₦airaland Forum

NEW LOOK- 80800_N Series

Our 80800 Series is getting a NEW LOOK. The upper casting design has changed and will also include embossed logos. The new look machines will have a ‘N’ at the end of the existing styles, for example .. 80800C will become 80800CN.
A couple of design changes will also be included with this new look. They are:
• All the sewing parts will have a special rust-prevention coating on them.
• A new needle bar guard design that eliminates the threads from the casting.
All the internal parts remain the same and the new sewing parts can be used on older machines.

For inquiry and request for patronage, Kindly contact us through the details below;

LAGOS ADDRESS: 33 Adele Road, Apapa, Lagos.
TEL: 08057933767, 07038524258, 08023129971,
E-MAIL: ovarakonstantconsumables@yahoo.com,
akan.u@ovarakonstant.com

WEBSITE: http://www.ovarakonstant.com/
GOOGLE MY BUSINESS: https://ovarakonstant.business.site/
LINKEDIN: https://www.linkedin.com/company/ovarakonstantltd
https://www.facebook.com/OvaraKonstantlimited/

Hello Investors,

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

Mixed Session Still, As Smart Money Repositions Portfolios Ahead Of Economic Data, Oil Price Dynamics

Market Update for April 23
Equity prices on the Nigerian Stock Exchange (NSE), on Thursday, reversed gains of the previous session as profit-taking among high cap stocks resurfaced on mixed sentiment dragging the benchmark All-Share index lower on a low traded volume. This was despite the continued buying interest in banking stocks, while investors await the release of more Q1 financials and the annual general meetings to consider the 2019 results, as well as approval for payment of dividend announced earlier.

This coincided with a seeming recovery of oil price after the historic crash, even as it continues trading below its 2020 opening price of $61 per barrel, amidst the continued spread of the Coronavirus (COVID-19) pandemic across the globe.
United Bank for Africa and Access Bank released their Q1 results which were mixed but above market expectation, alongside that of Chemical Allied Product which came with a decline in profit.

As we earlier noted, in the midst of this oscillating trend, the divergence in market performance and economic situation, smart money continues to push prices up and down, while investors continue to review the emerging 2019 full-year and 2020 quarterly earnings reports. This is typical of a recovering market and should not result in any form of panic selling.

However, as we noted some days ago, this should rather offer an opportunity for intelligent investors and traders who missed out in the earlier recovery moves to take advantage of any correction for realigning their portfolios. Also, Money Flow index continues to look up from low 7.98 points on April 3, 2020, to 63.98 points, indicating that smart money is entering the market, irrespective of the prevailing economic challenges. This suggests that market players should invest knowledgeably to protect their investable capital.

Thursday’s trading opened marginally on the upside in the morning and pulled back to oscillate throughout the day on profit-taking in Industrial and consumer goods stocks and others. This pushed the NSE’s composite index to an intraday low of 22,407.60basis points, from its high of 22,805.14ps, before closing lower at 22,470.79ps on a positive breadth
Market technicals for the day were negative and mixed as volume traded was higher than the previous session, in the midst of positive breadth and selling pressure as revealed by Investdata’s Daily Sentiment Report, showing a ‘buy’ volume of 16% and sell position of 84%. Total daily transaction volume index stood at 0.47, just as the impetus behind the day’s performance slow down slightly with Money Flow Index reading 63.10 points, up from the previous 63.98ps, indicating that funds left some stock and market.

Index and Market Caps
The composite NSEASI, closed Thursday’s trading lower after shedding 309.51 basis points to close at 22,470.79ps from the opening figure of 22,780.30ps, representing 1.36% decline, while market capitalization shed N161.3bn at N11.71tr from an opening value of N11.87tr.

If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of most revered traders and investors in corporate Nigeria to our watchlist. These stocks are with double potentials to rally considering their current market prices. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below.

Take advantage of this service to buy right and sell right at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.
The day’s decline was caused by profit-taking and selloffs in high highly capitalized stocks like Nestle Nigeria, Dangote Cement, BUA Cement, Guinness, Dangote Sugar, and Ecobank Transnational Incorporated. These impacted negatively on the NSE index and increased Year-To-Date loss to 16.29%, while market capitalization YTD stood to N1.35tr, representing a 9.01% drop from the year’s opening value.

Bearish Sector Indices
Performances across sectors were largely bearish, except for the NSE Banking index that closed higher by 0.71%, while the NSE Industrial Goods index led the decliners after losing 3.82%, followed by the NSE Consumer Goods that fell by 3.30%, while Oil/Gas and Insurance dropped 0.20% and 0.07% up respectively.

Market breadth, remained positive as advancers outnumbered decliners in the ratio of 17:15, just as transactions in volume and value terms were up by 8.17%% and 81.58%% respectively, after investors exchanged 201.47m shares worth N3.36bn, from the previous day’s 186.23m units valued at N1.85bn. This volume was boosted by trading in Access Bank, FBNH, Zenith Bank, United Capital, and Guaranty Trust Bank.
Jaiz Bank and Cadbury were the best-performing stocks, after gaining 10% and 9.52% respectively, closing at N0.55 and N6.90 per share on the strength of the dividend declared and market forces. On the flip side, Skypower Aviation and Union Diagnostic lost 8.29% and 6.5% respective, closing at N1.80 and N0.29 per share respectively, on selloffs and profit-taking.

Market Outlook
Being the last trading session of the week, expect mixed performance on Friday, as profit and position-taking continue on mixed sentiments ahead of more corporate earnings, even as smart money repositions portfolios in the midst of crashing and oscillating oil prices.
However, the market’s high dividend yield continues to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of selloffs, with investors buying to increase their positions in undervalued stocks ahead of dividend declaration and Q1 numbers. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation, and unstable economic outlook for 2020.
Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.

We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.
Again, the current undervalue state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives, and their impact on the economy in the nearest future.
Meanwhile, the home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing different Stocks for various investment objectives in 2020 and beyond are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

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/2020/04/mixed-session-still-as-smart-money-repositions-portfolios-ahead-of-economic-data-oil-price-dynamics/#more

Unilever Nigeria: Time To Work On Operating Costs, As Competition Stiffens Further

:Rating
Short Term: Hold
Long Term: Hold
Current Market Price: N11.00
Latest Cash Dividend: Nil
Year High: N20.70
Year Low: N11.00
Fair Value: N11.10
Equity Analyst: Tunde Segun Jeariogbe

Introduction
• In this report we observed the first quarter financials of Unilever Nigeria Plc for the first quarter ended 31st March 2020, compared the same with numbers released in the corresponding period of 2019, to establish track performance.
• Aside from the fact that the company’s Turnover was far below that of the comparative period, its direct running cost was quite on the high side. We observed that this is a recurring trend even from the most recent full-year numbers, and requires the attention of management, going forward.
• Finance cost during the period dropped appreciably when putting side-by-side the figure posted for the comparable quarter, driven by the high Interest made on call-deposits and bank accounts.
• We have identified that the major challenge faced by Unilever Nigeria is the stiff competition from cottage industries within its sector, coupled with other operating challenges generally faced by manufacturers in the country.


• Turnover dipped by 30.71% against that of the comparable year at N13.32 billion, from N19.23 billion in the comparable quarter.
• Cost of Sales stood at N9.90 billion versus N15.36 billion in the similar quarter of 2019.
• Operating Profit is estimated at N453.44 million, 65.59% below the N1.31 billion reported in the 2019 first-quarter business session.
• As noted above, Finance Cost is valued at N614,000 against N94.39 million in the corresponding period of 2019.
• Profit before Tax for the quarter is valued at N948.47 million, same as 30.23% below the N2.22 billion reported in the corresponding quarter.
• Profit After Tax stood at N1.11 billion, lower than the N1.52 billion earned in the same period of 2019.


Statement of Financial Position
• Total Current Assets stated for the period stood at N74.96 billion, same as 27.30% below the N104.49 billion stated in the corresponding quarter.
• Non-Current Assets inched by 5.67% above the corresponding quarter number, to N31.78 billion, versus N30.07 billion.
• Current Liabilities was estimated at N37.91billion, this is a drop of 14.73% below the N44.46 billion in 2018.
• Non-Current Liabilities equally dipped by 62.27% to N2.18 billion, from N5.79 billion in 2019 first quarter.
• Thus, the Net Assets was valued at N67.64 billion, versus N84.31 billion last year.
• Retained Earnings equally dipped by 67.69% to N7.95 billion, as against N24.62 billion in the similar quarter of last year.

Financial Strength
• The amount reported as Total Liabilities is the same as 37% of the Total Assets figure for the first three months of the year. In other words, the Debt Ratio is 0.37x, which is 0.35% below the 0.37x of the corresponding year.
• Total Debt to Equity Ratio is currently estimated at 0.59x as against 0.60x in the corresponding year, implying that the Total Debt Value for the year can replicate Equity 0.59 times, this is a lower position over the 0.60 times the corresponding quarter.
• Equity Ratio is also valued at 0.63x, almost the same as 0.63x in a similar period, which means Equity is the same as 63% of the Total Assets Value for the periods.
• Going by the current estimated beta value, the shares of Unilever can be described as less volatile, with its beta value currently far below unity.


Profitability Ratio
• EBITDA Margin is Currently estimated at 3.40% versus 6.85% estimate at the end of 2019first quarter.
• Pre-Tax Margin stood at 7.12%, as against 10.54% in 2019.
• Cost of Sales is estimated to be 74.29% of the Turnover Figure, which is 7.00% lower than the 79.89% in the corresponding year.
• Return on Equity is estimated at 1.65%, the same as 8.65% below the estimated 1.80% achieved in the corresponding quarter. Please note that the ratio is quite on the low side.


Efficiency Ratio
• Operating Expenses are estimated at 22.10% of the Turnover Value, poor performance in terms of management efficiency when compared to the 12.36% estimated in 2019.
• Turnover Value is 12.37% of the Total Assets Value; the ratio is 13.46% below the 14.29% estimated from 2019 first-quarter figures. This is equally a negative management efficiency rating
• At 0.35x Working Capital Turnover improved by 9.33% from the previously estimated 0.32x
• Working Capital Ratio, within the two compared periods stood above unity and confirmed the firm’s strength to settle its current liabilities with current assets as at when due through the season.


Investment Ratios
• Within the two periods compared, traders were seen largely revaluing the share price of Unilever on the floor of the exchange with the price now at N29.30, from N55.00 at the end the corresponding period.
• The estimated profit per share of Unilever is N0.19, which is far below the N0.26 earned at the end of the comparable quarter.
• PE-Ratio is estimated at 151.04x, compared to the previous 207.79x, this is due to the heavy downtrend on its price on the floor of the exchange.
• Estimating by the price of Unilever on the floor of the exchange when the result was made available, the above-mentioned earnings per share yielded only 0.66% of the current market price
• The Book Value of Unilever is currently estimated at N11.77 lower than the N14.68 estimated from the corresponding quarter’s result
• Confirming an overvalued price on the floor of the exchange, the Price to Book Value ratio stood above unity as shown in the below table.

Valuation
• Our blend of valuation tools valued each unit of Unilever’s share price at N11.10, this is slightly below the Book Value mentioned above and a downward price from the current market price. Thus we have rated each unit of Unilever a Hold for short term investors while Long term players may also hold the shares for better valuation at the release of better performance indices in subsequent quarters.

Rating
Short Term: Hold
Long Term: Hold
Current Market Price: N11.00
Latest Cash Dividend: Nil
Year High: N20.70
Year Low: N11.00
Fair Value: N11.10
Equity Analyst: Tunde Segun Jeariogbe

Introduction
• In this report we observed the first quarter financials of Unilever Nigeria Plc for the first quarter ended 31st March 2020, compared the same with numbers released in the corresponding period of 2019, to establish track performance.
• Aside from the fact that the company’s Turnover was far below that of the comparative period, its direct running cost was quite on the high side. We observed that this is a recurring trend even from the most recent full-year numbers, and requires the attention of management, going forward.
• Finance cost during the period dropped appreciably when putting side-by-side the figure posted for the comparable quarter, driven by the high Interest made on call-deposits and bank accounts.
• We have identified that the major challenge faced by Unilever Nigeria is the stiff competition from cottage industries within its sector, coupled with other operating challenges generally faced by manufacturers in the country.


• Turnover dipped by 30.71% against that of the comparable year at N13.32 billion, from N19.23 billion in the comparable quarter.
• Cost of Sales stood at N9.90 billion versus N15.36 billion in the similar quarter of 2019.
• Operating Profit is estimated at N453.44 million, 65.59% below the N1.31 billion reported in the 2019 first-quarter business session.
• As noted above, Finance Cost is valued at N614,000 against N94.39 million in the corresponding period of 2019.
• Profit before Tax for the quarter is valued at N948.47 million, same as 30.23% below the N2.22 billion reported in the corresponding quarter.
• Profit After Tax stood at N1.11 billion, lower than the N1.52 billion earned in the same period of 2019.


Statement of Financial Position
• Total Current Assets stated for the period stood at N74.96 billion, same as 27.30% below the N104.49 billion stated in the corresponding quarter.
• Non-Current Assets inched by 5.67% above the corresponding quarter number, to N31.78 billion, versus N30.07 billion.
• Current Liabilities was estimated at N37.91billion, this is a drop of 14.73% below the N44.46 billion in 2018.
• Non-Current Liabilities equally dipped by 62.27% to N2.18 billion, from N5.79 billion in 2019 first quarter.
• Thus, the Net Assets was valued at N67.64 billion, versus N84.31 billion last year.
• Retained Earnings equally dipped by 67.69% to N7.95 billion, as against N24.62 billion in the similar quarter of last year.

Financial Strength
• The amount reported as Total Liabilities is the same as 37% of the Total Assets figure for the first three months of the year. In other words, the Debt Ratio is 0.37x, which is 0.35% below the 0.37x of the corresponding year.
• Total Debt to Equity Ratio is currently estimated at 0.59x as against 0.60x in the corresponding year, implying that the Total Debt Value for the year can replicate Equity 0.59 times, this is a lower position over the 0.60 times the corresponding quarter.
• Equity Ratio is also valued at 0.63x, almost the same as 0.63x in a similar period, which means Equity is the same as 63% of the Total Assets Value for the periods.
• Going by the current estimated beta value, the shares of Unilever can be described as less volatile, with its beta value currently far below unity.


Profitability Ratio
• EBITDA Margin is Currently estimated at 3.40% versus 6.85% estimate at the end of 2019first quarter.
• Pre-Tax Margin stood at 7.12%, as against 10.54% in 2019.
• Cost of Sales is estimated to be 74.29% of the Turnover Figure, which is 7.00% lower than the 79.89% in the corresponding year.
• Return on Equity is estimated at 1.65%, the same as 8.65% below the estimated 1.80% achieved in the corresponding quarter. Please note that the ratio is quite on the low side.


Efficiency Ratio
• Operating Expenses are estimated at 22.10% of the Turnover Value, poor performance in terms of management efficiency when compared to the 12.36% estimated in 2019.
• Turnover Value is 12.37% of the Total Assets Value; the ratio is 13.46% below the 14.29% estimated from 2019 first-quarter figures. This is equally a negative management efficiency rating
• At 0.35x Working Capital Turnover improved by 9.33% from the previously estimated 0.32x
• Working Capital Ratio, within the two compared periods stood above unity and confirmed the firm’s strength to settle its current liabilities with current assets as at when due through the season.


Investment Ratios
• Within the two periods compared, traders were seen largely revaluing the share price of Unilever on the floor of the exchange with the price now at N29.30, from N55.00 at the end the corresponding period.
• The estimated profit per share of Unilever is N0.19, which is far below the N0.26 earned at the end of the comparable quarter.
• PE-Ratio is estimated at 151.04x, compared to the previous 207.79x, this is due to the heavy downtrend on its price on the floor of the exchange.
• Estimating by the price of Unilever on the floor of the exchange when the result was made available, the above-mentioned earnings per share yielded only 0.66% of the current market price
• The Book Value of Unilever is currently estimated at N11.77 lower than the N14.68 estimated from the corresponding quarter’s result
• Confirming an overvalued price on the floor of the exchange, the Price to Book Value ratio stood above unity as shown in the below table.

Valuation
• Our blend of valuation tools valued each unit of Unilever’s share price at N11.10, this is slightly below the Book Value mentioned above and a downward price from the current market price. Thus we have rated each unit of Unilever a Hold for short term investors while Long term players may also hold the shares for better valuation at the release of better performance indices in subsequent quarters.

https://investdata.com.ng/2020/04/unilever-nigeria-time-to-work-on-operating-costs-as-competition-stiffens-further/

Corporate Actions On NGSE As Of Friday, April 24, 2020


https://investdata.com.ng/2020/04/corporate-actions-on-ngse-as-of-friday-april-24-2020/

Investdata Price, Earnings Tracking For Week Ended April 24, 2020

https://investdata.com.ng/2020/04/investdata-price-earnings-tracking-for-week-ended-april-24-2020/

Expect Mixed Trading, As Foreign Investors Unable To Exit I&E Window Reposition Afresh

Market Update for the Week Ended April 24 and Outlook for Apr 30-May 1
Last week’s trading on the Nigerian Stock Exchange (NSE) was one full of mixed trends and sentiments as the benchmark All-Share index closed lower on low traded volume, thereby short-living the two previous weeks of bull-run. Friday’s positive close in the midst of oscillated oil prices that followed a historical swing as it hit a 21-year low on excessive supply that was due to a shortage of storage facilities. The planned easing of lockdowns in some countries and businesses across the globe may, however, trigger increased demand for oil, just as it could backfire due to the high risk surrounding the global pandemic.

Meanwhile, the number of active COVID-19 cases in Nigeria has continued to surge, with more people testing positive and being treated, bringing the total number of confirmed cases above the 1000 mark.

Investors during the week under review kept their eyes on economic and earnings news, especially the March Consumer Price Index from the National Bureau of Statistics showing that inflation rose to 12.26% from 12.20% in the previous month- the highest in 23 months. This, therefore, calls for policy measures to address this consistent rise in the consumer price index for the eighth consecutive month, especially now that the lockdown arising from the Coronavirus outbreak globally has triggered prices of goods and services.
With the lockdown leading to the shutdown of manufacturing and businesses, many companies will be unable to pay salaries, a situation that will affect purchasing power among Nigerians, leading to supply and demand shocks. These urgently require policy measures from the government and policymakers to address the dwindling national productivity.
Also last week, more companies released their quarterly and audited full-year 2019 earnings reports with mixed numbers, which helped to impact positively on the share prices of companies that beat market expectations.

We would like to reiterate that the changing market dynamics and post-coronavirus environment calls for a change of trading and investment strategies with the objective of aligning your portfolio to current economic realities. That will help you as an investor and trader to stay ahead of the market.
It should be noted also that attention in the market today is moving to the financial sector despite the high risk of oil price, the moratorium on interest rates, the advice that banks renegotiate the terms of existing loans, and the general downturn.

There is also remarkable interest in healthcare and telecommunication stocks, arising from the N50bn fund targeted at the former by the Central Bank of Nigeria (CBN) and the increased patronage of the later as Nigerians shift to working off-site and relying on online meetings, phone calls to stay in touch, as well as mobile and digital platforms for news and information on local and global, more than ever before in view of the lockdown.
During the week, stocks like Guinness Nigeria, International Brewery, Ardova (Formerly Forte Oil), Transcorp Hotel and Skypower Aviation, hit their new lows, with a high possibility of making lower lows. Investors and traders should, therefore, be guided.
On the flip side, Julius Berger, May& Baker, Ekocorp, Union Diagnostics, and Morison Industries, hit their new 52-week high.

Movement Of NSEASI
The composite NSEASI started the week flat, closing 0.01% up due to indecision among market players, before caving in under pressure on Tuesday, as profit-taking hit banking and large company shares, dragging the index 1.26% down, coinciding with news about oil price hitting its 21-year low. By midweek, trading returned positive with 0.66% gain on renewed buying interest in the banking stocks, a trend it failed to sustain on Thursday after high cap stocks suffered losses with the index taking a 1.36% cut. The market witnessed a slight rebound on Friday when the index again gained 0.57%, bringing the week’s total loss to 1.41%, compared to the previous week’s 7.19% gain.

For the week specifically, the NSEASI lost 322.21 basis points, after opening at 22,921.59ps, touching an intra-week high of 23,148.34bps and low of 22,407.60bps on a selling sentiment, amidst the low traded volume. During the week, many traders booked profit amidst the uncertainties surrounding the economic outlook as oil prices hit historical lows. The index closed the week at 22,599.38ps, after breaking out the 23,000 marks to test 23,143.34points, just as market capitalization slowed down by N170bn to close at N11.78tr from an opening value of N11.95tr, representing 1.41% down. Just as the share price of Capital Hotel, Fidelity Bank, FBN Holdings, and MTNN were adjusted for dividends announced earlier by their directors.

During the week, nine companies released their Q1 2020 unaudited results- UBA, FBNH, Access Bank, Ecobank Transnational Incorporated, Guaranty Trust Bank, Cadbury, Unilever, United Capital, and Nigerian Breweries. Also, three companies presented their 2019 full-year with the dividend of 10 kobo from UACN, and four kobo from Wema Bank, while Aluminum Extrusion offered no dividend. Also, more companies notified the exchange of their closed period and board meeting to approve Q1 earnings reports, while more financials are expected in the new week and month.

The profit-taking and selling sentiments reflected in the market breadth as decliners outnumbered advancers in the ratio of 33:25, just as the energy behind the week’s performance was weak, with the Money Flow Index falling to 16.31bps from 20.87bps recorded in the previous week. The selling sentiment during the period was confirmed by Investdata’s Sentiment Report for the week, showing 74% ‘sell’ volume, leaving buy position at 24%, as the transaction volume index stood at 0.77.

Mixed Sectoral Indices
The sectorial performance indexes were largely bearish for the period, except for the NSE Insurance and Industrial Goods that closed higher by 1.17% and 0.71% respectively, while the NSE Banking index led the decliners after losing 5.34%; followed by the NSE Consumer Goods index with 2.64% down and next was NSE Oil/Gas that drop by 1.68%.
Market activity in terms of volume and value were mixed as volume was down by 20.1% to 1.2bn shares, as against the previous week 1.5bn units, while value went up by 8.4% to N13.98bn from the previous week’s N12.89bn.

Meanwhile, discerning investors continue to take advantage of the low prices in the midst of the lockdown, confusion, and insecurity to reposition their portfolios for the medium to long- term, as more Q1 earnings reports are hitting the market. The week’s volume was boosted by trades in financial services stocks, especially FBNH, Guaranty Trust Bank, and Zenith Bank.

Cadbury Nigeria and Wema Bank were the best-performing stocks for the week, after topping the advancers chart, gaining 18.23% and 10.71% respectively, at N7.45 and N0.62 per share on impressive Q1 numbers and 2019 full-year with the dividend of four kobo. On the flip side, Skypower Aviation and UACN lost 26.21% and 17.23% respectively, closing at N1.52 and N6.20 per share on selloffs and profit-taking

Market Outlook
We expect a mixed performance in the new week due to profit-taking, repositioning of foreign investors that are unable to exit with US$ at the Investors & Exports window of the foreign exchange market, even as Nigerian state governors are calling for a nationwide lockdown for yet another 14 days as the infected people crossed 1000 persons in Nigeria on Saturday. Investors should be on the lookout for developments around the implementation of the CBN’s lending to small and medium scale businesses through NIRSAL Microfinance Bank to support their trades.

Already, we notice that investors are taking the position in healthcare and other defensive stocks that are likely to survive this meltdown, following which there is increased transactions in them, even as global markets are on the recovery path already, as lockdowns are gradually being relaxed.
Also, do not forget to identify and play defensive stocks among the many fundamentally sound companies that remain depressed, making them attractive for bargain hunting by market players. This has also resulted in significant improvements in Dividend Yields of stocks, even as we note the fact that fund managers who held cash before now, may have to rethink the strategy and go for value stocks with high upside potentials.

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

The bargain-hunting motive supports positively the performance, especially with many fundamentally sound stocks remaining underpriced, while the dividend yield of major blue-chips continues 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.

The home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing different Stocks for various investment objectives in 2020 and beyond are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

https://investdata.com.ng/2020/04/expect-mixed-trading-as-foreign-investors-unable-to-exit-ie-window-reposition-afresh/#

Investdata Weekly Sentiment Report as pf April 27, 2020

NSEASI buy 26% sell 74% MFI 14.36
Access buy 25% sell 75% MFI 18.33
Afrprud buy � MFI 43.40
Aiico buy 75% sell 25% MFI 57.62
Bua buy 45% sell 55% MFI 64.90
Cadbury buy � volume index 1.03 MFI 22.52
Cap buy 0% MFI 22.54
Caverton buy � MFI 60.74
Chams buy 0% MFI 10.84
Cileasing buy 0% MFI 39.67
Corner buy 0% MFI 22.84
Dangcem buy 3% sell 97% MFI 30.76
Dangsugar buy 0% MFI 17.95
Eti buy 20% sell 80% volume index 1.28 MFI 21.57
Fbnh buy 35% sell 65% volume index 0.71 MFI 31.87
Fcmb buy 63% sell 37% MFI 30.36
Fidelity buy 56% sell 44% MFI 52.64
Fmn buy 89% sell 11% MFI 29.90
Glaxo buy 0% MFI 46.05
GT buy 36% sell 64% MFI 18.71
Jaiz buy � MFI 54.27
Jberger buy 0% MFI 83.27
Lasaco buy 0% MFI 41.40
Learn buy � MFI 10.65
Linkass buy 0% MFI 20.59
Lvstk buy 0% MFI 76.42
M&B buy � MFI 62.54
Mtnn buy � MFI 16.36
Nahco buy 42% sell 58% MFI 42.72
Nem buy � MFI 66.45
Nestle buy 0% volume index 1.28 MFI 22.33
Npf buy � MFI 25.47
Oando buy 20% sell 80% MFI 18.44
Pz buy 31% sell 69% MFI 27.15
Red buy � MFI 26.62
Seplat buy 0% MFI 84.51
Stanbic buy � MFI 15.87
Sterling buy 29% sell 71% MFI 20.11
Transcorp buy � MFI 23.22
Uacp buy 0% MFI 49.09
Uacn buy 7% sell 93% MFI 40.42
Uba buy 67% sell 33% MFI 9.64
Ubn buy � volume index 0.71 MFI 73.90
Ucap buy 93% sell 7% volume index 0.81 MFI 51.96
Unilever buy 0% MFI 6.18
Unity buy 50% sell 50% MFI 13.72
Upl buy � volume index 0.76 MFI 16.88
Vitafoam buy � MFI 47.61
Wapco buy 85% sell 15% volume index 1.38 MFI 48.19
Wapic buy 50% sell 50% MFI 16.88
Wema buy � volume index 1.14 MFI 34.32
Zenith buy 53% sell 47% MFI 20.76

https://investdataltd..com/2020/04/investdata-weekly-sentiment-report-as_26.html?m=1

Profit Taking May Continue, As Smart Money Positions Ahead Of More Earnings Reports

Market Update for April 21

As projected by Investdata analysts, equity prices on the Nigerian Stock Exchange (NSE) tumbled on Tuesday as the composite All-Share index closed lower on massive profit-taking from recent robust gains by the market. This coincided with news of huge losses in crude oil prices which have continued to rattle the global markets and economies amidst the daily rise in the number of Coronavirus (COVID-19) cases, despite the continued lockdown to curtail the spread.

Also on Tuesday, the National Bureau of Statistics (NBS) released the March Consumer Price Index, showing that inflation rose to its highest in 24 months at 12.26%, just as the market received first-quarter earnings reports from FBN Holdings, Cadbury and United Capital, which, however, failed to impact their share prices likely due to the prevailing mode of the market and economy.

That notwithstanding, the earnings news has given an insight into what should be expected from quoted companies for Q1, how to position going forward. The 2020Q1 numbers will also show which sectors to target for the Q2 corporate earnings, given that economic data are expected to slow down significantly.

Undoubtedly, the correction has set in after the sharp divergence between market performance in recent times and the economic situation as smart money has quickly pushed prices up in expectation of reopening of the lockdown soon. This move is typical of a recovering market and should not result in panic selling in any way, but rather an opportunity for traders who missed out in the recovery moves to take advantage of the pullback and join the market again. We are of the opinion that the market may be enjoying some inflows from smart money.

Although we advise cautious play around the market and a change of strategies to reposition for the opportunities in a challenging economy such as we have today.
Tuesday’s trading opened on a gap down which was sustained throughout the session as profit-taking hit blue-chip stocks, pushing the NSE All-Share Index to an intraday low of 22,612.97 basis points, from its high of 22,920.41ps, before closing the session lower at 22,629.92bps on a low traded volume.

Market technicals were negative and weak, with lower traded volume than the previous session, in the midst of negative breadth and sentiment as revealed by Investdata’s Daily Sentiment Report, showing a ‘buy’ volume of 6% and sell position of 94%.

Total daily transaction volume index stood at 0.69, but the impetus behind the day’s performance inched up, with Money Flow Index reading 55.60 points, up from the previous 49.71ps, indicating that funds entered some stocks despite the down market.

Index and Market Caps
At the close of Tuesday trading, the composite index lost 290.49bps from the opening figure of 22,921.59ps, representing a 1.27% decline, while market capitalization was down by N151.39bn to close at N11.79tr from an opening value of N11.95tr which also represented a 1.27% depreciation in value.

If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of most revered traders and investors in corporate Nigeria to our watchlist. These stocks are with double potentials to rally considering their current market prices. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

The day’s decline was impacted by profit-taking in Guaranty Trust Bank, Seplat, Guinness, Julius Berger, Zenith Bank, Lafarge Africa, Access Bank, UBA, FBNH and Oando, which impacted negatively on the NSE index, increasing its Year-To-Date loss to 15.69%. Market capitalization YTD stood to N1.24 trillion representing an 8.09% drop from the year’s opening value.

Bearish Sector Indices
All the sectorial performance indexes closed red, led by NSE Banking which lost 5.75%, followed by the NSE Insurance with 1.45%, while the Oil/Gas, Industrial and Consumer Goods which shed 1.25%, 0.38%, and 0.10% respectively.

Market breadth, however, remained negative as decliners outweighed advancers in the ratio of 27:4, just as transactions in volume and value terms fell by 27.53% and 44.66% respectively, as investors exchanged 250.35m shares worth N2.33bn from the previous day’s 345.44m units valued at N4.21bn. The day’s volume was driven by trades in FBNH, Zenith Bank, Guaranty Trust Bank, UBA and Fidelity Bank.

The best-performing stocks during the session were Omoluabi Microfinance Bank and NPF Microfinance, which chalked 9.09% and 8.70% respectively, closing at N0.60 and N1.25 per share on market forces. On the flip side, Oando and Champion Breweries lost 10% each, closing at N2.25 and N0.81per share respectively, on profit-taking and selloffs.

Market Outlook
We expect profit taking to continue since the index had formed another double top on mixed sentiment and negative news of oil price slump as smart money repositions their portfolios ahead of more corporate earnings and implications of the March inflation data and its confirmation of the economic contraction ahead as national output continue to decline.

However, the market’s high dividend yield continues to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of selloff still, with investors buying to increase their positions in undervalued stocks ahead of dividend declaration. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020.

Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend. We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

Again, the current undervalue state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives, and their impact on the economy in the nearest future.

Meanwhile, the home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing different Stocks for various investment objectives in 2020 and beyond are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.


https://investdata.com.ng/2020/04/profit-taking-may-continue-as-smart-money-positions-ahead-of-more-earnings-reports/

Breaking News!!!

Announcing the release of Strategies for Profitable Investment in Changing Market Dynamics and Recession

Over the past few weeks, there has been a complete global economic downturn.

As a result, I promised to make available training videos to guide in this period so that you will not make the same mistake as 2009.

As a result, I did my thorough and in-depth research and I came up a method if followed to its conclusion you will be secured and covered during this COVID-19 Pandemic effect.

This is titled Strategies for Profitable Investment in Changing Market Dynamics and Recession

It has 6 rich videos plus printable soft copy that will transform your portfolio into a solid one. In fact, the title of each video are as follows

Video 1: How to Trade and invest profitably in an uncertain economy: in this downturn and beyond this is a must much watch whenever you experience any instability in the market.

Video 2: Stocks to lead 2020 Recovery. That is, stock that will recover immediately this Pandemic ends.

Video 3: defensive stocks to play

Video 4: Dividend stocks to Hold

Video 5: Stocks to Benefit from Corona Virus Driven Downturn: here, you will discover the best stocks to benefits from.

Video 6: Low price stocks to Watch.

Usually, I would have sold this at N15000. however, I want to make it a relief for all serious traders and investors because I don't want you to gamble with your investment and this material is not only useful for COVID-19 but for any economy under recession.

As a result, you will get it at N5450 only. You can call 08032055467 08028164085 or indicate your interest by responding with INT. so that one of our team members will contact you immediately.

Dedicated to Your Investment and Safety,
Ambrose Omordion

https://investdataltd..com/2020/04/breaking-news.html

Profit-taking Ahead, As NGSE Index Forms Double Top On Mixed Sentiments, Oil Price Decline

Market Update for April 20
Monday’s trading on the Nigerian Stock Exchange closed on a flat note after a two-week rally that ignored seemingly, all the negative news about the impact of the Coronavirus (COVID-19) pandemic now ravaging the global scene, leaving blood and woe on the world’s once boisterous cities, now mostly on lockdown mode.

The sharp divergence between the market performance and economic realities were major sources of concern for many market players and watchers, as the V -bottom shaped recovery pattern was setting in. The high volatility during Monday’s session was due to a much-anticipated profit booking from the recent uptrend besides indecision among players despite price appreciation by highly capitalized stocks.
The day’s downturn particularly followed the news of a further crash in the price of crude oil Nigeria’s mainstay at the international market, hitting its lowest level in 21 years.

It is no longer news that the world is changing drastically and may never return to what we all once knew it for a long time to come, as a new normal set in, following which different scenarios are emerging, with half of the global population on lockdown to curtail the spread of the deadly virus that has killed stock markets, economies, and people. It has led to the closure of many factories, schools, airports, land borders, stalling movement of goods and services.
This global shutdown has in its wake destroyed demand for oil with seizure in manufacturing activities. When the May oil futures contract expires, holders of such contracts are under no obligation to take delivery of physical oil. The good thing, however, is that this situation may not last for too long since many nations are planning to reopen their economies while trial drugs are being tested to address the pandemic.
We know that the market is dicey and the economy is shaky at this time for any reasonable prediction of the future, but the V-shape recovery is attainable and would be driven by sectors that have recently performed badly, including manufacturing, oil & gas, Industrial Goods, financial services. These sectors will be among the first to benefit from the happenings and recession.

Nigeria’s macroeconomic indices remain mixed and are looking weak, even as all eyes are on the March inflation data now being awaited, just as the 2020Q1 GDP numbers are being awaited. It is expected to slow down, while that of Q2 will likely come negative, just as earnings for 2020 across many sectors of the economy could experience a shock-wave.
Meanwhile, Monday’s trading started on the upside and oscillated throughout the day on mixed sentiments as profit and position-taking among blue-chip stocks continued, pushing the benchmark NSE All-Share Index to an intraday low of 22,893.18 basis points, from its high of 23,115.94ps. Thereafter, the session closed almost flat from its opening point at 22,920.56bps on above-average traded volume.

Index and Market Caps
At the end of Monday’s trading, the benchmark index slipped by 1.03bps, after opening at 22,921.59ps, representing a 0.01% marginal drop, while market capitalization was flat at N11.95tr, also representing a 0.01% value loss.
If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of most revered traders and investors in corporate Nigeria to our watchlist. These stocks are with double potentials to rally considering their current market prices. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

The day’s downturn was impacted by profit-taking in Guaranty Trust Bank, Guinness Nigeria, Zenith Bank, PZ Cussons, Access Bank, UBA and Oando, which impacted mildly on the NSE index, increasing its Year-To-Date loss to 14.61%. Market capitalization YTD stood to N1.01tr, representing a 7.82% drop from the year’s opening value.

Mixed Sector Indices
The sectorial performance indexes were largely bullish, except for the NSE Banking and Oil/Gas Index that closed 4.01% and 0.45% lower respectively, while the NSE Industrial Goods index led the advancers after rallying 4.89%, followed by the NSE Consumer Goods and Insurance that were up by 1.19% and 1.11% respectively.

Market breadth, however, remained negative as decliners outweighed advancers in the ratio of 16:14, just as transactions in volume and value terms rose by 49.14% and 61.30% respectively, as investors exchanged 345.44m shares worth N4.21bn from the previous day’s 231.61m units valued at N2.61bn. This volume was driven by trades in FBNH, Guaranty Trust Bank, Transcorp, Zenith Bank and UBA.
Julius Berger and Linkage Assurance were the best-performing stocks during the session, gaining 10% each, closing at N26.95 and N0.55 per share on bonus shares and market sentiment. On the flip side, Guinness Nigeria and PZ lost 9.4% and 9.1% respectively, closing at N20.30 and N4.00 per share respectively, on selloffs.

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

However, the high dividend yields continue to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of the selloffs, with investors buying to increase their positions in undervalued stocks ahead of dividend declaration. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020.

Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend. We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.
Again, the current undervalue state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.
Meanwhile, the home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing different Stocks for various investment objectives in 2020 and beyond are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

https://investdata.com.ng/2020/04/profit-taking-ahead-as-ngse-index-forms-double-top-on-mixed-sentiments-oil-price-decline/

Cost Cutting, Tax Rebate Save Unilever Nigeria From 2020Q1 Loss

The board of Unilever Nigeria Plc, on Friday, presented its unaudited financials for the first quarter ended March 31, 2020, showing a significant 30.71% drop in sales revenue.
The impact of the sales decline may not be unconnected with the lockdown owing to the Coronavirus pandemic following which movement of people has been significantly restricted to contain the spread of the virus. This was however mitigated by the equally significant 35.56% cut in the cost of sales; 28.13% drop in selling and distribution expenses, 99.35% drop in finance cost, and a tax rebate.

According to the result, revenue dropped from N19.235bn from the previous first quarter’s N13.328bn; while the cost of sales fell to N9.902bn from N15.366bn; resulting in gross profit of N3.426bn, an 11.43% drop from the preceding first quarter’s N3.869bn. A breakdown of the financials shows that the food products segment contributed N7.412bn, down from N9.254bn in 2019; while home and personal care fell from N9.981bn to N5.916bn.
Selling and distribution expenses fell to N617.706m from N859.463m; just as marketing and administrative expenses jumped by 53.39% from N.517bn to N2.328bn.

Impairment loss on trade receivables dropped by 75.43% from N20.407m to N49.24m; other income fell by 17.55%from N26.335m to N21.713m; operating income dropped by 6.59% to N453.448m, compared to N1.317bn in the corresponding period of 2019.
Finance income dropped by 38.35% from N803.83m to N495.637m, while finance cost slipped by 99.35% to N614,000 as against N94.393m in the prior first quarter, resulting in profit before tax of N948.471m, down by 53.22% from N2.027bn.

A tax rebate of N165.959m, compared to the tax expense of N506.746m, left net profit at N1.114bn, down by 26.71% from N1.52bn in the corresponding period of 2019, resulting in Earnings Per Share of 19 kobo, down from the previous 26 kobo.

https://investdata.com.ng/2020/04/cost-cutting-tax-rebate-save-unilever-nigeria-from-2020q1-loss/

Buy and Sell Signal

Hello Investors,

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

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


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

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


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

To Your Success
Investdata Consulting.

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

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

In Times of Market Crisis, Fortune Favours The Bold

Ambrose Here Again,

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

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

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

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

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

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

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

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

It is the exact training you need during this Pandemic.

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

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

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

Dedicated to Your Investment and Safety
Ambrose Omordion

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This is just as more liquidity flow to high Dividend Yield stocks with sound fundamentals, a situation that will also be based on the seemingly positive outlook for the domestic economy, despite the mixed outlook for 2020 from various analysts.

While discerning investors should take advantage of the current low stocks valuation to position for the medium to long-term, it is noteworthy that the Nigerian equity market is selling at a discount and therefore offers high upside potential.
On a bargain-hunting motive supporting posInvestors Position In Defensive, Healthcare Stocks On NGSE, Amidst Impending Economic Downturn

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This is just as more liquidity flow to high Dividend Yield stocks with sound fundamentals, a situation that will also be based on the seemingly positive outlook for the domestic economy, despite the mixed outlook for 2020 from various analysts.

While discerning investors should take advantage of the current low stocks valuation to position for the medium to long-term, it is noteworthy that the Nigerian equity market is selling at a discount and therefore offers high upside potential.
On a bargain-hunting motive supporting positive performance, especially with many fundamentally sound stocks remaining underpriced. With a dividend yield of major blue-chips continuing to look attractive in recent weeks, we expect speculative trading to shape the market’s direction, despite the seeming mixed outlook.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This is just as more liquidity flow to high Dividend Yield stocks with sound fundamentals, a situation that will also be based on the seemingly positive outlook for the domestic economy, despite the mixed outlook for 2020 from various analysts.

While discerning investors should take advantage of the current low stocks valuation to position for the medium to long-term, it is noteworthy that the Nigerian equity market is selling at a discount and therefore offers high upside potential.
On a bargain-hunting motive supporting positive performance, especially with many fundamentally sound stocks remaining underpriced. With a dividend yield of major blue-chips continuing to look attractive in recent weeks, we expect speculative trading to shape the market’s direction, despite the seeming mixed outlook.

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

Meanwhile, the home study packs of Invest 2020 Opportunities and Trade Ideas Summit containing the 10 Golden Stocks for 2020 are available with an average return of 13.37% in less than 30 days. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

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

Investdata Weekly Sentiment Report as of April 20, 2020

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

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

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

Market Update for April 16

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

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

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

Index and Market Caps
At the end of Thursday’s trading, the benchmark index inched up by 14.90bps, closing at 22,554.84 points after opening at 22,539.94ps, representing a 0.07% marginal rise, while market capitalization inched N7.76bn up at N11.75tr, also representing a 0.07% value gain.
If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of most revered traders and investors in corporate Nigeria to our watchlist. These stocks are with double potentials to rally considering their current market prices. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.
The session upturn was driven by buying interest in Nestle, MTN Nigeria, Dangote Cement, Nigerian Breweries, Conoil, GSK, Oando and Honeywell, which impacted mildly on the NSE index, reducing its Year-To-Date loss to 15.93%, while market capitalization YTD reduced to N1.26tr, representing an 8.32% drop from the year’s opening value.

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

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

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

However, the high dividend yields continue to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of the selloffs, with investors buying to increase their positions in undervalued stocks ahead of dividend declaration. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020.

Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend. We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.
Again, the current undervalue state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.
Meanwhile, the home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing different Stocks for various investment objectives in 2020 and beyond are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Investdata Daily Sentiment Report as of April 17, 2020

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

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

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

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

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

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

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

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

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

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

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

If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of most revered traders and investors in corporate Nigeria to our watchlist. These stocks are with double potentials to rally considering their current market prices. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

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

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

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

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

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

However, the high dividend yields continue to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of the selloffs, with investors buying to increase their positions in undervalued stocks ahead of dividend declaration.

This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020.
Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.

We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

Again, the current undervalue state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.
Meanwhile, the home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing the 10 Golden Stocks for 2020 are available.

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

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

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

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

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

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

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

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

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

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

If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of most revered traders and investors in corporate Nigeria to our watchlist. These stocks are with double potentials to rally considering their current market prices. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below.

Take advantage of this service to buy right and sell right at the current market recovery ahead of full-year earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

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

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

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

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

However, the high dividend yields continue to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of the selloffs, with investors buying to increase their positions in undervalued stocks ahead of dividend declaration. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation and unstable economic outlook for 2020.

Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend. We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

Again, the current undervalue state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos.

Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives and their impact on the economy in the nearest future.
Meanwhile, the home study packs of our Invest 2020 Opportunities and Trade Ideas Summit, containing the 10 Golden Stocks for 2020 are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

https://investdata.com.ng/2020/04/bull-run-may-continue-on-ngse-on-strong-sentiments-as-institutional-investors-boost-portfolio/

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



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

Investdata Daily Sentiment Report as of April 15, 2020

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

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

Investdata Weekly Sentiment Report as of April 14, 2020

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This is just as more liquidity flow to high Dividend Yield stocks with sound fundamentals, a situation that will also be based on the seemingly positive outlook for the domestic economy, despite the mixed outlook for 2020 from various analysts.
While discerning investors should take advantage of the current low stocks valuation to position for the medium to long-term, it is noteworthy that the Nigerian equity market is selling at a discount and therefore offers high upside potential.

On a bargain-hunting motive supporting positive performance, especially with many fundamentally sound stocks remaining underpriced. With a dividend yield of major blue-chips continuing to look attractive in recent weeks, we expect speculative trading to shape the market’s direction, despite the seeming mixed outlook.

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

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

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

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

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

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

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

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

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

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

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

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


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