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Mixed Sentiments May Linger, Amid Adjustment Of MTNN, Flourmills Prices

Market Update for the Week Ended August 14 and Outlook for August 17-21

Trading on the Nigerian Stock Exchange (NSE) was mixed over the past week, just like the major sectoral performance indexes, even while equity prices closed higher on above-average traded volume. It therefore extended the positive sentiment for the fourth consecutive week on strong buying pressure, propelled by corporate earnings that beat market expectations and sectoral rotation.

Cases of the novel Coronavirus pandemic across the globe continue amidst the easing of lockdowns by countries which have reopened their borders for economic activities, triggering production activities and impacting commodity prices, especially crude oil that has remained in the uptrend. Besides the oil price recovery and the earnings reporting season have supported the global stock markets and the NSE amidst the geopolitical tension, mixed economic outlook and fundamentals, with the UK’s economy already slipping into what has been termed its worst recession.

Nigeria’s hyperinflation, made worse by the latest currency devaluation are investors’ worst nightmares, even with the weakening foreign reserves and its ability to withstand these situations, which could delay economic recovery or worsen the prevailing state. This has resulted in speculations that weakened the exchange rate of the Naira against major currencies. With factors driving inflation on the increase, ranging from the continued border closure since August last year, low interest rate regime, hike in the pump price of fuel resulting high cost transportation, heightening insecurity, imported inflation due high exchange rate at the black market and the coronavirus outbreak that had weakened the purchasing power of Nigerians as the combined rate of underemployment and unemployment in the country hit 55.7% at the end of the 2020 Q2, threatening its socio-economy.

Movement Of NSEASI

Last week, the positive momentum slowed down from the previous week’s uptrend as the NSE All-Share index recorded three session of losses and two up markets, after opening on a slightly negative note at 0.06%. This was extended to Tuesday when the margin of loss increased to 0.41% amidst mixed sentiment after profit taking worsened. This was halted at midweek when the index closed 1.04% up, reversing the trend. This was sustained on Thursday when the benchmark index gained 0.38% before pulling back on profit booking among high cap stocks on Friday, closing 0.15% down. This reduced the week’s total gain to 0.63%, lower than the previous week 1.41% positive close.

Specifically, the NSEASI gained 157.95 basis points, after opening at 25,041.89bps, touching an intra-week high of 25,236.97bps, from its low of 24,841.94bps on a positive buying sentiments and profit taking, driven by the better-than-expected earnings from companies, as well as sector rotation. This was linked to portfolios repositioning by retail and institutional investors on the strength of the recent half-year earnings reports released as revealed by the week’s traded volume. The composite index closed the week up at 25,199.84ps, in the same vein, market capitalization rose by N82.46bn, closing at N13.15tr, from the previous week’s N13.1tr, also representing a 0.63% value gain.

During the week, over 9 companies released their half-year scorecards and full-year earnings reports for March 31, 2020 ended financial year from Northern Nigeria Flour Mill, Tripple Gee, Lasaco Association, and Goldlink Insurance. Directors of NNFM, Tripple Gee and Lasaco recommended a dividend of 15 kobo, 0.055 kobo and 0.05 kobo respectively. Also, within the week, the share price of Cornerstone Insurance was adjusted for a bonus of seven shares for every 30 held.

Consumer goods and high priced stocks dominated the top advancers’ table, even as decliners outnumbered the gainers in the ratio of 33:29, while the impetus behind the week’s performance was relatively strong, with Money Flow Index reading 66.88bps from prior week’s 71.24ps. This reflects the increased buying interests in the face of the seeming profit-taking and selloffs on portfolio rebalancing.

The NSE’s index action has again formed the double top chart pattern on a weekly time frame that signals pullback or correction depending market forces, as the index continues to trade above its 20-Day Moving Average. At the same time it is heading to breakout the 50-DMA and 50% line of Fibonacci retracement on above average traded volume that indicates the wait-and-see attitude of market players as interim dividend paying stocks financials are expected any moment from the new week.

However, we envisage profits booking ahead, as the interim dividend yield of some companies are thinning out on relatively high prices.

On a daily and weekly time frame MACD remain bullish, supporting an uptrend and changing momentum in the market on the increasing numbers of earnings reports that are above expectation. The buy volume for the period stood at 91%, and money flow index at 66.88 points.

Mixed Sectoral Indices

The performance index across the sectors were mixed, with the NSE Industrial Goods and Banking closing 2.71% and 0.03% lower respectively, while the NSE Oil/Gas index led advancers after gaining 5.92%, followed by the NSE Consumer and Insurance that closed 2.25% and 1.12% higher respectively. In addition to the general market, over the most recent period, therefore the overall outlook remained mixed and bullish in the short-term. Investors should focus on diversifying their long-term trades, especially agribusiness, healthcare, industrial goods and telecoms which have shown the most strength.

Transactions for the week, in terms of volume and value, were up by 24.3% and 28.98% respectively as market players exchanged 1.33bn shares worth N13.93bn from the previous week’s 1.07bn units valued at N10.8bn. The week’s volume was boosted by trades in financial services, conglomerates and consumer goods stocks, especially Guaranty Trust Bank, Transacorp, Zenith Bank, Access Bank and Guinness.

The best performing stocks for the week were Cadbury and Nigerian Breweries which gained 12.88% and 12.50% respectively, closing at N7.45 and N36.00 per unit on market forces and major shareholders increasing their stakes respectively. On the flip side, Champion Brewery and Ikeja Hotel lost 25.26% and 25% respectively, closing at N0.71 and N0.84 per share on weak earnings and selloffs.

Market Outlook

We expect mixed sentiment and profit taking to continue as MTNN, Flourmills and others will be adjusted for dividends declared by their boards, funds flowing into expected government bond and dividend paying stocks ahead of July inflation reports from NBS. This is coming amidst reactions to the many impressive half-year reports that beats market expectation spurred retail and institutional investors to reposition their portfolios on the strength of these companies earnings power and future prospects.

We cannot also rule out investors pricing in government’s inconsistent, mismatch policies and weak macroeconomic data as labour market report released by NBS which revealed the worse state of the nation unemployment and its threats to the economy. Already, the hyperinflation which has risen above the Central Bank of Nigeria’s benchmark Monetary Policy Rate (MPR) at 12.5%, even as the declining industrial productivity points to the reality of a recession.

The sectoral rotational wave will help investors cash in on low cap stocks and sectors that have suffered huge losses before now. Already investors are looking the way of healthcare, airline service providers, oil marketing stocks, banking among sectors likely to be impacted positively in the much anticipated global and domestic economic recovery.

Also, the possibility of continued funds inflow to low priced stocks is high, due to the higher yields and upside potentials, considering the low rates on offer in the money and bond markets. In the meantime, investors should also look out for developments around the implementation of the CBN’s funding plan for small and medium scale businesses.

Already, we notice that investors are taking position in healthcare and other defensive stocks likely to survive this meltdown, as seen in the increased trading in them, even as the global markets continue on the recovery path, with the gradual easing of the lockdown.

While discerning investors should prepare to take advantage of stocks revaluation to position for the medium to long-term, it is noteworthy that the Nigerian equity market is selling at a discount and therefore offers high upside potential.

Expect a pullback that will support the upside potential, especially with many fundamentally sound stocks remaining underpriced, and the dividend yield of major blue-chips continuing to look attractive in recent weeks, we expect speculative trading to shape the market’s direction, despite the seeming mixed outlook.

To position for the short to long-term, investors should target fundamentally sound, dividend-paying stocks, for possible capital appreciation in the coming months. Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives, and their impact on the economy in the nearest future.


Ambrose Omordion

CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/mixed-sentiments-may-linger-amid-adjustment-of-mtnn-flourmills-prices/

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2020Q2: 55.7% Of Nigeria’s Working Population Jobless, Underemployed- NBS


Imo Has Combined 75.1% Rate, Kwara’s 34.2% Lowest

For the first time since December 2018, the National Bureau of Statistics (NBS), on Friday released its Labour Force Statistics report showing the nation’s worsening job conditions and the need for government to urgently create more employment opportunities for the masses and reduce socio-economic tension.

According to the report (abridged labour force survey under COVID-19), which forewarned that the rate increase does not amount entirely to an increase in job losses, but may occur due to reasons like new entrants into the labour markets like students, an estimated 55.7% of Nigeria’s total labour force of about 80.291m as at 2020Q2, down from 90.5m in 2018Q3, are either unemployed or underemployed.

A breakdown of the figure shows that underemployment was worse at 28.6%, the highest level since 2014Q4, up from 20.1% in 2018Q3 (it was 16.6% in 2015Q1); while unemployment rate climbed to 27.1% from 23.1% in 2018Q3.

By international comparison, according to the NBS, Nigeria’s unemployment rate is worse than Kosovo’s 25.9%; but better than South Africa, 30.1%; Angola, 32%; Namibia, 33.4%; and 34.3%, in Bosnia & Herzegovina.

In specific terms, people with full-time jobs or working 40 hours and more in a week stood at 35.585m, while 22.942m were underemployed at between 20 and 29 hours per week, representing 15.8% less than those unemployed in 2018Q3.

Unemployment rate among rural dwellers stood at 28% from 23.9%; while urban unemployment stood at 25.4% from 21.2%; while under-employment in this category of the populace stood at 31.5%, a leap from 22.8% in 2018; at a time when urban dweller recorded 23.2% rate, up from 13.7%.

A further breakdown showed that unemployment among young people (15-34 years) rose from 29.7% to 34.9%; and under-employment for the same category from 25.7% to 28.2%, rates the NBS wrote: “were the highest when compared to other age groupings.”

Breakdown the rates across states, the NBS said unemployment rate was at its peak in Imo which recorded 48.7% of its working population; followed by Akwa-Ibom, 45.2% and Rivers, 43.7%; and was at its lowest rate of 13.1% in Anambra State. Others were Kwara, 13.8% and Sokoto, 13.9%

Under-employment was highest in Bauchi with 43.7%; followed by Yobe and Adamawa with 38.4% each; just as Anambra also reported the lowest of 17% within the period.

A combination of unemployment and underemployment rate by states showed that Imo continued to lead with 75.1%; Kaduna, 72.8%; even as Kwara and Oyo recorded the lowest of 34.2% and 34.5% respectively.

https://investdata.com.ng/2020q2-55-7-of-nigerias-working-population-jobless-underemployed-nbs/

Profit Taking Looms, Amid Cautious Trading On Expected H1 Earnings, Economic Data

Market Update for August 12

It was a bullish trading session on the Nigerian Stock Exchange (NSE) at the midweek as the benchmark All=Share index closed higher on rekindled buying interests in high priced stocks and positive sentiment for rising crude oil prices at the international market. Interestingly also, hope for interim dividend from Zenith Bank, Guaranty Trust Bank, Stanbic IBTC, Access Bank, UBA, as well as the March financial year-end accounts have added momentum to the market, wiping out losses suffered in the two preceding trading sessions, on an above average traded volume.

The prevailing low price attraction of blue chip companies with high upside potentials, and the sectoral rotation on the strength of half -year numbers already released, just as the anticipated future performance of these sectors, with government interventions expected to boost business activities and impact positively on their earnings power.

There was a rebound of interest in telecom and healthcare stocks during the session after the market had witnessed a slowdown for some days, just as market players continue to move funds to traditional sectors like agribusiness, banking, Consumer Goods, and oil/gas, among others.

Wednesday’s positive moves impacted major market sub-indices except banking and Industrial Goods. As revealed by market data and reiterated in our previous reports, half-year earnings will lead the market fundamentals and give direction, just that traders have to play the market now with caution with the NSE index trending within the double top chart pattern. This is in expectation of interim dividends which have been factored in already to support pullback when the banks finally present their audited earnings to the market.

Meanwhile, midweek trading started red and oscillated until midday on mixed sentiments of position and profit taking among high cap stocks, which pushed the NSE’s index to an intraday high of 25,141.48 basis points, from its low of 24,883.70bps. Thereafter, the session closed higher at 25,141.48bps on a high traded volume.

Market technicals were positive and mixed as volume traded was slightly lower than that of the previous session in the midst of breadth favouring bulls, and strong buying sentiments as revealed by Investdata’s Sentiment Report showing 100% ‘buy’ volume. The total transaction volume index stood at 1.07 points, just as the momentum behind the day’s performance remained strong with Money Flow Index reading 81.17 points, from the previous day’s 71.493points, an indication that funds entered some stocks.

Index and Market Caps

The key performance index at the end of trading gained 257.78bps, closing at 25,141.48bps, from the 24,883.70bps it opened, representing a 1.04% growth, just as market capitalization rose by N134.47bn at N13.12tr, from the N12.98bn opening value, which also represented 1.04% value gain in investors’ portfolios.

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To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

Midweek’s upturn was driven by price appreciation in medium and high cap stocks like Airtell Africa, Seplat, Guinness Nigeria, Presco, Flourmills, Total, Cadbury and Neimeth Pharma. This impacted positively on the NSE’s Year-To-Date loss which fell to 6.34%, while market capitalization YTD positive position increased to N156.9bn, representing 1.21% above the year’s opening value.

Mixed Sector Indices

Performance indices across sectors were largely bullish, except for the NSE Banking and Industrial Goods that closed marginally lower by 0.36% and 0.26% respectively, while the NSE Oil/Gas led the advancers, gaining 5.24%, followed by the NSE Insurance and Consumer goods with 0.64% and 0.19% up respectively.

Market breadth was positive as advancers outnumbered decliners in the ratio of 18:11, while activity in volume and value terms were mixed as volume sliding by 0.84% as investors exchanged 204.88m shares, as against the previous 206.61m units. Value was however up by 54.75% at N3.83bn, compared to Tuesday’s N2.48bn. Volume was boosted by trades in Guaranty Trust Bank, Access Bank, Zenith Bank FBNH and Sterling Bank.

The best performing stocks for the session were Seplat and Cadbury, which led the advancers’ table with 10% and 9.93% respectively, closing at N385 and N7.75 per share on market forces. On the flip side, Champion Breweries and Consolidated Hallmark Insurance lost 9.3% and 8.11% respectively, closing at N0.78 and N0.34 respectively on selloffs and profit taking.

Market Outlook

Despite the rebound, we expect a mixed performance on profit taking and buying interest as corporate earnings and economic data are expected in the market especially the big banks results and inflation report for July This is just as low stock prices and high dividend yields attract buying interests to equities as MTNN and Flourmills dividend qualification date is August 14. The mixed intradaymovement is likely to persist in the midst of profit booking and investors repositioning their portfolios ahead of Q3 numbers and last quarter of the year. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020 as government and its economic managers are going front and back with mismatch polices.

Also, investors and traders are positioning in anticipation of interim dividend pay companies earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.

We see investors focusing on portfolio adjustment and rebalancing by targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

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

Ambrose Omordionm

CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
amberose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/profit-taking-looms-amid-cautious-trading-on-expected-h1-earnings-economic-data/

Expect Mixed Session On Profit-Taking, Interim Divs, Inflation Report

Price recovery on the nation’s stock market continued onThursday despite the seeming volatility, mixed session and dicey economic situation as the key performance indicator extended its bull transition on high a traded volume and negative breadth.

The positive sentiment driven by the ongoing half-year earnings season has continued to influence prices of low, medium and high cap stocks as market players realigned their portfolios ahead of macroeconomic data and corporate earnings of first-tier banks. In addition, there was also the influence of more March year-end financials, even as companies that had become seemingly become hopeless to their shareholders suddenly posted positive numbers and declared dividends. Specifically, the directors of Northern Nigerian Flourmills and Tripple Gee offered dividends of 15 kobo and 5kobo respectively after posting negative numbers for ovr than five years.

Market players continued position taking in MTNN and Flour Mills, ahead of their August 14, 2020, dividend qualification date, helped by their impressive 2.93% and 7.07% yields respectively in less than 14 days, when compared to other investment windows.

The bull market on Thursday, impacted positively on major market sub-indices except the Industrial Goods, even as we advie traders to play the market cautiously at this point, with the NSE index trading within the double top chart pattern. This is in expectation of interim dividends which have been factored in already to support a pullback when the banks finally present their audited earnings to the market.

Thursday’s trading opened on the upside and oscillated throughout the session on positioning and profit taking among high cap stocks, which pushed the NSE’s index to an intraday high of 25,236.97 basis points, from its low of 24,883.70bps. Thereafter, it closed at 25,236.97bps, higher than the day’s opening figure.

Market technicals were positive and mixed as volume traded was higher than that of the previous session in the midst of negative breadth and high buying pressure as revealed by Investdata’s Sentiment Report showing 100% ‘buy’ volume. The total transaction volume index stood at 1.35 points, just as the energy behind the day’s performance remained strong with Money Flow Index reading 80.24points, from the previous day’s 81.17points, an indication that funds left the market despite closing up.

Index and Market Caps

At the end of Thursday trading, the composite index NSE All Share Index gained 95.49bps; closing at 25,236.97bps from the 25,141.48bps it opened, representing a 0.38% up, just as market capitalization rose by N49.88 billion at N13.17 trillion, from the N13.12 trillionopening value, which also represented 0.38% value gain. .

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new hot stocks of most revered traders and investors in corporate Nigeria to our watchlist. These stocks are with double potentials to rally considering their current market prices and earnings power.

To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

The day’s upturn was impacted by gains recorded by stocks like MTNN, NB, Unilever Nigeria, Stanbic IBTC, Flour Mills, Access Bank, AXA Mansard and Wapic, which impacted positively on the NSE’s Year-To-Date loss as it dropped to 5.98%, while market capitalization YTD positive position increased to N206.81bn, representing 1.60% above the year’s opening value.

Bullish Sector Indices

Performance indices across sectors were largely bullish, except for the NSE Industrial Goods that closed marginally lower at 0.12%, while the NSE Insurance index led the advancers with a 2.61% gain, followed by the NSE Consumer Goods, Oil/Gas and Banking with 1.46%, 0.31% and 0.03% up respectively.

Market breadth was negative as decliners outnumbered advancers in the ratio of 18:15, while transactions in volume and value terms were mixed as volume was up by 25.29% while investors exchanged 258.08m shares, up from the previous 204.88m units. Value was however down by 57.18% at N1.68bn, compared to midweek’s N3.38bn. Volume was boosted by trades in Transcorp, Zenith Bank, Chams, Guaranty Trust Bank and FBNH.

AXA Mansard and Consolidated Hallmark Insurance were the best performing stocks during the session, leading the advancers’ table with 9.66% and 8.82% respectively, and closing at N1.59 and N0.37 per share on impressive earnings and low prices. On the flip side, Ikeja Hotel and Academy Press lost 9.9% and 9.09% respectively, closing at N0.91 and N0.30 respectively on profit taking.

Market Outlook

Despite the rebound, we expect a mixed performance on profit taking and buying interest as corporate earnings and economic data are expected in the market, especially from the big banks, as well as inflation report for July. The mixed intraday movement is likely to persist in the midst of profit booking and investors repositioning their portfolios ahead of Q3 numbers and last quarter of the year. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020 as government and its economic managers are going front and back with mismatch polices.

Also, investors and traders are positioning in anticipation of interim dividend pay companies earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.

We see investors focusing on portfolio adjustment and rebalancing by targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

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

Ambrose Omordionm

CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
amberose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/expect-mixed-session-on-profit-taking-on-interim-divs-inflation-report/#more

Mixed Sessions Still, Amidst Profit Taking, As Investors Position In Undervalued Stocks

Market Update for August 10

Monday’s trading on the Nigerian Stock Exchange (NSE) was another volatile and mixed session, with the benchmark All-Share Index turned red, thereby halting the previous sessions gain in the midst of earnings expectations from the nation’s first-tier banks, and profit booking from stocks that rallied recently.

The mixed sentiment failed to lift the market as selloffs kicked off among high cap stocks, despite the mixed earnings performance that had supported the market before now as sectoral rotation continued based on numbers so far released. The decline was also despite the prospects for future performance in this new normal, as new cases of the coronavirus infection keep rising and spreading like wildfire in an economy that is shaking due to unclear policies emanating from different agencies of the government.

It is obvious that buying pressure subsided during Monday’s trading session as noted in our previous reports, while positive sentiments were strongly induced by interim dividend expectations. Other factors include earnings surprises from some sectors and companies, coupled with the relatively stable price of crude oil in the midst of the pandemic and geopolitical concerns, among others.

Meanwhile, Monday’s trading started slightly on the downside, and oscillated throughout the day on mixed sentiment of buying interests in insurance, consumer goods sectors, as profit taking gradually hit banking and high cap stocks. This pushed the NSE index to an intraday low of 24,841.94basis points, from its high of 25,041.89bps, before retracing up slightly to close lower at 25,027.61bps.

Market technicals were weak and mixed with volume traded slightly higher than that of the previous sessions with breadth favouring the bulls on strong buying pressure as revealed by Investdata’s Sentiment Report showing 93% ‘buy’ volume and 7% ‘sell’ position. The total transaction volume index stood at 0.95 points, just as the momentum behind the day’s performance remains strong as Money Flow Index reads 69.33points, from the previous day’s 67.81points. This is an indication that funds entered some stocks despite the slight down market, even as liquidity improved.

Index and Market Caps

The composite NSEASI, at the close of Monday day’s trading, shed a marginal 14.28bps, closing at 25,027.61bps, from the 25,041.89bps it opened which represented a 0.06% drop, just as market capitalization lost N7.45bn, closing at N13.1tr, which also represented 0.06% value loss.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new hot stocks of most revered traders and investors in corporate Nigeria to our watchlist. These stocks are with double potentials to rally considering their current market prices and earnings power.

To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

Monday’s downturn was impacted by value depreciation in medium and high cap stocks like BUA Cement, Zenith Bank, UBA, ETI, UACN ChampionBrewery and Honeywell Flour. This, expectedly, impacted mildly on the NSE, as Year-To-Date loss increased to 6.76%, while market capitalization YTD positive position stood at N97.5bn, representing 0.75% above the year’s opening value.

Mixed Sector Indices

The sectoral performance indexes were largely bullish, except for the NSE Industrial Goods and Banking that closed 0.41% and 0.04% lower respectively, while the NSE Insurance led the advancers, after gaining 0.96%, followed by the NSE Consumer Goods and Oil/Gas with 0.33% and 0.08% up respectively.

Market breadth was positive as advancers outnumbered decliners in the ratio of 18:11, while market activities in terms of volume and value traded were mixed with volume rising marginally by 5.02%, as investors traded 175.33m shares, slightly higher than the previous day’s 167.14m units. Transaction value dropped 28.93% to N1.43bn, as against Friday’s N2.01bn. Volume was boosted by trades in FBN Holdings, Unilever, Guaranty Trust Bank, Fidelity Bank and Jaiz Bank.

The best performing stocks during the session were Cornerstone Insurance and Unilever that topped the advancers table with 9.09% and 7.14% respectively, closing at N0.60 and N12.00 per share on the back of the seven bonus shares for every 30 held, and market forces. On the flip side, Champion Brewery and Honeywell Flour lost 9.47% and 8.57% respectively, closing at N0.86 and N0.96 respectively on sell down and profit taking.

Market Outlook

We expect a mixed performance on increase profit taking and buying interests, as corporate earnings and economic data are expected in the market, especially earnings reports of the big banks, and inflation report for July, low prices of stocks and high dividend yields attracts buying interest to equity market. This is despite the likely continuation of the mixed intraday movement in the midst of likely profit booking, with investors buying increasing positions in undervalued stocks ahead of Q3 numbers and last quarter of the year. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020 as the government and its economic managers are going front and back with mismatch polices.

Also, investors and traders are positioning in anticipation of interim dividend pay companies earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.

We see investors focusing on portfolio adjustment and rebalancing by targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

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

https://investdata.com.ng/mixed-sessions-still-amidst-profit-taking-as-investors-position-in-undervalued-stocks/#more

Mixed Session, Amidst Profit Taking, Hope For Interim Div Stocks, Economic Data

Market Update for August 11

Equity prices closed lower on the Nigerian Stock Exchange (NSE) Tuesday, as the All-Share index extended its losing momentum for the second successive trading session on a high transation volume but flat market breadth. This was despite the positive sentiment for crude oil price rally at the international market as nations gradually ease the lookdowns within their borders in the midst of rising new cases of coronavirus infection.

Profit booking continued on the exchange as highly capitalized stocks suffered losses in the midst of volatility, mixed sessions and expectation of interim dividend from the banking sector, as half year earnings reporting season gradually winds down in a few weeks. Recently, a moderately large shift away from telecom and healthcare has taken place, with traders and investors moving capital away from the high-flying sectors into more traditional market sectors like banking, Consumer Goods, and oil/gas, among others. The NSE index’s double top chart pattern after the mixed earnings has supported the market before the ongoing pullback.

Tuesday’s trading opened on the downside and vacillated on mixed sentiments and profit taking among high cap stocks that pushed the benchmark index to an intraday low of 24,882.04 basis points, from its high of 25,041.89bps, closing at 24,883.70bps, lower than it opened on a high traded volume.

Market technicals were negative and mixed as volume traded was higher than that of the previous session on a flat breadth and high selling pressure as revealed by Investdata’s Sentiment Report showing 99% ‘sell’ volume and 1% ‘buy’ position. The total transaction volume index stood at 1.09 points, just as the impetus behind the day’s performance remained strong as Money Flow Index read 71.49points, from the previous day’s 69.33points, an indication that funds entered some stocks, despite the profit taking.

Index and Market Caps

At the end of Tuesday’s trading, the NSE All Share index lost 143.288bps, closing at 24,883.70bps, from the 25,027.61bps it opened, representing a 0.58% decline, just as market capitalization lost N75.07bn at N12.98tr, from the N13.1tr opening value, which also represented 0.58% depreciation in value.

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The decline on Tuesday was due to profit taking in Dangote Cement, Guinness Nigeria, International Brewery, Access Bank and Lafarge Africa. This impacted negatively on the NSE’s Year-To-Date loss as it increased to 7.5%, while market capitalization YTD positive position dropped to N22.43bn, representing 0.17% above the year’s opening value.

Mixed Sector Indices

Performance indices across sectors were largely bullish, except for the NSE Insurance and Industrial Goods that closed 2.48% and 2.16% lower respectively, while the NSE Consumer Goods led the advancers, gaining 0.93%, followed by the NSE Banking and Oil/Gas with 0.52% and 0.26% up respectively.

Market breadth was at par as advancers were equal to decliners in the ratio of 17:17, while transactions in volume and value inched by 17.84% and 73.64% respectively as investors exchanged 206.61m shares worth N2.48bn from the previous 175.33m units valued at N1.43bn. Volume was boosted by trades in Access Bank, Fidelity Bank, Guaranty Trust Bank, Zenith Bank and Wema Bank.

Cadbury and Nigerian Breweries were the best performing stocks after topping the advancers table with 6.82% and 6.25% respectively, closing at N7.05 and N34.00 per share on market forces. On the flip side, Prestige Assurance and Ikeja Hotel lost 10.00% and 9.82% respectively, closing at N0.45 and N1.01 respectively on selloffs.

Market Outlook

We expect a mixed performance on increased profit taking and buying interest as corporate earnings and economic data are expected in the market especially the big banks results and inflation report for July, just as low stock prices and high dividend yields attracts buying interests to equities. This is despite the likely continuation of the mixed intraday movement in the midst of likely profit booking, with investors buying increasing positions in undervalued stocks ahead of Q3 numbers and last quarter of the year. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020 as government and its economic managers are going front and back with mismatch polices.

Also, investors and traders are positioning in anticipation of interim dividend pay companies earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.

We see investors focusing on portfolio adjustment and rebalancing by targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

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

Meanwhile, the home study packs on 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 are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

Ambrose Omordionm

CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
amberose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/mixed-session-amidst-profit-taking-hope-for-interim-div-stocks-economic-data/#more

Investdata Daily Sentiment Report as of 11 August 2020

NSEASI buy 1% sell 99% volume index 1.09 MFI 71.49
Access buy 33% sell 67% volume index 3.59 MFI 85.74
Afrprud buy � MFI 56.73
Aiico buy 0% volume index 1.05 MFI 30.54
Caverton buy 0% volume index 1.29 MFI 63.41
Chams buy 0% MFI 16.07
Cutix buy 0% volume index 3.31 MFI 92.61
Eti buy 0% volume index 1.25 MFI 27.00
Fbnh buy 0% MFI 57.79
Fcmb buy 0% volume index 1.42 MFI 47.22
Fidelity buy 0% volume index 3.06 MFI 80.51
Glaxo buy 0% MFI 74.21
GT buy 87% sell 13% volume index 1.63 MFI 79.13
Mansard buy 0% volume index 6.68 MFI 21.78
Neimeth buy � volume index 1.34 MFI 87.63
Stanbic buy � volume index 2.43 MFI 88.80
Sterling buy 0% MFI 30.93
Transcorp buy � MFI 43.54
Uacn buy � volume index 1.02 MFI 83.76
Uba buy � MFI 55.81
Ucap buy 56% sell 44% volume index 2.03 MFI 64.03
Wema buy 50% sell 50% volume index 4.92 MFI 49.95
Zenith buy � volume index 1.20 MFI 58.01

https://investdataltd..com/2020/08/investdata-daily-sentiment-report-as-of_12.html

Profit Taking Ahead, As Investors Await Results Of Interim Dividend Stocks


Market Update for the Week Ended August 7 And Outlook for August 10-14

Trading activities on the Nigerian Stock Exchange last week remained on the recovery path, extending the three consecutive weeks of bull-run and strong buying sentiments propelled by corporate earnings that beat investors’ expectations. This was despite the array of mixed numbers, rising cases of Coronavirus infection in the country, economy uncertainties and policies mismatch by the government. In the past week also, the Federal Government announced a hike in the price of Premium Motor Spirit (or petrol), in line with its decision to remove subsidy on the product, owing to incidences high level corruption, bringing the pump price to between N148.50 and N150 per litre, a factor that would further push up the cost of living and inflation.

The better-than-expected half-year earnings reports submitted by many blue-chip companies and attractive valuation of equity assets in the prevailing low interest and yield environment, amidst the rising inflation rate that continues to threaten returns on investment.

These have triggered flow of fund into undervalued medium and high cap stocks, as smart money realigns portfolios and positions in high interim dividend paying stocks with strong fundamentals. These include the first-tier banks that expected to start submitting their half -year audited financials, just as others with high yields and possibility of paying dividend at the end of 2020 financial year.

The nation’s economy is still searching for direction at a time the government and the Central Bank of Nigeria (CBN) are injecting over N2.3tr into the system to mitigate the effects of COVID-`9 outbreak on businesses and Nigerians. The removal of fuel subsidy, single exchange rate and expansion of the tax net, are yet to reflect on, or boost economic activities due to the lack of focus and coordination needed to chart a new course in this economic reset. But then, how will the government curtail inflation, the soaring unemployment, poverty and insecurity, when there is a lack of synergy among the policy makers?

The global stock markets, in the period under review were equally bullish on the positive earnings season, news of the discovery of a vaccine for the deadly virus, relative stability in oil price and other factors. It was also despite the resurgence of the cold war between the US and China in the midst of fear of a second wave of the Coronavirus, while tech funds, impressive earnings performance of tech companies and others continue to drive sector price performance and the markets to pre-COVID level.

Movement Of NSEASI

The bullish sentiment was an extension of the previous week’s uptrend as the composite NSE All-Share index recorded five straight sessions of gains, with trading for the period opening on a positive note at 0.29%. This was sustained for the rest of the week, with the index gaining 0.31%, 0.16%, 0.19% and 0.41% respectively on Tuesday, Wednesday, Thursday and Friday, bringing the week’s total gain to 1.41%, which surpassed previous week’s 0.99% rise.

The exchange’s key performance index gained a total of 348.16 basis points, opening at 24,693.73bps, touching an intra-week high of 25,041.89bps, from its low of 24,427.73bps on a strong buying sentiments driven by the impressive earnings from some companies. It was the result of institutional investors repositioning their portfolios on the strength of recent numbers released as revealed by the week’s traded volume. The index closed above at the intra-week high of 25,041.89ps, just as market capitalization climbed N181.62bn during the period, closing at N13.1tr, from the previous weekend’s N12.86tr, also representing 1.41% appreciation in value.

During the week under consideration, over 30 companies released their half-year scorecards and March year-end accounts from Flour Mills and Honeywell whose directors recommended a dividend of N1.40 and 0.04 kobo respectively. Also, others like Custodian Investment, Consolidated Hallmark Insurance and Cornerstone Insurance declared interim dividends of 10 kobo; bonus of one new share for every 15 held by shareholders; and seven shares for every 30 held respectively.

The advancers’ table was dominated by low, medium and high priced stocks, as gainers were more in the ratio of 41:18, while the momentum behind the week’s performance was relatively strong, as Money Flow Index read 67.24bps from 66.95ps in the previous week. This is a reflection of the improved buying interests, regardless of the seeming profit-taking and selloffs on portfolio repositioning.

The NSE’s index continues to trade above the 20-Day Moving Average on the weekly chart, heading to breakout the 50% line of Fibonacci retracement and 50 DMA on less than average traded volume that indicates the wait-and-see attitude of market players for interim dividend paying score-cards. The double top chart pattern formation on both timeframes signals reversal. However, the expected positive momentum from the earnings and inflow of funds to stock market, the possibility of a breakout is high depending on market forces in the new week. Also we envisage profit taking a head.

On a daily and weekly time frame MACD remain bullish, supporting an uptrend and changing momentum in the market on the increasing numbers of earnings reports that are above expectation. The buy volume for the period stood at 79%, and money flow index flat at 68.33 points.

The Relative Strength Index for the period is looking up, reading 45.68, just as the momentum behind the market attempting rebound was flat in the midst of the improving buying interests in some stock. This was the despite the mixed sentiments and earnings reports that are yet to give market direction.

The energy behind the NSE’s index movement on a daily and weekly chart stayed mixed with the ADX reading 17.78 points from last week’s 18.48 points, on positive sentiments as revealed by Investdata’s Sentiment Report for the week showing 100% ‘buy’ volume, with the transaction volume index at 0.75.

Bullish Sectoral Indices

The performance index across the sectors were up, except for the NSE Insurance which closed 0.28% lower, while the NSE Banking index led advancers after gaining 4.94%, followed by the NSE Oil/Gas, Consumer and Industrial goods thatclosed 4.81%, 0.72% and 0.10% higher respectively.

Activities during the week, in terms of volume and value, were up by 154.76% and 102.25% respectively as investors traded 1.07bn shares worth N10.80bn from the previous week’s 421.98m units valued at N5.34bn. The week’s volume was boosted by trades in financial services, conglomerates and industrial goods stocks, especially FBN Holdings, UACN, Access Bank, Transcorp and Lafarge Africa.

Neimeth Pharm and UACN Property were the best performing stocks after gaining 21.38% and 18.52% respectively, closing at N1.82 and N0.96 per unit on positive Q3 earnings ahead of full-year results and market forces. On the flip side, UACN and Total Nigeria lost 11.43% and 9.91% respectively, closing at N6.20 and N79.19 per share on weak earnings, the inconsistent statement and selloffs on negative numbers respectively.

Market Outlook

We expect positive momentum and volatility to continue on dividend qualification date of MTNN, Flour Mills and Cornerstone Insurance, with audited half-year earnings reports expected from Guaranty Trust Bank, Stanbic IBTC, Zenith Bank, Access Bank and UBA with interim dividend yield of 1.23%, 3.03%, 1.77%, 3.84% and 3.05% respectively. This is coming amidst reactions to good and bad earnings with the earnings season providing buying opportunities for short-term trading, using the value area called resistance and support level in your trading decision.

We cannot also rule out investors pricing in government’s inconsistent policies and weak macroeconomic data as the June Inflation report helps investors determine by how much it has thrown returns in most investment classes into negative yields. Already, inflation has risen above the Central Bank of Nigeria’s benchmark Monetary Policy Rate (MPR) at 12.5%, even as the declining industrial productivity points to the reality of a recession.

The sectoral rotational wave will help investors cash in on low cap stocks and sectors that have suffered huge losses before now. Already investors are looking the way of healthcare, airline service providers, oil marketing stocks, banking among sectors likely to be impacted positively in the much anticipated global and domestic economic reset.

Also, the possibility of continued funds inflow to low priced stocks is high, due to the higher yields and upside potentials, considering the low rates on offer in the money and bond markets. In the meantime, investors should also look out for developments around the implementation of the CBN’s funding plan for small and medium scale businesses.

Already, we notice that investors are taking position in healthcare and other defensive stocks likely to survive this meltdown, as seen in the increased trading in them, even as the global markets continue on the recovery path, with the gradual easing of the lockdown.

While discerning investors should prepare to take advantage of stocks revaluation to position for the medium to long-term, it is noteworthy that the Nigerian equity market is selling at a discount and therefore offers high upside potential.

Expect a pullback that will support the upside potential, especially with many fundamentally sound stocks remaining underpriced, and the dividend yield of major blue-chips continuing to look attractive in recent weeks, we expect speculative trading to shape the market’s direction, despite the seeming mixed outlook.

To position for the short to long-term, investors should target fundamentally sound, dividend-paying stocks, for possible capital appreciation in the coming months. Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives, and their impact on the economy in the nearest future.

Ambrose Omordion

CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/profit-taking-ahead-as-investors-await-results-of-interim-dividend-stocks/

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Urgent Market Update Video To Watch As Inflation and Low Interest Rate Support Equity Assets


Kindly click on the below link to watch and tell me what you think about the videos in the comment section.

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https://www.youtube.com/watch?v=EISY-AmlbJA

Investdata Daily Sentiment Report as of 4th August 2020

NSEASI buy 95% sell 5% volume index 1.05 MFI 44.70
Access buy 50% sell 50% volume index 1.53 MFI 52.35
Aiico buy 0% volume index 1.79 MFI 52.13
Bua buy � volume index 0.99 MFI 20.73
Caverton buy 33% sell 67% volume index 2.48 MFI 65.89
Custodian buy 0% volume index 4.78 MFI 63.55
Dangsugar buy 0% volume index 1.53 MFI 38.77
Eti buy 0% volume index 2.11 MFI 5.56
Fbnh buy 0% volume index 0.74 MFI 58.55
Fcmb buy 12% sell 88% MFI 38.63
Fidelity buy 20% sell 80% volume index 1.07 MFI 10.28
Fmn buy � volume index 1.05 MFI 23.22
Glaxo buy � volume index 2.53 MFI 70.09
GT buy 78% sell 22% volume index 1.20 MFI 36.10
Jaiz buy 0% volume index 0.83 MFI 80.11
Japaul buy 0% MFI 32.44
Mben buy 0% MFI 58.15
Nahco buy 0% MFI 26.73
Oando buy 0% volume index 1.06 MFI 62.38
Sterling buy 50% sell 50% MFI 28.34
Transcorp buy 0% volume index 2.97 MFI 35.44
Uba buy � volume index 0.78 MFI 55.79
Ucap buy 92% sell 8% volume index 1.39 MFI 73.21
Unity buy 60% sell 40% volume index 1.92 MFI 64.57
Wema buy 0% MFI 21.61
Zenith buy 50% sell 50% MFI 46.21

https://investdataltd..com/2020/08/investdata-daily-sentiment-report-as-of.html

Is Stock Market About to Turn?

Click on below to find out if the market is about to turn. Afterwards, tell me what you think in the comment box.

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https://www.youtube.com/watch?v=kP5gxSlqZSI

Growth In Sale Of Investment Securities Boosts FBN Holdings H1 Profit


The board of FBN Holdings Plc, on Wednesday, presented its financials for the half-year ended June 30, 2020, which showed a 23.84% growth in net profit, despite the 38.65% spike in impairment charge for losses, the bulk of which was the N20.947bn provisioned between April and June, 153.59% above the N8.26bn in the corresponding period of 2019.

According to the half-year financials, total income stood at N296.411bn, the bulk of which commercial bank business contributed the lion’s share of N278.535bn; followed by the N17.343bn from the merchant banking and asset management group. Interest income dropped from N216.757bn last year to N207.417bn, N196.664bn of which was from commercial banking, which contributed N70.53bn of interest expense as it inched slightly from N75.063bn to N76.142bn, translating to a net interest income of N131.275bn, N10.419bn or 7.35% less than the N141.694bn.

Impairment charge for losses jumped to N30.651bn, up by N8.544bn or 38.65% from N22.107bn; following which net interest income after impairment charge for losses fell by 18.85% to N100.624bn from N119.587bn in the preceding half-year.

Fee and commission income for the period under review stood at N55.782bn from N49.062bn, which was boosted by the N21.717bn earned from electronic banking, as against N21.832bn; and other fees and commissions amounting to N3.221bn from N9.237bn.

Fee and commission expense rose to N9.03bn from N8.901bn; while foreign exchange loss stood at N3.586bn, as against the previous N4.779bn gain. Net gains on sale of investment securities soared from N3.753bn to N26.321bn; net gains from financial instruments at face value stood at N7.308bn during the half-year, despite the N1.033bn losses sustained in the second quarter operations, from N2.082bn.

Dividend income stood at N2.033bn from N2.075bn; other operating income dropped slightly from N1.73bn to N1.275bn; personnel expenses climbed to N49.537bn from N46.775bn; even as depreciation, amortization and impairment inched from N9.358bn to N11.636bn; just as operating expenses fell from N81.805bn to N78.0bn. The bulk of this ws the N22.65bn regulatory cost, which climbed up from N19.786bn

Operating profit increased by 14.69% from N36.229bn to N41.554bn; profit before ta stood at N41.415bn from N36.246bn; income tax expense declined from N7.463bn to N5.771bn.

Net profit improved by N6.861bn or 23.84% to N35.644bn as against the N28.783bn, translating to Earnings Per Share of N1.35, up from 84 kobo at the end of 2019.

On the balance sheet rose by N926.696bn or 14.94% from N6.203tr to N7.13tr; the lion’s share of which was the N1.1994tr customer loans and advances, up from N1.852r, representing an increase of 7.55%.

Total liabilities improved by N883.726bn or 15.94% to N6.426tr from N5.542tr, lifted by the N4.373tr customer deposits which increased by N353.38bn or 8.79% from N4.019tr at the end of December last year to N4.373tr. Shareholders’ funds stood at N704.095bn from N661.126bn.

https://investdata.com.ng/growth-in-sale-of-investment-securities-boosts-fbn-holdings-h1-profit/

July Trading On NGSE Closes Mixed, Positive, As Many Stocks Remain Undervalued

Market Roundup for July

Trading activities on the Nigerian Stock Exchange for the month of July closed marginally higher on Wednesday as the Federal Government declared Thursday and Friday public holidays to celebrate the Muslim festival of Eid-El-Kabir.

During the month, the market resisted further decline after the profit taking activities witnessed in June, halting the bearish transition on mixed sentiments in the midst of improved buying interests, negative macroeconomic indices. All of these occurred in the midst of corporate earnings that are not as terrible as predicted due to the lockdowns occasioned by the Coronavirus (COVID-19) pandemic with telling effects on many economies across the globe, despite the disappointing numbers and some surprising numbers that reveals huge opportunities in the equity space.

The power of earnings and the momentum of the reporting season cannot be overemphasized, being factors that have helped the market indicator the period under review, regardless of the negative impact of the lockdown on the earnings power of companies. These corporate earnings are expected to reshape the market in the month of August and support recovery.

The government and Central Bank of Nigeria (CBN) intervention funds and stimulus packages are yet to start reflecting on economic fundamentals and indicators such as the Purchasing Managers’ Index (PMI) which is still below 50 points for three consecutive months. For the month of July, PMI read 44.9 points despite inching up from 44.1point in June, while Consumer Price Index rose to 12.56% in the month of June, from May position of 12.40%, while unemployment rate continued its northward growth at 68% in the aftermath of the pandemic outbreak.

We believe that a change in fiscal policy stance, structural adjustments, early disbursement of capital project funds and real change in implementation style of the government will further hasten economic recovery, by enhancing productivity and national output needed to support growth.

The mixed trend during the period under review was obvious in the 21 trading sessions of the month during which the market closed negative for 12 days, and positive in nine to stop the previous month’s negative stance. It also reduced the year-to-date loss suffered by the NSE’s All-Share Index to 8%, owing to low price attraction and effects of the earnings season. Despite other challenges, many equities remained undervalued, offering high margins of safety and upside potentials.

Meanwhile, during the month under review, the benchmark NSEASI gained 214.57 basis points, closing at 24,693.73bps, after touching a high of 24,783.61bps and low of 23,961.14bps, from the 24,479.16bps it opened for the month, representing a 0.88% rise. This came with a strong buy-market position that impacted prices of high cap stocks, thereby resisting decline within the month.

The buying volume of total transactions for the month was 89%, while selling position was 11%, while volume index for the period was 0.65.

Market capitalisation for the month gained N110bn, closing at N12.88tr, from an opening value of N12.77tr, representing a 0.86% appreciation in value.

The market sustained a mixed sentiment and trend for stocks, especially with the earnings reporting season on the expected impact of the CBN intervention funds, 2020 capital budget implementation to help improve liquidity. Crude oil prices remained relatively stable at above $40 per barrel in the midst of a weakening US$ and depreciation of the Naira against other currencies.

Traded volume for the month was down by 12.29% to 4.21bn, shares from 4.8bn units in the preceding month, even as market breadth for the month was negative with decliners outnumbering advancers in the ratio of 71:23. This was despite the fact that the benchmark index closed marginally up in the period under consideration.

The sectoral performance chart below shows that the NSE Industrial Goods and Premium indices drove the market the most in the month under review. While the industrial Goods index gained 3.88%, the NSE Premium index followed with 3.79%, outperforming the NSEASI in the period.

Other sectoral indexes closed lower during the month, led by the NSE Oil/Gas which lost 13.3%, followed by the NSE Consumer Goods that shed 8.88%; the NSE Insurance, 5.69%; NSE Pension, 2.41%; and NSE Banking, 1.19%.


The month’s best performing stocks were Ikeja Hotel, which rallied on market forces, despite the negative sentiment for stocks in the hospitality sector, closing 17.89% above its opening price; followed by Unity Bank, which appreciated by 15.09%; while energy company, Ardova chalked of 14.47%; and United Capital, 12.11%.

Among the month’s top gainers during the month are: Dangote Cement, 10.78%; Redstar Express, 8.98%; Lafarge Africa, 8.80%; Vitafoam, 8.49%; Okomu Oil Palm, 6.46%; and Airtel Africa, 5.87%; among others.

Best Performing Stocks in July 2020
Securities Sector Open Close % Change Remarks
Ikeja Hotel Services 0.95 1.12 17.89 Market forces
Unity Bank Banking 0.53 0.61 15.09 Market forces
Ardova Oil/Gas 11.75 13.45 14.47 Sentiment
Ucap Other Financials 2.56 2.87 12.11 Improved EPS
Dangote Cement Industrial Goods 128.00 141.80 10.78 Low Priced Attraction
Redstar Express Services 3.23 3.52 8.98 Div Expectation
Wapco Industrial goods 10.80 11.75 8.80 Improving EPS
Vatifoam Consumer goods 5.30 5.75 8.49 Strong EPS
Okomu Oil Agro-Business 70.40 74.95 6.46 Strong EPS
Airtel Africa Telecoms 328.70 348.00 5.87 Sentiment
Source; Investdata Research

The worst performing stocks included Arbico, which lost 26.46%, linked to its unimpressive numbers and negative impact of the pandemic on the sector; Julius Berger lost 24.43% as a result of its weak performance; just as Learn Africa declined by 21.71%; followed by Unilever Nigeria, 19.93%; and Seplat, 19.64% on the back of negative and declining earnings performance.

Worst Performing Stocks in July 2020
Securities Sector Open Close % Change Remarks
Arbico Housing 1.89 1.39 -26.46 Poor Performance
Julius Berger Construction 19.85 15.00 -24.43 Weak Performance
Learn Africa Services 1.29 1.01 -21.71 Market Forces
Unilever Consumer goods 16.30 12.15 -19.93 Worsen weak numbers
Seplat Oil/Gas 386.00 310.20 -19.64 Impact low oil price
Conoil Oil/Gas 21.00 16.90 -19.52 Price adjustment for Div
International Brew Consumer goods 4.10 3.30 -19.51 Negative Account for 3yrs
Berger Paints Industrial goods 7.45 6.05 -18.75 Market forces & weak EPS
Nahco Services 2.45 2.00 -18.37 Market forces
Uacn Property Housing 0.99 0.81 -18.18 Red Accounts
Source: Investdata Research

Technical Analysis of July market

NSEASI MONTHLY TIME FRAME

The NSEASI’s monthly chart above has remained well below the 20 and 50-Day Moving Averages since December 2019 on a bearish channel, despite various attempts at a rebound, especially from the March 2020 dip that created wealth for smart traders and discerning investors. The market is resisting further decline as revealed by the chart which supports an uptrend after the earnings season. The mixed sentiment is likely to continue driving sectoral rotation on the strength of the numbers released.

Where To Invest And Expectations For August & September

The global economy remains unstable and depressed in the aftermath of the virus outbreak as the debt profile of many nations are on the rise, while economies try to rebound, amidst fear of a second wave of the Covid-19 pandemic and the geopolitical crisis threatening the recovery. In Europe and the U.S, the near-term growth outlook remains unpredictable, as political and economic uncertainties threaten the moderate recovery despite the news of vaccine discovery.

Back home, despite the negative macroeconomic data, the expected impact of the government and CBN bailout funds to support economic recovery in this quarter and beyond has started on a positive note to trigger confidence among equity market players. This is considering the low interest rate environment and inflation, coupled with mixed half-year earnings reports which offer insights into how the full-year outings would play out in terms of payout and earnings performance capable of driving or supporting future prices.

In August, we expect inflation figure for the month of July to be released by the National Bureau of Statistics (NBS) and the continued rally resulting from a combination of factors. These include the Naira devaluation, high cost of transporting goods and persons, as well as the heightening insecurity, among others, just as the PMI could improve slightly, supporting the seeming recovery. Nigeria’s manufacturing sector’s Q2 numbers were mixed, reflecting the impact of the pandemic on the sector and the economy at large.

The May year-end accounts and the remaining quarterly earnings are expected in this month, a situation that is likely to impact the market as other interim dividend paying stocks announce their results in August. Also, as investors and analysts interpret the recent scorecards to reposition and balance their portfolios ahead of Q3, this will keep the market oscillating in the period. The recent Q2 numbers are in line with market expectations, but surprises came out from different companies and sectors, a situation likely to strengthen market fundamentals as businesses continue to find direction.

The low valuation in the market was despite the April rebound, as many stocks remain undervalued given their intrinsic values, which should guide investors and help them know where to look in their search for profitable equity investors for the rest of the year while protecting their capital.

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 of numbers released so far to reshape the market while positioning for short, medium and long term gains. This is especially as candlestick formation at the end of July signal uptrend. Other sectors to consider for investment are banking, agribusiness, building material, telecoms and insurance after carefully study of the recent price pattern and fundamental data available in the market.

What to expect in August and September

Release of the May full-year earnings, since August is the end of the statutory 90-day period for audited results. This numbers from blue-chip companies may strengthen market fundamentals, if positive.
The oscillating trend of equity prices as a result of repositioning of portfolio along the line of positive numbers and profit taking.
Market outlook for the new month remains mixed as more quarterly and full-year earnings are expected. But with the mixed sentiment and momentum, the market is expected to extend it volatility, even as economic recovery may strengthen market fundamentals, if the 2020 capital budget is implemented judiciously.

The relative low Price-to-Earnings in market may further attract demand for stocks, but invest wisely, using bids, offers and volume when taking decisions as a trader.
Managing risk and protecting capital at this point is very important, so you will be able to determine when to buy or sell, by watching the stocks and the market, using technical analysis and watch list to buy right.
Let numbers released by companies guide your decision and time to stay in any particular position.
To learn how to manage trading risk, get INVESTDATA comprehensive stock market trading and investing home study pack where short trading strategies and how to identify quality companies to invest before the market look toward ii were discuss.

https://investdata.com.ng/july-trading-on-ngse-closes-mixed-positive-as-many-stocks-remain-undervalued/

Hot Stocks To Trade

Hello Investors and Traders,

Ambrose Here Again,

As earnings season gradually come to close, with mixed numbers of some disappointing results and surprises. There's a very specific list of stocks that are set to soar AND crash by as much as 20%, 25%, 30% or more over the coming weeks.

As a result, I have made this"Hot List To Trade with" and it is currently available to buy and sell signal members only, click on the below link to Download instantly.

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

However, if you are yet to join, chat or call the Admin on 08032055467, 08028164085.

Dedicated to Your Investment and Safety,
Ambrose Omordion

How are your Investment Goals?

I hope you all enjoyed your holiday. We look upward to success in our various businesses as we edge closer to the fourth quarter of the year 2020.

It's Ambrose Here,

"You have greatness in you, insure it"

Actually it’s amazing, when babies are learning how to walk, irrespective of the number of times they fall down even after sustaining injury they still stand up & try to walk over and over again until they are perfect. Can you remember those days?

However, we don’t really practice this mentality as we grow up “never give up mentality" maybe because of other problems that life throws at you even though you really need more of that now because it is more like consistency & perseverance which plays an important role in achieving any success in life including growing your finance on a daily basis.

So, at the peak of earnings reporting season and thereafter, knowing precisely which stocks are the best-proven performers can be the difference between another so so year and now that the season has presented another opportunity to profit from.

To take advantage of this period, get your Mastering Earnings Season videos for profitable trading and Investing in any market situation/cycle. Call now 08032055467 08028164085

Happy New Month !!!

Ambrose Omordion

https://investdataltd..com/2020/08/how-are-your-investment-goals.html

Hello Investors,

The, buy & sell signal for this week have been posted on the membership site for you. Pls, click on the long link for this week's download.

I have added a further twist to it. This includes.
1. Low Priced Stocks to Watch
2. Stocks to lead recovery
3. Defensive Stocks
4. Dividend Stocks with Strong Yields and Fundamentals
5. Stocks to Benefit from Corona Virus-Induced Economic downturn and government Intervention

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

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

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

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

To Your Success

Investdata Consulting.

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

Reversal Imminent, As Investors Bet On Oil Price Rebound, Earnings Reports

Market Update for July 28

The big winners from the previous session on the Nigerian Stock Exchange (NSE), slowed down on Tuesday, as mixed trend continued after a positive reaction to half-year earnings reports. The composite All-Share index closed south on a low traded volume to remain relatively above its 20 and 50-Day Moving Averages, supporting a recovery, while indicating ‘buy’ interests from smart money while Money Flow Index oscillated to read 37.82 points despite profit taking by short-term traders.

The mixed earnings from Okomu Oil, Prestige Assurance and Mutual Benefits Assurance failed to impact the general market positively, despite influencing their share prices and sectoral performances for the day with investors reacting positively as revealed by the volume traded to top the gainers’ chart. The day’s negative slant was caused by oil/gas stocks which depressed the market due to unimpressive earnings reports that have so far emanated from the sector, as well as oscillating crude oil prices at the international market.

Tuesday’s trading started on the downside and fluctuated throughout the session on selloffs in petroleum products marketing stocks and position taking in insurance equities, which pushed the benchmark index to an intra-day low of 24,173.53 basis points, from its high of 24,783.61bps. Thereafter, the index finished lower at 24,650.16bps.

Tuesday’s market technicals were weak and mixed as volume traded was lower than the previous session in the midst of negative breadth and mixed sentiment as revealed by Investdata’s Daily Sentiment Report, showing a ‘buy’ position of 78% and sell volume of 22%. The total daily transaction volume index stood at 0.76, while momentum behind the day’s performance stayed weak, with Money Flow Index reading 37.82 points, as against the previous 44.35ps, indicating that funds exited some stocks.

Index and Market Caps

At the close of Tuesday’s session, the NSEASI shed 133.45 basis points, to close at 24,650.16bps from 24,783.61bps, representing a 0.54% drop, just as market capitalization lost N69.61bn, closing at N12.86tr after opening at N12.93tr, also representing 0.54% value depreciation.

If you are yet to sign up for Investdata’s Buy and Sell signal setup, don’t delay. We have just added another risk management feature and six categories of stocks to see you through in this changing market dynamics and economic uncertainties. These stocks are with double potentials to rally and protect your funds considering their current market prices.

To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at this current market oscillation and earnings reporting season for portfolio realignment and positioning as we await an economic reform policy to stimulate and re-track the economy again.

Tuesday downturn was due to selloffs and profit taking among medium and high cap stocks like MTNN, Guaranty Trust Bank, Total Nigeria, Seplat, Guinness, ETI, FBNH, and PZ. This impacted negatively on the NSE’s benchmark index, increasing the Year-To-Date loss to 8.17%, while market capitalization YTD turned remained positive, at N55.11bn, representing a 0.16% improvement over the year’s opening level.

Bearish Sector indices

Performance across the various sectors were bearish as the NSE Oil/Gas, Banking and Consumer goods closed in the red by 5.20%, 0.45% and 0.13% respectively, while the NSE Insurance index was up by 0.43%, just as NSE Industrial Goods close flat.

Market breadth was negative, as decliners outnumbered advancers in the ratio of 17:14, while transactions in volume and value terms were down by 11.53% and 17.68% respectively, as investors exchanged 152.4m shares worth N1.98bn, as against the previous 169.99m units valued at N2.39bn. The day’s volume was boosted by trades in Mutual Benefits Assurance, FBNH, Access Bank, Lafarge Africa and Guaranty Trust Bank.

Berger Paints and Mutual Benefits Assurance were the best performing stocks for the day, after gaining 10% each and closing at N6.05 and N0.22 per share respectively on market forces and improving numbers. On the flip side, Total Nigeria and Seplat closed at N87.80 and N282.00 per share respectively on profit taking.

Market Outlook

We expect reversal in trend on crude oil rebounding sentiment in the midst of more earnings being release to the market, the impact of positive news of a Coronavirus vaccine on oil price and impact of CBN policies on the economy ahead of long holiday. Just as investors are equally worried about inconsistent government policies which have continue to dampen confidence.

This is likely to support the wave of decline as pullbacks persist, creating new entering opportunities. Money flow index has continued to look up at 38.83 despite flowing from one sector to the other, seeking value in terms of low prices with high upside potentials.

This is just as economic recovery is threatened by the rising cases of the COVID-19 pandemic, as earnings reporting season has kicked off, which implies that opportunities are still available as sectoral rotation continues. Also, sectors that have suffered oversold, so far, offer attractive risk-reward buy-opportunities and outlook for considerable short, medium and long term investment.

For immediate liquidity or cash, we advise that you trade low priced stocks with serious caution to avoid being trapped. However, the market’s high dividend yield continues to attract buying interests, as few audited and unaudited corporate earnings will hit the market, going forward. This is despite the likely continuation of selloffs. Investors are buying to increase their positions in undervalued stocks ahead of Q2 numbers. It is also against the backdrop of the fact that the capital wave in the financial markets may persist in the midst of relatively low-interest rates in the money market, high inflation, and unstable economic outlook for 2020.

Again, the current undervalued state of the market offers opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation going forward. Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives, and their impact on the economy in the nearest future.

Ambrose Omordion

CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
amberose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

https://investdata.com.ng/reversal-imminent-as-investors-bet-on-oil-price-rebound-earnings-reports/

COMBATING THE RIGOURS OF TRADING (1)

Traders who have engaged in trading on the bourse will attest to the fact that, trading is not an easy task at all, therefore to achieve a successful trading, some strategies must be incorporated into a trader's trading style. Here are some ideas to help with the process of trading:

(1) Virtual Stock Trading
Try to paper trade the market first before trading with real money as market is a battle of give and take. The real pros are prepared and they take profits from the rest of the crowd who, lacking trading skill, give their money away through costly mistakes.

(2) Mental Preparation
One must be emotionally and psychologically balanced to deal with the battle in the market, trading area should be one devoid of distraction, adequate sleep � over the night is one of the tonics of trading on the bourse, quickly resolving marital issues in order to have a stable mind while trading is also one of the strategies. If all these are not in the positive, it is better to take a day off, otherwise one is risking losing ones shirt.

Investdata Academy
http://investdataltd..com/.../combating-rigours.

Amidst Rising Inflation, Migration To Equity Assets Boosts NGSE Index

Market Update for July 27

Highly capitalized stocks gave the Nigerian Stock Exchange (NSE) a much-needed boost on Monday to start the week on strong after closing higher, enough to completely wipe off the previous loss suffered by the benchmark All-Share index. The gain was however on a low traded volume and despite the day’s negative breadth.

The candlestick formation supports bullish pattern, as the index trades above its 20 and 50-Day Moving Average on gradual return of funds into equity assets as revealed by money flow index indicating activities of smart money.

The mixed sentiments and continued volatility are clear reflection of cautious trading among investors in the midst of an earnings reporting season much in line with market expectations, due to the impact of the Coronavirus outbreak and the accompanying lockdown from which the economy is yet to recover. There were however exceptions like Africa Prudential, Dangote Cement, Okomu Oil, and Lafarge Africa that recorded mixed performance, while Jaiz Bank and United Capital posted impressive numbers to stand out among the scorecards already made available to the market.

The improved buying interests in the banking and industrial goods sector were attributed to the seeming better-than-expected half-year earnings report released so far from building materials making companies and the expected interim dividend payment from Stanbic IBTC, Guaranty Trust Bank, Zenith Bank, UBA and Access Bank. Market data for the day revealed that investors and traders have reacted positively to the companies that posted impressive numbers.

Meanwhile, Monday’s trading opened slightly on the upside and pulled back at mid-morning as high priced stocks suffered losses, before rebounding between midday and afternoon on demand for bellwether stocks. This pushed the NSE index to an intra-day high of 24,783.61 basis points, from its low of 24,173.53bps, before closing the session higher at 24,783.61bps.

Market technicals for the day were positive and mixed as volume traded was lower than the previous session with breadth favouring the bear on strong buying sentiment as revealed by Investdata’s Daily Sentiment Report, showing a ‘buy’ position of 100%. The total daily transaction volume index stood at 0.86, just as energy behind the day’s performance stayed weak, with Money Flow Index reading 44.35 points, as against the previous 39.01ps, indicating that funds entered some stocks, offering some hope.

Index and Market Caps

At the end of Monday’s trading, the composite NSEASI gained 355.88 basis points, to close at 24,783.61bps, from 24,427.73bps, representing 1.46% growth, just as market capitalization rose by N185.65bn, closing at N12.93tr from an opening value of N12.74tr, which representing 1.46% value gain.

If you are yet to sign up for Investdata’s Buy and Sell signal setup, don’t delay. We have just added another risk management feature and six categories of stocks to see you through in this changing market dynamics and economic uncertainties. These stocks are with double potentials to rally and protect your funds considering their current market prices.

To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at this current market oscillation and earnings reporting season for portfolio realignment and positioning as we await an economic reform policy to stimulate and re-track the economy again.

The day’s advancement was driven by positive sentiments for medium and high cap stocks like Dangote Cement, Guaranty Trust Bank, Lafarge Africa, Access Bank, UBA, ETI, FBNH, Neimeth Pharma and AIICO. This impacted positively on the NSE’s benchmark index, reducing the Year-To-Date loss to 7.67%, while market capitalization YTD turned positive, at N12.32bn, representing a 0.38% rise over the year’s opening level.

Mixed Sector indices

Performance index across the sectors were mixed, as the NSE Banking and industrial Goods closed higher by 3.716% and 3.34% respectively, while the NSE Oil/Gas index led the decliners, after losing 5.70%, followed by the NSE Insurance and Consumer Index that fell by 1.81% and 0.32% respectively.

Market breadth was negative, as decliners outnumbered numbered advancers in the ratio of 19:15, while activity in volume and value terms were down by 5.14% and 1.8% respectively, as investors exchanged 165.24m shares worth N2.34bn, as against the previous 174.2m units valued at N2.38bn. This volume was boosted by trades in Flourmills, Lafarge Africa, FBNH, Guaranty Trust Bank and UBA.

Unity Bank and Lafarge Africa were the best performing stocks of the day, after gaining 9.62% and 9.59% respectively, closing at N0.57 and N12.00 per share respectively on market forces and improving earnings. On the flip side, AXA Mansard and UACN Property closed at N1.404 and N0.81 per share respectively on position taking.

Market Outlook

We expect inflow into the equity assets as rising inflation threatens other investment windows returns in the midst of more earnings being release to the market, positive news of coronavirus vaccine on oil price and impact of CBN policies on the economy. Just as investors are equally worried about inconsistent government policies which have continue to dampen confidence.

This is likely to support the wave of decline as pullbacks persist, creating new entering opportunities. Money flow index has continued to look up at 38.83 despite flowing from one sector to the other, seeking value in terms of low prices with high upside potentials.

This is just as economic recovery is threatened by the rising cases of the COVID-19 pandemic, as earnings reporting season has kicked off, which implies that opportunities are still available as sectoral rotation continues. Also, sectors that have suffered oversold, so far, offer attractive risk-reward buy-opportunities and outlook for considerable short, medium and long term investment.

For immediate liquidity or cash, we advise that you trade low priced stocks with serious caution to avoid being trapped. However, the market’s high dividend yield continues to attract buying interests, as few audited and unaudited corporate earnings will hit the market, going forward. This is despite the likely continuation of selloffs. Investors are buying to increase their positions in undervalued stocks ahead of Q2 numbers. It is also against the backdrop of the fact that the capital wave in the financial markets may persist in the midst of relatively low-interest rates in the money market, high inflation, and unstable economic outlook for 2020.

Again, the current undervalued state of the market offers opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation going forward. Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives, and their impact on the economy in the nearest future.

Ambrose Omordion

CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
amberose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

https://investdata.com.ng/amidst-rising-inflation-migration-to-equity-assets-boosts-ngse-index/#more

Investdata Daily Sentiment Report as of 28 July 2020

NSEASI buy � volume index 0.92 MFI 43.80
Access buy � volume index 1.01 MFI 53.82
Berger buy 0% volume index 5.54 MFI 0.00
Cadbury buy 0% volume index 1.83 MFI 30.82
Cap buy 0% volume index 12.70 MFI 0.00
Eti buy 0% MFI 16.39
Fbnh buy 0% MFI 62.49
Fcmb buy � MFI 41.88
Fidelity buy 0% MFI 64.62
Glaxo buy 0% volume index 4.45 MFI 68.24
GT buy � MFI 48.17
Honyflour buy 0% volume index 0.72 MFI 65.07
Japaul buy � MFI 42.04
Jberger buy 0% volume index 2.24 MFI 32.96
Oando buy 0% volume index 2.42 MFI 56.42
Pz buy 0% volume index 1.23 MFI 57.64
Sterling buy 0% MFI 31.90
Uba buy � MFI 54.08
Ucap buy 25% sell 75% volume index 1.31 MFI 68.77
Unity buy � volume index 7.81 MFI 88.17
Wapco buy � volume index 6.86 MFI 87.88
Wema buy 33% sell 67% volume index 2.77 MFI 23.49
Zenith buy 22% sell 78% MFI 53.13

https://investdataltd..com/2020/07/investdata-daily-sentiment-report-as-of_28.html

We hereby introduce Ovara Konstant Fumigation Services for Pest Control and Disinfectant for a Clean and Healthy Environment.

We are the first indigenous leading organization in Nigeria involved in the sale of Flour Milling Machines, spares, and offering excellent fumigation in Nigeria and other African Countries Milling and Allied industries industry.

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Our fumigation services have been acclaimed as the best considering our modern equipment, promoting insects and antinodes free environmental machines and all the Process.

Our Chemicals are very effective to Disinfect and kill insects in hotels, guesthouses, shopping malls, restaurants, residential quarters, cars, cargo vessels, trains, ships, airplanes, warehouses, livestock farms, etc.

It can also be used for the sterilization and disinfection of public and entertainment places such as food factories, supermarkets, hospitals, schools, parking lots, prisons, and theaters, etc.

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LAGOS ADDRESS: 33 Adele Road, Apapa, Lagos.
TEL: 08057933767, 08134781303
EMAIL: info@ovarakonstant.com
YOUTUBE: CHANNEL:
https://www.youtube.com/watch?v=ZQQUzNMezuE

We hereby introduce Ovara Konstant Fumigation Services for Pest Control and Disinfectant for a Clean and Healthy Environment.

We are the first indigenous leading organization in Nigeria involved in the sale of Flour Milling Machines, spares, and offering excellent fumigation in Nigeria and other African Countries Milling and Allied industries industry.

We have trained personnel with high knowledge of fumigation. Our exceptional fumigation services made us the sole fumigator of all the flour and feed industries in Nigeria.

Our fumigation services have been acclaimed as the best considering our modern equipment, promoting insects and antinodes free environmental machines and all the Process.

Our Chemicals are very effective to Disinfect and kill insects in hotels, guesthouses, shopping malls, restaurants, residential quarters, cars, cargo vessels, trains, ships, airplanes, warehouses, livestock farms, etc.

It can also be used for the sterilization and disinfection of public and entertainment places such as food factories, supermarkets, hospitals, schools, parking lots, prisons, and theaters, etc.

Contact us @;
LAGOS ADDRESS: 33 Adele Road, Apapa, Lagos.
TEL: 08057933767, 08134781303
EMAIL: info@ovarakonstant.com
YOUTUBE: CHANNEL:
https://www.youtube.com/watch?v=ZQQUzNMezuE

We hereby introduce Ovara Konstant Fumigation Services for Pest Control and Disinfectant for a Clean and Healthy Environment.

We are the first indigenous leading organization in Nigeria involved in the sale of Flour Milling Machines, spares, and offering excellent fumigation in Nigeria and other African Countries Milling and Allied industries industry.

We have trained personnel with high knowledge of fumigation. Our exceptional fumigation services made us the sole fumigator of all the flour and feed industries in Nigeria.

Our fumigation services have been acclaimed as the best considering our modern equipment, promoting insects and antinodes free environmental machines and all the Process.

Our Chemicals are very effective to Disinfect and kill insects in hotels, guesthouses, shopping malls, restaurants, residential quarters, cars, cargo vessels, trains, ships, airplanes, warehouses, livestock farms, etc.

It can also be used for the sterilization and disinfection of public and entertainment places such as food factories, supermarkets, hospitals, schools, parking lots, prisons, and theaters, etc.

Contact us @;
LAGOS ADDRESS: 33 Adele Road, Apapa, Lagos.
TEL: 08057933767, 08134781303
EMAIL: info@ovarakonstant.com
YOUTUBE: CHANNEL:
https://www.youtube.com/watch?v=ZQQUzNMezuE

We hereby introduce Ovara Konstant Fumigation Services for Pest Control and Disinfectant for a Clean and Healthy Environment.

We are the first indigenous leading organization in Nigeria involved in the sale of Flour Milling Machines, spares, and offering excellent fumigation in Nigeria and other African Countries Milling and Allied industries industry.

We have trained personnel with high knowledge of fumigation. Our exceptional fumigation services made us the sole fumigator of all the flour and feed industries in Nigeria.

Our fumigation services have been acclaimed as the best considering our modern equipment, promoting insects and antinodes free environmental machines and all the Process.

Our Chemicals are very effective to Disinfect and kill insects in hotels, guesthouses, shopping malls, restaurants, residential quarters, cars, cargo vessels, trains, ships, airplanes, warehouses, livestock farms, etc.

It can also be used for the sterilization and disinfection of public and entertainment places such as food factories, supermarkets, hospitals, schools, parking lots, prisons, and theaters, etc.


LAGOS ADDRESS: 33 Adele Road, Apapa, Lagos.
TEL: 08057933767, 08134781303
EMAIL: info@ovarakonstant.com
YOUTUBE: CHANNEL:
https://www.youtube.com/watch?v=ZQQUzNMezuE

Hello Investors,

The, buy & sell signal for this week have been posted on the membership site for you. Pls click on the long link for this week download.

I have added a further twist to it. This includes.
1. Low Priced Stocks to Watch
2. Stocks to lead recovery
3. Defensive Stocks
4. Dividend Stocks with Strong Yields and Fundamentals
5. Stocks to Benefit from Corona Virus Induced Economic downturn and government Intervention


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

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

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

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

To Your Success
Investdata Consulting.

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

Volatility Still As Investors Bet On Other H1 Earnings, Interim Div Stocks

Market Update for the Week Ended July 24, And Outlook for July 27-31

It was a volatile and bearish week of mixed sentiments on the Nigerian Stock Exchange (NSE), with the benchmark All-Share Index closing higher on the strength of renewed buying interests in highly capitalized stocks among investors. This also followed the plethora of mixed corporate earnings reports made available to the market during the period, ahead of month-end window dressing and in the midst of an earnings reporting season with different momentums and reactions.

Despite the seeming confusion among investors and the operating environment in a week when the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) retained all monetary policy rates unchanged. The MPR was left at 12.5%; Cash Reserve Ratio, 27.5%; and Liquidity Ratio, 30%; in the face of negative macroeconomic indices, especially inflation that remained on the rise buoyed by the spike in food prices across the country on the back od the continued closure of the country’s land borders, the growing insecurity, rising cost of transportation and worsening infrastructure decay. Others are confusion among the policy makers, considering the unprecedented effect of coronavirus outbreak on the economy which further exposed the weakness and even shallowness of the nation’s economy.

The economic realities and changing dynamics in the investment world due to low interest rates in the global and domestic environment, with central banks trying to stimulate activities again and reduce the effect of COVID 19 by injecting various stimulus packages into the system, especially critical sectors to avoid economic collapse. This has put pressure on fund managers, professionals and investors that had depended on Treasury Bills in the last 15 years for double-digit returns.

We note that investors are becoming mindful of the rising inflation and the need to protect their capital and returns by hedging against inflation, following which we expect funds to flow to equity assets, considering the different investment window yields and time frame. The fixed income market comprises bond, treasure bill and commercial papers, with the five-year FGN Bonds having 4.9% yield;, Euro Bond, 7.03%; and TB 364-day at 2.96% for a year. The 225-day, 203-day and 169-day Commercial Papers of MTNN, Dangote Cement and Nigerian Breweries have yields of 4.92%, 4.77% and 4.86% respectively.

Meanwhile, the short term interim dividend paying stocks have more attractive less-than 90-day yield as show in the table below:

Interim Dividend Of Selected Companies
Securities Last Int.Div Mtk Value BVPS Yields
Access Bank 0.25 6.20 17.30 4.03
Seplat 15.00 386.00 921.35 3.88
Stanbic IBTC 1.00 29.00 30.34 3.44
UBA 0.20 6.15 17.00 3.25
Airtel Africa 9.20 348.00 2.64
MTNN 2.95 118.00 9.61 2.50
Nestle 25.00 1175.00 71.29 2.12
Custodian Inv 0.10 4.80 7.55 2.08
Zenith Bank 0.30 15.75 30.00 1.90
AXA Mansard 0.03 1.58 2.18 1.89
NB 0.50 30.00 20.34 1.66
Guaranty Trust 0.30 21.50 23.24 1.39
The global stock markets recorded mixed performance as equity prices decline on US and China cold war resurfaced in the midst of fear of a second coronavirus wave, recovering economic data, news of vaccine discovery, earnings season at its peak and oscillating crude oil prices. As tech funds and impressive earnings performance of tech companies continued to drive sector price performance.

Movement Of NSEASI

The key performance NSEASI opened the week bearish, with 0.07% loss, and was sustained on Tuesday when it lost a bigger 0.39% decline, before closing flat at midweek, due to buying interests in healthcare stocks. It was a strong reversal on Thursday when demand for Dangote Cement and MTN pushed the index 1.4%, before slowing down on Friday at 0.34%. This brought the week’s total gain to 0.58%, more than enough to wipe off the previous week’s entire 0.08% loss.

Consequently, the NSEASI gained 140.07 basis points, after opening at 24,287.66bps; touching an intra-week high of 24,512.27bps during the period, from its low of 24,114.59bps on mixed sentiments, while rekindling buying interests as revealed by the week’s traded volume. The index closed above its opening level at 24,427.73ps, just as market capitalization was up N73.07bn during the week, closing at N12.74tr from the previous weekend’s N12.67tr, also representing 0.58% value gain.

The share prices of Presco and Linkage Assurance were adjusted for cash dividends of N2.00 and bonus of one share for every four held respectively, as recommended by their directors.

The advancers’ table was dominated by low priced stocks, as gainers were more in the ratio of 28:25, while the momentum behind the week’s performance was relatively strong, as Money Flow Index read 68.33bps from 68.38ps in the previous week, despite the mixed sentiments and improved buying interest.

The NSE’s benchmark index on a daily and weekly time frame resisted decline to trade above the 20-Day Moving Average and 38.2% line of Fibonacci retracement on above average traded volume that indicates strength. The candlestick formation on both time frame signals pattern reversal, that support uptrend as earnings released so far have not been too bad as envisaged, just that more is being expected going forward.

MACD on weekly and daily chart remain bullish as at Friday, since it crossed the signal line two days ago on a daily time frame to support uptrend and changing momentum in the marketon increasing numbers of earnings reports that are above expectation. The buy volume for the period stood at 79%, and money flow index flat at 68.33 points.

The Relative Strength Index for the period is looking up, reading 45.68, just as the momentum behind the market attempting rebound was flat in the midst of improving buying interests in some stock. This was despite mixed sentiments and earnings reports that are yet to give market direction.

The energy behind the NSE’s index movement on a daily and weekly chart stayed mixed with the ADX reading 17.78 points from last week’s 18.48 points, on positive sentiments as revealed by Investdata’s Sentiment Report for the week, showing 79% ‘buy’ position and sell volume of 21% with the transaction volume index at 0.89.

Bearish Sectoral Indices

Performance index across the sectors were down, except for the NSE Industrial Goods which closed marginally 0.60% higher, while the NSE Oil/Gas index led decliners after losing 4.67%, followed by the NSE Insurance , Banking and Consumer goods that closed 0.80% , 0.62% and 0.38% down respectively.

Transactions during the week in terms of volume and value were up by 32.35% and 93.95% respectively as investors exchanged 1.35bn shares worth N14.54bn from the previous week’s 1.02bn units valued at N7.44bn. The week’s volume was boosted by trades in financial services, conglomerates and consumer goods stocks, especially FBN Holdings, UACN, UBA, Sterling Bank and Flourmills.

The best performing stocks for the week were Fidson Healthcare and Unity Bank which gained 18.11% and 15.56% respectively, closing at N3.13 and N0.52 per unit on market sentiment and forces. On the flip side, Prestige Assurance and International Brewery lost 14.81% and 10.53% respectively, closing at N0.46 and N3.40per share on profit taking and selloffs respectively.

Market Outlook

We expect volatility to continue as more half-year earnings reporting season hit the market, ahead of reports from interim dividend paying stocks in August, amidst reaction to good and bad earnings, month-end window dressing by market players and fund managers. The earnings season provides buying opportunities for short-term trading, using the value area called resistance and support level in your trading decision.

We cannot also rule out investors pricing in government’s inconsistent policies and weak macroeconomic data as the June Inflation report helps investors determine by how much it has thrown returns in most investment classes into negative yields. Already, inflation has risen above the Central Bank of Nigeria’s benchmark Monetary Policy Rate (MPR) at 12.5%, even as the declining industrial productivity points to the reality of a recession.

The sectoral rotational wave will help investors cash in on low cap stocks and sectors that have suffered huge losses before now. Already investors are looking the way of healthcare, airline service providers, among sectors likely to be impacted positively in the much anticipated global and domestic economic reset.

Also, the possibility of continued funds inflow to low priced stocks is high, due to the higher yields and upside potentials, considering the low rates on offer in the money and bond markets. In the meantime, investors should also look out for developments around the implementation of the CBN’s funding plan for small and medium scale businesses.

Already, we notice that investors are taking position in healthcare and other defensive stocks likely to survive this meltdown, as seen in the increased trading in them, even as the global markets continue on the recovery path, with the gradual easing of the lockdown.

While discerning investors should prepare to take advantage of stocks revaluation to position for the medium to long-term, it is noteworthy that the Nigerian equity market is selling at a discount and therefore offers high upside potential.

Expect a pullback that will support the upside potential, especially with many fundamentally sound stocks remaining underpriced, and the dividend yield of major blue-chips continuing to look attractive in recent weeks, we expect speculative trading to shape the market’s direction, despite the seeming mixed outlook.

To position for the short to long-term, investors should target fundamentally sound, dividend-paying stocks, for possible capital appreciation in the coming months. Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives, and their impact on the economy in the nearest future..

Ambrose Omordion

CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

https://investdata.com.ng/volatility-still-as-investors-await-other-h1-earnings-interim-div-stocks/#more

Stock market review for the weekended July 24, rising inflation and earnings season


https://www.youtube.com/watch?v=GHj86IyQemM&feature=youtu.be

Investdata Weekly Sentiment Report as of 27 July 2020

NSEASI buy 79% sell 21% volume index 0.91 MFI 67.62
Access buy � MFI 52.91
Afrprud buy 82% sell 18% volume index 0.87 MFI 64.04
Aiico buy 0% volume index 0.89 MFI 69.73
Bua buy 0% MFI 44.04
Cap buy 0% MFI 6.32
Caverton buy 0% MFI 20.60
Chams buy 0% MFI 44.47
Chiplc buy 0% MFI 89.79
Corner buy 0% MFI 58.87
Custodian buy � volume index 9.92 MFI 49.70
Cutix buy � volume index 1.68 MFI 59.85
Dangcem buy � volume index 2.15 MFI 71.53
Dangsugar buy 67% sell 33% MFI 63.47
Eterna buy 80% sell 20% volume index 3.87 MFI 38.35
Eti buy 50% sell 50% volume index 0.91 MFI 61.91
Fbnh buy 25% sell 75% volume index 1.12 MFI 56.47
Fcmb buy 71% sell 29% MFI 60.33
Fidelity buy 0% MFI 46.81
Fidson buy � MFI 76.27
Fmn buy 0% volume index 3.86 MFI 8.71
Glaxo buy 0% volume index 1.51 MFI 47.64
GT buy 50% sell 50% MFI 64.37
Honyflour buy � volume index 1.17 MFI 62.76
Jaiz buy 67% sell 33% volume index 1.57 MFI 54.07
Japaul buy 75% sell 25% volume index 1.41 MFI 62.71
Jberger buy � MFI 62.24
Lasaco buy 0% MFI 59.87
Learn buy 0% MFI 86.52
Linkass buy � volume index 0.88 MFI 19.08
Lvstk buy � volume index 1.43 MFI 51.94
Mansard buy � MFI 40.20
M&B buy � MFI 55.92
Mben buy 0% volume index 1.10 MFI 66.56
Mtnn buy � MFI 49.14
Nahco buy � MFI 49.88
Neimeth buy 33% sell 67% MFI 69.53
Npf buy � MFI 61.58
Oando buy 50% sell 50% MFI 45.04
Prestige buy 0% MFI 61.31
Pz buy � MFI 50.07
Royalex buy � volume index 6.29 MFI 81.83
Seplat buy 0% MFI 0.00
Stanbic buy � MFI 61.23
Sterling buy 0% volume index 1.67 MFI 18.94
Transcorp buy 0% volume index 0.77 MFI 37.73
Uba buy 0% volume index 0.89 MFI 57.28
Ucap buy � volume index 0.75 MFI 74.17
Unilever buy 0% MFI 70.89
Unity buy � MFI 66.43
Vitafoam buy � volume index 1.12 MFI 72.05
Wapco buy 50% sell 50% MFI 64.85
Wema buy � MFI 64.46
Zenith buy 0% MFI 61.37

https://investdataltd..com/2020/07/investdata-weekly-sentiment-report-as.html