Expect Mixed Trend, Ahead Of Q1 Earnings Inflow, Rising Dividend Yields, Rebalancing


Market Update for April 6

Profit taking and selling pressure on the Nigerian Stock Exchange continued Tuesday after the Easter holidays and in the midst of 2020 full-year earnings reporting season and dividend news, among others. It is also ahead of Q1 earnings season and corporate action dates of many companies.

Investdata believes that this is the best month and quarter to buy stocks, based on the 20-years market data of the NSE.

Already, and in preparation to usher in the Q1 earnings reporting season, many companies have notified the exchange and investors of their board meetings and closed periods when their directors would approve their accounts. Similarly, companies with March year-end accounts are expected to release their unaudited last quarter reports this month, in addition to expected economic data like the Consumer Price Index also know as inflation rate for March, as well as the Q1 GDP numbers for 2021 from the National Bureau of Statistics; and Purchasing Managers’ Index (PMI) by the Central Bank of Nigeria, which would together reveal the state of the economy and provide direction as to where it is headed.

The NSE’s composite All-Share index, on Tuesday, witnessed another bearish outing on a low traded volume and negative breadth, resulting in the fourth consecutive session of bear transition, as another correction and pullbacks resurfaced after the short-lived rebound. Notice that investors have continued to reshuffle and realign their portfolios with eyes on yield movement in fixed income market and dividend yields with the market is likely to do well in this quarter and year, given the discovery of the vaccine for the COVID-19 pandemic, a situation expected to drive global and local economic recovery in the midst of oscillating oil price depending on countries and states policy direction.

Even then, the prevailing stagflation caused by soaring food prices in the Nigerian economy is likely to threaten investment returns in financial markets as planting season, this is made worse by the hike in pump price of premium motor spirit or petrol, as well as the spate of insecurity across the country. All of these continue to drive inflation rate northward and the equity market remains the only hedge, looking at the prevailing dividend yield and possibility of a 10% daily price movement as cushion.

That notwithstanding however, investors should target fundamentally sound stocks with positive technicals, which is why we urge caution around the market place, by allowing investment objectives, as well as entry and exit strategies to guide them, so as to avoid being trapped in any trade.

Meanwhile, Tuesday’s trading opened on the downside and oscillated in the mid-morning to late afternoon on buying interests in low priced equities and selloffs in blue chip stocks that pushed the benchmark index to an intraday low of 38,766.61 basis points from its highs of 38,916.74bps, before closing below it opening point.

Index and Market Caps

At the close of the trading session, the NSEASI shed 150.13bps, closing at 38,766.61bps after opening at 38,916.74bps, representing a 0.39% drop. Similarly, market capitalization fell by N78.53bn, closing at N20.28tr, from previous day’s N20.36tr, which also represented 0.39% value loss.

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Tuesday’s downtrend resulted from selloffs in building material makers- BUA Cement, and Lafarge Africa; financial powerhouses- Guaranty Trust Bank, Zenith Bank, UBA; as well as Guinness, and UACN; among others. This impacted negatively on Year-To-Date loss, pushing it to 3.73%, just as market capitalization loss stood at N765.52bn, or 3.64% below its opening value for the year.

Bearish Sector Indices

The performance indexes across the sectors were red, led by the NSE Banking which lost 1.67%, followed by Insurance, Industrial goods, consumer goods and energy with 0.53%, 0.52%, 0.39% and 0.11% lower.

Market breadth turned negative from the previous session, as decliners outnumbered advancers in the ratio of 21:14; just as activity in volume and value were mixed after investors traded 224.59m shares worth N2.14bn.

Eterna and Linkage Assurance were the best performing stocks of the session, after gaining 9.91% and 9.72%, while closing at N5.99 and N0.79 per share respectively on market forces and bonus reward. On the flip side, MRS Oil and Alex lost 9.92% and 9.88% respectively, closing at N10.90 and N7.30 per share, on selloffs

Market Outlook

We expect the mixed trend to continue as Q1 corporate earnings start to hit the market in the face of rising dividend yields and portfolio repositioning ahead of economic data this month. Also, the pullbacks offer bargain hunters and income investors another opportunity to reposition in high dividend yields and undervalued stocks, while more companies release their full-year and quarterly numbers to support recovery. This is based on the fact that the rising fixed income yields may not be enough to scare all investors away from the equity market.

Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the rising oil prices that have so far supported the economy and equity market, despite the seeming improvement in the fixed income yield which had remained at negative real rate of return due to the subsisting high inflation.

However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by 2020 full numbers and expected 2021 Q1 earnings reports, until the next MPC meeting in May.

The NSE’s index action and indicators are heading in the same direction on a low traded volume and positive buying sentiments in the midst of rising yield in bond and TB.

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

Meanwhile, the home study packs on INVEST 2021 New Opportunities & New Paths To Profits Summit materials and 10 Golden Stocks for 2021, Strategies and How to invest profitably in this Changing Market Dynamics/ Recession, Mastering Earnings Season For Profitable Investing and Trading in any market situation/ cycles, Life Beyond COVID 19 Investment Opportunities In The Stock Market are now available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08179547605, 08111811223 now.

https://investdata.com.ng/expect-mixed-trend-ahead-of-q1-earnings-inflow-rising-dividend-yields-rebalancing/

WORDS TO TRADE BY

"Perseverance is not a long race; it is many short races one after the other."

- Walter Elliot

One trade at a time.
Location first.
Entry second.
Planned targets.
Unmovable stops.

They become little steps on your journey to trading immortality.
You'll soon become your own expert in the sector of your choice.
Have fun and enjoy the ride!

Moneyline with Nancy Present- Nigeria's Economy in the first quarter of 2021

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Sentiment Report for April 7, 2021

NSEASI buy 94% sell 6% volume index 0.95 MFI 63.91
Access buy 0% volume index 3.17 MFI 52.77
Afrprud buy � volume index 1.15 MFI 57.10
Chiplc buy � volume index 1.19 MFI 43.38
Courtville buy � volume index 3.62 MFI 77.12
Cutix buy 0% volume index 1.42 MFI 77.25
Fbnh buy 50% sell 50% MFI 39.08
Fcmb buy � volume index 3.20 MFI 25.01
Fidelity buy 31% sell 69% volume index 3.16 MFI 56.38
GT buy 0% volume index 0.90 MFI 70.37
Honyflour buy 0% volume index 1.13 MFI 45.22
Jaiz buy � volume index 3.47 MFI 67.02
Jagold buy � volume index 3.07 MFI 59.05
Linkass buy � volume index 2.58 MFI 98.76
Lvstk buy 0% volume index 1.56 MFI 54.82
Mansard buy 0% MFI 50.02
Mben buy 43% sell 57% volume index 3.31 MFI 29.63
Mtnn buy � volume index 1.23 MFI 93.81
Prestige buy 0% volume index 1.73 MFI 53.99
Royalex buy � volume index 1.69 MFI 95.62
Sovrenins buy 0% volume index 0.73 MFI 37.09
Sterling buy 0% volume index 2.38 MFI 61.34
Transcorp buy 50% sell 50% volume index 1.73 MFI 29.02
Uacp buy 0% MFI 62.17
Uacn buy 25% sell 75% volume index 2.96 MFI 51.22
Uba buy 50% sell 50% volume index 0.70 MFI 26.21
Ubn buy 0% MFI 50.00
Ucap buy � MFI 69.57
Vitafoam buy 80% sell 20% volume index 1.24 MFI 87.05
Wapco buy 0% volume index 1.42 MFI 42.34
Wapic buy 0% volume index 1.18 MFI 50.97
Wema buy 0% MFI 41.72
Zenith buy 28% sell 72% volume index 1.69 MFI 55.95

Investdata Daily Sentiment Report

Sentiment Report for April 8, 2021

NSEASI buy 91% sell 9% MFI 63.41
Access buy 50% sell 50% volume index 0.71 MFI 61.64
Aiico buy 75% sell 25% MFI 69.50
Chams buy 0% volume index 0.93 MFI 51.37
Chiplc buy � volume index 0.80 MFI 49.20
Fbnh buy � volume index volume 1.07 MFI 37.37
Fidelity buy 0% volume index 1.02 MFI 53.77
GT buy 80% sell 20% MFI 72.72
Honyflour buy 0% volume index 1.04 MFI 41.07
Jaiz buy � MFI 61.48
Jagold buy � volume index 1.17 MFI 66.60
Linkass buy 38% sell 67% volume index 1.38 MFI 91.37
Lvstk buy 50% sell 50% MFI 54.04
Mansard buy 0% MFI 61.30
Mben buy 67% sell 33% MFI 36.35
Oando buy � volume index 1.11 MFI 79.15
Regalins buy � volume index 0.75 MFI 30.58
Transcorp buy � MFI 32.91
Uacn buy � MFI 50.46
Uba buy � MFI 34.94
Ubn buy 0% MFI 50.40
Ucap buy 0% MFI 71.09
Wapic buy 0% volume index 1.03 MFI 51.48
Wema buy 50% sell 50% MFI 41.12
Zenith buy 86% sell 14% MFI 60.31

Investdata Daily Sentiment Report

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Questions and Answers with Ambrose Omordion

Will hold Saturday 10/04/2021. Time: 12:00noon

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The Profit Point by OGTV as at 8th April, 2021

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Mixed Trend Ahead, But Pullbacks Offer Prospects For New Positioning

Market Update for the Week Ended April 9 and Outlook for April 12-16

Transactions on the Nigerian Stock Exchange last week were mixed and volatile, closing on another negative note despite recording a marginal uptrend for three straight sessions of high buying sentiments and low traded volume . This was is a signal that players are repositioning their portfolios in line with sector and company performances, guided by corporate earnings.

The seeming renewed buying interest in consumer goods, banking, energy and low priced stocks that helped the market to resist further decline as indicated by the candlestick formation at the end of the week trading as corporate actions continue to guide in and out movement of income investors.

The changing investment environment with fixed income rising yields and improved dividend yields in stock market due to pullbacks have left many investors confused as stock prices are yet respond to released numbers and dividend payouts. However, ability to anticipate the trend in bonds will help you better understand the stock market trend, as high interest rate favour other investment window while low rates and high inflation direct funds to equity market.

Investing and trading requires patience, discipline, and impartiality under the stress of uncertainty and risk. Unless you are indifferent, your brains just aren’t naturally wired that way. I get a lot of emails and phone calls daily asking if the markets are hitting their bottom and about to reverse, or if the fixed income market has hit its top with the rising yields.

Nonetheless, the early stage of recovery and current happenings in the environment offer big opportunities as some sectors and companies continue to benefit from the ongoing COVID-19 vaccination now driving global and domestic recovery. This is in turn supporting the uptrend in oil price, despite the ongoing oscillation.

Market players at this point must, therefore, target the right sectors and stocks for higher capital gains and yields to stay above inflation in the short-term, following which the equity market remains the best investment hedge, regardless of the rising yields in the fixed income market.

Movement Of NSEASI

The buying dominance during the four trading sessions of last week did not impact positively on the benchmark index with market breadth closing negative, despite recording three sessions of up market.

Trading for the week opened after the Easter holidays on the downside, losing 0.39% before rebounding by midweek with marginal gain of 0.02%, this trend was sustained on Thursday and Friday when the composite index inched 0.07% and 0.17% respectively a on strong buying sentiments among the medium cap and low priced equities. This brought the week’s total loss to 0.13%, a seeming recovery from previous week’s 0.76% decline.

Consequently, the key performance NSE All-Share index shed 50.35basis points during the week, from its opening level of 38,916.74bps, while gliding between an intra-week low of 38,596.16bps and high of 38,928.89bps, due to mixed sentiments and selloffs in high cap stocks. Also, market capitalization lost N26.33bn, closing at N20.34tr from the previous week’s N20.36tr.

As usual in the recent weeks, the kobo stocks dominated the advancers log as profit taking hit high cap equities, amid the markdown activities in Stanbic IBTC and FCMB. Also, trading and price patterns revealed the presence of selloffs and accumulation in some stocks in the midst of mixed sentiment.

The period’s negative breadth was due to decliners outnumbering advancers in the ratio of 40:17 on a buying sentiment and relatively weak momentum as Money Flow Index read 48.57bps, down from 52.89 points in the previous week. During the week also, Okomu Oil and Presco released their full-year earnings reports, with their directors recommending N7.00 and N2.00 dividends per share respectively. Also, ABC Transport and Studio Press presented their audited accounts for December 31, 2020, but were silent on corporation actions.

NSEASI WEEKLY CHART MOVEMENT

The NSE index action of bearish trend subsided, despite Tuesday’s dip, as the All-Share continued on a negative and even volatility note in the midst of changing price patterns and trading environment. Investors continued to accumulate positions in dividend paying and growth stocks ahead of the 2020Q1 earnings releases.

Also, we note that the index has broken down the 14-Day Moving Average which is above the 20, 50 and 200-DMA on a weekly chart, despite breaking down the 39,000bps-mark’s strong support level on a low traded volume and buying sentiments. This is likely to support the positive momentum witnessed as more players’ position for Q1 earnings, based on the corporate performances expected.

Nevertheless, we see the market maintaining this uptrend, especially as investors look to economic data and corporate earnings, just as the index trades above 38,000 basis points.

The strong support level to watch out for on the NSE is within the 38,642,12bps and 38,309.63bps, and a breakdown of these levels will attract new positioning by traders. This is happening at a time crude oil is trading above $60 per barrel at the international market, while the distribution of vaccines by the various state governments is ongoing.

However, we envisage a mixed outlook for the rest of Q2, while not ruling out profit booking, especially after the market recorded an uptrend last year.

Our expectation of a mixed outlook is hinged on such factors as the possible impact of corporate earnings, a mismatch of monetary and fiscal policies, implementation of the 2021 capital budget, as well as implications of oil prices oscillating around $60 and $70 per barrel on the nation’s revenue. We note too that impact of the Money Flow Index and MACD are bearish on a weekly chart.

BearishSectoral Indices

The sectorial performance indexes were down, except for the NSE Consumer Goods that closed 1.12% higher, while NSE Banking led the decliners after losing 2.25%, followed by Industrial Goods, Insurance and Energy that closed 1.49%, 0.66% and 0.31% lower.

The general market’s outlook remains dicey and mixed in the short-term; following which investors should take short and medium-term positions, while diversifying their portfolios along long-term trades to protect capital. This, they can do, by considering sectors with high upside potentials on the strength of earnings and policy influence.

The recent market pullbacks call for portfolio adjustments and realignments, as unaudited and audited numbers from some companies and sectors will expectedly come mixed, given the negative impact of the COVID-19 pandemic and the arson that followed the #EndSARS protests on full-year results, as revealed by the macroeconomic indices.

Activity in volume and value terms were down by 38.83% and 53.74% respectively, as players traded 887.04m shares worth N9.19bn, compared to the previous week’s 1.45bn shares valued at N19.04bn. Volume was driven by trades in FinancialServices, Conglomerate and Oil/Gas sectors, particularly Zenith Bank, Access Bank, Guaranty Trust Bank and Transcorp.

Japaul Gold and Consolidated Hallmark Insurance were the best performing stocks for the week, gaining 40% and 12.50% respectively, and closing at N0.63 and N0.36 each on market forces and earnings expectations, while Guinness Nigeria and Sterling Bank lost 17.27% and 15.68% respectively, at N29.74and N1.56 per share on profit taking.

Market Outlook

We expect the mixed trend to continue as more corporate earnings hit the market in the face of rising fixed income market and stock market dividend yields. Also, the pullbacks offer bargain hunters and income investors another opportunity to reposition in value and underpriced growth stocks, while more companies release their full-year numbers to support recovery. This is based on the fact that the rising fixed income yields may not be enough to scare all investors away from the equity market.

Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the rising oil prices that have so far supported the economy and equity market, despite the seeming improvement in the fixed income yield which had remained at negative real rate of return due to the subsisting high inflation.

However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by expected Q1 earnings reports, until the next MPC meeting in May.

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


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Sentiment Report for April 12, 2021


NSEASI buy 0% MFI 47.58
Access buy 50% sell 50% volume index 1.90 MFI 63.87
Afrprud buy � volume index 0.88 MFI 76.39
Chams buy 0% volume index 9.87 MFI 19.87
Corner buy � volume index 2.83 MFI 32.74
Custodian buy 0% MFI 52.74
Eti buy 0% volume index 1.28 MFI 18.12
Fbnh buy � MFI 37.87
Fidelity buy 8% sell 92% volume index 4.05 MFI 63.75
GT buy � MFI 70.99
Honyflour buy 80% sell 20% volume index 2.32 MFI 41.88
Jaiz buy � MFI 68.23
Linkass buy 67% sell 33% volume index 1.70 MFI 74.75
Lvstk buy � volume index 1.35 MFI 43.57
Mansard buy 25% sell 75% MFI 54.62
Mben buy � volume index 1.36 MFI 29.40
Nahco buy 0% volume index 4.20 MFI 43.99
Oando buy 0% MFI 71.19
Regalins buy 50% sell 50% volume index 2.10 MFI 7.16
Royalex buy � MFI 92.97
Stanbic buy 0% volume index 1.04 MFI 79.87
Transcorp buy 33% sell 67% MFI 30.76
Uacn buy � volume index 0.73 MFI 49.69
Uba buy 0% MFI 38.02
Ucap buy 32% sell 68% MFI 71.02
Wapco buy � volume index 1.59 MFI 31.49
Wapic buy � volume index 1.16 MFI 46.78
Wema buy 0% MFI 40.51
Zenith buy 0% MFI 62.79


Investdata Daily Sentiment Report

Mindset Wisdom

WAIT
 
Take the time you need, there is plenty of money to be made.

Are you sitting in a live market setting, looking for the right entry… and just not seeing it?

WAIT. Don’t settle. WAIT. Time and time again, we talk to traders that YOU JUST KNOW are thinking, "Boy I’ll never retire at this pace."

What comes next is as predictable as death, taxes, and your mother-in-law’s glare. Contracts go from one… to three… then five or more. Stops get pushed back. Losses pile up. More trades take place to cover those losses. And then it’s over. Good night Irene - the account has been cleared.

Just pace yourself. There’s plenty of money and plenty of trades to take. Stick to your risk/reward ratio. Hold to those stops. Take the losers with the winners and become consistent.

Build your empire with time and care!

Sentiment Report for Weekend April 16, 2021

NSEASI buy 80% sell 20% MFI 43.75
Access buy 14% sell 86% volume index 0.80 MFI 31.77
Afrprud buy 0% MFI 32.60
Aiico buy � MFI 72.04
Ardova buy � MFI 53.04
Cadbury buy � MFI 40.93
Cap buy 0% MFI 83.04
Caverton buy 0% MFI 46.40
Chams buy � volume index 3.54 MFI 60.11
Chiplc buy 0% MFI 67.97
Corner buy 0% volume index 1.77 MFI 52.46
Courtville buy � volume index 1.15 MFI 62.31
Custodian buy 0% MFI 70.41
Cutix buy 0% volume index 1.47 MFI 44.47
Dangcem buy � MFI 61.15
Dangsugar buy 89% sell 11% MFI 32.62
Eti buy 25% sell 75% MFI 26.93
Fbnh buy 87% sell 13% MFI 60.96
Fcmb buy 0% MFI 24.38
Fidelity buy 9% sell 91% volume index 2.64 MFI 40.97
Fidson buy 0% MFI 47.14
Glaxo buy 0% MFI 26.91
GT buy � volume index 0.70 MFI 46.88
Honyflour buy 67% sell 33% MFI 51.52
Jaiz buy 80% sell 20% MFI 44.41
Jagold buy 0% MFI 39.02
Jberger buy 0% MFI 36.79
Lasaco buy 0% MFI 78.43
Linkass buy 86% sell 14% volume index 0.89 MFI 75.23
Lvstk buy 72% sell 28% MFI 51.98
Mansard buy 60% sell 40% volume index 1.05 MFI 34.37
Maybaker buy 50% sell 50% volume index 1.01 MFI 71.18
Mben buy 0% volume index 1.26 MFI 60.14
Mtnn buy 77% sell 23% MFI 68.55
Nahco buy 74% sell 26% volume index 1.90 MFI 58.39
Neimeth buy 0% MFI 23.65
Nem buy 0% volume index 0.84 MFI 63.85
Oando buy 18% sell 82% MFI 48.72
Prestige buy 0% MFI 67.55
Pz buy 70% sell 30% volume index 1.39 MFI 49.25
Regalins buy 50% sell 50% volume index 0.94 MFI 55.69
Royalex buy � MFI 61.45
Sovrenins buy 0% MFI 71.32
Stanbic buy 83% sell 17% volume index 0.99 MFI 47.51
Sterling buy 0% MFI 40.61
Transcorp buy 71% sell 29% MFI 49.10
Uacp buy 64% sell 36% MFI 55.94
Uacn buy 82% sell 18% volume index 3.12 MFI 92.70
Uba buy 75% sell 25% MFI 29.01
Ucap buy 0% MFI 54.32
Unilever buy 61% sell 39% volume index 1.09 MFI 61.36
Veritas buy 0% MFI 68.98
Vitafoam buy � MFI 44.94
Wapco buy 10% sell 90% MFI 70.59
Wapic buy 40% sell 60% volume index 1.49 MFI 58.27
Wema buy 50% sell 50% MFI 4.58
Zenith buy 41% sell 59% MFI 53.57

Investdata Weekly Sentiment Report

Questions and answers with Ambrose Omordion as at 17th April, 2021

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I just posted Questions and Answers with Ambrose Omordion as of 17/04/2021.

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Ambrose Omordion

Mindset Wisdom

TAKE A MOMENT TO BREATHE
 
If you're not breathing, you're not focused. If you’re not focused, you can’t see the market. Opportunities slide by in an instant. Hazards reveal themselves only when it’s too late.

You need to breathe. Breathing exercises have proven to reduce stress and increase focus.

Sure, you’re already breathing if you read this. But when you trade, you need a breathing regimen. Through your nose, out your mouth counting to 10 or 100. Whatever it is, find a method and routine that works for you.

You’ll find balance, clarity, and focus when you trade. Your heart rate will come down and you’ll just feel better.

Try it. And enjoy your trading.

The Profit Point by OGTV as of 15th April, 2021

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Ambrose Omordion

Mindset Wisdom

"Attitude is a little thing that makes a big difference." 
- Winston Churchill

It's true. A small adjustment can make a world of difference.

Start by getting up and moving. Motion creates energy.

Positive energy creates action.

Take that action into the market and profit.

We've started a new week. Now's the time to change your attitude.

Sentiment Report for April 19,2021

NSEASI buy 94% sell 6% volume index 1.47 MFI 35.16
Access buy 0% volume index 1.12 MFI 45.17
Aiico buy 89% sell 11% volume index 0.89 MFI 55.53
Dangsugar buy 20% sell 80% MFI 70.72
Fbnh buy 50% sell 50% volume index 1.80 MFI 83.38
Fcmb buy � volume index 2.97 MFI 32.97
Fidelity buy 0% volume index 6.98 MFI 29.92
Ftn buy 0% volume index 1.40 MFI 56.04
GT buy � MFI 82.13
Honyflour buy � volume index 6.29 MFI 62.78
Jaiz buy � MFI 56.51
Jagold buy � volume index 1.97 MFI 36.26
Linkass buy � volume index 1.24 MFI 68.81
Lvstk buy � MFI 38.04
Mansard buy � MFI 25.63
Mben buy � MFI 18.76
Royalex buy � MFI 97.11
Transcorp buy � MFI 37.14
Uacp buy 0% MFI 31.68
Uacn buy 85% sell 15% volume index 2.81 MFI 67.78
Uba buy � volume index 1.06 MFI 48.98
Ucap buy 62% sell 38% volume index 0.86 MFI 51.61
Vitafoam buy � volume index 1.14 MFI 19.40
Wapco buy � volume index 1.14 MFI 34.45
Wapic buy � volume index 1.28 MFI 24.48
Zenith buy 75% sell 25% volume index 0.81 MFI 52.62

Investdata Daily Sentiment Report

Access Bank To Acquire 78.15% Atlas Mara Stake In BancABC Botswana 2021Q2


In line with its aggressive Pan-African expansion drive, Access Bank Plc has entered into definitive agreements to acquire a 78.15% stake in African Banking Corporation Botswana (BancABC Botswana), from ABC Holdings Limited, an arm of sub-Saharan African financial services group, Atlas Mara Limited, listed on the London Stock Exchange.

The transaction, according to a statement, is billed for completion in 2021Q2, subject to receipt of relevant approvals and fulfillment of various customary conditions precedent including certain regulatory requirements and consents from other relevant authorities and certain counterparties.


As part of the deal, Access Bank will acquire ABCH’s stake for cash consideration representing approximately 1.13 times book value, including a deferred portion payable 24 months after the closing of the transaction, subject to certain conditions.

The statement quoted Michael Wilkerson, Chairman of Atlas Mara, as saying the transaction “is consistent with the objectives articulated by the company as part of its previously-announced strategic review and overall debt restructuring.

“The pandemic-related economic slowdown in 2020 led to a broadening of the initially-announced strategic review and an acceleration of potential transaction discussions in-line with the Company’s objective of a comprehensive restructuring of the company’s and ABCH’s balance sheets,” he added.

Continuing, Wilkerson said the “transaction, like the previously announced transactions for Mozambique, Rwanda and Tanzania, is consistent with this strategy and will help realize value for the Group’s creditors and other stakeholders.

“BancABC Botswana has achieved a great deal since Atlas Mara’s initial investment in 2014, including in digital adoption and in growing a high-quality retail operation. Management have shown strong resilience and further innovation during the pandemic-related economic slowdown of 2020, and we thank the team for their hard work.”

“By combining with Access Bank’s infrastructure, including its digital offerings and its corporate and SME capabilities, the bank will be well-positioned to continue the positive trajectory and succeed in the macroeconomic recovery to come,” he stressed.

UBA Plc 20201Q1 Net Profit Up 26.75% On Interest Expense Cut, CEO Says Outlook Robust


United Bank for Africa Plc, on Monday, became the earliest filer among top banks to present their unaudited financials for the first quarter ended March 31, 2021, through the Nigerian Stock Exchange (NSE), highlights of which included the marginal drop in interest income, which was complemented by the 21.7% cut in interest expense. Others included the 13.52% increase in operating income and 47.81% reduction in an impairment charge for credit losses on loans from N2.265bn in the corresponding period of 2020, to N1.182bn; following which net profit for the period grew by N8.054bn or 26.75%.

Details of the result showed that Gross earnings stood at N155.446bn from N147.169bn, with interest income dropping marginally from N109.107bn in the first quarter of last year, to N108.59bn, boosted by the N53.987bn income from term lo0ans to corporate, which rose from N49.583bn;p and N9.505bn from overdrafts (corporates), compared to N8.821bn in the prior Q1. The numbers could have been rosier, but for the drop in income from investments securities (Treasury Bills) fell from N29.726bn in the corresponding period of 2020, to N18.979bn; the impact of which was reduced by the income from bonds which rose to N19.06bn from N10.978bn.

Interest expense dropped from N43.69bn to N34.209bn, the biggest of which was the reduction in expense incurred on deposits from banks, which fell from N26.633bn to N18.51bn; resulting in net interest income of N74.381bn, up from the previous N65.417bn.

Fee and commission income rose to N34.955bn from N28.237bn, boosted by the N12.483bn income from electronic banking, which increased from N8.301bn; while commissions on transactional services rose from N4.733bn to N5.535bn. Fee and commission expense from N9.535bn to N14.589bn, lion’s share of which was the N13.525bn incurred on electronic banking; resulting in net fee and commission income of N20.366bn, up from N18.702bn.

Net trading and foreign exchange income rose to N10.469bn from N9.145bn, of which fixed income securities trading income grew from N7.14bn to N9.341bn; while other operating income grew from N680m to N1.432bn, with N1.321bn being income on cash handling, which was more than double the previous N599m. Total non-interest income for the period stood at N32.2676bn, as against the previous N28.527bn.

Operating income therefore rose from N93.944bn to N106.648bn; while impairment charge was principally t6he N1.729bn allowance for credit loss, which reduced from N2.425bn; which was reduced by the N1.067bn recoveries on loans previously written-off as bad and doubtful, up from N637m. Net operating income after impairment loss on loans and receivables during the period stood at N104.62bn, as against N91.302bn in the preceding first quarter.

Employee benefit expenses for the period dropped slightly to N21.311bn from N21.979bn; depreciation and amortization rose marginally from N4.18bn to N4.848bn; and other operating expenses from N32.498bn to N38.295bn; resulting in total operating expenses of N64.454bn, up from N58.657bn.

Profit before tax for the period stood at N40.581bn from N32.726bn; while the taxation charge of N2.426bn, down from N2.625bn in the previous Q1, left a net profit of N38.155bn, as against N30.101bn in the comparable period of 2020. The net profit translated to Earnings Per Share ofr N1.04, an improvement from 83 kobo in 2020.

This, the bank said in a statement translated to an annualised 20.5% Return on Average Equity (RoAE), compared to 19.9% in the same period of 2020.

Total assets also rose by 2.5% to N7.892tr, compared to N7.697tr recorded at the end of the 2020 financial year, boosted as always by the N2.733tr customer loans and advances, which rose from N2.554tr; while total liabilities improved from N6.973tr to N7.129tr, with customer deposits accounting for N5.788tr, as against the N5.676tr reported at end of December 2020. Shareholders’ funds, therefore, rose to N762.4bn, up by 5.3% from N724.1 billion as of 2020 full-year.


Uzoka
The statement quoted Kennedy Uzoka, the Group Managing Director/Chief Executive, as expressing satisfaction with the performance, with bust capital and liquidity that have positioned it to support customers across diverse sectors and markets, guided by prudent risk management practices.

“This impressive 2021Q1 results reflect the capacity of our business to sustainably grow earnings even in a highly uncertain macroeconomic environment. We remain upbeat on the macroeconomic outlook of the countries in which we operate, especially as the COVID-19 vaccine distribution gains traction globally, whilst commodity prices and currencies continue to stabilise. Our robust capital and liquidity positions have positioned us to continue to support our customers across diverse sectors and markets, guided by prudent risk management practices,” he stressed.

Uzoka noted the bank’s effort at diligently executing its priorities for the year 2021, as it leverages people, process, and technology to deliver the best customer experience across all its channels and touchpoints, achieving industry leadership and dominance.

In his words, “the bank is making strong progress in Nigeria where our continuous market share and efficiency gains are translating into higher profits. We are committed to sustaining this strong start throughout the year, leveraging our customer-First (C-1st) philosophy and unparalleled execution to deliver even stronger returns to our esteemed shareholders in 2021 and beyond.”

Ugo Nwaghodoh, UBA’s Group Chief Finance Officer particularly expressed satisfaction with the “annualised return on average equity of 20.5% and return on average asset of 2.0%, (being indices that) buttress our commitment to delivering sustainable value to our stakeholders. We continued to deploy our balance sheet efficiency and digital-led cost optimisation initiatives to achieve desired outcomes.”

During the period also, he noted that “cost-to-income ratio improved by 200bps to 60.4% during the period, whilst cost of funds settled at 2.0%, a 130bps reduction from 3.3% in 2020Q1.”

Nwaghodoh expressed confidence that the bank will meet and surpass its target for the remaining three quarters of the year, adding that, “We are confident on the strong prospect for earnings growth, particularly as we are better positioned to consolidate recent market share gains in Nigeria and other geographies where we operate. This result is a strong start for the year, and we are optimistic about sustaining the exciting performance throughout the year and beyond.”

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty-one million customers, across its over 1,000 business offices and customer touch points, in 20 African countries.

With presence in the United States of America, the United Kingdom, and France, UBA is connecting people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance, and ancillary banking services, the statement added.

https://investdata.com.ng/uba-plc-20201q1-net-profit-up-26-75-on-interest-expense-cut/

Sentiment Report for April 20, 2021

NSEASI buy 94% sell 6% volume index 0.99 MFI 32.02
Access buy � volume index 1.44 MFI 36.84
Afrprud buy � volume index 3.03 MFI 65.87
Aiico buy � MFI 53.16
Chams buy 0% volume index 0.70 MFI 28.58
Dangsugar buy 43% sell 57% MFI 72.57
Eti buy � volume index 2.61 MFI 26.52
Fbnh buy 50% sell 50% volume index 1.10 MFI 82.90
Fidelity buy � volume index 6.53 MFI 45.59
Ftn buy 0% volume index 4.12 MFI 43.62
GT buy 18% sell 82% volume index 0.71 MFI 65.46
Honyflour buy � volume index 5.10 MFI 73.58
Jagold buy 50% sell 50% MFI 37.26
Lvstk buy 57% sell 43% volume index 0.86 MFI 38.84
Mansard buy 67% sell 33% MFI 26.19
Mben buy 0% MFI 19.88
Oando buy 63% sell 37% MFI 48.23
Pz buy � volume index 3.94 MFI 86.00
Regalins buy � volume index 1.55 MFI 25.11
Royalex buy 0% volume index 1.45 MFI 82.99
Sovrenins buy � MFI 51.34
Sterling buy 0% volume index 0.78 MFI 41.63
Transcorp buy 50% sell 50% volume index 0.89 MFI 46.64
Uacp buy 0% volume index 0.73 MFI 23.19
Uacn buy 8% sell 92% volume index 3.21 MFI 71.69
Uba buy 50% sell 50% MFI 47.51
Ucap buy 0% MFI 48.00
Wapic buy 80% sell 20% volume index 1.36 MFI 24.61
Zenith buy 85% sell 15% volume index 1.18 MFI 55.51

Investdata Daily Sentiment Report

Sentiment Report for April 21, 2021

NSEASI buy 94% sell 6% volume index 0.73 MFI 39.16
Access buy 0% volume index 1.91 MFI 46.47
Afrprud buy � volume index 1.01 MFI 69.13
Caverton buy � volume index 1.39 MFI 2.52
Cutix buy 58% sell 42% volume index 9.09 MFI 30.13
Eterna buy � volume index 1.38 MFI 91.18
Eti buy 0% volume index 1.58 MFI 34.34
Fbnh buy 75% sell 25% MFI 78.34
Fcmb buy � volume index 0.98 MFI 39.13
Fidelity buy 89% sell 11% volume index 0.88 MFI 47.81
Ftn buy 0% volume index 5.43 MFI 31.72
GT buy � MFI 62.75
Honyflour buy 0% volume index 4.18 MFI 77.35
Jaiz buy � MFI 51.29
Jagold buy 50% sell 50% volume index 0.94 MFI 36.16
Lvstk buy � volume index 2.97 MFI 21.23
Mansard buy � MFI 26.29
Maybaker buy � volume index 2.59 MFI 83.99
Mben buy � volume index 1.85 MFI 16.16
Nahco buy � volume index 1.31 MFI 20.15
Nem buy 0% volume index 1.37 MFI 25.63
Npf buy � volume index 6.86 MFI 75.11
Oando buy 0% volume index 0.75 MFI 53.86
Pz buy � volume index 1.23 MFI 86.92
Regalins buy 0% MFI 25.31
Sterling buy � volume index 0.92 MFI 42.95
Transcorp buy 80% sell 20% volume index 0.92 MFI 58.59
Uacp buy � volume index 2.69 MFI 23.19
Uacn buy 63% sell 37% MFI 69.70
Uba buy � MFI 47.26
Wapco buy 72% sell 28% volume index 1.99 MFI 34.50
Wapic buy 80% sell 20% volume index 2.07 MFI 12.41
Wema buy 67% sell 33% MFI 7.16
Zenith buy 60% sell 40% MFI 52.77

Investdata Daily Sentiment Report

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Sentiment Report for the Week Ended April 23, 2021

NGX buy � volume index 0.75 MFI 39.90
Access buy 25% sell 75% volume index volume 1.00 MFI 20.17
Afrprud buy � volume index 0.91 MFI 20.82
Aiico buy � MFI 71.39
Ardova buy � MFI 9.66
Cadbury buy 0% volume index 0.71 MFI 33.00
Caverton buy 59% sell 41% MFI 59.62
Chams buy � MFI 55.33
Conoil buy � volume index 1.05 MFI 21.75
Corner buy 0% volume index 1.11 MFI 46.85
Courtville buy � volume index 1.20 MFI 60.90
Custodian buy 83% sell 17% MFI 68.66
Cutix buy � volume index 2.21 MFI 42.59
Dangsugar buy 92% sell 8% MFI 29.52
Eterna buy 36% sell 64% MFI 86.57
Eti buy � MFI 22.40
Fbnh buy 55% sell 45% volume index 0.71 MFI 55.00
Fcmb buy 82% sell 18% MFI 17.56
Fidelity buy 68% sell 32% volume index 3.41 MFI 24.86
Fidson buy � MFI 48.64
Ftn buy 0% volume index 1.07 MFI 13.60
Glaxo buy � MFI 20.38
GT buy 88% sell 12% volume index 0.99 MFI 54.23
Honyflour buy 64% sell 36% volume index 2.30 MFI 61.64
Jaiz buy � MFI 37.09
Jagold buy 38% sell 62% MFI 13.99
Learn buy 0% volume index 1.43 MFI 56.36
Linkass buy 0% volume index 5.75 MFI 82.25
Lvstk buy 90% sell 10% volume index 0.99 MFI 45.82
Mansard buy 31% sell 69% MFI 21.59
Maybaker buy � MFI 67.44
Mben buy � MFI 49.44
Mtnn buy � volume index 10.50 MFI 85.13
Nahco buy � MFI 56.53
Nascon buy 0% volume index 8.06 MFI 15.99
Nem buy 7% sell 93% volume index 0.78 MFI 63.41
Npf buy 0% volume index 1.18 MFI 67.73
Oando buy 58% sell 42% MFI 43.08
Pz buy � volume index 5.32 MFI 69.43
Regalins buy � MFI 44.17
Royalex buy 56% sell 44% volume index 0.93 MFI 45.76
Sovrenins buy 50% sell 50% MFI 69.18
Stanbic buy � MFI 50.54
Sterling buy 82% sell 18% MFI 49.14
Transcorp buy 63% sell 37% MFI 45.02
Uacp buy 90% sell 10% MFI 57.03
Uacn buy 83% sell 17% volume index 2.43 MFI 93.14
Uba buy 91% sell 9% MFI 24.48
Ubn buy � MFI 40.11
Ucap buy 82% sell 18% MFI 51.15
Unity buy 80% sell 20% MFI 98.34
Upl buy � MFI 9.40
Vitafoam buy � MFI 42.57
Wapco buy 96% sell 4% MFI 62.87
Wapic buy 89% sell 11% volume index 1.59 MFI 53.75
Wema buy � MFI 5.17
Zenith buy 80% sell 20% MFI 51.52

Investdata Weekly Sentiment Report

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Mixed Trend Ahead, As Investors Await Key Q1 Earnings, Economic Data


Market Update for April 21

Nigeria’s equity market continued its gaining streak for the fourth day, a direct opposite of its global counterparts that had suffered losses on the back of the increasing number of coronavirus cases and fresh rounds of lockdowns to check the spread and strengthen control measures amidst incidences of vaccine shortages, in the midst of the Q1 earnings season.

Midweek’s trading was volatile as investor confidence are being gradually rekindled as more companies release their quarterly scorecards to point direction for the new financial year and reveal economic performance for Q1, while looking forward to 2021 Q1 GDP.

The benchmark index NGXASI closed on a positive note, with transaction volume that is less than the average on a narrow positive breadth.

The positive sentiment and vibration around the stock market continued at the midweek as revealed by the money flow index and the sentiment report, despite the mixed numbers released so far. For example, the 2021Q1 earnings report released by Guaranty Trust Bank came below market expectation, with earnings per share dropping from N1.70 in the corresponding period of 2020 to N1.55 representing a 9.03% decline.

We see the ongoing Q1 earnings season influencing the market, considering the undervalued state of some stocks with potential to outperform inflation, as well as yields in Treasury Bills and bonds, given that capital gains and dividend rewards that associated with stock market investing and trading. Investdata expects equity market players to invest wisely, guided by set investment objectives, especially entry and exit strategies necessary to survive and profit from the expected new trend.

By so doing, should the Q1 earnings reports and corporate actions fail to impact and support recovery, a big rotation in sector trends should also guide you, going into the future, the second wave of covid 19, oscillating oil price, and profit-taking may slow down the current recovery as the market offers short-term trading opportunities.


Meanwhile, midweek trading opened on the upside and oscillated on increasing buying sentiment among the blue-chip stocks and low priced equities with growth potentials that pushed the composite index, to an intraday high of 39,138.66 basis points, from its lows of 38,975.34bps, and thereafter closed above its opening figure at 39,128.58bps.

The day’s market technicals were positive and mixed, with volume traded lower than the previous days in the midst of breadth favoring the bulls on a high buying sentiment as revealed by Investdata’s Sentiments Report showing 94% ‘buy’ volume and 6% sell position. The total transaction volume index stood at 0.73 points, just as the energy behind the day’s performance was relatively weak. Money Flow Index was looking up to 39.16pts, from the previous day’s 32.02pts, indicating that funds entered the market.

Index and Market Caps

The key performance index NGXASI, at the close of Wednesday’s trading, gained 112.76ps, closing at 39,128.58bps after opening at 39,015.58bps, representing a 0.29% growth, just as market capitalization rose by N59bn, closing at N20.48tr from an opening value of N20.42tr, which also represented 0.29% value gain.

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Midweek’s upturn was sustained by buying interest in Conoil, Lafarge Africa, NNFM, Zenith Bank, Guaranty Trust Bank, Dangote Sugar, and UBA, among others. This impacted positively on the Year-To-Date loss, which reduced to 2.84 %, just as market capitalization loss dropped to N589.10bn or 2.74% below its opening value for the year.

Mixed Sector Indices

Performance indexes across the sectors were mixed, as the NSE Insurance and Consumer Goods dropped by 1.28% and 0.35% respectively, while the NSE Banking led the advancers after gaining 2.23%, followed by Industrial goods and Energy with 0.39% and 0.34% higher.

Market breadth was slightly positive, as advancers outnumbered decliners in the ratio of 22:21; with transactions in volume and value terms were down after stockbrokers traded 239.25m shares worth N1.66bn, compared to the previous day’s 339.02m units valued at N2.7bn. The day’s volume was boosted by trades in Access Bank, Fidelity Bank, Mutual Benefits, Guaranty Trust Bank, and Transcorp.

Conoil and Studio Press were the best-performing stocks, gaining 9.97% and 9.88% respectively, closing at N18.75 and N1.78 per share on market forces and earnings expectations. On the flip side, Guinness Nigeria and Portland Paints lost 9.89% and 9.85% respectively, closing at N28.7 and N2.38 per share, on profit-taking and selloffs

Market Outlook

We expect the mixed trend and profit-taking as Q1 corporate earnings continue to hit the market in the face of rising virus cases across the globe and high yields in fixed income space, while portfolio realignments continue ahead of such economic data as the 2021Q1 GDP report, PMI and others. Also, the market has moved out of its trading range, as index action broke out the psychological line of 39,000 to trade above the 14 and 20-Day Moving Average, even as the market may discount the prospects for high cap companies as well assome blue-chip stocks ahead of earnings season.

The pullbacks offer bargain hunters and income investors another opportunity to reposition in high dividend yields and undervalued stocks while looking out for quarterly numbers that would support recovery. This is based on the fact that the rising fixed income yields may not be enough to scare all investors away from the equity market.

Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the rising oil prices that have so far supported the economy and equity market, despite the seeming improvement in the fixed income yield which had remained at a negative real rate of return due to the subsisting high inflation.

However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by 2020 full numbers and expected 2021 Q1 earnings reports, until the next MPC meeting in May.

The NSE’s index action and indicators are heading in the same direction on a low traded volume and positive buying sentiments in the midst of rising yield in bonds and TB.

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https://investdata.com.ng/mixed-trend-ahead-as-investors-await-key-q1-earnings-economic-data/

Mixed Trend Still, As Investors Position On Q1 Earnings Releases, Fixed Income Yields


Market Update for the Week Ended April 23 and Outlook for April 26-30

It was a bullish but volatile week on the Nigerian Exchange (NGX), as investors renewed their buying interest across sectors, halting three consecutive weeks of decline, with the benchmark All Share index’s action resisted further decline for two weeks. It formed sideways, or ranging market in the midst of Q1 corporate earnings and economic data releases.

The market maintained positive sentiment and momentum on mixed Q1 numbers released so far and low price attraction of fundamentally sound equities with strong potentials to grow their earnings performance this year, as shown by recent scorecards. These, as well as unfolding events in the economy are offering insights as to which sectors and industries to look for early positioning, no minding the rise in fixed income yields, oscillating oil prices, high national debt profile and declining reserve.

The lingering volatility in the market at this time is a sign that investor confidence is gradually return as more companies release their quarterly scorecards and give the outlook for the new financial year, besides hinting of the economic performance for Q1. The positive mood of the market and NGX ASI index action uptrend is shown by improved transactions and positive breadth, regardless of the low traded volume.

We see the ongoing Q1 earnings season influencing the market, considering the undervalued state of some stocks with potential to outperform inflation, as well as yields in Treasury Bills and bonds. This is given the capital gains and dividend rewards associated with stock market investing and trading, following Investdata expects equity market players to invest wisely, guided by set investment objectives, especially entry and exit strategies necessary to survive and profit from the expected new trend.

Investors and traders should at this point must, target what they consider the right sectors and stocks for higher capital gains and yields and in the process stay above inflation in the short-term. It is for this reason that the equity market remains the best investment hedge, regardless of the rising yields in the fixed income market.

Movement Of NSEASI

The nation’s equity market witnessed a bullish dominance for five trading sessions of the week under review, on positive sentiments and strong buying interests, thereby reversing the preceding three successive weeks of negative outing. The low price attractions of many undervalued stocks and seeming improvement in Q1 2021 earnings reports impacted positively on the benchmark NGXASI which closed the period higher.

Trading for the week opened on a positive note, extending the previous session’s uptrend with a 0.07% gain, a situation that was sustained throughout the week on buying interests in medium, high cap equities and blue-chip stocks across the sectors. This trend continued on Tuesday and at midweek with the NGX index closing 0.43% and 0.29% higher respectively, after which it slowed down on Thursday to 0.01% up. Thereafter, it rebounded powerfully on Friday when the composite index gained 0.43% on strong buying sentiments among the medium cap and low priced equities. This raised the week’s total gain to 1.27%, from the previous 0.15% decline.

Specifically, the NGXASI gained 493.81 basis points from the 38,808.01bps opening level, while touching intra-week high of 39,303,64bps and low of 38,806.28bps, before closing the week at 39,301.82 on a positive sentiments and buying interest inall classes of stocks. Also, market capitalization rose by N26bn, closing at N20.57tr from the previous week’s N20.31tr.

The week advancers table was dominated by medium and low priced stocks as investors reposition their portfolios and react to Q1 earnings released so far. As they discount expectations from high cap equities, amid the markdown activities in Fidelity Bank, Sterling Bank, Total Nigeria, FBN Holdings, AXA Mansard Insurance and NASCON, Also, trading and price patterns reveal the presence of bargain hunters and accumulation in some stocks as their Q1 numbers give insight and direction of what should be expected in the new financial year.

The week’s positive breadth was due to advancers outnumbering decliners in the ratio of 39:24 on a buying sentiment and relatively weak momentum as Money Flow Index read 40.41bps, down from 44.20 points in the previous week. During the week also, NPF Microfinance and Unity Bank released their full-year earnings reports, with the directors of NPF Microfinance recommending 20 kobo dividend per share. Also, the Q1 numbers of UBA, Unilever, Guaranty Trust Bank, Transcorp, Africa Prudential, National Salt and Stanbic IBTC, were released.

NSEASI WEEKLY CHART MOVEMENT

Recovery by the NGXASI recovery move and bullish trend during week were attributed to post-March 2021 inflation rate of 18.17% interpretation on investment and Q1 earnings reports that started hitting the market with impressive numbers beyond market expectations and rising fixed income yields. There is also an increased volatility rate in the midst of changing price patterns and trading environment, while investors continue accumulating positions in undervalued and growth stocks as more 2021Q1 reports are expected.

Also, we note that the index has broken out the first resistance level of 39,291.03 and seven-Day Moving Average to test 20-DMA on a weekly chart to strongly support uptrend on a low traded volume and buying sentiments. This is likely to continue, depending on how investors react to the Q1 numbers in this last trading week of the month.

Nevertheless, we see the market maintaining this uptrend, especially as investors look to economic data and corporate earnings, just as the index continues trading above the 39,000 basis points.

The strong resistance level to watch out for on the NGX is within the 39,412.19bps and 39,578.12bps, and a breakoutof these levels will attract new positioning by traders. This is happening at a time crude oil is trading above $60 per barrel at the international market, while the Covid-19 vaccination is on a high gear at the global and domestic levels.

However, we envisage a mixed outlook for the rest of Q2, while not ruling out profit booking and repositioning of portfolios especially after the market recorded a sharp uptrend in 2020.

Our expectation of a mixed outlook is hinged on such factors as the possible impact of corporate earnings, ongoing vaccination, mismatch of monetary and fiscal policies, implementation of the 2021 capital budget, as well as implications of oil prices oscillating on the nation’s revenue. We note too, that impact of the Money Flow Index and MACD are bearish on a weekly chart, but bullish on daily time frame.

Bullish Sectoral Indices

Performance indexes across the sectors were positive and closed higher, led by the NSE Banking index which chalked 4.82%, followed by Consumer Goods, Industrial goods, Insurance and Energy that closed 1.05%, 0.50%, 0.40% and 0.29% higher respectively.

The general market’s outlook remains mixed in the short and long term following which investors should take short and medium-term positions, while diversifying their portfolios along long-term trades to protect capital. This, they can do, by considering sectors with high upside potentials on the strength of earnings and policy influence.

The recent market recovery or retracement calls for portfolio adjustments and realignments, as unaudited numbers from some companies and sectors will expectedly beat expectations and influence themarket, given the vaccine breakthrough and its administration to drive global and domestic economic recovery, as revealed by the macroeconomic indices.

Transactions in volume and value terms were up by 26.98% and 291.64% respectively, as investors exchanged 1.6bn shares worth N42.14bn, compared to the previous week’s 1.26bn units valued at N10.76bn. Volume was driven by trades in Financial Services, ICT and the Conglomerates sectors, particularly Fidelity Bank, MTNN, Guaranty Trust Bank, Zenith Bank and Transcorp.

PZ Cussons and University Press were the best performing stocks for the week, gaining 21.11% and 19.63% respectively, and closing at N5.45 and N1.28 each on market forces and earnings expectations. On the other hand, FTN Cocoa and Portland Pants lost 22% and 18.09% respectively, at N0.39and N2.40 per share on profit taking and selloffs.

Market Outlook

We expect the mixed trend to continue as players react to impressive earnings and profit taking in expectation of more Q1 corporate earnings to hit the market in the face of rising fixed income market yields. Also, the recovery offers resistance breakout traders and investorsanother opportunity to reposition in value and underpriced growth stocks, while some companies with march year end account release their unaudited and audited full-year numbers to support recovery in the new month. This is based on the fact that the rising fixed income yields may not be enough to scare all investors away from the equity market.

Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the oscillating oil prices that have so far supported the economy and equity market, despite the seeming improvement in the fixed income yield which had remained at negative real rate of return due to galloping inflation.

However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by expected Q1 earnings reports, until the next MPC meeting in May.

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

https://investdata.com.ng/mixed-trend-still-as-investors-position-on-q1-earnings-releases-fixed-income-yields/

Sentiment Report for April 26, 2021

NGX buy 83% sell 17% volume index 1.03 MFI 60.86
Access buy 50% sell 50% volume index 1.14 MFI 38.06
Aiico buy � volume index 0.98 MFI 75.66
Corner buy � volume index 3.35 MFI 52.53
Courtville buy 0% volume index 1.16 MFI 28.56
Dangsugar buy � MFI 55.62
Eti buy � volume index 1.30 MFI 79.98
Fbnh buy 50% sell 50% volume index 1.46 MFI 80.82
Fcmb buy � volume index 0.84 MFI 39.84
Fidelity buy 75% sell 25% MFI 46.83
GT buy � MFI 82.41
Honyflour buy � volume index 1.42 MFI 68.60
Jagold buy 50% sell 50% volume index 1.47 MFI 29.60
Lasaco buy � volume index 1.15 MFI 80.75
Lvstk buy � MFI 31.85
Mansard buy 0% volume index 3.03 MFI 37.37
Mben buy 33% sell 67% volume index 0.92 MFI 15.36
Nahco buy 88% sell 12% volume index 4.46 MFI 13.58
Pz buy � volume index 1.26 MFI 78.79
Regalins buy � volume index 1.39 MFI 33.17
Royalex buy � volume index 1.27 MFI 37.50
Transcorp buy � volume index 5.46 MFI 62.41
Uacn buy 0% MFI 77.39
Uba buy 50% sell 50% volume index 1.54 MFI 76.48
Ubn buy � MFI 30.65
Ucap buy 40% sell 60% volume index 1.22 MFI 41.69
Unity buy � MFI 59.78
Vitafoam buy � MFI 21.34
Wapco buy � MFI 37.86
Wapic buy � volume index 0.91 MFI 40.95
Zenith buy 60% sell 40% volume index 0.76 MFI 43.86

Investdata Daily Sentiment Report

Investors Realign Portfolios On NGX Ahead Of Major Economic Data, Q1 Earnings

Market Update for April 26
Trading for last week of April, which is the first month of the second quarter of 2021 started on the Nigerian Stock Exchange (NSE) positive, despite being highly volatile, with a reduced gaining momentum, extending previous week’s bull-run and dominance. This is just as the market entered the peak of the Q1 earnings reporting season in anticipation of major earnings from the banking sector, as well as high cap stocks capable of influencing market performance and movement.

The high volume traded at the end of the seven straight trading sessions of bull transition calls for caution, because it may signal profit taking that needs confirmation during Tuesday’s session, as buying interests remain high as revealed by the positive market breadth. Note that recent pullbacks have made the valuation of fundamentally sound stocks attractive, as many now offer a higher margin of safety. This is especially true of companies with high potentials to grow their numbers in this current year, an insight of which we will in their first quarter outings.

The positive sentiments and vibrations around the stock market continued as revealed by money flow index and the sentiment report, despite the mixed Q1 numbers released by Ecobank Transnational Incorporated and BOC Gases. Specifically, the result from ETI was above market expectation, as shown by the rise in top and bottom lines by 10% and 25% respectively, while that of BOC Gases showed a decline in both indicators to signal a slow start.

We see the ongoing Q1 earnings season influencing the market, considering the undervalued state of some stocks with potentials to outperform inflation, as well as yields in Treasury Bills and government bonds. This projection is based on the level of funds flowing into the equity space at this time and knowing that capital gains and dividend rewards associated with stock market investing and trading are better hedges against the galloping inflation.

Investdata, therefore, expects equity market players to invest wisely, guided by their own set investment objectives, especially entry and exit strategies necessary to survive and profit from the expected new trend.

As such, should the Q1 earnings reports and corporate actions of the stocks you have positioned ahead fail to impact and support this recovery, a big rotation in sector trends should also guide you, going into the future. There other factors such as this third wave of the COVID-19 pandemic blowing across the globe, as well as the oscillating oil prices and profit-taking, that may slow down the current recovery, because the market offers short-term trading opportunities.

Meanwhile, Monday’s trading opened on the downside in the early trading hours, before rebounding and oscillated on increased buying sentiments and profit taking in low priced equities and blue chip stocks. This pushed the benchmark NGX All-Share index to an intraday high of 39,332.82 basis points, from its lows of 39,256.36bps, before from its lows of 39,256.36bps, and berthing above its opening figure at 39,318.32bps.

The day’s market technicals were positive and strong, with volume traded higher than previous day’s in the midst of breadth favouring the bulls on a high buying sentiment as revealed by Investdata’s Sentiments Report showing 83% ‘buy’ volume and 17% sell position. Total transaction volume index stood at 1.02 points, just as momentum behind the day’s performance was relatively strong. Money Flow Index was looking up to 60.86pts, from the previous day’s 53.74pts, indicating that funds entered the market.

Index and Market Caps

Thecomposite NGXASI, at the close of the day trading, inched up by 16.70ps, closing at 39,318.52bps after opening at 39,301.82bps, representing a 0.04% up, just as market capitalization rose by N8.73bn, closing at N20.58tr, from an opening value of N20.57tr, which also represented 0.04% value gain.

billion Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just reduced to 8 STOCKS TO WATCH THAT ARE BUILDING NEW BULLISH BASE in our watchlist. These stocks are with double potentials to rally considering their current and oscillating mood of the market value.

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 oscillating market in the midst of earnings season, portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

Monday’s marginal upturn resulted in buying interests in in Lafarge Africa, Nigerian Breweries, Access Bank, Guaranty Trust Bank, Africa Prudential, United Capital, May and Baker, Transcorp and Livestock, among others. This impacted mildly on Year-To-Date loss, reducing it to 2.36%, just as market capitalization loss dropped to N589.10bn, or 2.28% below its opening value for the year.

Mixed Sector Indices

Performance indexes across the sectors were mixed, as the NSE Insurance and Industrial Goodsclosed higher by 4.30% and 1.36% respectively, while the NSE Energy index led the decliners after losing 0.91%, followed by Banking and Consumer goods with 0.25% and 0.05% lower.

Market breadth was positive, as advancers outnumbered decliners in the ratio of 25:17; with transactions in volume and value terms were mixed after players traded 329.74m shares worth N2.06bn, compared to the previous day’s 287.04m units valued at N3.04bn. Volume was boosted by trades in Transcorp, FBNH, AXA Mansard Insurance, Access Bank and Guaranty Trust Bank.

Transcorp and Linkage Assurance were the best performing stocks, gaining 10% each, closing at same N0.88 per share on improving earnings and dividend reward. On the flip side, Conoil and Ikeja Hotel lost 9.33% and 9.09% respectively, closing at N17.00 and N1.00per share, on profit taking and selloffs

Market Outlook

We expect the mixed and positive trend to continue with investors reacting to the Q1 corporate earnings expected to hit the market this week, besides profit taking, even in the face of rising virus cases across the globe and high yields in fixed income space. There are also to be expected, continued portfolio realignments ahead of economic data like the 2021Q1 GDP report, and Purchasing Managers’ Index, among others.

Also, the market has moved out of its trading range, waiting to breakout the next resistance level of 39,412.15bps, while trading above the 14 and 20-Day Moving Average. Note that the market may discount the prospects of high cap companies and some blue chip stocks, ahead of earnings season.

However, the pullbacks offer bargain hunters and income investors fresh opportunities to reposition in high dividend yields and undervalued stocks, while looking out for quarterly numbers that would support recovery. This is based on the fact that the rising fixed income yields may not be enough to scare all investors away from the equity market.

Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the rising oil prices that have so far supported the economy and equity market, despite the seeming improvement in the fixed income yield which had remained at negative real rate of return due to the subsisting high inflation.

However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by 2020 full numbers and expected 2021 Q1 earnings reports, until the next MPC meeting in May.

The NSE’s index action and indicators are heading in the same direction on a low traded volume and positive buying sentiments in the midst of rising yield in bond and TB.

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

Meanwhile, the home study packs on INVEST 2021 New Opportunities & New Paths To Profits Summit materials and 10 Golden Stocks for 2021, Strategies and How to invest profitably in this Changing Market Dynamics/ Recession, Mastering Earnings Season For Profitable Investing and Trading in any market situation/ cycles, Life Beyond COVID 19 Investment Opportunities In The Stock Market are now available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08179547605, 08111811223 now.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/investors-realign-portfolios-on-ngx-ahead-of-major-economic-data-q1-earnings/

Sentiment Report for April 27, 2021

NGX buy 60% sell 40% volume index 0.78 MFI 62.48
Access buy 80% sell 20% volume index 3.41 MFI 35.95
Chiplc buy 0% volume index 4.29 MFI 27.95
Fbnh buy 0% MFI 83.97
Fcmb buy � volume index 1.22 MFI 57.92
Fidelity buy 33% sell 67% volume index 1.41 MFI 52.02
Glaxo buy 0% volume index 1.60 MFI 73.45
GT buy 40% sell 60% MFI 85.63
Honyflour buy 0% volume index 0.79 MFI 68.15
Jagold buy 75% sell 25% MFI 21.88
Linkass buy 67% sell 33% MFI 86.85
Lvstk buy � volume index 0.77 MFI 39.99
Mansard buy 20% sell 80% MFI 39.02
Nahco buy � volume index 2.01 MFI 22.98
Nem buy 0% volume index 0.91 MFI 47.77
Oando buy 0% volume index 0.70 MFI 57.68
Prestige buy � volume index 1.33 MFI 80.18
Regalins buy � volume index 2.68 MFI 43.95
Royalex buy � volume index 2.07 MFI 35.59
Sovrenins buy 0% volume index 5.13 MFI 48.48
Transcorp buy 44% sell 56% volume index 1.74 MFI 76.00
Uacp buy 0% MFI 18.60
Uacn buy 0% MFI 86.90
Uba buy 0% MFI 81.30
Ucap buy 50% sell 50% volume index 1.90 MFI 55.39
Unity buy � MFI 65.60
Wapco buy � volume index 1.12 MFI 46.38
Wapic buy � volume index 1.86 MFI 43.82
Wema buy � volume index 1.27 MFI 43.73
Zenith buy 0% volume index 0.78 MFI 53.50

Investdata Daily Sentiment Report

Expect Realignments On Earnings Inflow, Economic Data, As NGXASI Awaits Next Resistance Level

Market Update for April 27

It was yet another mixed and volatile Tuesday on Nigerian Exchange (NGX), as the composite All-Share index closed marginally lower on a less than average traded volume, but positive breadth, which halted seven successive sessions of bull-run. This was due to profit-taking by traders in banking stocks, especially those that recently rallied in the midst of earnings season and expectations.

The Q1 numbers released so far from the banking sector had been mixed, but investors are traders are eagerly awaiting those of industry leaders such as Zenith Bank, Access Bank, and FBNH to provide a clear direction for the purpose of repositioning. This is especially after Fidelity Bank, became the very first second-tier bank to submit its earnings, beating market expectations, after posting Earnings Per Share of 33 kobo, compared to the previous 20 kobo in 2020. The 64% growth in its profitability level, from a top line of 8% is a good start for the new financial year (READ MORE).

This mixed trend on the NGX would likely continue beyond this month as income investors follow corporate action dates for dividend qualification and markdown for the rest of the month, and in May. For example, we note that the share prices of Dangote Cement and Caverton Offshore will be adjusted on Wednesday for the N16 and N0.10 dividends respectively proposed by their boards, while 11Plc, Eterna, Lafarge Africa and Berger Paints have their qualification dates between April 29 and 30th, 2021. These qualifications and price adjustments will influence market performance and direction, given that all eyes are now on 2021 Q1 GDP data expected from the National Bureau of Statistics, in anticipation of sincere and concrete moves by the Federal Government to check the rising insecurity in the nation and douse the tension in the land.

Investdata expects trading for the month of April to close slightly up, while the uptrend continues as the movers and shakers of the market are yet to release their Q1 numbers which are likely to support the ongoing recovery moves. This is in the midst of profit-taking and rising yields as primary market auction is expected to hold on Wednesday and Thursday.

All things considered, Investdata urges investors to play the market wisely by letting investment goals guide their decisions, especially entry and exit strategies necessary to survive and profit from the expected new trend. Be guided also by current price patterns and money flow index now supporting a trend continuation as funds continue entering the market, just as we expect midweek trading to confirm direction.

Tuesday’s trading started on the downside and oscillated on profit booking and positioning that pushed the key performance index to an intraday low of 39,272.01 basis points, from its high of 39,327.41bps. Thereafter, the index closed slightly below the opening level at 39,305.48bps, even as market technicals were mixed and positive, with volume traded lower than previous day’s.

Market breadth favoured the bulls on mixed sentiments, as revealed by Investdata’s Sentiments Report showing 60% ‘buy’ volume and 40% sell position. Total transaction volume index stood at 0.79 points, just as impetus behind the day’s performance was relatively strong. Money Flow Index was looking up to 62.486pts, from the previous day’s 60.86pts, indicating that funds entered the market, despite the seeming profit taking.

Index and Market Caps

At the close of Tuesday’s trading, the benchmark NGX All Share Index shed a marginal 13.04ps, closing at 39,305.48bps after opening at 39,318.52bps, representing a 0.03% drop, just as market capitalization fell by N6.82bn, closing at N20.57tr, having opened at N20.58tr, also representing 0.03% value loss.

billion Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just reduced to 8 STOCKS TO WATCH THAT ARE BUILDING NEW BULLISH BASE in our watchlist. These stocks are with double potentials to rally considering their current and oscillating mood of the market value.

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 oscillating market in the midst of earnings 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 due to profit taking instocks like Zenith Bank, Access Bank, Guaranty Trust Bank, UBA, FBNH, and ETI, among others. This impacted mildly on Year-To-Date loss, which increased to 2.40%. The decline in market capitalization also increased to N590.10bn, representing a 2.32% drop below its opening value for the year.

Bullish Sector Indices

The sectorial indexes were bullish, except for NSE Banking that closed 0.6% lower, while Insurance led the advancers after gaining 0.96%, followed by Oil/Gas.

Market breadth was positive, as advancers outnumbered decliners in the ratio of 23:16; with activities in volume and value terms were down as investors exchanged 252.57m shares worth N1.77bn, compared to the previous day’s 329.74m units valued at N2.06bn. Volume was boosted by trades in Access Bank, Transcorp, Fidelity Bank, Guaranty Trust Bank and Zenith Bank.

Prestige Assurance and Wema Bank were the best performing stocks, gaining 9.52% and 8.77% respectively, closing at N0.46 and 0.62 per share on market forces and the four kobo dividend by the latter’s directors. On the flip side, Consolidated Hallmark Insurance and University Press lost 9.09% and 8.55% respectively, closing at N0.30 and N1.17per share, on profit taking.

Market Outlook

We expect the mixed and positive trend to continue as investors continue reacting to the Q1 corporate earnings expected to hit the market this period besides the profit taking, even in the face of rising virus cases across the globe and high yields in fixed income space. We also expect continued portfolio realignments on the strength of earnings performance released so far, ahead of economic data like the 2021Q1 GDP report, and Purchasing Managers’ Index, among others.

Also, the market has moved out of its trading range, waiting to breakout the next resistance level of 39,412.15bps, while trading above the 14 and 20-Day Moving Average. Note that the market may discount the prospects of high cap companies and some blue chip stocks, ahead of their earnings reports.

However, the pullbacks offer bargain hunters and income investors fresh opportunities to reposition in high dividend yields and undervalued stocks, while looking out for quarterly numbers that would support recovery. This is based on the fact that the rising fixed income yields may not be enough to scare all investors away from the equity market.

Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the rising oil prices that have so far supported the economy and equity market, despite the seeming improvement in the fixed income yield which had remained at negative real rate of return due to the subsisting high inflation.

However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by 2020 full numbers and expected 2021 Q1 earnings reports, until the next MPC meeting in May.

The NSE’s index action and indicators are heading in the same direction on a low traded volume and positive buying sentiments in the midst of rising yield in bond and TB.

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

https://investdata.com.ng/expect-realignments-on-earnings-inflow-economic-data-as-ngxasi-awaits-next-resistance-level/