slight declines in the top and bottom lines, following which Earnings Per Share fell to 17 kobo, from the previous 19 kobo in the corresponding period of 2019.
Meanwhile, this is the time for portfolio repositioning and aligning with sectors and companies that will survive this economic downturn and lockdown. As such, investors should review their investment objectives and play defensive stocks ahead of the recovery.
The number of globally confirmed cases of COVID-19 infections is now over 2.09 million and the number of deaths estimated at 138,245, while Nigeria so far has 13 deaths from 442 deaths due to the disease, while over 152 persons have been successfully treated and discharged. The fast spread of the virus in Nigeria despite the lockdown is a major source of concern, with the diseases already in 22 states.

Meanwhile, Thursday’s trading opened slightly on the upside and oscillated throughout the session on mixed sentiments as continued profit and position-taking among blue-chip stocks. This pushed the benchmark NSEASI to intraday highs of 22,634.28 basis points, from its low of 22,380.94ps, before finishing the session almost flat from its opening point at 22,554.84bps on above-average traded volume.
Thursday’s market technicals were positive and mixed, with higher traded volume than the previous session, in the midst of negative breadth as revealed by Investdata’s Daily Sentiment Report, showing a ‘buy’ volume of 69% and sell position of 31%. Total daily transaction volume index stood at 0.84, just as the energy behind the day’s performance improved with Money Flow Index reading 51.74 points, compared to the previous 44.67ps, indicating that funds entered some stocks.

Index and Market Caps
At the end of Thursday’s trading, the benchmark index inched up by 14.90bps, closing at 22,554.84 points after opening at 22,539.94ps, representing a 0.07% marginal rise, while market capitalization inched N7.76bn up at N11.75tr, also representing a 0.07% value gain.
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 rally considering their current market prices. 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 upturn was driven by buying interest in Nestle, MTN Nigeria, Dangote Cement, Nigerian Breweries, Conoil, GSK, Oando and Honeywell, which impacted mildly on the NSE index, reducing its Year-To-Date loss to 15.93%, while market capitalization YTD reduced to N1.26tr, representing an 8.32% drop from the year’s opening value.

Mixed Sector Indices
The sectorial performance indexes were largely bullish, except for the NSE Banking and Industrial Goods Index that closed 6.25% and 2.04% lower respectively, while the NSE Consumer Goods index led the advancers after rallying 5.69%, followed by the NSE Insurance and Oil/Gas that were up by 1.19% and 0.25% respectively.

Market breadth, however, turned negative as decliners outweighed advancers in the ratio of 20:18, just as transactions in volume and value terms rose by 16.13% and 29.59% respectively, as investors exchanged 379.11m shares worth N4.33bn from the previous day’s 326.49m units valued at N3.34bn. This volume was driven by trades in Zenith Bank, FBNH, Ekocop, UBA, and Guaranty Trust Bank.
Nestle Nigeria and Nigerian Breweries were the best-performing stocks during the session, after gaining 10% each, closing at N913.20 and N29.45 per share on market sentiment and low price attractions. On the flip side, Access Bank and Sterling Bank lost 10% each, closing at N6.30 and N1.35 per share respectively, on profit-taking.

Market Outlook
Being the last trading day of the week, we expect profit taking to continue since the index had formed another double top on mixed sentiment as smart money repositions their portfolios ahead of more corporate earnings and March inflation data from the National Bureau of Statistics (NBS). More companies have continued to notify the exchange and investors of their virtual annual general meetings and closed period for 2020 first-quarter earnings reports.

However, the high dividend yields continue to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of the selloffs, with investors buying to increase their positions in undervalued 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 undervalue 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 home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing different Stocks for various investment objectives in 2020 and beyond are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

https://investdata.com.ng/2020/04/ngse-indicators-slowdown-as-investors-position-ahead-of-impending-economic-recession/#more

Investdata Weekly Sentiment Report as of April 20, 2020

NSEASI buy � volume index 0.98 MFI 20.87
Access buy 60% sell 40% MFI 14.38
Afrprud buy 18% sell 82% volume index 1.01 MFI 44.94
Aiico buy 0% MFI 59.55
Bua buy � MFI 38.74
Cadbury buy 0% volume index 1.40 MFI 16.66
Caverton buy 0% MFI 58.08
Chams buy 0% MFI 10.24
Conoil buy � volume index 1.80 MFI 17.94
Corner buy � MFI 19.56
Cutix buy 0% volume index 1.03 MFI 54.42
Dangcem buy � MFI 34.62
Dangsugar buy 65% sell 35% volume index 1.08 MFI 17.35
Eti buy 55% sell 45% MFI 21.44
Fbnh buy 44% sell 56% volume index 1.92 MFI 31.43
Fcmb buy 37% sell 63% volume index 0.76 MFI 28.70
Fidelity buy 64% sell 36% volume index 1.70 MFI 50.63
Fidson buy 10% sell 90% volume index 1.80 MFI 27.75
Fmn buy 86% sell 14% MFI 42.22
Glaxo buy � volume index 1.11 MFI 53.60
GT buy 62% sell 38% MFI 21.31
Honyflour buy � MFI 38.98
Jaiz buy � MFI 50.02
Jberger buy � volume index 3.32 MFI 83.25
Lasaco buy � MFI 31.19
Lawunion buy � MFI 76.24
Learn buy � volume index 1.45 MFI 9.80
Linkass buy � MFI 16.84
M&B buy � volume index 1.30 MFI 61.87
Mtnn buy � MFI 29.43
Nahco buy 4% sell 96% volume index 1.02 MFI 38.45
Nascon buy � volume index 0.94 MFI 33.65
Neimeth buy � volume index 1.33 MFI 38.53
Nestle buy � volume index 0.95 MFI 16.86
Oando buy 20% sell 80% volume index 0.96 MFI 17.96
Pz buy � volume index 1.08 MFI 30.15
Red � volume index 1.06 MFI 26.26
Stanbic buy 0% MFI 19.58
Sterling buy 43% sell 57% MFI 19.00
Transcorp buy 73% sell 27% MFI 19.33
Uacp buy 0% MFI 50.97
Uacn buy � MFI 55.30
Uba buy 9% sell 91% volume index 0.93 MFI 21.45
Ubn buy � MFI 73.96
Ucap buy 26% sell 74% volume index 0.91 MFI 51.67
Unilever buy � MFI 5.52
Unity buy 71% sell 29% volume index 1.22 MFI 12.89
Upl buy 40% sell 60% volume index 2.46 MFI 25.28
Wapco buy 0% volume index 1.39 MFI 64.59
Wema buy 25% sell 75% MFI 25.39
Zenith buy 59% sell 41% volume index 0.88 MFI 27.17

https://investdataltd..com/2020/04/investdata-weekly-sentiment-report-as_19.html

Investors Position In Defensive, Healthcare Stocks On NGSE, Amidst Impending Economic Downturn

Market Update for the Week Ended April 17 and Outlook for Apr 20-25
Last week’s trading on the Nigerian Stock Exchange (NSE) defied the gloomy economic situation as impulsive demand for stocks continued to rise on positive sentiments that lifted equity prices against prevailing realities.

This second consecutive week of uptrend has reduced the year-to-date loss suffered by the benchmark All-Share index to 14.61%, while the Month-to-date return stood at 7.61%, following which the index’s pattern shows a “V-bottom.” The market seems to be ignoring projections that the Nigerian economy is already challenged and sliding into recession.

Technically, the composite NSEASI and stocks are ready to jump higher as smart money takes what may be temporary positions while anticipating a reopening of the economy that has been shut down for five weeks to check the spread of the Coronavirus (COVID-19) pandemic.
This speculation-powered rally may not last, given the daily incremental growth in the number of new cases and deaths. The rising incidences of insecurity in the midst of the lockdown are another source of concern to many investors and Nigerians.

The sustained uptrend in the period under review was driven by increased buying interests on blue-chip stocks with high dividend yields that had tumbled from the late January 2020 rally to the early April coronavirus lows are already bouncing back on the bull rally mode that had followed through in recovering from the virus.
Despite this seeming bull transition, the worst is not over for many listed companies. As expected, the economic downturn is already here, meaning that any position taken now should be in stages.

The market has given Investdata ‘Buy and Sell’ signal members, and discerning investors, another amazing opportunity to buy stocks at huge discounts to book value. As you start investing like the smartest wealth builders of our time, these are the moments when real wealth can be created in stocks. We desire that you react to the emerging market information, not watching from the sidelines.

Here is how: Stop hoping. Stop guessing. Stop taking tips. Stop listening to bad advice. Stop investing without a plan. Stop letting brokers skim a percentage of your net worth every year in fees. Stop watching the indexes. Start aligning yourself with the best. Start investing with an edge (an advantage over everyone else). Start owning stocks in the league of the best performing of the year. Start compounding your money at high rates every year. Start differentiating gambling and guesswork in investing.

It’s really important for you to understand the products and the services of the company you are investing in very well because there will be times when your conviction as a trader or investor will be tested. There are going to be times when the stock pulls back, you are sitting through a base, or some negative news headlines shake your faith about the company.

Movement Of NSEASI
It was a bullish week of four trading sessions marked by strong buying interests in all the sectors, irrespective of the remote trading and extended lockdown. Trading for the week opened on a positive note, after the Easter holidays with the NSE All-Share index gaining 2.32% on Tuesday, a trend that was sustained during the following days when the composite index gained by 3.025%, 0.07%, and 1.63% respectively on Wednesday, Thursday and Friday. These brought the week’s total gains to 7.19%, which was more than triple the previous week’s 1.37% growth.
Consequently, the NSEASI gained 1,537.56 basis points, after opening at 21,384.03bps, touching an intra-week high of 22,927.88bps and low of 21,239.02bps on a high buying pressure and low traded volume with many investors opting to continue seating on the fence, amidst the uncertainties surrounding the economic outlook. The index closed the week at 22,921.59ps, after breaking out the 22,000 psychological lines to test 22,927.88 points, just as market capitalization soared by N801bn. It, therefore, closed at N11.95 trillion, from the N11.14tr it opened at, representing a 7.19% up. This was despite the share price adjustment of Access Bank and FCMB Holding for dividends of 40kobo and 14 kobo respectively proposed by their directors during the week,
During the week, Africa Prudential and Unilever released their Q1 2020 unaudited results showing declines in earnings and profit, which translated into Earnings Per Share of 17 kobo and 19 kobo respectively. Also, more than 10 companies notified the exchange of their closed period and board meeting to approve Q1 earnings reports, while more 2019 audited financials are expected in the coming days.

There were buying interests in healthcare stocks as Ekocorp, Union Diagnostic and Morison Industry hitting their 52 weeks high, while May & Baker was among the top gainers for the week. This reflected in the market breadth as advancer’s outnumbered decliners in the ratio of 37:21, but the impetus behind the week’s performance was weak, with Money Flow Index fell to 20.87bps from 31.43bps recorded in the previous week. The bull sentiment during the period was confirmed by Investdata’s Sentiment Report for the week, showing 100% ‘buy’ volume, just as the transaction volume index stood at 0.97.

Bullish Sectoral Indices
All the sectoral performance indexes were bullish for the week, and NSE Consumer Goods led the advancers, gaining 15.57%; followed by the NSE Industrial Goods index with 5.16% up; while the NSE Banking, Oil/Gas and Insurance climbed up by 4.73%, 1.47%, and 0.85% respectively.
Market data in terms of volume and value were low, dropping by 38.74% and 35.31% respectively as investors exchanged 1.49bn shares worth N12.89bn, compared to the previous week’s 2.44bn units valued at N19.93bn, even as many traders switch onto the wait-and-see mode despite the bull-run.

Meanwhile, discerning investors continue to take advantage of the low prices in the midst of the lockdown, confusion, and insecurity to reposition their portfolios for the medium to long- term, as the earnings reporting season for Q1 kicked off. The week’s volume was boosted by trades in financial services stocks, especially Omoluabi Mortgage Bank, FBNH and Zenith Bank.
Nigerian breweries and Conoil were the best-performing stocks for the week, after topping the advancers chart by gaining 45.73% and 32.32% respectively, at N32.35 and N17.40 per share on low price attractions and the 2019 full-year dividend expectations. On the flip side, Nahco and Aradova (formerly Forte Oil) lost 11.25% and 10.24% respectively, closing at N2.13 and N10.10 per share on profit-taking and selloffs.

Market Outlook
We expect a mixed performance in the new week due to profit-taking from the recent rally, price adjustments of MTNN, Fidelity Bank and Capital Hotel for dividends declared, as well as the impact of inflows of more 2019 full-year and 2020Q1 results. Investors will also be on the lookout for the developments regarding the implementation of measures to contain the novel Coronavirus (COVID-19) pandemic and its effects on the economy which is already projected to close the year in recession with a negative GDP of 3.4%.

Already, we notice that investors are taking the position in healthcare and other defensive stocks that are likely to survive this meltdown, following which there is increased transactions in them, even as global markets are on the recovery path already, as lockdowns are gradually being relaxed.

Also, do not forget to identify and play defensive stocks among the many fundamentally sound companies that remained depressed, making them attractive for bargain hunting by market players. This has also resulted in significant improvements in Dividend Yields of stocks, even as we note the fact that fund managers who held cash before now, may have to rethink the strategy and go for value stocks with high upside potentials.

This is just as more liquidity flow to high Dividend Yield stocks with sound fundamentals, a situation that will also be based on the seemingly positive outlook for the domestic economy, 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.
On 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.

To position for the short to long-term, this is why investors should target fundamentally sound, dividend-paying stocks, for possible capital appreciation in the coming months. This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Opportunities & Trade Ideas Summit.

Meanwhile, 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.

https://investdata.com.ng/2020/04/investors-position-in-defensive-healthcare-stocks-on-ngse-amidst-impending-economic-downturn/

Investors Position In Defensive, Healthcare Stocks On NGSE, Amidst Impending Economic Downturn

Market Update for the Week Ended April 17 and Outlook for Apr 20-25
Last week’s trading on the Nigerian Stock Exchange (NSE) defied the gloomy economic situation as impulsive demand for stocks continued to rise on positive sentiments that lifted equity prices against prevailing realities.

This second consecutive week of uptrend has reduced the year-to-date loss suffered by the benchmark All-Share index to 14.61%, while the Month-to-date return stood at 7.61%, following which the index’s pattern shows a “V-bottom.” The market seems to be ignoring projections that the Nigerian economy is already challenged and sliding into recession.

Technically, the composite NSEASI and stocks are ready to jump higher as smart money takes what may be temporary positions while anticipating a reopening of the economy that has been shut down for five weeks to check the spread of the Coronavirus (COVID-19) pandemic.
This speculation-powered rally may not last, given the daily incremental growth in the number of new cases and deaths. The rising incidences of insecurity in the midst of the lockdown are another source of concern to many investors and Nigerians.

The sustained uptrend in the period under review was driven by increased buying interests on blue-chip stocks with high dividend yields that had tumbled from the late January 2020 rally to the early April coronavirus lows are already bouncing back on the bull rally mode that had followed through in recovering from the virus.
Despite this seeming bull transition, the worst is not over for many listed companies. As expected, the economic downturn is already here, meaning that any position taken now should be in stages.

The market has given Investdata ‘Buy and Sell’ signal members, and discerning investors, another amazing opportunity to buy stocks at huge discounts to book value. As you start investing like the smartest wealth builders of our time, these are the moments when real wealth can be created in stocks. We desire that you react to the emerging market information, not watching from the sidelines.

Here is how: Stop hoping. Stop guessing. Stop taking tips. Stop listening to bad advice. Stop investing without a plan. Stop letting brokers skim a percentage of your net worth every year in fees. Stop watching the indexes. Start aligning yourself with the best. Start investing with an edge (an advantage over everyone else). Start owning stocks in the league of the best performing of the year. Start compounding your money at high rates every year. Start differentiating gambling and guesswork in investing.

It’s really important for you to understand the products and the services of the company you are investing in very well because there will be times when your conviction as a trader or investor will be tested. There are going to be times when the stock pulls back, you are sitting through a base, or some negative news headlines shake your faith about the company.

Movement Of NSEASI
It was a bullish week of four trading sessions marked by strong buying interests in all the sectors, irrespective of the remote trading and extended lockdown. Trading for the week opened on a positive note, after the Easter holidays with the NSE All-Share index gaining 2.32% on Tuesday, a trend that was sustained during the following days when the composite index gained by 3.025%, 0.07%, and 1.63% respectively on Wednesday, Thursday and Friday. These brought the week’s total gains to 7.19%, which was more than triple the previous week’s 1.37% growth.
Consequently, the NSEASI gained 1,537.56 basis points, after opening at 21,384.03bps, touching an intra-week high of 22,927.88bps and low of 21,239.02bps on a high buying pressure and low traded volume with many investors opting to continue seating on the fence, amidst the uncertainties surrounding the economic outlook. The index closed the week at 22,921.59ps, after breaking out the 22,000 psychological lines to test 22,927.88 points, just as market capitalization soared by N801bn. It, therefore, closed at N11.95 trillion, from the N11.14tr it opened at, representing a 7.19% up. This was despite the share price adjustment of Access Bank and FCMB Holding for dividends of 40kobo and 14 kobo respectively proposed by their directors during the week,
During the week, Africa Prudential and Unilever released their Q1 2020 unaudited results showing declines in earnings and profit, which translated into Earnings Per Share of 17 kobo and 19 kobo respectively. Also, more than 10 companies notified the exchange of their closed period and board meeting to approve Q1 earnings reports, while more 2019 audited financials are expected in the coming days.

There were buying interests in healthcare stocks as Ekocorp, Union Diagnostic and Morison Industry hitting their 52 weeks high, while May & Baker was among the top gainers for the week. This reflected in the market breadth as advancer’s outnumbered decliners in the ratio of 37:21, but the impetus behind the week’s performance was weak, with Money Flow Index fell to 20.87bps from 31.43bps recorded in the previous week. The bull sentiment during the period was confirmed by Investdata’s Sentiment Report for the week, showing 100% ‘buy’ volume, just as the transaction volume index stood at 0.97.

Bullish Sectoral Indices
All the sectoral performance indexes were bullish for the week, and NSE Consumer Goods led the advancers, gaining 15.57%; followed by the NSE Industrial Goods index with 5.16% up; while the NSE Banking, Oil/Gas and Insurance climbed up by 4.73%, 1.47%, and 0.85% respectively.
Market data in terms of volume and value were low, dropping by 38.74% and 35.31% respectively as investors exchanged 1.49bn shares worth N12.89bn, compared to the previous week’s 2.44bn units valued at N19.93bn, even as many traders switch onto the wait-and-see mode despite the bull-run.

Meanwhile, discerning investors continue to take advantage of the low prices in the midst of the lockdown, confusion, and insecurity to reposition their portfolios for the medium to long- term, as the earnings reporting season for Q1 kicked off. The week’s volume was boosted by trades in financial services stocks, especially Omoluabi Mortgage Bank, FBNH and Zenith Bank.
Nigerian breweries and Conoil were the best-performing stocks for the week, after topping the advancers chart by gaining 45.73% and 32.32% respectively, at N32.35 and N17.40 per share on low price attractions and the 2019 full-year dividend expectations. On the flip side, Nahco and Aradova (formerly Forte Oil) lost 11.25% and 10.24% respectively, closing at N2.13 and N10.10 per share on profit-taking and selloffs.

Market Outlook
We expect a mixed performance in the new week due to profit-taking from the recent rally, price adjustments of MTNN, Fidelity Bank and Capital Hotel for dividends declared, as well as the impact of inflows of more 2019 full-year and 2020Q1 results. Investors will also be on the lookout for the developments regarding the implementation of measures to contain the novel Coronavirus (COVID-19) pandemic and its effects on the economy which is already projected to close the year in recession with a negative GDP of 3.4%.

Already, we notice that investors are taking the position in healthcare and other defensive stocks that are likely to survive this meltdown, following which there is increased transactions in them, even as global markets are on the recovery path already, as lockdowns are gradually being relaxed.

Also, do not forget to identify and play defensive stocks among the many fundamentally sound companies that remained depressed, making them attractive for bargain hunting by market players. This has also resulted in significant improvements in Dividend Yields of stocks, even as we note the fact that fund managers who held cash before now, may have to rethink the strategy and go for value stocks with high upside potentials.

This is just as more liquidity flow to high Dividend Yield stocks with sound fundamentals, a situation that will also be based on the seemingly positive outlook for the domestic economy, 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.
On a bargain-hunting motive supporting posInvestors Position In Defensive, Healthcare Stocks On NGSE, Amidst Impending Economic Downturn

Market Update for the Week Ended April 17 and Outlook for Apr 20-25
Last week’s trading on the Nigerian Stock Exchange (NSE) defied the gloomy economic situation as impulsive demand for stocks continued to rise on positive sentiments that lifted equity prices against prevailing realities.

This second consecutive week of uptrend has reduced the year-to-date loss suffered by the benchmark All-Share index to 14.61%, while the Month-to-date return stood at 7.61%, following which the index’s pattern shows a “V-bottom.” The market seems to be ignoring projections that the Nigerian economy is already challenged and sliding into recession.

Technically, the composite NSEASI and stocks are ready to jump higher as smart money takes what may be temporary positions while anticipating a reopening of the economy that has been shut down for five weeks to check the spread of the Coronavirus (COVID-19) pandemic.
This speculation-powered rally may not last, given the daily incremental growth in the number of new cases and deaths. The rising incidences of insecurity in the midst of the lockdown are another source of concern to many investors and Nigerians.

The sustained uptrend in the period under review was driven by increased buying interests on blue-chip stocks with high dividend yields that had tumbled from the late January 2020 rally to the early April coronavirus lows are already bouncing back on the bull rally mode that had followed through in recovering from the virus.
Despite this seeming bull transition, the worst is not over for many listed companies. As expected, the economic downturn is already here, meaning that any position taken now should be in stages.

The market has given Investdata ‘Buy and Sell’ signal members, and discerning investors, another amazing opportunity to buy stocks at huge discounts to book value. As you start investing like the smartest wealth builders of our time, these are the moments when real wealth can be created in stocks. We desire that you react to the emerging market information, not watching from the sidelines.

Here is how: Stop hoping. Stop guessing. Stop taking tips. Stop listening to bad advice. Stop investing without a plan. Stop letting brokers skim a percentage of your net worth every year in fees. Stop watching the indexes. Start aligning yourself with the best. Start investing with an edge (an advantage over everyone else). Start owning stocks in the league of the best performing of the year. Start compounding your money at high rates every year. Start differentiating gambling and guesswork in investing.

It’s really important for you to understand the products and the services of the company you are investing in very well because there will be times when your conviction as a trader or investor will be tested. There are going to be times when the stock pulls back, you are sitting through a base, or some negative news headlines shake your faith about the company.

Movement Of NSEASI
It was a bullish week of four trading sessions marked by strong buying interests in all the sectors, irrespective of the remote trading and extended lockdown. Trading for the week opened on a positive note, after the Easter holidays with the NSE All-Share index gaining 2.32% on Tuesday, a trend that was sustained during the following days when the composite index gained by 3.025%, 0.07%, and 1.63% respectively on Wednesday, Thursday and Friday. These brought the week’s total gains to 7.19%, which was more than triple the previous week’s 1.37% growth.
Consequently, the NSEASI gained 1,537.56 basis points, after opening at 21,384.03bps, touching an intra-week high of 22,927.88bps and low of 21,239.02bps on a high buying pressure and low traded volume with many investors opting to continue seating on the fence, amidst the uncertainties surrounding the economic outlook. The index closed the week at 22,921.59ps, after breaking out the 22,000 psychological lines to test 22,927.88 points, just as market capitalization soared by N801bn. It, therefore, closed at N11.95 trillion, from the N11.14tr it opened at, representing a 7.19% up. This was despite the share price adjustment of Access Bank and FCMB Holding for dividends of 40kobo and 14 kobo respectively proposed by their directors during the week,
During the week, Africa Prudential and Unilever released their Q1 2020 unaudited results showing declines in earnings and profit, which translated into Earnings Per Share of 17 kobo and 19 kobo respectively. Also, more than 10 companies notified the exchange of their closed period and board meeting to approve Q1 earnings reports, while more 2019 audited financials are expected in the coming days.

There were buying interests in healthcare stocks as Ekocorp, Union Diagnostic and Morison Industry hitting their 52 weeks high, while May & Baker was among the top gainers for the week. This reflected in the market breadth as advancer’s outnumbered decliners in the ratio of 37:21, but the impetus behind the week’s performance was weak, with Money Flow Index fell to 20.87bps from 31.43bps recorded in the previous week. The bull sentiment during the period was confirmed by Investdata’s Sentiment Report for the week, showing 100% ‘buy’ volume, just as the transaction volume index stood at 0.97.

Bullish Sectoral Indices
All the sectoral performance indexes were bullish for the week, and NSE Consumer Goods led the advancers, gaining 15.57%; followed by the NSE Industrial Goods index with 5.16% up; while the NSE Banking, Oil/Gas and Insurance climbed up by 4.73%, 1.47%, and 0.85% respectively.
Market data in terms of volume and value were low, dropping by 38.74% and 35.31% respectively as investors exchanged 1.49bn shares worth N12.89bn, compared to the previous week’s 2.44bn units valued at N19.93bn, even as many traders switch onto the wait-and-see mode despite the bull-run.

Meanwhile, discerning investors continue to take advantage of the low prices in the midst of the lockdown, confusion, and insecurity to reposition their portfolios for the medium to long- term, as the earnings reporting season for Q1 kicked off. The week’s volume was boosted by trades in financial services stocks, especially Omoluabi Mortgage Bank, FBNH and Zenith Bank.
Nigerian breweries and Conoil were the best-performing stocks for the week, after topping the advancers chart by gaining 45.73% and 32.32% respectively, at N32.35 and N17.40 per share on low price attractions and the 2019 full-year dividend expectations. On the flip side, Nahco and Aradova (formerly Forte Oil) lost 11.25% and 10.24% respectively, closing at N2.13 and N10.10 per share on profit-taking and selloffs.

Market Outlook
We expect a mixed performance in the new week due to profit-taking from the recent rally, price adjustments of MTNN, Fidelity Bank and Capital Hotel for dividends declared, as well as the impact of inflows of more 2019 full-year and 2020Q1 results. Investors will also be on the lookout for the developments regarding the implementation of measures to contain the novel Coronavirus (COVID-19) pandemic and its effects on the economy which is already projected to close the year in recession with a negative GDP of 3.4%.

Already, we notice that investors are taking the position in healthcare and other defensive stocks that are likely to survive this meltdown, following which there is increased transactions in them, even as global markets are on the recovery path already, as lockdowns are gradually being relaxed.

Also, do not forget to identify and play defensive stocks among the many fundamentally sound companies that remained depressed, making them attractive for bargain hunting by market players. This has also resulted in significant improvements in Dividend Yields of stocks, even as we note the fact that fund managers who held cash before now, may have to rethink the strategy and go for value stocks with high upside potentials.

This is just as more liquidity flow to high Dividend Yield stocks with sound fundamentals, a situation that will also be based on the seemingly positive outlook for the domestic economy, 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.
On 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.

To position for the short to long-term, this is why investors should target fundamentally sound, dividend-paying stocks, for possible capital appreciation in the coming months. This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Opportunities & Trade Ideas Summit.

https://investdata.com.ng/2020/04/investors-position-in-defensive-healthcare-stocks-on-ngse-amidst-impending-economic-downturn/

In Times of Market Crisis, Fortune Favours The Bold

Ambrose Here Again,

Today is another great day. However, it is lockdown under COVID-19 Pandemic. Frankly, it does not look like one.

I know life isn’t what you expected it to be right now. At least it isn’t for me.

And I know lots of people are suffering right now. I’m not going to minimize that in any way… and bad news is going to keep coming in for a while longer.

However, to suggest that any degree of blessedness may be extracted from this difficulty and perplexity will look absurd to many; but the truth is ever paradoxical and the curses of the foolish are blessings of the wise.

Without difficulties like COVID-19, there could be no progress, no evolution; a universal stagnation would prevail and humanity will eventually perish. So, whether COVID-19 is human-made or natural, is pure law of evolution taking its course.

However, each time this happens, I’ve seen the same thing - we came back stronger.

In fact, in times of crisis... fortune favors the bold.

This is exactly why
I will be releasing the Training Material themed: Strategies for Profitable Investment in Changing Market Dynamics and Recession I promised you last week and I will be releasing it tomorrow.

It is the exact training you need during this Pandemic.

Send an email to info@investdataonline.com. or call 08032055467 08028164085 to Preorder

Focusing on worry (Effects of COVID-19 on the Market) is useless because it defeats your power and intelligence to overcome all odds.

Don't forget to stay safe to excel safe...

Dedicated to Your Investment and Safety
Ambrose Omordion

https://investdataltd..com/2020/04/in-times-of-market-crisis-fortune.html

Buy and Sell Signal

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.

I have added a further twist to it. This includes.
1. Long term sticks
2. Stocks to lead recovery
3. Defensive Stocks
4. Dividend Stocks with Strong Yields and Fundamentals
5. Low priced Stocks to Watch


However, 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/