Questions and Answers with Ambrose Omordion as at 10th July, 2021

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Ambrose Omordion

Sentiment Report for the Week Ended July 9, 2021

NGXASI buy 3% sell 97% volume index 0.79 MFI 52.46
Access buy 39% sell 61% volume index 0.80 MFI 51.48
Afrprud buy � volume index 1.21 MFI 39.74
Aiico buy � MFI 34.09
Berger buy 0% volume index 2.51 MFI 98.82
Cadbury buy � volume index 6.21 MFI 63.96
Caverton buy � MFI 58.38
Chams buy 0% volume index 2.45 MFI 31.58
Chiplc buy 56% sell 44% MFI 57.75
Corner buy � MFI 33.83
Courtville buy 50% sell 50% volume index 2.60 MFI 57.33
Custodian buy � volume index 5.21 MFI 91.17
Cutix buy � volume index 1.14 MFI 63.95
Dangcem buy � MFI 70.74
Dangsugar buy 36% sell 64% MFI 61.32
Eterna buy 21% sell 79% volume index 3.23 MFI 69.23
Eti buy � volume index 0.79 MFI 69.88
Fbnh buy 87% sell 13% volume index 0.87 MFI 53.88
Fcmb buy 0% volume index 1.01 MFI 72.23
Fidelity buy 50% sell 50% volume index 1.98 MFI 29.53
Fidson buy 70% sell 30% volume index 2.30 MFI 73.96
Fmn buy 94% sell 6% volume index 1.47 MFI 53.90
Ftn buy � MFI 16.29
Glaxo buy � MFI 32.28
GTCO buy 38% sell 62% MFI 43.72
Honyflour buy 94% sell 6% volume index 1.41 MFI 64.79
Jaiz buy � MFI 23.16
Jagold buy 75% sell 25% MFI 52.66
Learn buy � volume index 2.98 MFI 71.98
Linkass buy 0% MFI 86.65
Lvstk buy 95% sell 5% volume index 1.03 MFI 55.19
Mansard buy 0% MFI 52.25
Maybaker buy � volume index 0.79 MFI 45.06
Mben buy 0% MFI 46.15
Mtnn buy � MFI 87.25
Nahco buy 0% volume index 2.88 MFI 61.46
Nascon buy 0% volume index 1.14 MFI 25.95
Neimeth buy � MFI 37.09
Nem buy 0% MFI 47.70
Npf buy 0% MFI 29.19
Oando buy 75% sell 25% volume index 0.81 MFI 62.33
Presco buy 0% MFI 47.85
Prestige buy 29% sell 71% MFI 54.44
Pz buy � volume index 1.26 MFI 82.05
Red buy 0% volume index 2.24 MFI 49.37
Regalins buy 0% volume index 0.71 MFI 72.73
Royalex buy 0% MFI 32.12
Seplat buy � MFI 90.65
Sovrenins buy � volume index 1.39 MFI 39.22
Stanbic buy 0% volume index 1.12 MFI 41.29
Sterling buy 27% sell 73% volume index 1.56 MFI 35.37
Total buy � volume index 0.86 MFI 84.56
Transcorp buy 50% sell 50% volume index 0.76 MFI 65.91
Uacn buy 0% MFI 72.08
Uba buy 36% sell 64% volume index 0.85 MFI 66.76
Ubn buy � MFI 58.07
Ucap buy 33% sell 67% MFI 64.67
Unity buy 57% sell 43% MFI 60.20
Upl buy 0% volume index 2.32 MFI 57.74
Vitafoam buy 50% sell 50% volume index 1.06 MFI 83.15
Wapco buy � MFI 50.02
Wapic buy � volume index 1.08 MFI 49.32
Wema buy 56% sell 44% volume index 1.32 MFI 56.93
Zenith buy 95% sell 5% volume index 0.72 MFI 64.11

Investdata Weekly Sentiment Report

It's My Birthday [Your Gift Inside]

Ambrose Here Again,

Yesterday was a rainy day and showers of blessing on us all especially me because tomorrow, I will be adding another year. Apart from that, my team got me a very big Chocolate-embedded-Strawberry Cake to celebrate my birthday. Sincerely, I appreciate each of their efforts and I will give them their own share of the cake and drinks on Monday. However, I don't want you to be left out.

So, I want to celebrate and share it with everyone at InvestData Consulting Platform.

As a result, the only justified and impactable gift is knowledge, which nobody on this earth can take away from you. I have discussed with my team and they have agreed to give you a special OFFER on all Training Videos. The offer is known as Ambrose Happy Birthday Bundle (This is a 35% off on all our products) . It is a first of its kind. This is my own way of sharing an unforgettable gift with you. So, find them below and to make this easy for you, I have helped you remove the 35% off already so as not to stress you at all. They are :

1.Mastering Earnings Season for profitable trading and investing Training Videos + plus PDF N6500

2. Your Strategies for Profitable Investment in Changing Market Dynamics and Recession Training Videos + PDF N6500

3. Buy and Sell Premium Membership for Maximum Profit in either Bull or Bear Market.
*3 months- 11,700
6 months-19,500
12 months-32500

4. Beyond Technical Analysis and Fundamental Analysis N6500

5 Comprehensive Stock Market Training Videos. N65000

Select your preferred product and pay into our Zenith bank account number 1013033032. After Payment please send the details of your payment including name, email address, and phone number to 08028164085 before it ends on Monday 12th July, 2021 11:59pm

Or call Admin on 08028164085, +2348179547605.

Best,
Ambrose Omordion

P.S. Like I said earlier, it is my birthday week. That is, after Monday 12th July 2021, you won't have access to this Special offer again.

Mixed Sessions Ahead On H1 Earnings, Dividend News, Inflation Index, MPC Meeting


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

The first full trading week of the month of July, which also ushered in the third quarter and earnings reporting season on the Nigerian Exchange had a mixed trend, closing the period marginally lower on an above-average traded volume. As a result, the market halted previous weeks of bull-run as low-priced stocks hit new highs, amidst profit-taking on blue-chip companies and selloff among the highly-priced equities, all of which slowed down the recovery move.

During the week, market participants continued to rebalance their portfolios ahead of the earnings season that kicked off with Infinity Trust Mortgage Bank presenting impressive numbers that may be giving an insight into what the half-year score-cards could look like. Besides all eyes already fixed on Q2 corporate earnings, there are also expectations for economic data and the July meeting of the Central Bank of Nigeria’s Money Policy Committee.

The continued notification of closed period and board meetings by directors of quoted companies for approval of their half-year financials may have triggered buying interests across sectors, including value and growth stocks of dividend-paying equities. We note also that the March year-end accounts may already be pointing the direction as to what investors should expect from the larger market, going forward. The summary is that some of these companies grew their payout while some had a dividend cut to reflect their performance for the financial year ended March 31, 2021, just as low priced stocks like Cutix, Learn Africa and UPDC Plc are trading on new 52-week highs.

The global economy and markets remain mixed despite the vaccination-driven economic recovery across climates, even as the World Bank has upgraded its economic growth outlook based on the ongoing vaccination, reopening of economies, and government policies at different levels. The developed markets during the week rebounded after early selloffs on strong economic outlooks and recovery.

Back home, the nation’s equity market suffered a setback on profit-taking and selloffs among the highly capitalized stocks ahead of earnings expectation in the midst of seeming economic recovery and oscillating oil prices above the national budget benchmark of $45 that had supported government expenditure and reflected for the first time in the nation external reserve after 11 weeks of decline. Implementation of the 2021 national budget continues, with a supplementary budget of over N900 billion underway. These will be helped by the CBN’s continued intervention in critical sectors to boost productivity needed to create employment and support the supply side and check inflation.

In the new week, we expect the release of the June consumer price index (CPI) by the National Bureau of Statistics (NBS) that would likely show a reversal in the inflation trend; just as the CBN’s Purchasing Managers Index (PMI) for June is not out yet.

Already, corporate actions and earnings reporting season have been extended to July and August for December, March, April, and May year-end accounts, the fundamentals of these earnings and dividend declaration will support the ongoing positive sentiment in the market. Also, we note that some high and low-priced 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. During the week, the share prices of Fidson Healthcare, Presco, and Conoil were adjusted for dividends recommended by their board of directors.

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. They include the banking, telecom, industrial, agribusiness, real estate, construction, and consumer goods sectors, after a careful study of economic recovery and sectors that had supported the weak recovery which is likely to influence the performance of the companies in that industry and the market.

Movement Of NSEASI

NGX action index had a mixed performance last week with three sessions of upmarket and two trading days of losses, thereby short-living the bull transition of the previous week, as high-priced stocks like Airtel Africa and others suffered losses. This depressed the market and changed the trend on a daily time frame.

Trading opened the week on a positive note Monday when the index gained 0.04%, a situation that was sustained on Tuesday and midweek as the NGX index closed 0.52% and 0.22% higher respectively. The index, however, pulled back on Thursday and Friday when the index shed 0.08% and, then 1.24% respectively, which was enough to wipe out the gains recorded earlier in the week. These brought total loss for the period to 0.57%, as against the previous week’s 1.47% gain.

Consequently, the key performance NGX index lost 217.82 basis points, closing at 37,994.19bps from after opening at 38,212.01bps, touching an intra-week low of 37,980.21bps from its highs of 38,501.31bps on selloffs in high cap and profit booking among the blue-chip stocks. Also, NGX market capitalization dropped by N12.74bn to N19.8tr, compared to the previous week’s N19.92tr, which also represented a 0.62% depreciation in value.

The weekly advancers’ table was dominated by low cap stocks, in the midst of selloffs for portfolio repositioning and balancing ahead of earnings expectations as investors continue to study trend and the changing environment. Price actions reveal the presence of sellers in the market, a situation that did not impact negatively on the sectorial indexes, four of which closed higher, while the consumer goods index was marginally down.

Also, during the week, UACN Property Development Company, officially changed its name to UPDC Plc with the trading symbol of UPDC, following the acquisition of a majority 51% stake by Custodian Investment Plc.

The seeming negative outing for the week did not reflect on market breadth, as gainers outnumbered losers in the ratio of 44:22 on 97% selling volume and 3% buy position, just as Money Flow Index looked down, reading 52.46bps from the previous week’s 52.84 points. This is an indication that funds exited equity space on profit-taking.

NGXASI WEEKLY CHART MOVEMENT

NGX index action has formed a rectangle chart pattern of consolidation on a weekly time frame, with candlestick formation yet to confirm direction at the end of the period under review, after forming a double bottom that supports a continuation of trend and reversal, ahead of Q2 financials. Already the daily chart has confirmed a change in trend, following which all eyes are on Monday’s trading.

Bullish Sectoral Indices

Performance indexes across the sectors were bullish, except for NGX Consumer goods that closed lower by 0.12%, while NGX Oil/Gas led the advancers after recording 6.35% higher, followed by Banking, Industrial goods, and Insurance indexes with 3.29%, 0.19%, and 0.17% respectively up,

Activates in volume and value terms were mixed as investors exchanged 1.35bn shares worth N12.14bn, compared to the previous week’s 1.02bn units valued at N14.15bn, with volume driven by trades in Financial Services, ICT industry, and Conglomerates particularly Fidelity Bank, FBNH, Zenith Bank, Chams, and Transcorp.

UPDC Plc and Cutix were the best-performing stocks for the week after gaining 40% and 21% respectively, closing at N1.21 and N3.63 per share on market forces and full-year earnings expectations. On the other hand, Redstar Express and Eterna lost 15.26% and 14.80% respectively, at N3.11and N6.39 per share, on profit-taking.

Market Outlook

We expect a mixed performance on more earnings expectation and profit-taking, as bargain hunting and accumulation of dividend-paying stocks to realign their portfolio, with all eyes on the June consumer price index in the week ahead of the MPC meeting, just as fixed income market yields are slowing down due to bearish trend in the market.

Any breakout at this point offers new entry opportunities for traders and investors to reposition in value-laden underpriced growth stocks, while the just-concluded March year-end accounts audited full-year numbers submission has supported the recovery. This is based on the fact that 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 ahead of interim dividend announcement. This is especially given that despite the seeming improvements, fixed income yield continues to offer a negative real rate of return due to the 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.

Meanwhile, the home study packs on Comprehensive Stock Market trading course 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 and 08179547605 now.

https://investdata.com.ng/mixed-sessions-ahead-on-h1-earnings-dividend-news-inflation-index-mpc-meeting/

Sentiment Report for July 12, 2021

NGXASI buy 4% sell 96% volume index 0.84 MFI 53.21
Access buy 0% volume index 0.73 MFI 75.10
Afrprud buy � volume index 1.13 MFI 34.72
Bua buy 0% volume index 1.36 MFI 100.00
Caverton buy 0% volume index 1.78 MFI 100.00
Courtville buy � volume index 0.81 MFI 53.66
Eterna buy � volume index 0.84 MFI 20.59
Fbnh buy 0% MFI 72.45
Fidelity buy 25% sell 75% MFI 62.17
Fmn buy � volume index 0.72 MFI 59.19
Ftn buy � volume index 1.58 MFI 71.23
Glaxo buy 0% volume index 0.86 MFI 36.02
GTCO buy 0% MFI 37.90
Honyflour buy 67% sell 33% volume index 0.78 MFI 57.88
Jaiz buy � volume index 0.87 MFI 34.44
Jagold buy � volume index 0.72 MFI 55.10
Lvstk buy � volume index 2.05 MFI 35.44
Mansard buy 0% MFI 66.94
Mben buy � volume index 2.15 MFI 59.89
Mtnn buy 0% volume index 3.27 MFI 39.99
Oando buy � MFI 71.61
Sovrenins buy � volume index 1.80 MFI 78.81
Sterling buy 0% MFI 70.35
Transcorp buy � volume index 1.22 MFI 53.63
Uba buy � volume index 1.58 MFI 70.94
Ucap buy � volume index 0.95 MFI 41.44
Wema buy � MFI 73.02
Zenith buy 29% sell 71% volume index 1.95 MFI 64.25

Investdata Daily Sentiment Report

Thank You, Till This Time Next Year

Ambrose Here,

Since Saturday, we've been celebrating...

Unless I alert you that this is your absolute LAST and FINAL chance to get it.

So...

If you've been putting this off then here it is...

Your last and final chance...

I know you will say: YES! I'm going to CLICK the link BELOW now because it is my LAST Chance to Celebrate with Ambrose Omordion Before the Doors Close For Good today by 11:59 pm 12/07/2020!

Thereafter, it's next year.
If you are still interested, make your choice below.

1.Mastering Earnings Season for profitable trading and investing Training Videos + plus PDF N14,000

2. Your Strategies for Profitable Investment in Changing Market Dynamics and Recession Training Videos + PDF N6500

3. Buy and Sell Premium Membership for Maximum Profit in either Bull or Bear Market.
3 months-11,900
6 months-19,500
12 months-32500

4. Beyond Technical Analysis and Fundamental Analysis N6500

5 Comprehensive Stock Market Training Videos. N65000

Select your preferred product and pay into Zenith Bank 1013033032. After Payment Send the details of your payment including name, email address, and product to 08028164085 before it ends on Monday 12th July 2021 at 11:59 pm

Or call Admin on 08028164085, +2348179547605.

Best,
Ambrose Omordion

Sentiment Report for July 13, 2021

NGXASI buy 30% sell 70% volume index 0.89 MFI 53.40
Access buy � volume index 0.72 MFI 80.71
Cadbury buy � volume index 6.40 MFI 63.83
Caverton buy � volume index 2.62 MFI 78.08
Courtville buy � MFI 54.39
Fbnh buy 0% MFI 73.52
Fidelity buy 33% sell 67% volume index 0.99 MFI 55.65
Fmn buy � MFI 54.45
Ftn buy � volume index 1.57 MFI 73.74
GTCO buy 0% volume index 2.23 MFI 31.65
Jaiz buy 0% MFI 35.40
Lvstk buy � MFI 33.67
Mansard buy 0% MFI 66.60
Prestige buy � volume index 1.22 MFI 76.25
Pz buy � volume index 0.83 MFI 69.42
Sterling buy � MFI 80.05
Transcorp buy � volume index 0.98 MFI 62.24
Uacn buy � volume index 0.89 MFI 68.89
Uba buy 50% sell 50% volume index 1.06 MFI 75.20
Ucap buy 20% sell 80% volume index 1.44 MFI 33.10
Unity buy 0% volume index 1.88 MFI 20.43
Wema buy � volume index 3.64 MFI 78.65
Zenith buy 0% MFI 73.15

Investdata Daily Sentiment Report

Reversal Ahead On NGX, Amid Profit-taking, As Investors Await Q2 Earnings Release


Market Update for July 13

The mixed sentiment, as well as the wait-and-see attitude of players on the Nigerian Exchange, continued on Tuesday with the composite All-Share index closing flat on the positive breadth and low traded volume to resist decline, while all eyes remain fixed on the expected corporate earnings and economic data.

An earnings season that could be massively profitable is here as more numbers start hitting the market again, while sectors and stocks that have historically reacted with at least 10% moves up or down over the past decade are preparing to make their numbers available to investors any moment from now. As such, investors and traders should not jump out of fundamentally sound stocks with positive technical charts base and patterns.

The prevailing mixed sentiments and NGX index action divergence with the indicators on a low traded volume are signals that reversal is imminent, knowing the power of volume in price or index movement is very important at this point. Also, the volume drying up ahead of strong support at 37,804.17 basis points indicates the dearth of supply, as the index resists a breakdown of this strong support of 37,857.27bps with the money flow index inching up to indicate the entrance of funds into the market.

We know that corporate and analyst forecasts are made to be beaten. In fact, many analysts have typically increased estimates for Q2 numbers while companies are forecasting higher earnings in Q3, even as higher-than-expected earnings will make stocks cheaper. At the moment, the market’s Price-to-Earnings ratio, just like those of many companies, is trading below 18 times of their earnings. In an environment of relatively low interest and high inflation, stocks historically, tend to move higher on earnings performance.

To navigate the month’s profitably, order for Investdata video title: Stock Market Analysis Beyond Fundamentals and Technical Analysis to enhance trading decisions and boost your bottom line. Also, to up your game in stock trading and investing, checkout the video materials below.

Tuesday trading started slightly in the green before oscillating to sustain the negative trend on positon taking and selloffs among high cap stocks that pushed the benchmark index to an intraday low of 37,846.94 basis points from its highs of 37,881.58bps, and thereafter closed slightly below its opening point of 37,857.24bps.

Market technicals were weak and mixed, with volume traded slightly higher than the previous day’s, in the midst of positive breadth and mixed sentiments as revealed by Investdata’s Sentiments Report showing 70% ‘sell’ volume and 30% buy position. The total transaction volume index stood at 0.89 points, just as the impetus behind the day’s performance was relatively strong, as seen in the 53.40pts Money Flow Index, compared to the previous day’s 53.21pts, indicating that funds enter the market, despite closing flat.

Index and Market Caps

At the close of trading on Tuesday, the NGX All Share Index dropped marginally by 0.65 basis points, closing at 37,857.24bps, from an opening level of 38,857.89bps, representing a 0.002% drop, just as market capitalization lost N340m, closing at N19.72tr, from its opening value of N19.72tr, representing a 0.002% value loss.

Attention: If you have not signed up for INVESTDATA buy and sell signal setup, don’t delay, because the number of stocks entering their buy range has just increased to 24 as they build a new bullish base and positive chart patterns to be on our watchlist. These stocks are with double potentials to rally considering their earnings prospect and oscillating mood of the market at this earnings season.

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The session’s downturn was due to profit-taking and indecision among traders in stocks like GTCO, Zenith Bank, FBNH, UCAP, PZ Cussons, and FCMB, among others. This impacted mildly on Year-To-Date loss, increasing it to 5.99%, while the drop in market capitalization YTD inched up to N1.84tr, representing a 6.45% drop from its opening value for the year.

Mixed Sector Indices

Performance indexes across sectors were mixed, as NGX Oil/Gas and Insurance were down by 0.04% and 0.01% respectively, while NGX Banking index led the advancers, after gaining 0.37%, followed by Consumer with 0.31% higher, while NGX Industrial goods closed flat.

Market breadth remained positive with gainers outnumbering losers in the ratio of 17:13, while activities in volume and value terms were mixed after investors exchanged 197.28 million shares worth N1.92bn, with volume driven by trades in Wema Bank, GTCO. UPDC, Fidelity Bank, and UBA.

NCR and WemaBank were the best-performing stocks, gaining 9.64% and 9.46%, closing at N2.73 and N0.81 per share respectively on market forces and earnings expectation. On the flipside, Ikeja Hotel and Custodian Investment Plc lost 9.09% and 6.15% respectively, closing at N1.40 and N6.10per share, on profit-taking.

Market Outlook

We expect a reversal or breakdown depending on market forces today, as profit-taking and renew buying interests continued ahead of the release of more Q2 numbers any moment from now, amid the declining volume and divergence that supports an uptrend while smart money takes advantage of pullbacks to reposition ahead of earnings and economic data expectations. It is noteworthy that oil price continues its recovery at the international market, even as corporate actions and interim dividend possibilities around the corner.

We note also that some stocks are trading within their buy ranges to become more attractive at this point for income investors and traders, even as the market anticipates positive news, while oil price continues to oscillate above $73pb to support global economic and stock market recovery across climates. We also expect the ongoing COVID-19 vaccination to support the global and domestic economic recovery that will enhance 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.

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 ahead of interim dividend announcement. This is especially given that despite the seeming improvements, fixed income yield continues to offer a negative real rate of return due to the 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 the coming week.

Meanwhile, the home study packs on Comprehensive Stock Market trading course 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

https://investdata.com.ng/reversal-ahead-on-ngx-amid-profit-taking-as-investors-await-q2-earnings-release/

Mindset Wisdom

“In investing, what is comfortable is rarely profitable.” Robert Arnott
 
I've got news for you. If you think you can strike it big while staying perfectly comfortable, you're wrong. 

And it won't be very long before you figure that out for yourself. 
 
The fact is, it's hard to get the rewards when you never take any risks. While no one wants you to stop investing and start gambling, you can't level up your trading if you aren't willing to risk a little discomfort now and then.
 
I'm not saying it's impossible, but why stack the odds against yourself?

Stock Review with Kaftan TV as at 16th July, 2021

Hello Investors and Traders,

I just posted Stock Market Review with Kaftan TV as of 16/07/2021.

Share with me what you think about the video and don't forget to click on subscribe button so that you can be among the first to get the latest update.


https://www.youtube.com/watch?v=w-MGwI8lYd8

Ambrose Omordion

Questions and Answers with Ambrose Omordion as of 17th July 2021

Hello Investors and Traders,

I just posted Questions and Answers with Ambrose Omordion as of 17/07/2021.

Share with me what you think about the video and don't forget to click on subscribe button so that you can be among the first to get the latest update.


https://www.youtube.com/watch?v=F8pqRrTC_Z4

Ambrose Omordion

Caution Still, As Investors Await More Earnings, Reposition For Interim Div


Market Update for the Week Ended July 16 and Outlook for July 19-23

Sectorial rotation and selloff in highly capitalized stocks continued last week as the key performance index, blue chips and mid-cap stocks resisted further decline, reversing up on increased traded volume. This was in the midst of impressive Q2 corporate earnings so far released, and positive economic data, especially the rise in the consumer price index for June which dropped to 17.75%, making it the third consecutive month of decline in inflation amidst soaring prices of food, goods, and services across the country.

This is to be expected, given that the supply side of the economy remains weak and incapable of supporting the rising production cost and prices of manufactured products. There are also mixed sentiments, with the market side-trending at this point in the earnings reporting season, with early filers hitting the market with strong numbers. We see the expected momentum, liquidity, sentiments, and activities associated with the season underway to support the anticipated reversal, given that the NGX index action has formed a hammer candlestick on the weekly time-frame with low volume as wave 5 extension builds on the expected half-year financials ahead of this week’s Monetary Policy Committee meeting’s outcome.

The broad market and sector indexes are holding strong at this point as the rate of selloff and profit-taking have slowed down ahead with more earnings reports and positive economic data in the face of the persisting weak economic recovery. Also noteworthy is the fact that interim dividend-paying stocks and medium cap equities are resisting decline at their five to six months’ strong support levels ahead of their quarterly financials that are around the corner.

United Capital Plc and Unilever Nigeria released their half-year earnings reports surprising investors with 51 kobo and 12 kobo Earnings Per Share during the week, after turnover improved by 54.6% and 43.2% respectively to N6.85bn and N39.15bn respectively, which beat market and analysts expectations. The market is expected to react to these and other numbers as investors become more confident of good dividends at the end of the current financial year.

We know that corporate and analyst forecasts are made to be beaten. In fact, many analysts have typically increased estimates for Q2 numbers while companies are forecasting higher earnings in Q3, even as higher-than-expected earnings will make stocks cheaper. At the moment, the market’s Price-to-Earnings ratio, just like those of many companies, is trading below 18 times their earnings. In an environment of relatively low interests and high inflation, stocks historically, tend to move higher on earnings performance.

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. They include the banking, telecom, industrial goods, agribusiness, real estate, construction, and consumer goods sectors, after a careful study of economic recovery and sectors that had supported the weak recovery which is likely to influence the performance of the companies in that industry and the market.

Movement Of NSEASI

NGX action index had a mixed performance last week with three sessions of the down market and two days of gains, thereby extending the bear transition for the second consecutive week, as low-priced stocks recorded gains in the midst of mixed sentiments and slight market breadth. The wait-and-see attitude of players was obvious during the week under review, as shown in the volume traded on the daily and weekly charts.

Trading opened for the week Monday on a negative note with the index shedding 0.34%, which was sustained on Tuesday with the composite index sliding down by 0.04% before reversing up at midweek when the NGX index closed 0.08% up. On Thursday, it returned south, slipping 0.07% down, after which retraced up on Friday gaining 0.21%, which was not enough to wipe out the losses recorded earlier in the week. These brought total loss for the period to 0.12%, which was, however; better than the previous week’s 0.57% slide.

Consequently, the benchmark NGX All-Share Index lost 47.01 basis points, closing at 37,947.18bps after opening at 38,994.19bps, touching an intra-week low of 37,854.17bps from its highs of 38,988.90bps on selloffs in high cap and profit booking among the blue-chip stocks. Also, market capitalization dropped by N280bn, closing at N19.77tr, compared to the previous week’s N19.8tr, which also represented a 0.12% depreciation in value.

The weekly advancers’ table was dominated by low cap stocks as usual, in the midst of selloffs and portfolio repositioning and balancing ahead of earnings expectations as investors continue to study trends and the changing environment. Price actions reveal the presence of bears in the market, a situation that reflected on some of the sectorial indexes, three of which closed lower, while the Oil/ Gas and Banking indexes were up.

Also, during the week, the share price NAHCO was adjusted for the 13 kobo dividend recommended by its board of directors, as the corporate bond of C & I Leasing was listed on the exchange.

The seeming negative outing for the week reflected on the market breadth, as decliners outnumbered advancers in the ratio of 32:29 on 75% buy position and 25% sell volume, just as Money Flow Index stayed flat, reading 52.13bps from the previous week’s 52.46 points. This is an indication that funds left the market on profit-taking.

NGXASI WEEKLY CHART MOVEMENT


From the above, the NGX index action has formed a descending triangle chart pattern of consolidation on a weekly time frame, with the candlestick formation supporting an uptrend which is subject to confirmation next week to give direction, after forming a double bottom that supports a continuation of trend and reversal, ahead of Q2 financials. Already the daily chart has confirmed a change in trend, following which all eyes are on Monday’s trading.

Mixed Sectoral Indices

Performance across the sectors was mixed, with the NGX Energy and Banking indexes closing 1.81% and 0.09% higher respectively, while the NGX Insurance led the decliners after losing 1.07%, followed by Consumer and Industrial goods indexes with 0.85% and 0.30% down respectively.

Transactions in volume and value terms fell, as investors exchanged 1.01bn shares worth N10.92bn, compared to the previous week’s 1.35bn units valued at N12.14bn, with volume driven by trades in Financial Services, Conglomerates and ICT industry particularly GTCO, UBA, Zenith Bank, Transcrop and Chams.

The best-performing stocks for the week were FTN Cocoa and NCR, which gained 20.59% and 20.48% respectively, closing at N0.41 and N3.00 per share on market forces and sentiments. On the flip side, Ikeja Hotel and CHI Plc lost 18.83% and 15.71% respectively, at N1.25 and N0.59 per share, purely profit-taking.

Market Outlook

We expect a sustained trend on more impressive numbers and reduced profit-taking, as market reaction to position earnings continued in the midst of bargain hunter and discerning investors accumulate a position in dividend-paying stocks to realign their portfolio, with all eyes on MPC meeting, just as fixed income market yields are slowing down due to bearish trend in the market.

Any breakout of the recent support level that turns resistance will offer new entry opportunities for traders and investors to reposition in value-laden underpriced growth stocks, while the just-concluded March and April year-end accounts audited full-year numbers submission has supported the recovery of low priced stocks. This is based on the fact that 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 ahead of interim dividend announcement. This is especially given that despite the seeming improvements, fixed income yield continues to offer negative real rate of return due to the 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.

Meanwhile, the home study packs on Comprehensive Stock Market trading course 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 and 08179547605 now.

https://investdata.com.ng/caution-still-as-investors-await-more-earnings-reposition-for-interim-div/

Sentiment Report for the week Ended July 16, 2021

NGXASI buy 75% sell 25% MFI 52.13
Access buy � MFI 52.84
Afrprud buy 60% sell 40% volume index 0.73 MFI 41.07
Aiico buy � MFI 32.21
Bua buy 0% MFI 45.20
Cadbury buy � volume index 2.84 MFI 54.09
Cap buy � MFI 7.06
Caverton buy � MFI 64.11
Chiplc buy 0% volume index 2.30 MFI 50.57
Corner buy 0% MFI 37.69
Courtville buy 0% volume index 0.83 MFI 65.33
Custodian buy 0% volume index volume 1.28 MFI 81.64
Dangsugar buy 0% MFI 57.74
Eterna buy � MFI 65.44
Eti buy � MFI 75.08
Fbnh buy 22% sell 78% MFI 55.49
Fcmb buy 53% sell 47% MFI 67.74
Fidelity buy � MFI 28.80
Fmn buy � MFI 48.49
Ftn buy 63% sell 37% volume index 1.03 MFI 27.24
Glaxo buy 0% MFI 32.16
GTCO buy 33% sell 67% volume index 1.27 MFI 41.06
Honyflour buy 19% sell 81% MFI 65.66
Jaiz buy 0% volume index 2.46 MFI 24.71
Jagold buy 50% sell 50% MFI 45.96
Lasaco buy � MFI 47.59
Linkass buy 0% MFI 83.99
Lvstk buy 67% sell 33% MFI 54.62
Mansard buy 0% MFI 48.11
Mben buy 0% MFI 50.24
Mtnn buy � MFI 87.49
Nahco buy 0% volume index 1.39 MFI 54.80
Neimeth buy 0% MFI 37.09
Oando buy 97% sell 3% volume index 0.82 MFI 69.29
Prestige buy � volume index 1.34 MFI 45.23
Pz buy � volume index 1.34 MFI 74.59
Red buy � MFI 47.13
Regalins buy 0% MFI 74.92
Royalex buy 0% MFI 32.12
Sovrenins buy � volume index 1.80 MFI 46.06
Stanbic buy � MFI 45.28
Sterling buy 20% sell 80% volume index 0.89 MFI 34.30
Total buy � volume index 0.72 MFI 85.93
Transcorp buy 33% sell 67% MFI 66.87
Uacn buy 83% sell 17% MFI 69.81
Uba buy 83% sell 17% volume index 1.00 MFI 74.84
Ucap buy 86% sell 14% volume index 0.81 MFI 69.85
Unilever buy 8% sell 92% MFI 38.17
Unity buy 0% MFI 44.78
UPDC buy 32% sell 68% volume index 3.82 MFI 79.71
Veritas buy 0% volume index 0.70 MFI 91.37
Vitafoam buy 0% MFI 81.82
Wapco buy 67% sell 33% MFI 53.48
Wapic buy 0% volume index 0.82 MFI 47.74
Wema buy 92% sell 8% volume index 1.31 MFI 65.99
Zenith buy 45% sell 55% MFI 65.02

Investdata Weekly Sentiment Report

WORDS TO TRADE BY

“If you are working on something that you really care about, you don’t have to be pushed. The vision pulls you.”
― Steve Jobs

If you're really serious about trading as a way to accomplish your financial goals, then your vision will motivate you to push ahead and work hard at being the best trader you can be.

That doesn't mean trading is effortless, but having a passion for seeing your vision become a reality will make it seem a lot easier than it is.
Be passionate about your future! Put in the work and move ahead. Only you can make it happen, so don't wait on others to figure it out for you. Let your passion drive you forward

Sentiment Report for July 19, 2021

NGXASI buy 98% sell 2% volume index 2.02 MFI 69.21
Access buy � MFI 72.09
Afrprud buy 0% volume index 1.59 MFI 49.07
Chiplc buy � MFI 23.11
Cutix buy � volume index 2.90 MFI 100.00
Eterna buy � volume index 1.86 MFI 30.47
Fbnh buy 50% sell 50% MFI 72.91
Fidelity buy � MFI 60.18
Ftn buy � volume index 1.11 MFI 73.04
GTCO buy � MFI 41.59
Honyflour buy � MFI 59.04
Jaiz buy 43% sell 57% volume index 22.47 MFI 2.78
Jagold buy 50% sell 50% MFI 71.80
Lasaco buy 27% sell 73% volume index 5.30 MFI 88.51
Linkass buy � volume index 3.90 MFI 47.63
Lvstk buy � volume index 1.28 MFI 39.81
Mansard buy � MFI 40.03
Mben buy � MFI 56.84
Prestige buy � volume index 2.58 MFI 52.34
Pz buy � volume index 1.82 MFI 64.34
Regalins buy � volume index 1.34 MFI 25.50
Sovrenins buy � volume index 2.25 MFI 66.17
Sterling buy 0% volume index 6.46 MFI 32.84
Transcorp buy 67% sell 33% MFI 65.73
Uacn buy � volume index 2.90 MFI 62.12
Uba buy � MFI 63.09
Ucap buy 50% sell 50% volume index 0.88 MFI 57.14
Unity buy 0% volume index 6.26 MFI 16.36
UPDC buy 57% sell 43% volume index 1.91 MFI 74.93
Vitafoam buy � volume index 0.80 MFI 69.69
Wapco buy � MFI 69.07
Wema buy � volume index 1.69 MFI 84.88
Zenith buy 70% sell 30% MFI 64.54

Investdata Daily Sentiment Report

Expect Uptrend Amid Profit-Taking Slowdown, Investors Positioning For Q2 Numbers


Market Update for July 19

Earnings expectations boosted trading on the Nigerian Exchange Monday as volatility and the mixed session continued, thereby extending the bullish outing for two consecutive days on a very high traded volume and positive breadth.

The rekindled buying interests in dividend-paying stocks and mid-cap equities with a high possibility of sustained an uptrend in earnings as the market expects their half-year and Q1 numbers any moment from now. This has supported the session’s high volume trades, which was on 98% buy position and money flow index looking up to read 69.21 points, indicating the entrance of funds into equity space ahead of more numbers and outcome of next week’s Monetary Policy Committee meeting.

Market players 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. They include the banking, telecom, industrial, agribusiness, real estate, construction, and consumer goods sectors, after a careful study of economic recovery and sectors that had supported the weak recovery which is likely to influence the performance of the companies in that industry and the market.

Technically, NGX index action has gradually entered wave 5 extension in continuation of its zigzag chart patterns that support an uptrend in the face of weak economic recovery and expectation of more corporate earnings to boost liquidity, sentiment, and momentum. This is as Investors on the sideline jump back to the market after the MPC meeting holding July 26 and 27, 2021.

Many analysts have typically increased estimates for Q2 numbers while companies are forecasting higher earnings in Q3, even as higher-than-expected earnings will make stocks cheaper. At the moment, the market’s Price-to-Earnings ratio, just as in many companies, is trading below 18 times of earnings. In an environment of relatively low interest and high inflation, stocks historically, tend to move higher on earnings performance.

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Meanwhile, Monday’s trading opened slightly on the upside and oscillated to a marginally positive position on buying interests in energy, insurance, and manufacturing stocks that pushed the NGX index to an intraday high of 37,953.35 basis points from its lows of 37,912.50bps, and thereafter closed slightly above its opening point at 37,952.65bps.

Market technicals were positive and strong, with volume traded higher than the previous day’s, in the midst of breadth favouring the bulls on a high buying pressure as revealed by Investdata’s Sentiments Report showing 98% ‘buy’ volume and 2% sell position. The total transaction volume index stood at 2.02 points, just as momentum behind the day’s performance was relatively strong, as seen in the 69.21pts Money Flow Index, compared to the previous day’s 59.91pts, indicating that funds entered the market, despite closing flat.

Index and Market Caps

At the end of Monday’s trading session, composite NGXASI inched up by 5.47 basis points, closing at 37,952.65bps, from an opening level of 38,947.17bps, representing a 0.01% up, just as market capitalization rose by N2.84bn, closing at N19.77tr, from its opening value of N19.77 trillion, representing a 0.01% value gain.

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Monday’s upturn was driven by position taking in Presco, GTCO, United Capital, Honeywell, Vitafoam, University Press, Livestock Feeds, Wema Bank, Cutix, and Africa Prudential, among others. This impacted mildly on Year-To-Date loss, increasing it to 5.76%, while the drop in market capitalization YTD rose to N1.2tr, representing a 5.98% drop from its opening value of the year.

Bullish Sector Indices

Performance indexes across the sectors were bullish, except for the NGX Banking that was down by 0.37%, while the NGX Insurance index led the advancers, after gaining 1.18%, followed by Energy, Consumer, and Industrial goods with 0.29%, 0.10%, and 0.01% higher respectively.

Market breadth remained positive with gainers outnumbering losers in the ratio of 22:10, while activities in volume and value terms were mixed after traders exchanged 462.81m shares worth N1.2bn, with volume driven by trades in Jaiz Bank, Sterling Bank, Wema Bank, Sovereign Trust Insurance and Universal Insurance.

Eterna and University Press were the best-performing stocks, gaining 10% and 9.93%, closing at N7.15 and N1.55 per share respectively on earnings expectation and market forces. On the flipside, FTN Cocoa and Sovereign Trust Insurance lost 7.32% and 6.06% respectively, closing at N0.38 and N0.31per share, on profit-taking.

Market Outlook

We expect an uptrend after the holidays on bargain hunters positioning and investors accumulation, as profit-taking slows down amidst rekindled buying interests ahead of more Q2 numbers grace the market, amid the increasing volume that suggests that an end is in sight, while smart money takes advantage of pullbacks to reposition. It is noteworthy that oil price continues its oscillation at the international market, even as corporate actions and interim dividend possibilities are around the corner.

We note also that some stocks are trading within their buy ranges to become more attractive at this point for income investors and traders, even as the market anticipates positive news, while oil price continues to oscillate above $69pb to support global economic and stock market recovery across climates. We also expect the ongoing COVID-19 vaccination to support the global and domestic economic recovery that will enhance 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.

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 ahead of interim dividend announcement. This is especially given that despite the seeming improvements, fixed income yield continues to offer a negative real rate of return due to the 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 the coming week.

https://investdata.com.ng/expect-uptrend-amid-profit-taking-slowdown-investors-positioning-for-q2-numbers/

SEC Nigeria, Oando Plc Reach Landmark Settlement After Four-Years Faceoff


After over 48 months of long-drawn battle, the management of both Nigeria’s Securities & Exchange Commission (SEC), on Monday confirmed in separate statements that they have entered into a settlement that would result in the withdrawal of a plethora of court cases.

According to the SEC, the settlement, which confirms a story by Investdata News of an impending political solution to the faceoff, was entered into on Thursday, July 15, 2021, “in the overriding interest of the shareholders of the company and the capital market,” even without Oando Plc “accepting or denying liability.”

Terms of the settlement, the commission’s management explained, included “amongst others: Immediate withdrawal of all legal actions filed by the company and all affected directors; payment of a monetary sum; and an undertaking by the company to implement corporate governance improvements.”

Describing the settlement as a win for the nation’s capital market and especially shareholders, Oando Plc said in its statement, that the settlement is a win for the Capital Market, specifically shareholders who have been the hardest hit, especially in light of the nature of challenges the country has been faced with, will enable its management “focus on its business operations.”

As part of the terms, Oando Plc is to submit “quarterly reports on its compliance with the terms of the Settlement Agreement; the Investments and Securities Act, 2007; the SEC Rules and Regulations; the National Code of Corporate Governance and the SEC Guidelines to the Code of Corporate Governance.”

Pursuant to the powers conferred on it by the Investments and Securities Act 2007, and the Rules and Regulations made pursuant thereto, the Commission recalled that in its letter dated May 31, 2019, Oando Plc was given certain directives and sanctions imposed.

The directives and sanctions, which followed investigations conducted pursuant to two petitions filed with the Commission in 2017, were challenged by the company and some of its affected directors “in a series of suits commenced at the Federal High Court.

The company, the SEC continued, “subsequently approached the commission for a settlement of the matter, and both parties have now agreed to settle in consideration of the impact that a further prolonged period of litigation would have on the Company’s shareholders and the value of their investments as well as remedial measures to be put in place by the company in enhancing its corporate governance practices and strengthening its internal control environment.”

The commission, therefore, reiterated “its commitment to ensuring the fairness, transparency, and integrity of the capital market, while upholding its mandate to protect investors.”

Continuing, Oando listed the task ahead of its management to include ensuring value creation “for its shareholders, and in the immediate, (and) to convene its 42nd Annual General Meeting (AGM) to give its shareholders the opportunity to exercise their rights to receive information as well as vote on company affairs.”

Reacting, Engr. Patrick Ajudua, a shareholder of the company, who expressed great delight at the news of an amicable settlement expressed hope “ that lessons have been learnt and efforts must be made to assist the management team return to business as usual and recover from the lengthy dispute in order to deliver value to us. On the part of the regulator, we are grateful to them for towing the part of a peaceful resolution. To the Board and Management of Oando, I want to commend their resilience and patience all through the period of the dispute.”

https://investdata.com.ng/sec-nigeria-oando-plc-reach-landmark-settlement-after-four-years-faceoff/

WORDS TO TRADE BY

“Behold the turtle, he makes progress only when he sticks his neck out.”

― Bruce Levin

Investing is all about risk. The greater the risk, the greater the reward if everything works out. And though risk means you can lose a lot of money if you aren't careful, you can't let that scare you out of participating in the market.

That's why a risk management strategy is crucial to a promising trading career. Figure out what your personal risk limits are and don't go beyond them. If you follow that simple rule, you'll be golden. But as you progress in your trading career, don't be afraid to reevaluate your risk limits. Go ahead and stick your neck out!

Sentiment Report for the Week Ended July 23, 2021

NGXASI buy � MFI 59.01
Access buy 75% sell 25% MFI 56.44
Afrprud buy � volume index 0.93 MFI 43.68
Aiico buy 10% sell 90% MFI 34.95
Ardova buy � MFI 79.06
Cadbury buy � volume index 3.23 MFI 62.94
Caverton buy � MFI 72.09
Chams buy � MFI 33.15
Chiplc buy 83% sell 17% volume index 1.13 MFI 47.80
Courtville buy 50% sell 50% MFI 64.53
Custodian buy � MFI 82.28
Cutix buy � volume index 1.97 MFI 77.91
Dangcem buy 95% sell 5% MFI 71.19
Dangsugar buy � MFI 62.27
Eterna buy 97% sell 3% volume index 0.99 MFI 66.21
Fbnh buy � MFI 51.68
Fcmb buy � MFI 68.11
Fidelity buy 33% sell 67% volume index 0.71 MFI 38.10
Fmn buy 0% MFI 48.74
Ftn buy � MFI 22.04
GTCO buy � MFI 36.15
Honyflour buy � MFI 68.59
Jaiz buy 71% sell 29% volume index 11.78 MFI 9.53
Jagold buy 67% sell 33% MFI 31.66
Jberger buy � MFI 66.81
Lasaco buy 27% sell 73% MFI 55.98
Learn buy � MFI 75.94
Linkass buy � MFI 80.51
Lvstk buy � MFI 61.46
Mansard buy 33% sell 67% MFI 53.79
Mben buy 50% sell 50% MFI 57.17
Nahco buy 45% sell 55% volume index 1.26 MFI 58.37
Npf buy 0% volume index 1.21 MFI 37.21
Oando buy � MFI 76.65
Prestige buy 80% sell 20% MFI 51.09
Pz buy � MFI 81.11
Red buy 0% volume index 1.18 MFI 41.31
Regalins buy 75% sell 25% MFI 81.82
Royalex buy 0% MFI 32.12
Sovrenins buy 33% sell 67% volume index 0.94 MFI 43.92
Stanbic buy 0% MFI 51.13
Sterling buy 29% sell 71% volume index 3.58 MFI 28.31
Total buy � volume index 1.77 MFI 88.89
Transcorp buy 67% sell 33% MFI 70.30
Uacn buy � MFI 66.22
Uba buy � MFI 80.72
Ucap buy � MFI 72.43
Unilever buy � volume index 0.93 MFI 49.45
Unity buy � MFI 57.86
UPDC buy 85% sell 15% volume index 1.08 MFI 69.86
Upl buy 0% volume index 0.71 MFI 56.89
Veritas buy 0% MFI 89.10
Vitafoam buy � MFI 82.50
Wapco buy 37% sell 63% MFI 54.55
Wapic buy 50% sell 50% MFI 52.92
Wema buy 93% sell 7% volume index 0.84 MFI 71.57
Zenith buy 83% sell 17% MFI 64.92

Investdata Weekly Sentiment Report

Questions and Answers with Ambrose Omordion as at 24th July, 2021

Hello Investors and Traders,

I just posted Questions and Answers with Ambrose Omordion as of 24/07/2021.

Share with me what you think about the video and don't forget to click on subscribe button so that you can be among the first to get the latest update.


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

Ambrose Omordion

Mixed Trend Ahead, As Investors Await More Earnings, MPC Meeting Outcome


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

NGX Indexes were up over the past trading week, despite the two days Salah holiday, as earnings reports season commenced fully with more impressive numbers emanated from different sectors and companies on the exchange. This, expectedly, boosted market sentiment, as it turned positive, with improved liquidity and activities that impacted equity prices, halting two consecutive weeks of correction and profit-taking.

The recent rekindled buying interests and rally resulted from investors realigning their portfolios among sectors and stocks with high upside potentials, with their expected earnings likely to beat market and analyst expectations.

Already, corporate earnings released so far have given insights into what the market and investors should expect, especially with the prevailing mixed and weak macroeconomic indices ahead of next week’s Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting with the expectation that members will retain the benchmark rates. Many feel that economic recovery, so far, is weak and fragile such that any form of hike in interest rate, no matter how mild, could truncate the process. This is given that the supply side of the production chain is still lacking due to the high cost of production, imported inflation, Naira devaluation, lack of infrastructure, high cost of energy that continues to fuel the cost of transportation, among others.

Many analysts have typically increased estimates for Q2 numbers, while companies are forecasting higher earnings in Q3, even as higher-than-expected earnings will make stocks cheaper. At the moment, the market’s Price-to-Earnings ratio, just as in many companies, is trading below 18 times of earnings. In an environment of relatively low interest and high inflation, stocks historically tend to move higher on earnings performance.

Many discerning investors and smart money are already positioned in some sectors and stocks for medium and short-term gains, including banking, energy, telecom, industrial, agribusiness, real estate, construction, and consumer goods. Note that these are sectors where the high operating costs have been transferred to consumers, after a careful study of economic recovery and sectors that had supported the weak recovery which is likely to influence the performance of the companies in that industry and the market.

Movement Of NSEASI

The three trading sessions of bull transition for the period was supported by increasing traded volume on the daily time frame, thereby halting the weeks of decline on improved positive sentiment to breakout the recent resistance level, as blue chips and mid-caps stocks recorded gains in the midst of impressive scorecards and positive market breadth. The repositioning move of market players was obvious during the week under review, as shown in the volume traded on the daily and weekly charts irrespective of the holidays.

Trading for the week opened on a positive note, which is an extension from the previous Friday’s bull session as the benchmark NGX All-Share index gained 0.12%, which was sustained on Thursday and Friday after NGX index recorded uptrends of 1.67% and 0.21% respectively. These brought total gains for the period to 1.9%, which was better than the previous week’s 0.12% loss.

Consequently, the NGXASI gained 720.72 basis points, closing at 38,667.90bps after opening at 37,947.18bps, touching an intra-week high of 38,667.90bps from its lows of 37,912.50bps on buying sentiments in high, medium, and low cap stocks. Also, market capitalization rose by N376bn closing at N20.15tr, as against the previous week’s N19.77tr, which also represented a 1.9% value gain.

Low and medium cap stocks dominated the advancers’ table during the brief trading period as usual, as more impressive corporate earnings poured in amongst portfolio repositioning ahead of the month-end and MPC meeting as investors continue to study trends and the changing environment. Price actions revealed the presence of bulls in the market, a situation that reflected on some of the sectorial indexes, four of which closed higher, while the Insurance index recorded a decline.

Also, during the week, Total Nigeria released its half-year earnings reports with an interim dividend of N4.00 on impressive numbers, just as BOC Gas and Africa Prudential also made available their half numbers. While that of BOC Gas was impressive, Africa Prudential’s financials came below market expectations.

The week’s positive outing for the few trading sessions of the week was an expectation that boosted market breadth, with gainers outnumbering losers in the ratio of 42:16 on 100% ‘buy’ volume. Money Flow Index was up, reading 59.01bps from the previous week’s 52.13 points, an indication that funds entered the market on profit-taking.

NXGASI WEEKLY CHART MOVEMENT

From the above, the NGX index action has formed a descending triangle chart pattern of consolidation on a weekly time frame, with the candlestick formation supporting an uptrend which is subject to confirmation next week to give direction, after forming a rectangle that supports a continuation of trend and reversal, ahead of more quarterly results. Already, the daily chart has confirmed an uptrend, following which all eyes are on the outcome of the week’s MPC meeting.

Bullish Sectoral Indices

Performances across sectors were bullish, except for the NGX Insurance that closed south. Activities in volume and value terms fell, as investors exchanged 816.17m shares worth N5.24bn, compared to the previous week’s 1.01bn units valued at N10.92bn, with volume driven by trades in Financial Services, Consumer goods, and Conglomerates, particularly Jaiz Bank, Sterling Bank, Fidelity Bank, and Transcrop

Cutix and Total Nigeria were the best-performing stocks for the week, after gaining 32.50% and 20.95% respectively, closing at N4.81 and N203.20per share on impressive earnings and payout. On the flip side, Smart Products and Sovereign Trust Insurance lost 38.40% and 12.12% respectively, at N0.15and N0.29 per share, purely selloffs and profit-taking.

Market Outlook

We expect a mixed trend on more impressive numbers and outcome of MPC meeting, as market reaction to positive earnings continues in the midst of bargain hunter and discerning investors accumulate a position in dividend-paying stocks to realign their portfolio, with all eyes on MPC meeting, just as fixed income market yields are slowing down due to bearish trend in the market.

Any breakout of the recent support level that turns resistance will offer new entry opportunities for traders and investors to reposition in value-laden underpriced growth stocks, while the just-released corporate earnings have supported the recovery of low, medium, and highly-priced stocks. This is based on the fact that 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 ahead of interim dividend announcement. This is especially given that despite the seeming improvements, fixed income yield continues to offer a negative real rate of return due to the 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.

Meanwhile, the home study packs on Comprehensive Stock Market trading course 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 and 08179547605 now.

https://investdata.com.ng/mixed-trend-ahead-as-investors-await-more-earnings-mpc-meeting-outcome/

WORDS TO TRADE BY

“Rule #1: Don’t lose money. Rule #2: Don’t forget Rule #1.”

― Warren Buffett

We trade so we can make money. That's really what this is about. So losing money is antithetical to our trading endeavors. Warren may sound like he's being simplistic, but he's right. The number one rule of investing is "don't lose money."

But the fact is, you will lose money. It will happen, so go ahead and prepare yourself for it. But if you can follow a trading plan that makes your wins more numerous than your losses, you'll be a winner, plain and simple. Get back to trading, put in the effort, and don't lose money!

Sentiment Report for July 26, 2021

NGXASI buy 98% sell 2% volume index 1.06 MFI 69.76
Access buy 75% sell 25% volume index 1.24 MFI 67.10
Afrprud buy 44% sell 56% volume index 3.81 MFI 47.97
Ardova buy � volume index 10.49 MFI 88.85
Chams buy � MFI 50.48
Chiplc buy � MFI 20.04
Courtville buy 50% sell 50% volume index 1.87 MFI 51.07
Cutix buy 0% volume index 8.41 MFI 100.00
Dangsugar buy � volume index 1.13 MFI 59.05
Eterna buy 0% volume index 6.45 MFI 50.16
Eti buy 14% sell 86% volume index 2.41 MFI 88.74
Fbnh buy � MFI 68.33
Fcmb buy 0% volume index 2.03 MFI 17.03
Fidelity buy � volume index 2.37 MFI 64.12
Fmn buy � volume index 1.08 MFI 51.73
GTCO buy � volume index 0.92 MFI 57.77
Jaiz buy 0% MFI 3.54
Jagold buy � volume index 1.03 MFI 77.29
Linkass buy � volume index 0.86 MFI 0.50
Lvstk buy � volume index 1.80 MFI 54.37
Mansard buy � volume index 0.77 MFI 18.29
Maybaker buy 75% sell 25% volume index 8.33 MFI 100.00
Nascon buy � MFI 32.49
Pz buy � volume index 2.76 MFI 72.53
Regalins buy 50% sell 50% volume index 2.41 MFI 21.85
Sovrenins buy 0% MFI 64.97
Sterling buy 80% sell 20% volume index 0.77 MFI 32.31
Transcorp buy � MFI 62.85
Uacn buy � volume index 1.82 MFI 76.37
Uba buy 50% sell 50% volume index 1.32 MFI 70.72
Ucap buy 7% sell 93% volume index 1.49 MFI 62.59
Unity buy � MFI 30.89
UPDC buy 71% sell 29% volume index 1.35 MFI 64.41
Veritas buy 0% volume index 2.80 MFI 26.81
Vitafoam buy 80% sell 20% MFI 62.57
Wapco buy � MFI 75.57
Wapic buy 0% MFI 44.41
Wema buy 75% sell 25% volume index 0.93 MFI 76.22
Zenith buy 0% MFI 63.21

Investdata Daily Sentiment Report

Impact of MPC decision as rates remain unchanged and stopping supply to BDC

Hello Investors and Traders,

I just posted The Impact of MPC Decision as rates remain unchanged and stopping supply to BDC.

Share with me what you think about the video and don't forget to click on subscribe button so that you can be among the first to get the latest update.


https://www.youtube.com/watch?v=kzklBaziX5g

Ambrose Omordion

Sentiment Report for July 27, 2021

NGXASI buy 9% sell 91% volume index 1.04 MFI 69.45
Access buy � volume index 1.76 MFI 69.31
Afrprud buy 0% volume index 1.04 MFI 43.71
Aiico buy 0% volume index 3.90 MFI 80.59
Courtville buy 0% MFI 50.42
Cutix buy 0% volume index 4.81 MFI 75.36
Dangsugar buy � volume index 0.88 MFI 71.73
Eti buy 0% volume index 1.37 MFI 70.72
Fbnh buy � volume index 0.72 MFI 76.24
Fcmb buy � volume index 2.55 MFI 41.53
Fidelity buy � MFI 73.54
Fidson buy � volume index 4.92 MFI 94.72
Fmn buy 0% volume index 0.72 MFI 86.60
Ftn buy � volume index 2.57 MFI 85.44
GTCO buy 33% sell 67% MFI 56.59
Jaiz buy � MFI 5.49
Jagold buy � volume index 0.75 MFI 76.72
Lvstk buy 62% sell 38% volume index 5.06 MFI 88.39
Mansard buy � volume index 0.97 MFI 29.13
Mben buy 0% MFI 49.16
Nascon buy 50% sell 50% volume index 2.59 MFI 14.09
Npf buy 0% volume index 1.90 MFI 20.33
Prestige buy � volume index 1.90 MFI 41.59
Pz buy 50% sell 50% volume index 10.19 MFI 84.47
Regalins buy 0% volume index 0.90 MFI 18.04
Sterling buy 0% MFI 26.02
Transcorp buy � MFI 63.41
Uacn buy � volume index 3.23 MFI 80.49
Uba buy 0% volume index 1.23 MFI 63.07
Ucap buy 75% sell 25% MFI 58.11
Unity buy 0% volume index 0.73 MFI 28.01
UPDC buy 46% sell 54% volume index 3.39 MFI 53.49
Wapic buy 50% sell 50% volume index 1.88 MFI 31.58
Wema buy � volume index 1.67 MFI 62.57
Zenith buy 67% sell 33% MFI 61.96

Investdata Daily Sentiment Report

WORDS TO TRADE BY

“The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.”

― Seth Klarman

Investors like to overcomplicate trading. But in all honesty, the market is just a combination of economic cycles and human psychology.
The markets react the way they do because of how humans react to news and information. It’s a collective institution that moves based on human emotion and intuition. That’s why volatility is so rampant in a market when big news, good or bad, dominates the headlines.

This tends to create a collective system of overreaction. That's why you must have a calm and focused mindset that controls your emotions when you're trading. If you fail to stay rational, the market will snatch away as much of your money as it can.

Expect Reversal, Mixed Trend, As Investors Digest MPC Outcome, Earnings Reports


Market Update for July 27

Equity prices slipped on the Nigerian Stock Exchange on Tuesday to halt five successive sessions of bull run as members of the Central Bank of Nigeria Monetary Policy Committee voted to keep the rates unchanged. Godwin Emefiele, the CBN Governor and chairman of the MPC, at the end of the meeting also announced far-reaching decisions, particularly the stopping of foreign exchange sales to Bureaux De Change operators.

Also on Tuesday, there was the expectation of more corporate earnings inflow to the market as companies rush to meet the regulatory submission deadline.

The slowdown in momentum and mixed sentiment witnessed was due to selloffs in high cap stocks and profit-taking among low-priced equities in the face of upbeat earnings already submitted. These impressive numbers emanating from listed companies are expected to support the market fundamentals and stock prices going forward.

Market players continue to digest these earnings reports while awaiting others, ahead of month-end adjustment due to portfolio rebalancing and realignments among the sectors and individual stocks with high upside potentials. We note that investors are positioning on the back of expected earnings that are likely to beat expectations and reverse the trend as more positive numbers hit the market. Examples of this scenario include Vitafoam, Livestock Feeds, and some other earnings reports that beat expectations.

Also, the market’s prevailing relative low Price-to-Earnings ratio at this peak of earnings season is a reflection of the value and growth potential of stock prices, especially as many analysts and companies are forecasting higher earnings for the Q3. This is just as these higher-than-expected earnings will make stocks cheaper, a situation that will drive prices in the short to long run. Just as in many companies, the market is trading far below 18 times of earnings.

In an environment of relatively low interest and high inflation, stocks historically, tend to move higher on earnings performance that supports high payout to enable investors to hedge against inflation.

Technically, the NGX index’s action has recently maintained an uptrend pattern to break out the second resistance level of 38,648.91 on a high traded volume after forming a double bottom heading to the third resistance line of 39,157.29 which is also a major resistance level to confirm strong upbeat and recovery. A breakout of this level will signal a new trend in Q3.

To navigate the rest of the quarter and year profitably, order Investdata’s video on How to effectively combine Fundamentals and Technical Analysis to enhance trading decisions and boost your bottom line.

Also, to up your game in stock trading and investing, understanding the key to trading price and index action will go a long way to make the difference in your trading results, check out the video materials below.

Tuesday’s trading started on the upside before pulling back on profit-taking in highly-priced equities and insurance stocks that pushed the key performance index to an intraday low of 38,794.08 basis points from its highs of 38,882.78bps, and thereafter closed below its opening figure at 38,802.15bps on flat market breadth.

Market technicals were mixed and weak, as the volume traded was slightly lower than the previous day’s, in the midst of flat breadth on negative sentiment as revealed by Investdata’s Sentiments Report showing 91% ‘sell’ volume and 9% buy position. The total transaction volume index stood at 1.04 points, just as the energy behind the day’s performance was relatively strong, as seen in the 69.45pts Money Flow Index, compared to the previous day’s 69,76pts, indicating that funds left the market on profit booking.

Index and Market Caps

At the end of Tuesday’s trading, the benchmark NGXASI, shed 46.93 basis points, closing at 38,802.15bps, from an opening level of 38,849.08bps, representing a 0.12% drop, just as market capitalization fell by N24.46bn, closing at N20.22tr, from its opening value of N20.24tr, also representing a 0.12% depreciation in value.

Attention: If you have not signed up for INVESTDATA buy and sell signal setup, don’t delay, because the number of stocks entering their buying range has just increased to 24 as they build a new bullish base and positive chart patterns to be on our watchlist. These stocks are with double potentials to rally considering their earnings prospect and oscillating mood of the market at this earnings season.

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 to the path of growth and development.

The session’s downturn was driven by selloffs and profit booking in stocks like MTNN, GTCO, UBA, UACN, Unilever, International Breweries, United Capital, Africa Prudential, NASCON Allied, and Cutix among others. This impacted mildly on Year-To-Date loss which rose to 3.65%, while the loss in market capitalization YTD rose to N816.06bn, representing a 3.99% drop from its opening value of the year.

Bullish Sector Indices

All the sectorial performance indexes were bullish, except for the NGX Insurance that was down by 0.03%, while the NGX Oil/Gas index led the advancers, after gaining 1.99%, followed by Banking and Consumer goods with 0.21% and 0.11% higher respectively. While Industrial goods was flat.

Market breadth was at par as gainers were equal to losers in the ratio of 20:20, while transactions in volume and value terms were down as stockbrokers traded 243.09 million worth N1.90bn compared to the previous day’s 246.56m units, valued at N2.24bn. Volume was boosted by trades in Access Bank, Wema Bank, UPDC, UACN, and UBA.

Oando and Champion Breweries were the best-performing stocks, gaining 9.86% and 9.00%, closing at N4.79 and N2.30 per share respectively on market expectation and forces. On the flip side, UPDCREIT and Unity Bank lost 6.67% and 6.45% respectively, closing at N5.60 and N0.58per share, on selloff and profit-taking.

Market Outlook

We expect a reversal and mixed trend as the market players digests the outcome of the MPC meeting and earnings released so far, as more earnings reports hit the market in the bid to meet the regulatory deadline for submission. The improving volume suggests that smart money is taking advantage of the prevailing and relatively low prices to reposition. It is noteworthy that oil price continues its oscillate in the international market, even as corporate actions and interim dividend possibilities are around the corner.

We note also that some stocks are trading within their buy ranges to become more attractive at this point for income investors and traders, even as the market anticipates positive news, while oil price continues to oscillate above $69pb to support global economic and stock market recovery across climates. We also expect the ongoing COVID-19 vaccination to support the global and domestic economic recovery that will enhance 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.

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 ahead of interim dividend announcement. This is especially given that despite the seeming improvements, fixed income yield continues to offer a negative real rate of return due to the 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 the coming week.

https://investdata.com.ng/expect-reversal-mixed-trend-as-investors-digest-mpc-outcome-earnings-reports/

Caution, NGXASI Pulls Back Amidst Earnings Season Peak, As Investors Study 2021H1 Numbers, Devts


Market Update for July 28

The nation’s stock market had a mixed and very volatile session at the midweek, thereby extending the negative outing for the second consecutive day after recording a marginal decline as investors digest likely impacts of the Monetary Policy Committee meeting’s outcomes. Governor of the Central Bank of Nigeria and chairman of the MPC announced on Tuesday after the two-day meeting its decision to discontinue the weekly sale of to Bureax De Change operators. Were the apex bank to sell about US$110.1m at between US$5,500 to US$20,000 each BDC weekly, it will amount to US$5,72bn yearly.

The decision to stop FX sales to BDCs really makes the license less attractive and creates tighter FX liquidity in the parallel market, especially as I doubt whether the banks can really meet the demand of BDC clients, most of whom do not meet relevant CBN criteria, which banks would adhere to. Hence, this decision may further widen the spread between official and parallel market rates for FX. Even so, I think it is exigent to stop the rent-seeking and arbitrage of BDCs, who buy FX from CBN at N410, only to sell at N504.

The approach of the CBN in managing the transition will determine the ultimate impact of this decision on the economy, even as we have seen the expected knee-jack reaction in the parallel market, with a rally of USD towards N520. Investdata notes that although the recent announcement does not provide full clarity of the CBN’s approach, this move is, however, a plus for the banks in terms of improved performance and profitability.

Wednesday’s mild decline happened at the peak of earnings reporting season that had been characterized by positive scorecards, on a day when sellers had the upper hand as traders took profit from the financial sector. It was also on a day when the share prices of first-tier banking stocks recorded pullbacks ahead of their half-year earnings reports. We are seeing more companies rushing to meet the regulatory submission timeframe, and expect that market volatility will continue.

The slowdown in momentum at the end of midweek’s trading and the divergence between the NGX index action and indicators are somewhat, although it thus suggests that this profit-taking may not endure. This is because the earnings inflow remains robust enough to support market fundamentals and stock prices, going forward.

Also, the market’s prevailing relative low Price-to-Earnings ratio at this peak of earnings season is a reflection of the value and growth potential of stock prices, especially as many analysts and companies are forecasting higher earnings for Q3. These higher-than-expected earnings will make stocks cheaper, a situation that will drive prices up in the short to long run, even as in many companies, the market is trading far below 18 times of earnings.

In an environment of relatively low interest and high inflation rates, stocks historically tend to move higher on earnings performance that supports high payouts, allowing investors to hedge against soaring prices.

To navigate the rest of the quarter and year profitably, order Investdata’s video on How to effectively combine Fundamentals and Technical Analysis to enhance trading decisions and boost your bottom line. Also, to up your game in stock trading and investing, understanding the key to trading price and index action will go a long way to make the difference in your trading results, check out the video materials below.

Meanwhile, midweek trading opened on the upside and sustained till late afternoon before pulling back on profit-taking in banking and insurance stocks that pushed NGX index to an intraday low of 38,788.73 basis points from its highs of 38,829.61bps, and thereafter closed below its opening figure at 38,791.03bps on less than average traded volume.

Market technicals were negative and weak on Wednesday, amidst the lower volume traded than the previous day’s, in the midst of negative breadth and selling sentiment as revealed by Investdata’s Sentiments Report showing 94% ‘sell’ volume and 6% buy positions. The total transaction volume index stood at 1.02 points, just as momentum behind the day’s performance was relatively strong, as seen in the 61.95pts Money Flow Index, compared to the previous day’s 69.45pts, indicating that funds left the market on profit booking.

Index and Market Caps

The composite NGXASI, at the end of the day trading, declined slightly by 11.12 basis points, closing at 38,781.03bps, from an opening level of 38,802.15bps, representing a 0.02% drop, just as market capitalization fell by N5.79bn, closing at N20.22tr, from its opening value of N20.22tr, also representing a 0.02% value loss.

Attention: If you have not signed up for INVESTDATA’s buy and sell signal setup, don’t delay, because the number of stocks entering their buying range has just increased to 24 as they build a new bullish base and positive chart patterns to be on our watchlist. These stocks have double potentials to rally, considering their earnings prospect and the oscillating mood of the market at this time.

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 to the path of growth and development.

Midweek’s downturn was attributed to profit-taking in stocks like GTCO, Zenith Bank, Access Bank, UBA, Fidelity Bank, FBNH, FCMB, UACN, United Capital, Eterna, CHI Plc and Regency Insurance among others. This impacted mildly on Year-To-Date loss which inched marginally to 3.67%, while the loss in market capitalization YTD rose to N846.07bn, representing a 4.01% drop from its opening value for the year.

Mixed Sector Indices

Performance indexes across sectors were mixed, as the NGX Banking and Insurance were down by 0.96% and 0.88% respectively, while NGX Oil/Gas index led the advancers, after gaining 1.68%, followed by Consumer goods with 0.11%.

Market breadth turned negative as losers outnumbered gainers in the ratio of 24:18, while activities in volume and value terms dropped while players traded 237.51m worth N1.88bn, compared to the previous day’s 243.09m units, valued at N1.9bn. Volume was boosted by trades in Oando, UBA, Wema Bank, Access Bank, and Jaiz Bank.

Capital Hotel and Oando were the best-performing stocks, gaining 9.85% and 9.81%, while closing at N2.90 and N5.26 per share respectively on market sentiment and forces, as some investors took profit in Oando Plc, offering opportunities for new entrants after days of scarcity. On the flip side, CHI Plc and Tripple Gee lost 10% each, closing at N0.54 and N0.90 per share, on profit-taking.

Market Outlook

We expect a reversal and a mixed trend at the peak of earnings season, as investors study emerging numbers so far and development in the FX market, while more earnings reports hit the market. The improvement in volume suggests that smart money is taking advantage of the pullbacks and relatively low prices to reposition. It is noteworthy that oil price continues its oscillate in the international market, even as corporate actions and interim dividend possibilities are around the corner.

We note also that some stocks are trading within their buy ranges to become more attractive at this point for income investors and traders, even as the market anticipates positive news, while oil price continues to oscillate above $69pb to support global economic and stock market recovery across climates. We also expect the ongoing COVID-19 vaccination to support global and domestic economic recovery that will enhance 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.

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 ahead of interim dividend announcement. This is especially given that despite the seeming improvements, fixed income yield continues to offer a negative real rate of return due to the 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 the coming week.

https://investdata.com.ng/caution-ngxasi-pulls-back-amidst-earnings-season-peak-as-investors-study-2021h1-numbers-devts/

Sentiment Report for the month of July

NGXASI buy 69% sell 31% volume index 0.75 MFI 66.69
Access buy 50% sell 50% MFI 67.93
Afrprud buy 39% sell 61% volume index 1.09 MFI 60.79
Aiico buy 56% sell 44% MFI 82.55
Airtel buy 21% sell 79% MFI 91.61
Ardova buy 43% sell 57% volume index 0.85 MFI 73.08
Berger buy 34% sell 66% volume index 0.82 MFI 75.62
Bua buy 31% sell 69% MFI 70.14
Cadbury buy � volume index 3.60 MFI 65.25
Cap buy � MFI 44.30
Caverton buy 88% sell 12% MFI 47.25
Chams buy 0% volume index 1.12 MFI 37.19
Chiplc buy 20% sell 80% volume index 2.36 MFI 62.28
Conoil buy 0% MFI 56.97
Corner buy 80% sell 20% MFI 35.69
Courtville buy 60% sell 40% volume index 2.51 MFI 58.20
Custodian buy 33% sell 67% volume index 1.11 MFI 33.33
Cutix buy 98% sell 2% volume index 2.58 MFI 74.57
Dangcem buy 97% sell 3% MFI 75.03
Dangsugar buy 91% sell 9% MFI 52.97
Eterna buy 63% sell 37% volume index 1.71 MFI 83.43
Eti buy 42% sell 58% MFI 63.46
Fbnh buy 36% sell 64% MFI 53.51
Fcmb buy 22% sell 78% MFI 71.92
Fidelity buy 54% sell 46% volume index 1.37 MFI 52.53
Fidson buy � volume index 75.11
Fmn buy 53% sell 47% volume index 1.00 MFI 61.68
Ftn buy 77% sell 23% volume index 2.20 MFI 74.39
Glaxo buy 43% sell 57% MFI 61.01
GTCO buy 0% MFI 44.87
Honyflour buy 69% sell 31% volume index 1.34 MFI 83.42
Jaiz buy 90% sell 10% volume index 2.80 MFI 43.74
Jagold buy 67% sell 33% MFI 72.25
Jberger buy � MFI 41.53
Lasaco buy 39% sell 61% MFI 70.86
Lawunion buy 0% MFI 76.59
Learn buy 57% sell 43% volume index 4.29 MFI 65.83
Linkass buy 3% sell 97% volume index 1.69 MFI 68.90
Lvstk buy 56% sell 44% volume index 2.06 MFI 64.09
Mansard buy 23% sell 77% volume index 1.05 MFI 39.71
Maybaker buy � volume index 0.87 MFI 74.79
Mben buy 0% volume index 1.05 MFI 72.95
Mtnn buy � MFI 87.02
Nahco buy 66% sell 34% volume index 1.29 MFI 70.49
Nascon buy 7% sell 93% volume index 0.98 MFI 73.24
Neimeth buy 50% sell 50% MFI 67.74
Nem buy 17% sell 83% volume index 1.20 MFI 30.10
Npf buy 88% sell 12% volume index 1.18 MFI 52.32
Oando buy 68% sell 32% volume index 3.00 MFI 70.71
Presco buy 46% sell 54% volume index 1.53 MFI 56.09
Prestige buy 71% sell 29% volume index 1.59 MFI 52.76
Pz buy 71% sell 29% volume index 2.49 MFI 57.16
Red buy 39% sell 61% volume index 0.73 MFI 42.57
Regalins buy 12% sell 88% MFI 54.05
Seplat buy � volume index 0.88 MFI 89.69
Sovrenins buy 37% sell 63% volume index 2.05 MFI 50.40
Stanbic buy � MFI 56.58
Sterling buy 27% sell 73% volume index 0.97 MFI 54.44
Sunuass buy 0% volume index 0.92 MFI 7.13
Total buy � volume index 2.41 MFI 78.60
Transcorp buy � volume index 0.91 MFI 71.96
Uacn buy 40% sell 60% volume index 0.82 MFI 65.64
Uba buy 50% sell 50% MFI 53.56
Ubn buy 45% sell 55% MFI 27.71
Ucap buy 70% sell 30% volume index 0.98 MFI 90.54
Unilever buy 77% sell 23% MFI 56.07
Unity buy 60% sell 40% volume index 0.88 MFI 96.51
UPDC buy 54% sell 46% volume index 3.48 MFI 66.37
Upl buy 8% sell 92% volume index 1.02 MFI 48.26
Veritas buy 17% sell 73% volume index 0.72 MFI 47.81
Vitafoam buy 20% sell 80% volume index 1.52 MFI 87.25
Wapco buy 95% sell 5% MFI 67.07
Wapic buy 43% sell 57% MFI 63.23
Wema buy 73% sell 27% volume index 0.72 MFI 44.78
Zenith buy 64% sell 36% MFI 66.90

Investdata Monthly Sentiment Report

Questions and Answers with Ambrose Omordion as of 31st July, 2021



Hello Investors and Traders,

I just posted Questions and Answers with Ambrose Omordion as of 31/07/2021.

Share with me what you think about the video and don't forget to click on subscribe button so that you can be among the first to get the latest update.


https://www.youtube.com/watch?v=EFBQyjEO3Ug

Ambrose Omordion

NGX Index Slips Lower On FX Market Concerns, Amidst H1 Earnings Influx


Market Update for July 29

The benchmark Nigerian Exchange All-Share Index slipped further on Thursday as stock prices suffered losses on profit-taking and shake out of many from their earlier positions to panic selloffs at the peak of quarterly earnings reporting season, as investors started to factor in the effects of the recent decision of the Central Bank of Nigeria (CBN) on the foreign exchange market, especially a further devaluation of the Naira.

The decline was despite, the influx of half-year corporate earnings to meet the statutory deadline for the submission of their reports.

The numbers so far released by the various companies revealed a mixed performance as some came below market expectations, especially FCMB Group, UACN, and Union Bank of Nigeria, while those of Honeywell, Lafarge Africa, Transcorp Plc, BUA Cement, Caverton, and NPF Microfinance were upbeat to sustain the uptrend that should give retail and institutional investors, whether foreign or domestic, insights into the value and growth potentials of the market as the season gradually comes to a close.

The pullbacks due to profit booking and selloffs by traders in the midst of earnings season are creating buy opportunities for discerning investors and traders, while they continue interpreting and digesting the emergent numbers, amidst portfolio realignment for the rest of the quarter and year in the new month of August. Low-priced stocks remain attractive to retail investors, even as numbers emanating from them remain impressive and likely to support their share prices, going into the future.

The anticipated fall in the nation’s currency has triggered panic in the market and economy at large, as expected, after the CBN Monetary Policy Committee decision to ban BDCs, followed by the apex bank’s announcement that those who paid the prescribed fees for licences that are pending should apply for a refund. The nation’s deposit money banks have been directed to put mechanisms in place for US Dollar sales to customers in their respective banks. Companies that have their source of raw material within, and those that have less imported material in their production process are likely to sustain their positive performance in the face of the impending Naira devaluation in the back market.

The candlestick formation pattern at the end of Thursday trading and the mixed sentiment in the face of a change in trend as the NGX index action and indicators are looking down, suggesting that this profit-taking may not endure. This is because the earnings inflow remains robust enough to support market fundamentals and stock prices, going forward.

Also, the market’s prevailing relative low Price-to-Earnings ratio at this peak of earnings season is a reflection of the value and growth potential of stock prices, especially as many analysts and companies are forecasting higher earnings for Q3. These higher-than-expected earnings will make stocks cheaper, a situation that will drive prices up in the short to long run, even as in many companies, the market is trading far below 18 times of earnings.

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Thursday trading started on the downside and it was sustained till early afternoon before oscillating on bargain hunters taking advantage of the correction to positioning in mid-cap stocks with strong Q2 numbers. Meanwhile, the continued selloffs in blue chips stocks pushed the NGX index to an intraday low of 38,356.43 basis points from its highs of 38,791.03bps, and thereafter closed below its opening figure at 38,484.82bps on a high traded volume.

Market technicals were negative as the volume traded was higher than the previous day’s, in the midst of breadth favouring the bears and mixed sentiment as revealed by Investdata’s Sentiments Report showing 70% ‘sell’ volume and 30% buy positions. The total transaction volume index stood at 1.12 points, just as momentum behind the day’s performance was relatively strong, as seen in the 53.78pts Money Flow Index, compared to the previous day’s 61.96pts, indicating that funds left the market on profit booking.

Index and Market Caps

At the end of Thursday’s trading, the composite NGXASI declined sharply by 306.21 basis points, closing at 38,484.82bps, from an opening level of 38,781.03bps, representing a 0.78% drop, just as market capitalization fell by N159.54bn, closing at N20.05tr, from its opening value of N20.22tr, also representing a 0.78% depreciation in value.

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The day’s downtrend was attributed to profit-taking and selloffs in blue chips stocks like BUA Cement, GTCO, Zenith Bank, Access Bank, UBA, Fidelity Bank, FBNH, FCMB, UACN, Flour Mills, Unilever Nigeria, UBN, United Capital, NASCON Allied, Honeywell Flour and Oando, among others. This impacted negatively on Year-To-Date loss, increasing it to 4.43%, while the loss in market capitalization YTD rose to N993.89bn, representing a 4.79% drop from its opening value for the year.

Bearish Sector Indices

Performance indexes across sectors were bearish, except for NGX Insurance that was 3.24% up, while NGX Industrial Goods index led the decliners, after shedding 2.02%, followed by Energy, Banking, and consumer goods with 1.83%. 0.81% and 0.35% lower respectively.

Market breadth remained negative as losers outnumbered gainers in the ratio of 22:17, while transactions in volume and value terms increased as stockbrokers traded 259.97m worth N1.98bn, compared to the previous day’s 237.51m units, valued at N1.88bn. Volume was boosted by trades in Oando, GTCO, Jaiz Bank, Fidelity Bank, and Wema Bank.

Tripple Gee and Regency Insurance were the best-performing stocks, gaining 10% and 9.75%, closing at N0.99 and N0.45 per share respectively on market sentiment and earnings expectation. On the flip side, Oando and UACN lost 9.70% and 8.93% respectively, closing at N4.75 and N10.20per share, on profit-taking as some traders cash out gains in Oando Plc, offering opportunities for new entrants after days of scarcity and unimpressive half-year earnings from UACN, .

Market Outlook

We expect a mixed trend as influx of earnings continues on Friday, the last filing date for quarterly earnings reports of companies with December and March year-ends, just as investors also continue to study emerging numbers so far and development in the FX market, while more earnings reports hit the market. The improvement in volume suggests that smart money is taking advantage of the pullbacks and relatively low prices to reposition. It is noteworthy that oil price continues its oscillation in the international market, even as corporate actions and interim dividend possibilities are around the corner.

We note also that some stocks are trading within their buy ranges to become more attractive at this point for income investors and traders, even as the market anticipates positive news, while oil price continues to oscillate above $69pb to support global economic and stock market recovery across climates. We also expect the ongoing COVID-19 vaccination to support the global and domestic economic recovery that will enhance 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.

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 ahead of interim dividend announcement. This is especially given that despite the seeming improvements, fixed income yield continues to offer a negative real rate of return due to the 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 the coming week.

https://investdata.com.ng/ngx-index-slips-lower-on-fx-market-concerns-amidst-h1-earnings-influx/