Your only ticket to safeguarding you against circumstances you can't control...

Ambrose Here Again,

To earn more, you must learn more. Brian Tracy

The above quote is not really new to me but it solidifies more of what you and I already know. That is, it is not really something strange to you.

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Dedicated to Your Financial Success,

Ambrose Omordion

BUY AND SELL SIGNAL


Hello Investors,

The, buy & sell signal for this week has 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. Low Priced Stocks to Watch
2. Stocks to lead recovery
3. Defensive Stocks
4. Dividend Stocks with Strong Yields and Fundamentals
5. Stocks to Benefit from Corona Virus-Induced Economic downturn and government Intervention
20 Stocks building new bullish base


However, you need to log in to the membership site before you can have access to it.

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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

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NGX Index Slip, As Investors Position Ahead Upcoming MPC Meeting, Q2 Earnings

Market Update for the Week Ended May 17 and Outlook for May 24-28
It was a bearish week, as the Nigerian Exchange Limited reversed previous week’s gains on selloffs in highly capitalized stocks, made worse by profit taking, just as investors and traders repositioned their portfolios on the strength of Q1 numbers and economic data. This is also coming ahead of the Central Bank of Nigeria (CBN) Monetary Policy Committee meeting, as well as month-end and the half-year earnings reporting season.

The downward trend came in the midst of high volatility, as the NGX All-Share index’s action broke down various support levels on a less than average traded volume as revealed by the volume pattern. The action and pattern exemplify the uncertain economic environment, given that one indicator can come out positive but deceptive, since it does not reflect overall economic realities.

Being the last trading week in the month of May, the market may oscillate, depending on the MPC meeting outcome.

But, technically, the market has given a sign of rebound on daily and weekly time frames, but is awaiting confirmation during Monday’s trading session.

The marginal drop in inflation rate is only reflected of a base effect, which in our view does not suggest in any way that inflationary pressure across the country is abating, notwithstanding the fact that the National Bureau of Statistics (NBS) attributes the slowdown in the April consumer price index of 18.12% from 18.17% in March to the dry season harvest.

In a state of stagflation, where economic growth is slow and inflation is high, despite the slight decline, members of the CBN MPC should not be in a hurry to hike rates amidst the nation’s rising insecurity level.

Also despite the equally 0.51%in marginal growth in 2021Q1 GDP, the MPC would likely holds rates on the back of this deceptive slowdown in inflation, given that the benchmark Monetary Policy Rate is currently disconnected from the rate environment, as with yields on treasuries and FGN bonds reflect the actual interest rate dynamics.

Movement Of NSEASI

The NGX All-Share Index opened the week lower after losing 0.44%, thereby halting Friday’s buying sentiments, a trend that was sustained on Tuesday when the composite index shed 0.72%. The selling sentiment persisted for the rest of the week as the benchmark index lost 1.48% by the midweek, just as the pullbacks continued on Thursday and Friday with the index shedding 0.30% and 0.01% respectively. These brought the week’s total loss to 2.93%, as against previous week’s 0.72% gain.

In all, the key performance index shed 1,157.82 basis points from the 39,481.89bps opening level, after touching intra-week low of 38,282.51bps, and high of 39,485.18bps, before closing the week at 38,324.07 on selloffs among high and medium cap stocks. During the period also, market capitalization lost N603bn, closing at N19.98tr, compared to the previous week’s N20.58tr, also representing a 2.93% depreciation in value.

Just as usual, low priced stocks and medium cap equities dominated the advancers table, as players continued to book profits and reposition their portfolios in expectation of stronger Q2 numbers. During the week also, the prices of Cadbury, Prestige Assurance and May & Baker were adjusted for the N0.18, N0.05 and N0.30 recommended by their directors respectively. Also, trading and price actions revealed the presence of sellers in four sectors that supported the bear-rampage.

The week recorded negative breadth as losers outpaced gainers in the ratio of 41:26 on selling pressure and relatively weak momentum, as Money Flow Index looked up to read 32.70bps, from the previous week’s 30.18 points

NSEASI WEEKLY CHART MOVEMENT

The NGX index action for the period under review caved in on selloffs and profit taking to form a double bottom on the weekly and daily charts in the midst of the selling sentiment and an ongoing portfolio repositioning on the strength of Q1 financials that beat market expectations, and high upside potentials. As economic data were below expectation

Going forward, all eyes are on MPC meeting and Q2 numbers in the face of rising fixed income yields. There is also an increased volatility rate in the midst of changing price patterns and trading environment, while discerning investors continue accumulating positions in undervalued and growth stocks.

Also, we note that the index’s candlestick formation on a weekly and daily charts are given signal or direction, so we have to wait for confirmation during Monday’s session, depending on market forces in the new week. We observe that volume traded was low, as the daily timeframe chart signals a top that needs confirmation also on Monday.

Nevertheless, we see the market reversing up, especially as investorsawait March year-end corporate earnings reports, just as the index continues trading below the 39,000 basis points.

The strong support level to watch out for on the NGX is within the 38,000bps and 38,282,51bps, and a breakdown of these levels will attract new positioning by traders and support stronger rebound. This is happening at a time crude oil is approaching the $70 per barrel level at the international market, as more economy are reopening to business activities while the Covid-19 vaccination is on a high gear at the global and domestic levels, despite few climates suffering the second wave hit of Covid-19. As positive economic data from US and China support oil prices.

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, the impact of the Money Flow Index and MACD are bearish on a weekly chart, but bullish on daily time frame.

Bearish Sectoral Indices

Performance indexes across the sectors were bearish, except for NGX Energy that closed 7.39% higher, while NGX Industrial goods led the decliners shedding 3.34%, followed by Banking, Insurance and Consumer Goods with 1.53%, 0.74% and 0.03% lower 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.

Activities in volume and value terms were up as stockbrokers transacted 1.05 billion shares worth N11.54 billion, compared to the previous week’s 840.55 million units valued at N9.56 billion. Volume was driven by trades in Financial Services,Conglomerates and ICT sectors, particularly Zenith Bank, FBNH, Fidelity Bank,Etranzact and Transcorp.

The best performing stocks for the week were Eterna andPrestige Assurance after gaining 21.21% and 15.22% respectively, closing at N8.00 and N0.53 each on impressive Q1 numbers and market forces. On the other hand, C & I Leasing and Royal Exchange lost 18.80% and 18.42% respectively, at N4.06and N0.62per share on poor payout of 5kobo and profit booking

Market Outlook

We expect the mixed trend to continue as portfolio rebalancing, profit taking and outcome of Monday and Tuesday MPC meeting, just as the economic data were below expectation and forecast in the face of rising fixed income market yields. Also, any pullback at this point offers new entry opportunities for traders and investors to reposition in value and underpriced growth stocks, while companies with March year-end accounts 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 July.

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 onComprehensive Stock Market trading video,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/ngx-index-slip-as-investors-position-ahead-upcoming-mpc-meeting-q2-earnings/

QUESTIONS AND ANSWERS ON STOCKS



Hello Investors and Traders,



I just posted Questions and Answers with Ambrose Omordion as of 22/05/2021.



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https://www.youtube.com/watch?v=fa0Isngo1m4



Ambrose Omordion

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Dedicated to Your Financial Freedom
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WORDS TO TRADE BY

"If you don't study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards."

―Peter Lynch

You wouldn't buy a car without looking at it and giving it a test drive, would you? Then why make a trade without knowing anything about the position you're entering?

You don't have to understand all the complicated charts and buzzwords that the talking heads toss around, but you do need to conduct your own research when looking at a potential trade.

Learn to use trend lines to find out if a bearish or bullish trend is developing. Figure out what people are saying about the particular stock, future, or option you're interested in. A little knowledge goes a long way when it comes to growing your wealth.

This is your hard-earned money. Don't treat it like a stack of poker chips at the blackjack table. Develop a strategy and learn everything you can before jumping into a trade!

Custodian Investment Gets SEC Nod To Acquire Minority Shares In UPDC


The board of Custodian Investment Plc, on Monday, informed stakeholders through the Nigerian Exchange Ltd that it has received approval from the nation’s Securities & Exchange Commission (SEC) to make a Mandatory Takeover (MTO) Offer to minority shareholders of UACN Property Development Company Plc (UPDC).

The commission, in its letter dated May 18, 2021, according to a filing by Adeyinka Jafojo, its company secretary, Custodian Investment is offering to purchase up to 35,415,332 ordinary shares of UPDC Plc, at 90 kobo each.

Qualification date for the offer is May 14, 2021, following which shareholders whose names appear on the register of members as of that date are eligible to participate.

Recall that in November last year, directors of UAC of Nigeria, the oldest conglomerate, following transferred a total of 8,519,810,121 units of UPDC, its subsidiary for N5.964bn.

The volume represented the balance of 45.9% of the paid up capital of the company, even as the deal involved the sale of UACN’s 9,465,584,668 ordinary shares in UPDC, representing 51% stake to Custodian in two tranches beginning with 946,558,467 units, representing 5.10% of the issued share capital of UPDC on execution of binding transaction agreements.

It would be recalled also that UPDC had successfully completed a ₦16bn rights issue to recapitalize in April, enabling UAC transfer its equity interest pro-rata to shareholders in what was tagged UPDC Unbundling.

As part of the plan, the rights issue was also to unbundle the UPDC REIT to shareholders, with the proceeds used to reduce the company’s borrowing costs and significantly improve capital position.

Commenting on the change of plan, Aiyesimoju recalled that while these initiatives were in progress, the board of UAC received a credible offer from Custodian, with terms juicy enough of to compel a re-evaluation of the planned deconsolidation of UPDC.

The offer influenced “the board’s decision to proceed with the sale of a portion of UAC’s interest in UPDC to Custodian, effectively putting an end to the UPDC Unbundling.”

Commenting on the deal, Oshin had expressed excitement “about the possibilities arising from this partnership with UAC which provides multiple levers for value creation.

“The rationale for the transaction is that Custodian and UAC share the view that their ambitions for capturing opportunities in the real estate industry will be better achieved working in partnership.”

Reversal Ahead, Amid Profit-Taking Slowdown, Selloffs, MPC Meeting Outcome


Market Update for May 24

Activities on the Nigerian Exchange on Monday was mixed and volatile, as the week opened on a negative note, thereby extending the previous week’s loss on mixed sentiments, amidst the divergence playing out even as the stronger earnings and weakening market. These indicate a better prospect for the equity market in the nearest future, considering the performance by companies a year ago and the numbers posted by them so far in 2021.

The better-than-expected earnings being witnessed are likely to continue in Q2 and Q3, influencing share prices positively due to the prevailing low Price to Earnings Ratio and the resultant high margin safety. Such expected improvements in corporate earnings will support higher dividend payouts and yields that will make the stock market an attractive window to hedge against inflation.

The seeming positive and weak economic data revealed slow recovery that call for well-articulated policies to boost economic recovery and activities that will drive national productivity and output.

Meanwhile, all eyes are on the outcome of the Monetary Policy Committee meeting to be announced Tuesday, with analysts expecting that rate will likely remain unchanged despite the deceptive slowdown in consumer price index for the month of April, and weak GDP growth of 0.51% in Q1 GDP 2021. This is given that the benchmark Monetary Policy Rate is currently disconnected from the rate environment, with yields on Treasury Bills and FGN bonds reflecting actual interest rate dynamics.

The current changing price pattern and trading environment call for change in investor perception and trading strategies to stay ahead of the market and be among the few who make money from equities’ trading as they up their games through regular learning. This is the advantage Investdata’s Comprehensive Stock Market trading videos and literature provides, as it covers fundamental and technical analyses that help you make effective and profitable trades.

Market players should, therefore, wait to confirm the new trend by focusing on the sectors with strong potential to grow their earnings performance and that have high upside price rally outlook. Here investors should target companies with earnings growth, quality and value that can match Investdata’s Earnings Gauges.

Monday’s trading opened on the upside and oscillated throughout the session on the strength of position and profit taking among the blue-chip stocks that pushed the NGX All-Share index to an intraday low of 38,287.53 basis points, from its highs of 38,382.35bps. Thereafter, it closed below the day’s opening level at 38,287.53bps.

Market technicals were weak and mixed, as volume traded was lower than the previous day in the midst of slight positive breadth and negative sentiment as revealed by Investdata’s Sentiments Report showing 100% ‘sell’ volume and 0%, watch position. Total transaction volume index stood at 53 points, just as the energy behind the day’s performance was relatively weak, as Money Flow Index looked up, reading 46.66pts, from the previous day’s 48.04pts, indicating that funds left the market.

Index and Market Caps

At the close of Monday’s trading the composite NGXASI shed 36.49bps, closing at 38,287.58bps from an opening figure of 38,324.07as representing a 0.10% drop, just as market capitalization fell by N19bn, closing at N19.96trillion, also representing a 0.10% in value loss.

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 downturn resulted from profit taking in Guaranty Trust Bank, UBA, Access Bank, ETI, Eterna, Wema Bank, Enamelware, AIICO, and Mutual Benefit, among others. This impacted negatively on Year-To-Date loss, increasing it to 4.92%, while the drop in market capitalization YTD increased to N1.63tr, representing a 6.30% drop below its opening value for the year.

Mixed Sector Indices

Performance indexes across the sectors were mixed, as the NGX Consumer Goods, Oil/Gas and Industrial goods closed 0.58%, 0.21% and 0.09% higher respectively, while NGX Insurance led the decliners after losing 0.75%, followed by Banking with 0.68% lower.

Market breadth turned slightly positive, as advancers outnumbered decliners in the ratio of 18:17; just as activities in volume and value terms were dropped by 19% and 44% respectively, as players exchanged to 141.15m shares worth N1.09bn, as against the previous day’s 174.3m units valued at N1.95bn. Trading was boosted by UACN Property, of which Custodian Investment announced approval by the Securities & Exchange Commission (SEC) to acquire the stake of minority shareholders at 90 kobo per share (READ MORE). Other stocks that attracted investors’ attention during the session were FBNH, Chams, Fidelity Bank, and Zenith Bank.

Royal Exchange and Regency Insurance were the best performing stocks, gaining 9.68% and 8.82%, while closing at N0.68 and N0.37 per share respectively on market forces. On the flipside, ABC Transport and Enamelware lost 9.76% and 9.75% respectively, closing at N0.37 and N16.20 per share, on profit taking.

Market Outlook

We expect a reversal, despite the ongoing profit taking and selloffs to slow down, in the midst of mixed sentiment and expected outcome of MPC meeting in the face of rising infection rate of the novel coronavirus across the globe and the high yields in the fixed income market. We also expect the ongoing vaccination to support global and domestic economic recovery that will support the market and give direction. The banking sector and others remains attractive on the back of the prevailing low prices, despite the Q1 mixed numbers.

Also, the market just started a new downtrend as it trades below the 14 and 20-Day Moving Average. Note that the market may discount the political and insecurity challenges headlines, ahead of half-year 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 Q1 earnings reports and expected march full year audited accounts.

The NGX’s index action and indicators are heading in the same direction on a low traded volume and mixed 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/reversal-ahead-amid-profit-taking-slowdown-selloffs-mpc-meeting-outcome/

OUTCOME OF THE 279TH MPC MEETING



The Committee at the end of its two days meeting decided by a unanimous vote to retain the Monetary Policy Rate (MPR).

In summary, the MPC voted to:

I. Retain the MPR at 11.5 percent;

II. Retain the asymmetric corridor of +100/-700 basis points around the MPR; 18 Classified as Confidential

III. Retain the CRR at 27.5 percent; and

IV. Retain the Liquidity Ratio at 30 percent.

The Impact of the just Concluded MPC Meeting on NGX

Ambrose Here Again,

I just posted The Impact of the just Concluded MPC Meeting on NGX that was held on Tuesday 25th May 2021. Although the monetary policy announced by the CBN governor did not really change. However, there a serious implication on your investment. So, if you are serious about getting the best out of your portfolio in 2021, login into the platform and watch the careful analysis immediately because it will help you to make the necessary decision and prepare for the earning season that is coming ahead.

However, you need to log in 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

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However, if you have not joined the buying and selling signal membership, kindly Call or Chat Admin on 08179547605, 08028164085 to indicate your interest in 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.

Notore, Shareholders, And The Wait For Returns On Investment


Ohis Ohiwerei, the new managing director and chief executive of Notore Chemical Industries Plc sure has his work cut out for him.

It is now clear that one of his major tasks in the company of which he became Deputy Managing Director on September 17, 2018, wherefrom he replaced Onajite Okoloko, the founding Group Managing Director and CEO January 31, 2021, is ensuring it emerges intact from the mire that has clogged its wheel over the past 16 years.


Ohiwerei
A banker and past executive director at Diamond Bank (now part of Access Bank Plc from 2005 to 2010) and Guaranty Trust Bank (between October 2011 and 2015), Ohiwerei also has the task of disentangling Notore from a mountain of debt that has weighed it down, preventing the once-promising company from meeting its obligations to expectant stakeholders.

Although no one is sure what his key performance indicators are, it is not out of place to expect that as helmsman of a company incorporated on November 30, 2005 and having a dismal dividend payment record, Ohiwerei must quickly turn the tide and put smiles on the faces of stakeholders, especially investors who pooled $152m for its acquisition and equity investors who have hoped for dividend payment, or even capital appreciation on the floor of the Nigerian Exchange Limited (NGX).

Poor RoI, Debt Overhang And Fresh Capital

Investdata Research records show that Notore Chemical whose shares were listed in August 2018, five years after the initially announced date of 2013, has only paid a miserly five kobo per share dividend in its history. Also, investors have also not enjoyed capital appreciation, with shares listed at N62.57 each, selling for N62.50 each as of Friday, May 14, 2021.

A January news report noted plans by Notore to raise fresh equity capital to pay off its huge debt, after its total borrowing soared from N79.9bn in 2019 to N108.3bn last year, due to new loans and Naira devaluation.

Of the N108bn loan, $38m (about N14.75b) is owed to African Export Import Bank at 12.7% interest rate repayable over a seven-year period, of which $5.1m is due within a year. There is also another $72.86m (N29.08bn) facility, out of which $5.85m is due this year – also at an interest rate of 12.7%.

These are besides the N16.79bn BOI-CBN loans obtained at concessionary rates of about 7%, as well as commercial bank loans totaling N44.46bn at 23% per annum, following which interest on loans is now the company’s biggest cost driver at N23.4bn in last year alone.

Promises Vs. Reality

Addressing members of the capital market community (investors, stockbrokers, regulators and the media), during the Facts behind its listing at the NGX three years ago, the management had announced in the short-term, approvals for a US$37m funding for a Turn Around Maintenance, purchase of critical spares, and acquisition/installation of back-up power. These, and the TAM billed for completion in the second quarter of 2019, were expected to ensure production reliability with the company projecting about N50bn in annual revenue target.


Okoloko
There was the plan to restore the plant’s daily production capacity to 1,500 metric tonnes, followed by an incremental production capacity and development of a 50 megawatts gas fired power plant. This was to enable Notore sell its excess power requirement to the national grid through the Nigerian Bulk Electricity Trading Plc (NBET).

Among others, the gathering was also assured that because of its brown field status, Notore will save reasonable costs on capital expenditure by leveraging on the existing infrastructure and utilities

As part of the medium term strategy, the announced plans to dredge Notore’s privately owned jetty in 2019, increasing its berth capacity from 15,000mt to 25,000mt vessels. Another icing on the cake was the plan to leverage on Notore’s Free zone developer status to develop an industrial complex into a gas hub, making it an integrated logistics service provider in the oil and gas sector.

Another attraction for potential investors at the time was the tax reliefs for import duties and export activities (specifically for export-oriented businesses).


All of these were expected to result in robust top and bottom lines that would enable the company to pay taxes and the board proposes a dividend to the ever expectant shareholders, in addition to capital appreciation for investors, among others.

Early Signs

In its audited financials for the year ended September 30, 2018, the first, post-listing, its external auditors- PricewaterhouseCoopers, after a review of the numbers, drew attention to the N2.01bn net loss, as well as the N9.11bn group net current liabilities. It concluded “that a material uncertainty exists that may cast significant doubt on the group and company’s ability to continue as a going concern.”

Specifically, revenue for that year dropped by N9.069bn, or 25.27% from N35.893bn in the corresponding period of 2017, to N26.823bn; while the cost of sales reduced from N25.461bn to N17.217bn, representing a decline of N8.244bn, or 32.38%.


Notore Chemical Complex
A tax rebate of N1.616bn reduced the loss after tax to N2.013bn, compared with the N8.652bn net profit, which arose entirely from the N10.8bn rebate in 2017. The net profit translated to a loss per share of N1.25, as against previous year’s N5.37 earnings per share.

However, as part of efforts to improve working capital and return the group to profitability, the company had noted management’s restructuring of short term loans amounting to N30.14bn and US$59.97m into fixed long-term facilities of seven-year maturities and 12-month moratorium on principal repayments.

Shareholders’ Speak

In a telephone interview, Sir Sunny Nwosu, National Coordinator emeritus of the Independent Shareholders Association of Nigeria (ISAN), and shareholder told Investdata News that Notore has not been fair to shareholders since becoming a publicly quoted company.


For him, “Notore has not done well by ensuring that there is Return on Investment for shareholders. Rather the management has been accumulating debts…. What is the reason for that? Are they not selling? Is it not fertilizer they are into again?

“There are only few fertilizer makers in this country, so what is the problem?

“We (shareholders) are not happy with them (Notore management)…

“And when they want to do their (annual) meetings, they take it to Bonny Island (Rivers State), and go with shareholders who protect them and will not ask critical questions.

“They make it (the meeting venue) like a military zone, such that if you are not one of those (friendly shareholders), you can’t access the meeting venue, a situation that is against the spirit of publicly quoted companies.

“We can understand now, that because of government regulations arising from the Coronavirus pandemic there is a restriction as per annual meetings, but before the outbreak, it was impossible to attend Notore annual meetings because of restrictions by the management.

“They put the meeting in a place where shareholders cannot easily go to and even if you go out of your way to attend, their security operatives will not allow you access. We have had such an experience. I had to call Jite (Okoloko, the immediate past chief executive on phone). But, I couldn’t reach him to tell him our people (gain access) to attend the meeting…”

Sir Nwosu hopes Ohiwerei is able to turn around the fortunes of the company. A yardstick to measure how well he has performed during his tour of duty, the shareholder rights advocate believes, is for the banker to ensure Notore makes enough revenue and profit “to pay dividend.”

He urged the new helmsman: “Be open to shareholders.”

These allegations were however debunked by a company source who craved anonymity, preferring our correspondent refer to past official communications (including notices of the two meetings so far held since its August 2018 listing) which were sent to Investdata News electronically on Tuesday.

For example, our source explained that Notore operates from Onne Complex and not Bonny as stated, assuring that at no time has any shareholder been denied access, or its AGMs militarized, stressing that Notore operating in line with the best of good corporate governance standards.


Shareholders at an annual general meeting
On the reported bid by the company to raise fresh capital, Sir Nwosu quips: “May be, those that they will coerce to buy the rights issue will be their friends who have in one way or another been benefitting from the company, whether it pays dividend or not.”

He challenged regulators to be more proactive and not turn attendance at annual general meetings into mere rituals, but take genuine feedbacks that can help them nip problems in the bud, rather than wait and become reactionary when the damage is done.

Also commenting, Alhaji Gbadebo Olatokunbo, shareholder activist, co-founder of the National Shareholders Solidarity Association, Nigeria’s premier shareholder rights group, founded in 1985, lamented the many companies on the long list of public companies listed on the Exchange not paying a dividend.


Olatokunbo
After a string of poor performance, he continued, these companies either get delisted voluntarily, or are pushed out by the exchange, with sanctions on the promoters of such ventures after defrauding investors.

In a response to a WhatsApp message by Investdata News, Olatokunbo wrote: “The list is very, very long. Many of them were shown the exit door by the Nigerian Stock Exchange (now Nigerian Exchange Limited), without any recourse or benefits to shareholders.

“Unfortunately, we (shareholders) relied on the approvals given by both Securities & Exchange Commission and the Nigerian Exchange for them to become quoted, before picking the stocks.

These companies, he continued, have not made investors happy over the years by non-payment of dividend, as investors suffer, while their boards and managements “collect their allowance and salaries, without spearing a thought for the plight of their shareholders, with no consequences in the form of warning or sanctions from any regulators.

On The Contrary

However, if there is one investor who has not lost hope in the company, it is Adebayo Adeleke, a shareholder activist and former General Secretary of ISAN.

Responding to any enquiry by Investdata News, Adeleke said he became a shareholder of Notore Chemicals “in January this year.”

It is not known whether his decision to add shares of Notore, a company he acknowledges, “has been passing through very turbulent times,” is a vote of confidence in the new CEO, given that the period coincided with Ohiwerei’s appointment as helmsman.

But Facts Don’t Lie

According to official information made available to Investdata News, Notore has since becoming a listed company had two AGMs, the first was on Tuesday, June 25, 2019, at the staff canteen of its industrial complex in Onne, Rivers State, wherein Ohewerei’s appointment as director was ratified.

The second, which held on August 17, 2020, at the company’s Lagos office on Victoria Island, was by proxy in line with the health advisory of the Nigerian Centre for Disease Control (NCDC) on physical distancing and restriction on mass gatherings, due to the COVID-19 pandemic.

As part of the special business at that meeting, the directors proposed an increase in authorized share capital from N1.0bn to N2.0bn by the creation of two billion new ordinary shares and amendment of the Memorandum and Articles of Association to reflect the increase, among others.

Shareholders at that meeting were expected to approve the company’s bid for fresh capital of up to N30bn “whether by way of a public offering, special placement, rights issue or any other method(s) or combination of methods as the board may deem fit, through the issuance of shares, convertible or nonconvertible securities, loan notes, bonds and/or any other instruments, whether as a standalone transaction or under a programme, and in such tranches and on such terms and conditions, including a book building or other process, as may be determined by the board,” subject to regulatory approval.

Keep Hope Alive

Giving his outlook for the rest of the financial year, in the half-year ended March 31, presented to the Nigerian Exchange Limited on April 30, 2021, Ohiwerei expressed confidence that Notore would “greatly exceed its 2020 FY production volumes, revenue, and operating cash flows.”

This, he said, follows the successful completion of the Turn Around Maintenance programme, which would result in significant improvement in plant reliability and sustained increase in production output up to nameplate design capacity of 500,000MT per annum.

His optimism is also based on the continued robust growth in Nigeria’s fertilizer demand, going by market dynamics, “considering the Federal Government’s strong and decisive policy focus on agriculture as one of the keys to unlock the diversification of the Nigerian economy.

“Our business has been faced with many challenges over the past years. However, Notore is now re-positioned for a great future with the completion of TAM. As we look to the future post-TAM, the next phase of Notore’s growth will be focused on diversification, optimization, and profitability,” Ohiwerei further assured.

Specifically, he said half-year revenues dropped to ₦5.25bn, from ₦13.12bn in Q2 2020, because the plant was shut down for the TAM, resulting in sparse production of Urea during the January-March quarter. Operating loss for the period, however improved to ₦0.82bn, from the previous ₦2.66bn, while finance cost of ₦8.45bn resulted in a Net Loss of ₦9.27bn for the period, compared to the previous ₦5.8bn loss. The TAM is expected to change the numbers going forward.

Going forward also, according to the GMD, “the company will continue to aggressively explore and work on various financial initiatives to further reduce finance cost, such as the restructuring of its capital structure to achieve an optimal mix of debt and equity.

“The projected cost savings from the restructuring is expected to boost the company’s profitability,” he stressed.

For Ohiwerei also, there is the continued robust growth in Nigeria’s fertilizer demand, based on market dynamics, “considering the Federal Government’s strong and decisive policy focus on agriculture as one of the keys to unlock the diversification of the Nigerian economy.

“Our business has been faced with many challenges over the past years. However, Notore is now re-positioned for a great future with the completion of TAM. As we look to the future post-TAM, the next phase of Notore’s growth will be focused on diversification, optimization, and profitability,” Ohiwerei further assured.

Last Line

Adeleke however believes in the capacity of Ohiwerei’s management team to successfully turnaround Notore’s fortune “in the next few quarters to come.”

Is Notore on the road to matching stakeholder expectations, especially returns on investment? Answer to this question is not blowing in the wind, and will come with the Q3 and full-year numbers.

However, there is a need for more stakeholder engagements, going forward, for a change in perception, a major driver of share pricing on any bourse, which remains a key component of capital appreciation.

Opening Pix: From left to right: Haruna Jalo-Waziri, Managing Director/CEO, Central Securities Clearing System (CSCS) Plc; Oscar Onyema, Chief Executive Officer, The Nigerian Stock Exchange (NSE); General (Dr.) Yakubu Gowon, then Chairman, Notore Chemical Industries Plc, and the immediate past Group Chief Executive, Onajite Paul Okoloko, during the Facts Behind the Listing at the Exchange on Thursday, August 2, 2018 (READ MORE).

https://investdata.com.ng/notore-shareholders-and-the-wait-for-returns-on-investment/

Investdata Daily Sentiment Report as of May 25th, 2021

NGX sell � MFI 46.22
Abc buy 0% volume index 5.33 MFI 61.85
Access buy 0% MFI 89.39
Chams buy � volume index 1.71 MFI 22.95
Chiplc buy � volume index 4.28 MFI 90.44
Courtville buy 0% MFI 62.03
Eterna buy � volume index 1.87 MFI 81.68
Fbnh buy � MFI 65.51
Fidelity buy � MFI 53.06
Honyflour buy 0% MFI 33.85
Jaiz buy 0% volume index 3.03 MFI 49.54
Jagold buy � MFI 27.70
Lvstk buy 0% MFI 43.10
Mansard buy � MFI 41.97
Mben buy 50% sell 50% volume index 1.06 MFI 56.01
Oando buy � MFI 28.29
Regalins buy � volume index 1.66 MFI 79.62
Royalex buy � volume index 1.24 MFI 88.71
Sovrenins buy � volume index 1.83 MFI 39.46
Sterling buy � volume index 1.67 MFI 43.30
Transcorp buy 0% MFI 48.52
Uacp buy 11% sell 89% volume index 9.41 MFI 48.66
Uacn buy 33% sell 67% MFI 73.75
Uba buy 0% MFI 42.08
Ucap buy � volume index 0.83 MFI 62.46
Unity buy 0% volume index 1.96 MFI 48.83
Wapco buy 0% MFI 40.67
Wapic buy 0% MFI 63.98
Wema buy 0% volume index 2.05 MFI 47.37
Zenith buy � MFI 78.38

Going...Going!!! Once Lost Cannot Be Found Again

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The Profit Point by OGTV as of 27th May 2021


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I just posted The Profit Point by OGTV as of 27/05/2021.

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Ambrose Omordion

WORDS TO TRADE BY

"Buy not on optimism, but on arithmetic."

―Benjamin Graham

You should never allow emotions to dominate your trading habits. And that even applies to optimism.
At the end of the day, feelings will let you down. Your emotions have no place in the market. If you don't control them, the market will feed on them and snatch the money right out of your wallet.

Trade on good analysis and math that makes sense. It doesn't have to be complicated. Just don't let your feelings do the trading. Use your mind and your natural abilities. They'll almost always guide you to success!

Honeywell Flour Grows Full-Year Profit By 73.07%, Offers N555.1m Dividend


After series of recent bad news it got enmeshed in, the board of Honeywell Flour Mills Plc, on Friday gave shareholders reason for cheer, when it released the audited financials for the full-year ended March 31, 2021, showing robust double digit growth in top and bottom-lines.

Most significant are the fact that net profit rose faster than revenue, with the directors proposing a dividend of N555.113m, translating to seven kobo per share, up from N317.207m, or four kobo each at the end of last year, for approval at the next annual general meeting.

The external auditors, Bakertily Nigeria, also drew attention to the company’s N60.48bn total bank loans facility, responsible for the N1.841bn or 43.55% jump in finance cost (interest on borrowings and overdraft), from N4.227bn to N6.069bn, up from N58.293bn, an amount it considered “a key audit matter because of its materiality on the company’s financial position as at 31 March 2021.”

Nonetheless, the auditors noted that “management has not identified a material uncertainty that may cast significant doubt on the entity’s ability to continue as a going concern,” following which none is disclosed in the financial statements.

According to the report, sale revenue for the period increased by 36% from N80.45bn in 2020 to N109.594bn; while cost of sales increased by N27.385bn or 41.13%, driven by raw and packaging materials consumed amounting to N82.662bn, up from N57.236bn. This left gross profit at N15.621bn, up from N13.861bn.

Other operating income during the period grew from N116.209m to N140.712m; selling and distribution expenses dropped from N6.035b

n to N5.543bn; even as general and administrative expenses stayed flat at N2.572bn from N2.444bn.

Operating profit rose from N5.497bn to N7.646bn; following which finance costs left profit before tax at N1.576bn, 24% better than the previous N1.27bn; while net profit grew by 73% to N1.125bn, compared to the previous year’s N650.492bn

https://investdata.com.ng/honeywell-flour-grows-full-year-profit-by-73-07-offers-n555-1m-dividend/

UBA Plc: Time To Boost Earnings Growth, Check Expenses, Improve Ratios

Rating: Buy
Current Market Price: N7.10

Loan to Deposit Ratio: 44.64%
Year High: N9.25
Year Low: N6.75
Fair Value: N11.26
Equity Analyst: Tunde Segun Jeariogbe

Key Investment Ratios

This report observed the first quarter financial performance indices of United Bank for Africa (UBA) for the period ended 31st March, 2021, compared them with similar figures released in the corresponding period of 2020 to establish growth and make projections where necessary.
We adjusted our valuation slightly below that of full-year to place traders on the safer side.
It is important to understand that our valuation, though conservative, is more appropriate for long-term investors, (five financial years). Despite this, we expect short-term traders to play within the technical trading gap.
Generally, the bank’s earnings stood at an average point above that of the comparable quarter, following which we commend the management for outperforming the economy.

Gross Earnings through the quarter stood at N155.44 billion, same as 5.62% above the N147.16 billion posted in its 2020 first quarter.
Interest Income dipped by a marginal 0.47% to N108.59 billion, as against N109.10 billion in the corresponding quarter.
Interest Expenses is currently valued at N34.20 billion, 21.70% below the N43.69 billion posted at the end of 2020Q1.
Operating Expenses is estimated at N59.60 billion, higher than N54.47 billion used through the 2020 first quarter by 9.41%.
Profit before Tax is estimated at N40.58 billion versus N32.72 billion in the comparable quarter of 2020.
After taking care of the Tax Expense, the management of UBA reported N38.15 billion as profit for the quarter, which is 26.76% higher than the N30.10 billion earned in the preceding Q1.

Sources: Company Data, NGX, investdata Research
At the end of the 2021 first quarter, the bank’s Total Assets was valued at N7.89 trillion, same as 24.27% above the N6.35 trillion stated in its 2020 first quarter.
Total Liabilities equally stood above comparable quarter by 24.25% to N7.12 trillion, versus N5.73 trillion at the end of 2020Q1.
Net Assets is valued at N762.37 billion, as against N612.63 billion posted at the end of the corresponding quarter.
Total Deposit received through the first months of 2021 is estimated at N6.16 trillion, which is 32.00% above N4.67 trillion recorded in 2020 first quarter.
Total Loans and Advances at the end of the 2021 first quarter stood at N2.75 trillion, 19.42% higher than the N2.30 trillion posted in the similar period of 2020.
See the above table for details:
Financial Strength/Solvency Ratios

Debt Ratio which compares Total Assets to Total Liabilities stood at 90.34%, as against the 90.35% reported in the corresponding quarter. It is important to note that the high debt ratio is typical of financial institutions.
Total Debt for the quarter can replicate equity in 9.35 times, as against 9.37 times in the corresponding quarter. As noted above, this is because of the deposit taking nature of the banks.
Equity Ratio which compares Equity to Total Assets stood at 9.66%, as against 9.65% in the corresponding quarter of last year.
Estimated Beta value for UBA as of this time this report was compiled, stood at 1.20x above market beta and industry average.

Pre-Tax Margin improved by 17.40% to stand at 26.11%, as against the 22.24% estimated at the end of 2020 first quarter.
Interest Expenses to Gross Earnings dropped by 25.87% to 22.01% against the previously estimated 29.69% in the corresponding quarter.
Return on Average Equity through the quarter was 5.00%, as against 4.91% in the 2020 first quarter.
See below table for detailed profitability ratios and comparison.


Operating Expenses for the period is estimated as 38.35% of the Gross Earnings figure, this is only 3.59% above the 37.02% achieved in the corresponding quarter of last year.
Gross Earnings is same as 1.97% of the Total Assets valuation at the end of the quarter, which is 15.00% below the 2.32% estimated in 2020.
It was equally established that 44.64% of the total deposits for the period was given out as loans, 9.53% below the 49.35% deposit recorded in loan and advances through the 2020 first quarter, which is below the 65% thresholds.

At the end of the quarter, N1.12 was earned on each share of UBA, which is higher than the N0.88 earned per share at the end of 2020 first quarter.
Our first quarter adjusted P/E Ratio stood at 1.52x, as against 1.69x in the corresponding quarter.
The above-mentioned EPS is same as a 16.41% yield on the Nigerian Exchange when the result was released to investors, a higher yield when compared to the 14.79% yield in the 2020 first quarter.
Estimated Book Value per share of UBA is currently N22.29, same as 24.44% above the N17.91 estimated at the end of 2020 first quarter.
Thus, Price to Book Value stood at 0.31x, as against the previous 0.33x, which simply implies that the stock is currently sold below its book value on the exchange

Valuation
While trying to place a fair value on each unit of UBA shares, we considered the average of two valuation models. FCFE Stable Growth Model valued the stock at N17.53 while H-Model placed the price at N4.99, due to lower dividend which depleted the income expectations from UBA in the number of projected years. We therefore arrived at an average value of N11.26 for each unit of its listed shares, following which we rated UBA shares a BUY.

https://investdata.com.ng/uba-plc-time-to-boost-earnings-growth-check-expenses-improve-ratios/

Questions and Answers with Ambrose Omordion as of 29th May 2021

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Sentiment Report for the Week Ended May 28, 2021

NGX buy 85% sell 15% MFI 32.81
Abc buy 0% volume index 3.34 MFI 42.01
Access buy 83% sell 17% MFI 36.11
Afrprud buy � MFI 20.22
Aiico buy 17% sell 83% MFI 72.28
Ardova buy � MFI 35.07
Bua buy 70% sell 30% MFI 44.75
Cadbury buy � volume index 0.85 MFI 25.34
Caverton buy 67% sell 33% MFI 48.75
Chams buy 0% volume index 1.97 MFI 26.87
Chiplc buy � volume index 3.07 MFI 84.04
Cileasing buy � MFI 66.92
Corner buy 0% MFI 45.24
Courtville buy � volume index 2.65 MFI 61.10
Cutix buy � MFI 29.43
Dangcem buy � MFI 58.70
Dangsugar buy 0% MFI 19.62
Eterna buy 60% sell 40% volume index 1.83 MFI 75.93
Eti buy 0% MFI 42.66
Fbnh buy � MFI 61.44
Fcmb buy � MFI 55.58
Fidelity buy 62% sell 38% volume index 0.93 MFI 24.47
Fmn buy 0% MFI 53.66
Ftn buy 20% sell 80% MFI 15.73
GT buy 0% volume index 0.72 MFI 41.41
Honyflour buy 67% sell 33% MFI 35.39
Jaiz buy 25% sell 75% volume index 0.79 MFI 24.10
Jagold buy � MFI 35.32
Lasaco buy 8% sell 92% MFI 60.91
Learn buy 75% sell 25% volume index 1.02 MFI 47.39
Lvstk buy 0% MFI 51.03
Mansard buy 75% sell 25% MFI 12.14
Maybaker buy 0% MFI 47.44
Mben buy � volume index 1.06 MFI 52.20
Mtnn buy � MFI 81.15
Nahco buy � MFI 38.85
Neimeth buy � MFI 29.52
Nem buy 57% sell 43% MFI 49.90
Nestle buy � volume index 1.04 MFI 19.99
Npf buy 93% sell 7% volume index 0.81 MFI 42.95
Oando buy � MFI 56.68
Presco buy 0% volume index 1.44 MFI 31.54
Prestige buy 75% sell 25% MFI 68.46
Red buy 0% volume index 0.70 MFI 32.13
Regalins buy � volume index 1.18 MFI 73.71
Royalex buy 86% sell 14% volume index 2.78 MFI 75.27
Seplat buy � MFI 90.37
Sovrenins buy 43% sell 57% volume index 2.97 MFI 61.71
Sterling buy 80% sell 20% volume index 1.25 MFI 51.87
Transcorp buy � MFI 39.41
Uacp buy 50% sell 50% volume index 2.85 MFI 54.63
Uacn buy 33% sell 67% volume index 1.60 MFI 87.27
Uba buy 33% sell 67% MFI 24.85
Ucap buy 76% sell 24% MFI 41.92
Unilever buy 0% MFI 13.44
Unity buy 0% MFI 98.64
Vitafoam buy 96% sell 4% volume index 1.48 MFI 60.82
Wapco buy 66% sell 34% MFI 30.54
Wapic buy � MFI 45.20
Wema buy 20% sell 80% MFI 6.25
Zenith buy 80% sell 20% MFI 45.33

Investdata Weekly Sentiment Report

Mixed Trends Ahead On NGX, Amid Portfolio Rebalancing, Profit Taking


Market Update for the Week Ended May 28 and Outlook for May 31- Jun 4

Over the past few weeks, the Nigerian equity market’s benchmark index NGX All-Share Index has been on the downtrend before consolidating in the week under review, resisting further decline on a low traded volume and mixed sentiments. This reflected low participation by institutional investors or players that are seemingly looking the way of the bond market due to recovery in yields in the fixed income space.

This was obvious on the key performance index which had witnessed deep pullbacks in the month of May, creating opportunities for discerning investors before Friday’s rebound on buying interests in highly capitalized stocks that control 70% of the market. The oscillating trend, so far in the month of May, besides being the result of the rising yields, was due to analysts and investors expectation of economic data to support the Q1 corporate earnings. The pullbacks were becoming a source of concern for active traders with trading momentum in the short term changing to reflect in the price patterns and candlesticks.

The ongoing divergence in earnings and stock prices, as witnessed lately, reveal the potential of the equity market to create wealth for discerning investors who take advantage of these pullbacks to position in undervalued stocks with a high possibility of beating their earnings forecasts. When earnings are going up and prices are coming down in a recovery market, such trend does not last before correction sets in.

The monthly NGXASI chart shows the biggest picture, with the market is set to change in June and rally sharply on slowdown in NTB rates, expected March year-end full-year audited results and half-year interim dividend/earnings season as players’ position ahead of actual reports in June and July. Usually, as prices move away from the bottom, a sharp recovery may take place initially after the bottom completes. Friday’s rebound or initial upward price trend often represents some of the strongest upward momentum after the bearish trend.

Movement Of NSEASI

It was another bearish week dominated by negative sentiments with the composite index recording losses in four of the five trading sessions, closing marginally lower after Friday rebound.

The NGXASI lost 0.14% to open the week, which was extended to Tuesday when the benchmark index fell by 0.08%, just as it also suffered a 0.06% and 0.46% dip on Wednesday and Thursday respectively. The trend was however halted on Friday when buying interest was rekindled, resulting in a 0.56% gain, bringing the week’s cumulative loss to 0.18%, as against previous week’s 2.93% gain.

Specifically, the NGXASI index shed 67.08 basis points from the 38,324.07bps it opened, after touching intra-week low of 37, 563.79bps, and a high of 38,382.35bps, before closing the week at 38,256.99bps on selloffs in bellwether and medium cap stocks. During the period also, market capitalization lost N35bn, closing at N19.94tr, from previous week’s N19.98tr, also representing a 0.18% loss in value.

During the week, low priced stocks and medium cap equities dominated the advancers table as usual, as profit booking and repositioning continued in expectation of Q2 numbers. Also, trading and price actions revealed the presence of buyers in two sectors that supported the sideways trading and Friday’s rebound.

The week recorded positive breadth as advancers outpaced decliners in the ratio of 31:29 on buying sentiment and relatively weak momentum, as Money Flow Index looked improved to 33.63bps, from the previous week’s 32.70 points.

NSEASI WEEKLY CHART MOVEMENT

The weekly NGX index action has formed a systematical tringle pattern that supports trend continuation and reversal. The bullish hammer and Doji also signal reversal on the weekly and daily charts in the midst of the buying sentiments and an ongoing portfolio repositioning on the strength of economic data and Q1 financials ahead of half-year results.

Going forward, all eyes are on oil prices, positive news and Q2 numbers in the face of rising fixed income yields. There is also an increased volatility in the midst of changing price patterns and trading environment, while discerning investors continue accumulating positions in undervalued and growth stocks.

Also, we note that the index’s candlestick formation on a weekly and daily charts are given signal or direction, so we have to wait for confirmation during Monday’s session, depending on market forces in the new week. We observe that volume traded was low, as the daily timeframe chart signals a top that needs confirmation also on Monday.

Nevertheless, we see the market reversing, especially as investors await March year-end corporate earnings reports, just as the index continues trading below the 39,000 basis points.

The strong support level to watch out for on the NGX is within the 38,000bps and 37,567.18bps, and a breakdown of these levels will attract new positioning by traders and support stronger rebound. This is happening at a time crude oil is approaching the $70 per barrel level at the international market, as more economies reopen for business activities, while the Covid-19 vaccines are on a high gear at the global and domestic levels, despite few climates suffering the second wave. We note that the positive economic data from the U.S and China support oil prices.

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, the impact of the Money Flow Index and MACD are bearish on a weekly chart, but bullish on daily time frame.

Mixed Sectoral Indices

Performance indexes across the sectors were bearish, except for the NGX Insurance and Oil/Gas that closed 1.01% and 0.85% higher respectively, while the NGX Banking led the decliners, losing 1.80%, followed by Industrial and Consumer Goods with 0.43% and 0.07% lower 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.

Transactions in volume and value terms were down as players traded 1.04bn shares worth N9.47bn, compared with the previous week’s 1.05bn units valued at N11.54bn. Volume was driven by trades in Zenith Bank, FBNH, Fidelity Bank, etranzact and Transcorp.

Regency Assurance and Consolidated Hallmark Insurance were the best performing stocks for the week after gaining 44.12% and 43.14% respectively, closing at N0.49 and N0.73 each on market forces and impressive Q1 numbers. On the other hand, ABC Transport and Academy Press lost 17.07% and 15.38% respectively, at N0.34 and N0.33per share on profit booking

Market Outlook

We expect the mixed trend to continue as portfolio rebalancing, profit taking and interpretation of economic data and corporate earnings, in the face of rising fixed income market yields. Also, any breakout at this point offers new entry opportunities for traders and investors to reposition in value and underpriced growth stocks, while companies with March year-end accounts 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 Q2 earnings reports, until the next MPC meeting in July.

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 Comprehensive Stock Market trading video, 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@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08179547605
https://investdata.com.ng/mixed-trends-ahead-on-ngx-amid-portfolio-rebalancing-profit-taking/

WORDS TO TRADE BY

"You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets."

―Peter Lynch

There are downsides to the market, like everything else in life. The market won't be bullish all the time.
There will be downturns and recessions.
And if you don't prepare yourself for that and understand that it's just temporary, you aren't ready to trade.
So keep going and weather the hard times. You'll be in an even better position when the markets rebound.

Sentiment Report for the month of May, 2021

NGX buy 38% sell 62% MFI 67.07
Abc buy 18% sell 82% volume index 2.89 MFI 81.97
Access buy 72% sell 28% volume index 0.97 MFI 64.44
Afrprud buy 65% sell 35% MFI 63.19
Aiico buy 36% sell 64% MFI 87.51
Airtel buy 0% MFI 98.97
Ardova buy � MFI 67.11
Berger buy 0% MFI 71.17
Bua buy 65% sell 35% MFI 72.41
Cadbury buy 0% MFI 60.99
Cap buy 0% volume index 0.73 MFI 42.97
Caverton buy 70% sell 30% MFI 55.26
Chams buy 50% sell 50% volume index 1.15 MFI 44.03
Chiplc buy 83% sell 17% volume index 2.27 MFI 58.51
Cileasing buy 83% sell 17% MFI 61.83
Conoil buy � volume index 0.84 MFI 61.10
Corner buy 33% sell 67% MFI 40.53
Courtville buy 20% sell 80% volume index 2.65 MFI 55.14
Custodian buy � MFI 31.52
Cutix buy 87% sell 13% MFI 60.35
Dangcem buy 65% sell 35% MFI 69.45
Dangsugar buy 11% sell 89% volume index 0.99 MFI 50.50
Eterna buy 76% sell 24% volume index 1.10 MFI 92.36
Eti buy 0% MFI 66.43
Fbnh buy 64% sell 36% volume index 0.70 MFI 50.58
Fcmb buy 74% sell 26% MFI 76.17
Fidelity buy 36% sell 64% volume index 1.09 MFI 52.17
Fmn buy 14% sell 86% MFI 56.41
Ftn buy 33% sell 67% MFI 75.09
Glaxo buy 0% volume index 0.84 MFI 66.79
GT buy 17% sell 83% MFI 53.84
Honyflour buy 69% sell 31% volume index 0.84 MFI 78.55
Jaiz buy 33% sell 67% volume index 0.83 MFI 37.46
Jberger buy 0% volume index 0.96 MFI 58.65
Lasaco buy 4% sell 96% MFI 68.86
Lawunion buy 0% MFI 76.59
Learn buy 75% sell 25% volume index 1.29 MFI 67.30
Linkass buy 35% sell 65% volume index 1.14 MFI 73.00
Lvstk buy 37% sell 63% volume index 1.24 MFI 57.86
Mansard buy 56% sell 44% volume index 0.87 MFI 40.45
Maybaker buy 13% sell 87% volume index 0.71 MFI 79.18
Mben buy 64% sell 36% volume index 1.12 MFI 76.25
Mtnn buy 17% sell 83% MFI 91.40
Nahco buy � MFI 70.39
Neimeth buy 5% sell 95% MFI 69.90
Nem buy 59% sell 41% volume index 1.79 MFI 27.61
Nestle buy 44% sell 56% MFI 69.72
Npf buy 6% sell 94% volume index 1.26 MFI 62.97
Oando buy 50% sell 50% MFI 61.71
Okomu buy 0% volume index 1.07 MFI 91.46
Presco buy 57% sell 43% volume index 1.82 MFI 71.19
Prestige buy 80% sell 20% MFI 57.41
Pz buy � volume index 0.85 MFI 48.88
Red buy 0% MFI 58.41
Regalins buy 80% sell 20% volume index 1.65 MFI 54.13
Royalex buy 69% sell 31% volume index 2.99 MFI 70.16
Seplat buy � volume index 1.42 MFI 86.52
Stanbic buy 20% sell 80% MFI 62.03
Sterling buy 62% sell 38% MFI 67.24
Total buy � volume index 2.48 MFI 69.59
Transcorp buy 67% sell 33% MFI 68.71
Uacp buy 62% sell 38% volume index 2.00 MFI 53.16
Uacn buy 71% sell 29% volume index volume 1.85 MFI 69.04
Uba buy 14% sell 86% MFI 55.57
Ubn buy 96% sell 4% MFI 27.68
Ucap buy 72% sell 28% volume index 0.96 MFI 86.98
Unilever buy 0% MFI 51.55
Unity buy 33% sell 67% MFI 96.75
Veritas buy 0% volume index 1.42 MFI 32.56
Vitafoam buy � volume index 1.60 MFI 79.60
Wapco buy 59% sell 41% volume index 0.74 MFI 67.01
Wapic buy 71% sell 29% MFI 62.91
Wema buy 29% sell 71% MFI 32.48
Zenith buy 63% sell 37% MFI 62.76

Investdata Monthly Sentiment Report

Mixed Indicators Ahead, As Investors Expect Data To Confirm State Of Economy


Market Roundup for May 2021

The month of May was a red one for Nigeria’s equity market, reversing the previous month’s gain, after the benchmark index caved in to sell pressure, amidst selloffs, profit taking and price corrections.

There was even the challenge of indecision among traders despite the better than expected corporate earnings in the midst of weak economic data and rising insecurity across the country, which has forced many countries to issue travel advisories for Nigeria.

The low traded volume and mixed sentiment during the month of May is a reflection of inactivity among institutional investors owing to the recovery in fixed income yields currently diverting funds from the stock market.

Given the outcome of the Monetary Policy Committee meeting at the of May, prevailing economic data and corporate earnings that are looking up, we envisage a reversal in trend as March year end accounts have started to hit the market, just as half year interim dividend/ earnings season is underway, besides the fact that oil price is trading around $70 per barrel.

Investdata Research projects that the Nigerian equity market’s benchmark All Share index would close the year 2021 on a positive note, despite the ongoing mix trend, because being a vaccine year with breakthroughs in Coronavirus pandemic. This is supporting economic recovery across different climates, as well as oil prices in the international market. The negative performance in the month is an opportunity for discerning investors and traders to position and build wealth.

Since investment or trade is against expectations, let your investment objectives guild your entry and exit decisions, just, as the market continues its mixed trend and performance into the last month of Q2 and ahead of the half year earnings season. We are still seeing big trends setting up over the next few weeks and months. The way certain assets and sectors are reacting right now may lead many investors to believe a breakout trend is setting up, which could be the case. The month of June has recorded mixed trends in the last five years, with three closing up and two down.

But, behind the scenes, sectors are starting to show signs of a broader recovery patterns that may surprise those who are not paying enough attention. Do not allow the oscillation to push you out of good position but take advantage of any pullback.

The candlestick pattern that represents the month’s trading activities fully consumed the pattern in the month of April, while technically forming a bearish gulf and at the same time a hammer candle that supports a reversal and uptrend. This is therefore signalingthe beginning of a short bull-run in the new month, depending on market forces

The NGX recorded 18 trading sessions during the month under review with 12 trading days of down market, and six of up market during the period, closing lower with the composite NGX All-Share index oscillating. The key performance index lost 1,396.54 basis points during the month, closing at 38,437.88bp after breaking down the strong support levels of 39,000bps and 38,646.43bps, from its 39,834.42bp opening level, representing 3.51% decline in the period.

The buying and selling volume of total transactions for the month were 38% and 62% respectively, halting the previous months’ up market, as volume index for the period stood at 0.66, while market capitalisation recorded N812bn loss at N20.04tr, from an opening value of N20.85tr, representing 3.90% loss also. The market had a mixed sentiments and indecision based on Q1 scorecards and economic data released, as investors and analysts continue to interpret the numbers. The month’s traded volume was down by 16.4% at 4.54 billion shares, from 5.43bn units in the previous month.

The NGX All-Share index’s year-to-date loss position stood at 4.55%, just as market capitalisation adjusted down to N1.02tr representing 4.85% loss YTD from the opening value.

The market breathe in the month of May was slightly negative as decliners outpaced advancers in the ratio of 53:50 to short-live the bull run in the month of April, reflecting the selloffs in high cap stocks, profit booking in medium and low priced equities. Also there was indecision among players, despite Q1 earnings reports were impressive and higher than market expectations, especially from sectors as Healthcare, Agro-Business, Industrial goods, Telecommunication, Energy, few from Banking and consumer goods. This is an indication that the current divergence in company earnings and share prices will not last.

Performance indexes across the sectors were mixed as shown in the chart below, NGX Industrial goods, NGX 30 and Premium stocks dragged the market down in the period under review, after losing 3.47%, 2.07% and 0.66% respectively to impact negatively on the benchmark NGX All Share Index.

These was attributed to price adjustment for dividend during the period, selloffs in one of the two sectors that control NGXASI and profit taking among the blue chip stocks. Despite the impressive numbers emanating from different companies and sectors to inspired discerning investors to rethink and position early ahead of year end, amidst the relatively low Price-To-Earnings attraction in the market. Other indexes that closed green during the month were: NGX Oil/Gas, Insurance, Banking, Pension and Consumer goods.


Source: NGX, Investdata Research
Best Performing Stocks for May

Low priced stocks, especially insurance companies topped the month’s best performers, as Consolidate Hallmark Insurance, Royal Exchange Assurance, and Regency Insurance continue to enjoy low price attractions and also benefit from recapitalization activities in its sector, in addition to the improved earnings from these companies, while the market still expects Q1 2021 results from others. The stocks closed the month higher, after gaining 69.23%, 37.74% and 36.36% on their opening prices for the month respectively. It was followed by Eterna, which chalked 26.67%; while Vitafoam grabbed 22.22%; and Union Bank of Nigeria, 21.43%. See the table below.


Source: NGX, Investdata Research
Worst Performing Stocks for May

The top losers in the month were insurance stocks also, led by Linkage Assurance, which shed 29.41%, on the back of price adjustment for dividend and bonus, just as market forces and mixed sentiment dragged SUNU Assurance down by 20.34%. Investors seem to be reacting to the company’s failure to release its numbers. BOC GAS declined by 18.96%; Academy Press, 17.50%; and NPF Microfinance, 10.22% on the back of market reaction to proposed primary activities.


Source: NGX, Investdata Research
Technical View on Monthly Time Frame

The NGX index action resisted further decline technically in the month of May, despite forming a bearish gulf, and at the same time bullish hammer candlestick that support reversal and uptrend depending on market forces in the new month. The expected buying interest and positive sentiment for portfolio adjustment and repositioning for Q2 numbers are likely to continue. The inflow to equity assets as revealed by money flow index supported the seeming reversal on smart money reposition their portfolios.

Where To Invest And Expectations For the Rest of Q2

The global economy and market remain mixed as vaccine driven economic recovery across climates continue, with the World Bank recently upgrading its economic growth outlook based on the ongoing vaccination and government polices at different level.

Back home, the seeming economic recovery and mixed indicators are likely to continue in the new month as we expect more economic data and developments to confirm the real state of the nation’s economy as implementation of the 2021 national budget continues. This will be helped by the CBN’s continued intervention in critical sectors to boost productivity needed to create employment and support recovery. Reasons for this are not far-fetched, given the impact of Covid 19 and insecurity in the system.

In June, we expect the release of May consumer price index (CPI) by the National Bureau of Statistics (NBS) that would likely show that inflation is rising further; just as the CBN’s Purchasing Managers Index (PMI) for May is equally expected in this June. The nation’s GDP is still on a weak recovery mode to reflect the true state of the economy.

As corporate earnings reporting season has been extended to May and June for the few March year-end accounts, the fundamentals of these earnings and dividend declaration will support the ongoing positive outlook in market. Also, we note that many high cap stocks have this month as their qualification and mark down dates, a situation that will keep the market oscillating, while at the same supporting recovery.

Traders and investors who understand the importance of combining fundaments and technical analysis in making investment decisions in the stock market should take this opportunity to position in some sectors for medium and short-term gains, especially the banking, telecom, Industrial, agribusiness and consumer goods after a carefully study of recent numbers being made available to the market.

What to expect in May and June

Release of more quarterly and full year earnings. Earnings from blue-chip companies may strengthen market fundamentals in May.
Continuation of oscillating trend of equity prices as a result of repositioning of portfolio along the line of positive numbers and profit taking. Also the second half of this year will likely be dominated by positive sentiment.
Market outlook for May is mixed but remain dicey, in line with popular saying that traders always “sell in May and come back in October,” which may not be applicable in the current trend of our market that has changed in the last five years. In the Nigerian market, the month of May has closed positively in 13 times over the 20 years. But with the impressive Q1 numbers so far; the oil price oscillating above $64 per barrel in the global market and the CBN intervening in the FX market to create stability.
The sustained low valuation in the market may trigger high demand for stocks as players realign their portfolios. However, there is need to invest wisely, using bids, offers and volume when taking decisions as a trader.

Managing risks and protecting capital at this point is very important, so you will determine when to buy or sell, by watching the stocks and the market, using technical analysis. Look for investdata daily sentiment timing report and home study video packs
Let numbers released by the companies guide your decision and time to stay in that position.
Full-year earnings reports of March year-end companies will start hitting the market this month until June.

As the market phase is changing, it is time to combine fundamentals and technical tools to take decision by knowing the support and resistant levels to reposition or exit any position. You must know the cycle it, or particular stocks therein are to successfully manage your trading and investment risk. For stocks that should be on your shopping list to buy in these seasonal changes as the year unfolds, sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

Get your home study pack and videos of the Comprehensive Stock Market Trading Course Videos, INVEST 2021 Investment opportunities Summit and ride with the current state of Nigeria’s stock market and economy, thereby ensuring that you invest and trade with knowledge.
Comprehensive Stock Market trading materials on stock Trading and Investing for Financial Independence, profitable trading and others are Available, you can play and watch on your mobile phone, laptop, desktop and TV set. Kindly call or send yes to 08028164086 or 08111811223.

https://investdata.com.ng/mixed-indicators-ahead-as-investors-expect-data-to-confirm-state-of-economy/

SELECTED STOCKS WITH STRONG SUPPORT LEVELS

No surprise today as the market continues down along its Tower Formation path. Momentum is increasing to the downside with the volume slightly on the rise… a classical steady trend.

The month of May has shown the overall NGX Index continues to drop to find its strong support Levels. For now, both the daily and weekly charts still support the view that some certain Price action of some selected stocks as shown below.

https://trwsb./2021/06/01/selected-stocks-with-strong-support-levels/

The Clock is Ticking. Happy New Month.

Ambrose Here Again,

In the quest to fulfill one's purpose in life, there are sets of step-by-step goals and objectives that one needs to put in place.

Some of them can be daily, weekly, monthly, quarterly, or annually. So, it depends on how they are been categorize.

Hence, let me ask you this question. Where currently are you in your 2021 financial goal settings, can you sincerely pat yourself for a job well done? That is, you should have minimally achieved 30% ROI by now

Less I forget, this New Month of happiness has arrived, get ready to gather all the treasure of blessings. help others by giving them smiles and happiness. Also, this month will bring a lot of change in your life precisely. This change will be as good as you are. Enjoy your new month with family, friends, and loved ones.

Happy New Month
Ambrose Omordion

Sentiment Report for June 1, 2021

NGX buy 31% sell 69% volume index 1.02 MFI 37.01
Access buy 50% sell 50% MFI 61.42
Afrprud buy 0% volume index 6.63 MFI 22.23
Aiico buy � MFI 26.75
Chiplc buy � volume index 1.26 MFI 95.75
Corner buy � MFI 46.55
Courtville buy � volume index 0.93 MFI 71.30
Dangsugar buy 0% volume index 0.76 MFI 19.86
Fbnh buy � MFI 70.85
Fcmb buy � volume index 2.65 MFI 36.26
Fidelity buy 0% MFI 40.94
Fmn buy � volume index 3.18 MFI 47.47
GT buy 0% MFI 25.55
Honyflour buy 0% MFI 59.49
Jaiz buy 67% sell 33% volume index 1.68 MFI 23.73
Jagold buy � volume index 1.63 MFI 56.44
Mben buy 29% sell 71% volume index 0.73 MFI 51.89
Regalins buy 0% volume index 1.49 MFI 93.93
Royalex buy � volume index 1.63 MFI 66.57
Sovrenins buy � MFI 54.97
Sterling buy � volume index 2.38 MFI 68.39
Transcorp buy 33% sell 67% volume index 1.07 MFI 62.38
Uacp buy � volume index 1.35 MFI 51.78
Uacn buy � volume index 0.93 MFI 80.67
Uba buy 0% volume index 0.91 MFI 47.77
Ubn buy 75% sell 25% volume index 2.72 MFI 63.19
Ucap buy 38% sell 62% volume index 4.28 MFI 33.52
Unilever buy 0% volume index 2.62 MFI 26.28
Upl buy � volume index 9.90 MFI 78.01
Vitafoam buy � volume index 2.79 MFI 76.21
Wapco buy 0% volume index 1.69 MFI 36.16
Wapic buy � volume index 1.93 MFI 52.91
Zenith buy 0% volume index 0.95 MFI 59.86

Investdata Daily Sentiment Report

Mindset Wisdom: Control

It's what you don't lose that count first. And that's closely followed by what you get to keep. 

We hear the same story time and time again. First,  the money gets made, and the profits are amazing. But then it’s all given back to the harsh maiden of the market.

It’s not because the money isn’t there to be made. It’s often due to good old-fashioned greed. Stops get pushed back. Targets get forgotten. That trade made N5000. Why not turn it into N50,000 or N500,,000?

These are the traps that snare 95% of the trading profit. Take what the market gives you and go about your business. Honor your stops and your risk/reward ratio. Don’t take that trade if you don’t feel good about it.

The ones you don’t take and the ones that you end up stopping out of are the ones that keep you on the path to consistent profits!

Expect Trend Reversal, profit Taking Slowdown Amidst Positive Earning, Falling Prices


Market Update for June 1

Trading for the month of June opened Tuesday, on mixed activities as it closed marginally lower, thereby extending the volatility of the previous month.

Investdata Research reveals that June performance over the last five years had been mixed, with three up market in 2016, 2017 and 2018, but down in 2019 and 2020.

The changing price pattern and trading environment, resulting from rising yields in the fixed income market among other factors have continue to influence activities in the equity space, despite the impressive corporate earnings and recovery oil prices in the international market. Also important is crude oil price currently hovering around the $70 per barrel region, which is expected to boost government spending and drive Nigeria’s weak economic recovery better than the Q1 GDP growth of 0.51% from last year Q4 of 0.11%.

However, Treasury Bills rates seem to be on a slight decline at the last auction, which if sustained may push funds into the equities segment, given that some investors and fund managers are hesitating to put their funds in stocks before now. The prevailing low price to earnings as a result of stronger corporate numbers and pullbacks ahead of the half year earnings season and interim dividend payment, presents huge opportunities for discerning investors and traders to build wealth.

It is interesting to note that sector rotation will continue in June, as sectors and companies benefiting from the inflationary pressure and rising yields that are likely to post better numbers when prices or rates continue to rise. The trading pattern we saw in the previous month may continue, given that many companies have June as mark down and payment dates, end of the quarter for fund managers window dressing, and repositioning of portfolios ahead of Q2 numbers and others.

This calls for a change in investor perception and trading strategies to stay ahead of the market, thereby ensuring that you are among the few who make money from equities’ trading, which is possible through regular learning of technical analysis and candlestick pattern. This is the advantage Investdata’s Comprehensive Stock Market trading videos and literature provides, as it covers fundamental and technical analyses that help you make effective and profitable trades.

Investors should, therefore, wait to confirm the new trend by focusing on the sectors with strong potential to grow their earnings performance and that have high upside price rally outlook. Here, investors should target companies with earnings growth, quality and value that can match Investdata’s Earnings Gauges.

Tuesday’s trading started slightly on the upside, but oscillated and pulled back in the afternoon on selloffs that dragged the composite NGX All-Share index to an intraday low of 38,3457.39 basis points, from its highs of 38,395.37bps. Thereafter, it closed slightly below its opening point at 38,414.37bps on a high traded volume.

Market technicals were positive and mixed, as volume traded was higher than previous day’s in the midst of positive breadth and mixed sentiment as revealed by Investdata’s Sentiments Report showing 69% ‘sell’ volume and 31% buy position. Total transaction volume index stood at 1.02 points, just as the momentum behind the day’s performance was relatively weak, even as Money Flow Index slide marginally to 37.01pts, from the previous day’s 38.14pts, indicating that funds left the market.

Index and Market Caps

At the end of Tuesday’s trading, the key performance index shed 23.51bps at 38,414.37bps from an opening figure of 38,457.39bps representing a 0.06% drop, just as market capitalization fell by N12.25bn, closing at N20.02tr from the opening value of N20.04tr, representing a 0.06% value loss.

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 driven by profit taking in Seplat, Zenith Bank, Lafarge Africa, Dangote Sugar, and Honeywell, among others. This impacted mildly on Year-To-Date loss, increasing it to 4.61%, while the drop in market capitalization YTD increased to N1.04tr, representing a 4.91% drop below its opening value for the year.

Bearish Sector Indices

Performance indexes across sectors were down, except for the NGX Insurance that closed 1.51% higher, while the NGX Energy led the decliners after losing 0.86%, followed by consumer goods, Banking and industrial goods with 0.27%, 0.13% and 0.06% lower respectively.

Market breadth was positive, as gainers outnumbered losers in the ratio of 19:17; while activities in volume and value terms were up, with investors trading to 274.85m shares worth N2.63bn. This volume was boosted by trades in United Capital, Veritas Insurance, Eterna, Zenith Bank and, Transcorp.

Morison Industry and Lafarge were the best performing stocks during the session, gaining 9.57% and 9.43%, closing at N1.03 and N0.58 per share respectively on market forces. On the flipside, Champion Breweries and John Holt lost 9.91% and 7.94% respectively, closing at N1.91 and N0.58 per share, on selloffs and profit taking.

Market Outlook

We expect a reversal in trend and slowdown in profit taking in the midst of positive earnings and falling prices in the face of the global economic and market recovery across and the high yields in the fixed income market. We also expect the ongoing vaccination to support global and domestic economic recovery that will support the market and give direction.

The banking sector and others remain attractive on the back of the prevailing low prices, despite the Q1 mixed numbers.

Also, the market just started a new downtrend as it trades below the 14 and 20-Day Moving Average. Note that the market may discount the political and insecurity challenges headlines, ahead of half-year 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 Q1 earnings reports and expected march full year audited accounts.

The NGX’s index action and indicators are heading in the same direction on a low traded volume and mixed 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-trend-reversal-profit-taking-slowdown-amidst-positive-earning-falling-prices/

Investors Await Confirmation Of NGX Index Mild Recovery, Low Volume


Market Update for June 2

Midweek’s trading on the nation’s equity market was mixed and volatile, with session closing slightly higher, thereby reversing previous day’s loss, as the composite index continued its see-saw movement on a low traded volume and amidst negative sentiments.

Despite the mixed performance on the exchange, the NGX index action broke out the recent resistance level of 38,457.18 on seeming buying interests in blue-chips that pushed the market up after Dangote Cement recorded 1.4% price appreciation. Volume analysis and price pattern for the session revealed indecision among the market players as they look forward to more economic data and positive information in the form of policy statements.

The undervalued state of the market and rising dividend yields have made equities more attractive, with most of the low-priced stocks outperforming the prevailing inflation rate, making equity space an irresistible hedge for investors against inflation. The low Price/Earnings ratio of the market, owing to the stronger corporate numbers, ahead of the half-year earnings season and interim dividend payments, presents huge opportunities for discerning investors and traders to build wealth.

It is interesting to note that sector rotation will continue in June, as sectors and companies benefiting from the inflationary pressure and rising yields may likely post better numbers. The trading pattern we saw in the previous month may continue, given that many companies have June as mark-down and payment dates, end of the quarter for fund managers window dressing, and repositioning of portfolios ahead of Q2 numbers and others.

This calls for a change in investor perception and trading strategies to stay ahead of the market, thereby ensuring that you are among the few who make money from equities’ trading, which is possible through regular learning of technical analysis and candlestick pattern. This is the advantage Investdata’s Comprehensive Stock Market trading videos and literature provides, as it covers fundamental and technical analyses that help you make effective and profitable trades.

Market players should, therefore, wait to confirm the new trend by focusing on the sectors with strong potential to grow their earnings performance and that have high upside price rally outlook. Here, investors should target companies with earnings growth, quality and value that can match Investdata’s Earnings Gauges.

Meanwhile, Wednesday’s trading opened slightly on the upside and oscillated throughout the session on positioning and profit taking that pushed the benchmark index to an intraday high of 38,488.30 basis points, from its lows of 38,370.69bps, before closing slightly above its opening level at 38,482.52bps.

Midweek’s market technicals were positive, but weak as volume traded was lower than previous day’s in the midst of breadth favoring the bears on high buying sentiment as revealed by Investdata’s Sentiments Report showing 95% ‘buy’ volume and 5% sell position. Total transaction volume index stood at 0.59 points, just as the energy behind the day’s performance was relatively weak, even as Money Flow Index looked down to 33.89pts, from the previous day’s 37.01pts, indicating that funds left the market, despite the up market.

Index and Market Caps

The NGX All Share index at the end of trading gained 68.15bps, closing at 38,482.52bps from an opening figure of 38,414.37bps representing a 0.18% up, just as market capitalization rose by N35.52bn, closing at N20.06tr from the opening value of N20.02tr, representing a 0.18% appreciation in value.

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.

Midweek’s upturn resulted from buying interest in Dangote Cement, Zenith Bank, UBA, Unilever, Africa Prudential, and Honeywell, among others. This impacted mildly on Year-To-Date loss, reducing it to 4.44%, while the drop in market capitalization YTD stood at N1.01tr, representing a 4.83% drop below its opening value for the year.

Mixed Sector Indices

Performance indexes across sectors were mixed, as the NGX Insurance, Industrial goods and Banking closed 0.76%, 0.50% and 0.02% higher respectively, while the NGX Consumer Goods led the decliners after shedding 0.16% followed by Oil/Gas that recorded 0.05% lower.

Market breadth turned negative, as decliners outpaced advancers in the ratio of 20:15; while transactions in volume and value terms dropped, as stockbrokers exchanged 156.91m shares worth N1.33bn, from the previous day 274.85m units valued at N2.63bn. Volume was driven by trades in Japaul Gold, FBNH, Transcorp, UACN and Fidelity Bank

University Press and Regency Insurance were the best performing stocks, gaining 9.38% and 8.16%, closing at N1.40 and N0.53 per share respectively on full year earnings expectation and market forces. On the flipside, Computer Warehouse Group and Ikeja Hotel lost 9.66% and 9.09% respectively, closing at N1.87 and N1.00 per share, on selloffs.

Market Outlook

We expect a mixed trend and slowdown in profit taking in the midst of positive earnings and falling prices in the face of the global economic and market recovery across and the high yields in the fixed income market. We also expect the ongoing vaccination to support global and domestic economic recovery that will support the market and give direction.

The banking sector and others remain attractive on the back of the prevailing low prices, despite the Q1 mixed numbers.

Also, the market just started a new downtrend as it trades below the 14 and 20-Day Moving Average. Note that the market may discount the political and insecurity challenges headlines, ahead of half-year 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 Q1 earnings reports and expected march full year audited accounts.

The NGX’s index action and indicators are heading in the same direction on a low traded volume and mixed 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/investors-await-confirmation-of-ngx-index-mild-recovery-low-volume/

Sentiment Report for June 2, 2021

NSEASI buy 95% sell 5% MFI 33.89
Afrprud buy 0% MFI 15.83
Chams buy 0% MFI 22.90
Courtville buy � MFI 68.59
Fbnh buy 50% sell 50% MFI 78.43
Fcmb buy � volume index 1.12 MFI 35.59
Fidelity buy 67% sell 33% MFI 30.40
Fidson buy � volume index 9.38 MFI 0.00
Ftn buy 0% volume index 0.84 MFI 5.67
GT buy � MFI 26.43
Honyflour buy 33% sell 67% MFI 66.44
Jagold buy 60% sell 40% volume index 3.42 MFI 35.52
Lvstk buy 0% volume index 2.13 MFI 49.17
Mansard buy � volume index 0.70 MFI 66.81
Mben buy 0% MFI 50.40
Nem buy � MFI 95.94
Sovrenins buy � volume index 1.15 MFI 58.36
Sterling buy � MFI 69.39
Transcorp buy 50% sell 50% volume index 0.76 MFI 52.53
Uacp buy 0% MFI 44.64
Uba buy � MFI 42.71
Ucap buy 0% volume index 0.87 MFI 34.55
Vitafoam buy 50% sell 50% volume index 1.46 MFI 69.51
Wapco buy 0% volume index 0.74 MFI 30.47
Wapic buy � volume index 1.67 MFI 63.24
Wema buy � volume index 0.73 MFI 37.92
Zenith buy 0% MFI 56.02

Investdata Daily Sentiment Report

5 Golden Rules to Follow When Trading Stock CFDs

The derivatives market is huge. It trades on more than 50 organised exchanges across the world, with North America and Asia Pacific being the biggest markets. It is estimated that the derivatives market is worth more than $1 quadrillion. Some analysts even believe that the size of the derivatives market is over 10 times the total GDP of the world.

Among financial derivatives, one of the most common are contracts for difference or CFDs. CFDs can be used to trade almost any financial asset, including stocks, and offer multiple benefits, such as high leverage, access to the global markets from a single platform, no shorting rules, and no day trading requirements.

Despite the multiple benefits, however, trading stock CFDs is not without its share of risks. So, here are 5 golden rules to follow when trading stock CFDs.

Invest in What You Know and Understand
Although taking the CFD route might seem less risky than trading stocks directly on exchanges, it is always a good idea to trade stocks that you are familiar with and understand what makes their value rise and fall. For this, you need to do your research. Find out what moves the stocks you are interested in.

Experienced traders track geo-political and economic factors, company earnings reports and world or domestic events that could help or hinder company/stock performance. Needless to say, it’s a good idea to stay abreast of financial news and events across the world.

When identifying which stocks to trade, it is useful to understand the difference between defensive and cyclical stocks. Defensive stocks usually belong to companies whose performance and profits remain comparatively less impacted by changes in economic conditions. Some examples of these companies are those that provide essential products and services, such as pharmaceuticals or food.

On the other hand, cyclical stocks belong to companies whose performance, and therefore, profits, are sensitive to changes in the economic conditions. Some examples of these stocks are real estate and automotive stocks. Once you know the difference, it becomes easier to track the economic and other news events that are likely to impact share price movements.

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Trading History, Volume & Volatility
A robust online trading platform that offers powerful technical analysis tools can help you review charts and other stock data to establish a stock’s historical performance. It could help you identify patterns in price movements, whether there is any seasonality effect and even predict future price movement.

Apart from historical price data, it is also important to keep track of trading volumes. Trading volume is an effective indicator of the health and strength of a stock. Volume, in this case, is measured in terms of the number of shares and futures contracts traded during a given timeframe. You can choose indicators that use volume data to look for patterns in stock performance, as well as the current interest for a specific stock in the market.

Understanding how volatile a stock tends to be can be very useful in identifying trading opportunities. While greater volatility means more trading opportunities, it also means higher risk. Traders looking at taking short-term positions, in the hope of earning quick profits, might prefer stocks that are more volatile.

Discipline vs Emotions
Traders are only human, which means that emotions could colour trading decisions. Emotions like fear, greed, overconfidence or lack of self-confidence could wreak havoc on trading decisions. The good news, however, is that there are plenty of tools that can help keep emotions at bay.

The first such tool is a trading plan. A trading plan gives you a clear idea of what, when, why, and how you should trade. It takes into account your trading goals, risk appetite and trading style. With a demo account, you can test your trading plan for efficacy before applying it to live markets. However, remember to stick to your plan, with discipline and patience, regardless of what your emotions tell you to do.

Another way to ensure that emotions do not play a role in your trading decisions is to use automated trading tools, such as Expert Advisors. With such tools, you determine all the parameters beforehand and the trading robots take care of entering and exiting positions based on these parameters. They are not subject to the human frailty of emotions.

Learn from Successful Traders
One thing that is true for life and for trading is that learning should never stop. Successful traders can teach us a lot of about trading through their books. On the other hand, access to an online trading community, where you can consult your more experienced peers, have your questions answered and even use copy-trade, can be a great way to learn and grow.

Discussion forums are also great for learning tips and tricks of the trade, quite literally. When you share with other traders, you also get to learn from their mistakes and gain insights into where you might be going wrong.

Risk Management
Although stock CFDs mean that you do not need to own the underlying asset, derivatives trading comes with its own share of risks. Regardless of the tradable asset or means of trading, risk management is a trader’s best friend. Some of the key ways to manage risks while trading stock CFDs are:

Agile & Diversified Portfolio
This essentially means that you not only ensure that you hedge your risks with either other tradable assets or stocks/indices, you are also quick to adapt your portfolio to the changing market conditions. Also, keep track of laggard performers among stocks and revise your portfolio accordingly.

Stop Loss & Take Profit
Set your stop loss and take profit levels before entering into any position. This can help limit losses or lock in profits, when the market moves in an unfavourable direction. These orders also ensure that you do not overtrade or under-trade, due to overconfidence, greed or fear.

Use Leverage Carefully
One of the biggest advantages of trading stock CFDs is that you can benefit from leverage. With leverage, you can gain a much larger exposure to the market than would be possible with only the amount in your trading account. However, while this can help you multiply your profit potential, it can also magnify potential losses. So, determine how much you can afford to lose in a single trade and choose your leverage accordingly.

As well as these fundamental risk strategies, keeping a trading journal to learn from your mistakes is always a good idea to grow as a trader. It helps you identify patterns and emotions so that you can improve on your trading decisions.

Which stock CFDs are you looking to trade? Tweet us at @Derivdotcom and share your experiences.

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Mindset Wisdom: Accept

It's not the market that's causing bad trades. And It's not your indicator. It's the simple nature of TRADING!

Let it go. The first step toward consistent profits comes when you accept the reality that losses will occur. Prices have a mind of their own at times. The institutions are at the wheel. The sooner you accept this, the more progress you'll make.

Look at the past, but don't stare. Accept what's happened. Move on.

Target tighter entries. Get the heck out of those losers you're hanging on to.

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Accept this truth, and start to enjoy trading!