₦airaland Forum

Lawan, Gbajabiamila Meet Ministers, CBN Gov, Over Planned 2020 Budget Review

•FG Cuts Customs Revenue Target By 37% To N943bn
•Lagos To Get N10bn To Combat Coronavirus Spread
The leadership of the National Assembly on Wednesday met heads of Federal Government Ministries, Department and Agencies to brainstorm on the impact of Coronavirus pandemic on the Nigerian economy.
The meeting specifically touched on the planned review of the 2020 budget and Medium Term Expenditure Framework and Fiscal Strategy Paper passed late last year by the National Assembly.
In his opening remarks, President of the Senate, Ahmad Lawan, who presided over the meeting, said an immediate review of the 2020 budget and Medium Term Expenditure Framework is imperative, particularly against the backdrop of the impact of the Coronavirus pandemic on the global economy.

The meeting, which lasted almost four hours, according to Lawan, was summoned to “discuss the proposed review of the 2020 budget and the Medium Term Expenditure Framework.”
If we have to review the budget itself, we have to consider the MTEF/FSP.
“Even in sickness, we need government to provide services.
“The impact of COVID-19 is well known to all of us in terms of health and the economy.
“Here, we will be talking of revenues that we estimated to fund the budget 2020.
“Because the oil price has gone so low due to the impact of COVID-19, the Minister of State should be able to tell us where we will be in the next six months or so.
“We should have concepts that can deliver fast and are sustainable.
“Anything that we do that cannot provide succor and relief to our people will lead to catastrophe,” the Senate President warned.
Also speaking, the Speaker of the House of Representatives, Femi Gbajabiamila described the meeting as very timely, taking “a cursory look at some of the papers(presentations).
“I think this meeting is actually very timely and very important because we live in a very unusual time and it’s time we start thinking outside the box to see how we can stabilise our economy and the direction it’s going to take,” he said.

In her presentation, the Minister for Finance, Budget and National Planning, Mrs. Zainab Ahmed, explained that “prior to COVID-19 and Oil price decline, the Nigerian economy was already fragile and vulnerable.”
According to her, due to the global economic downturn precipitated by the impact of the Coronavirus pandemic, international Oil prices plunged as low as $22 (USD) per barrel at the international market.
She added that the impact of the pandemic which resulted in the international crisis created a disruption in travel and trade, and put “increasing pressure on the naira and foreign reserves as the crude oil sales receipts decline and the country’s macro-economic outlook worsens.”
Ahmed said that in view of Nigeria’s economic realities, the Crisis Management Committee constituted by President Muhammadu Buhari in response to the COVID-19 and Oil Price Decline Crisis expressed concern that “the decline in international oil prices or domestic production may be magnified if a severe outbreak of the pandemic occurs in Nigeria.”
Accordingly, the Minister proposed a review of the 2020 budget using a US$30 per barrel price benchmark as against USD$57 initially passed in December by the National Assembly, to prepare for the worst-case scenario, as well as insulate the Nigeria economy against any form of unexpected crisis.

She also told the leadership of the National Assembly that budgeted revenues for the Nigeria Customs Service have been reduced from N1.5tr to N943bn “due to anticipated reduction in trade volumes; and privatization proceeds to be cut by 50%, based on the adverse economic outlook on sales of the Independent Power Projects (IPPs) and other assets.”
Similarly, Ahmed disclosed that the Federal Government has undertaken cuts to Revenue-related expenditures for the Nigerian National Petroleum Corporation (NNPC) for several projects included in the 2020 Appropriation Act passed by the National Assembly in December 2019.
“The Federal Government is working on Fiscal Stimulus Measures to provide fiscal relief for Taxpayers and key economic sectors; incentivize employers to retain and recruit staff during the economic downturn; stimulate investment in critical infrastructure; review non-essential tax waivers to optimize revenues, and complement monetary and trade interventions to respond to the crisis,” the Finance Minister disclosed.
She added that the Federal Government had made provision for health sector interventions by introducing import duty waivers for essential input for pharmaceutical firms; tax waivers on new equipment; and deferment of tax to increase production.

Ahmed further disclosed that the Federal Government would be releasing the total sum of N6.5bn in two tranches (N1.5bn and N5bn) to the National Centre for Disease Control (NCDC) as an intervention to assist in the fight against the spread of the COVID-19 disease in Nigeria.
Also, she stated that the Lagos State Government would receive financial support from the Federal Government to the tune of N10bn to combat Coronavirus spread in the state.
In addition, she informed the lawmakers that Nigeria had received a grant of US$18.2m from Japan for strengthening the seven National Centres for Disease Control (NCDC) across the country.

The Finance Minister said that the sum of N1bn would be released by the government to Pharmaceutical firms in the country.
In his presentation, the Governor of the Central Bank, Godwin Emefiele said, “while we would expect to see a decline in our expected growth projection for 2020 relative to 2019, the exact impact will be dependent on how well the Coronavirus is contained over the next few months, and how long low oil prices persist.”
Members of the National Assembly Leadership present at the meeting include Deputy Senate President, Ovie Omo-Agege; Deputy Speaker, Idris Wase; Senate Leader, Yahaya Abdullahi; Leader of the House, Ado Doguwa; Deputy Senate Leader, Ajayi Boroffice; Senate Minority Leader; Enyinnaya Abaribe; Minority Leader of the House, Ndudi Elumelu; Senate Deputy Whip, Aliyu Sabi Abdullahi; Deputy Minority Whip, Philip Aduda.
Others are Senator Barau Jibrin, Chairman, Senate Committee on Appropriations; and Senator Uba Sani, Chairman, Senate Committee on Banking, Insurance and other Financial Institutions.

Members from the Executive present at the meeting held at the National Assembly complex include Minister of State for Budget and National Planning, Prince Clem Agba; Minister of Petroleum Resources (State), Timipre Sylva.
Others are the Governor of the Central Bank of Nigeria, Godwin Emefiele; Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, and Senior Special Assistant to the President on National Assembly Matters, Senator Babajide Omoworare.

Photo news: From left, Minister of State for Finance, Budget and National Planning, Prince Clem Agba; Minister of Finance, Budget and National Planning, Zainab Ahmed; Governor of Central Bank of Nigeria, Godwin Emefiele; Minister of Petroleum Resources (State), Timipre Sylva; and Group Managing Director of NNPC, Mele Kyari at a meeting with the Leadership of the National Assembly on the planned review of the 2020 budget on Wednesday, March 25, 2020, at the National Assembly, Abuja.

https://investdata.com.ng/2020/03/lawan-gbajabiamila-meet-ministers-cbn-gov-over-planned-2020-budget-review/

Investdata Daily Sentiment Report as of 26 March, 2020

NSEASI buy 44% sell 56% MFI 6.65
Access buy 0% volume index 2.15 MFI 61.09
Aiico buy � MFI 28.25
Eti buy 0% volume index 3.14 MFI 46.42
Fbnh buy 0% MFI 19.77
Fcmb buy 0% MFI 34.93
Fidelity buy 78% sell 22% MFI 42.53
Glaxo buy 0% volume index 3.71 MFI 62.81
GT buy 27% sell 73% MFI 48.30
Jaiz buy 0% MFI 27.98
Lasaco buy 0% volume index 0.96 MFI 38.67
Lvstk buy 0% volume index 0.91 MFI 41.57
Nem buy � MFI 11.26
Oando buy � MFI 32.06
Sterling buy 0% MFI 12.84
Transcorp buy � MFI 15.01
Uba buy � MFI 26.02
Ucap buy 0% MFI 46.30
Wapco buy � volume index 1.25 MFI 21.42
Wapic buy � MFI 3.48
Wema buy � MFI 40.84
Zenith buy 64% sell 36% MFI 32.09

https://investdataltd..com/2020/03/investdata-daily-sentiment-report-as-of_43.html

N5.29bn Loan Loss Reversal Lifts Fidelity Bank’s Profit By 24%

Directors Propose N0.20 Dividend Per Share
Directors of Fidelity Bank, on Monday, published its audited numbers for the full-year ended December 31, 2019, highlights of which that profit grew faster than gross earnings, following which shareholders would receive a dividend of 20 kobo per share, the highest in the history of the institution. This was helped in part by the N5.292bn credit loss reversal, compared to the N4.215bn credit loss expense reported for the year ended December 2018.

Gross earnings for the period increased by 14.03% from N189.005bn in 2018, to N215.514bn, the lion’s share of which was the N97.398bn earned from its retail banking business segment; followed by N72.432bn from corporate banking, while investment banking contributed 45.685bn. Interest income climbed 18.65% from N153.685bn to N182.344bn, including other interest and similar income of N5.35bn, which rose from N3.769bn. Interest expense rose by 18.07% to N99.289bn, compared to the previous year’s N84.095bn; resulting in net interest income of N83.055bn, as against the N73.356bn reported in the corresponding period of 2018.
Net interest income after credit loss expense stood at N88.347bn, up from N69.141bn.
Fee and commission income improved from N20.41bn in 2018 to N25.262bn, with ATM charges pooling N4.44bn, ahead of the N3.295bn in accounts maintenance charges; N3.141bn from the commission on travellers’ cheques, and N2.947bn earned from e-banking activities. Fee and commission expense climbed to N3.346bn from N5.268bn. The bank reported a new line item- net loss on derecognition of financial assets measured at amortised cost of N4.705bn.

Other operating income fell from N11.144bn in 2018 to N7.908bn; personnel expenses rose marginally from N23.91bn to 24.129bn; depreciation and amortization dropped slightly to N5.421bn from N6.247bn. Other operating expenses for the period rose from N41.971bn to N52.442bn, resulting in profit before tax of N30.353bn, from N25.089bn, representing an increase of 20.98%. Income tax expense dropped from N2.163bn to N1.928bn; following which net profit for the year jumped from N22.926bn to N28.425bn; with retail banking accounting for N18.907bn; followed by corporate banking, N5.096bn; while the balance N4.422bn came from investment banking.
Total assets for the year grew by N394.154bn, or 22.92% from N1.719tr to N2.114tr, significantly driven by the 32.6% growth in customer loans and advances from N849.88bn to N1.126tr, which may be the impact of the Central Bank of Nigeria’s Loan to Deposit Ratio, which rose first to 60% and now 65% from December 31, 2019.

Total liabilities increased from N1.525tr to N1.88tr, helped by customer deposits of N1.225tr, up from N979.413bn, representing an increase of N245.8bn or 25.09%; while total equity increased from N194.416bn to N234.03bn.
According to Fidelity Bank’s Chief Executive, Nnamdi Okonkwo expressed delight with the performance, “we are delighted at the results which clearly showed that we sustained our performance trajectory and continued to increase our market share driven by significant traction in our chosen business segments,” he said.

On Digital Banking he said the results were enhanced by new initiatives in the retail lending segment and the deepening of the bank’s existing digital products. According to him “We now have 47.4% of our customers enrolled on the mobile/internet banking products, 82.0% of total transactions now done on digital platforms and 31.1% of fee-based income now coming from our digital banking business”.
He further revealed that the efforts aimed at strengthening the bank’s foothold of the retail market is yielding significant results with savings deposits rising by 20.7% to N275.2bn making it the 6th consecutive year of double-digit growth.
“Savings deposits now account for about 22.5% of total deposits, an attestation of our increasing market share in the retail segment” stated Okonkwo.

Just as was seen with deposit growth, there was also a corresponding increase in the bank’s retail assets. Specifically, Retail loans grew by 42.9% to N53.8bn driven by the bank’s new digital lending products and partnership with Fintechs. As of December 2019, the bank had disbursed over 70,000 micro-loans on our flagship digital lending product (Fidelity FastLoan) in partnership with Migo.
Conversely, there was a remarkable improvement in Non-performing loans (NPLs). The bank’s NPL ratio dropped to 3.3% from 5.7% in the 2018FY due primarily to the growth in the loan book and a 25.1% decline in absolute NPLs resulting from the loan write-offs of over N12bn.

https://investdata.com.ng/2020/03/n5-29bn-loan-loss-reversal-lifts-fidelity-banks-profit-by-24/#more

Investdata Daily Sentiment Report as of 25 March, 2020

NSEASI buy 56% sell 44% volume index 0.76 MFI 12.31
Access buy � volume index 1.88 MFI 56.54
Cadbury buy 0% volume index 2.90 MFI 20.69
Fbnh buy 33% sell 67% MFI 20.84
Fcmb buy 33% sell 67% volume index 1.49 MFI 34.85
Fidelity buy 60% sell 40% volume index 1.47 MFI 45.68
GT buy 15% sell 85% volume index 0.97 MFI 53.00
Lasaco buy 50% sell 50% volume index 2.20 MFI 35.67
Npf buy � volume index 2.60 MFI 54.42
Oando buy 0% MFI 43.27
Sterling buy � volume index 1.72 MFI 15.01
Transcorp buy � volume index 0.73 MFI 19.49
Uba buy 0% MFI 28.68
Ucap buy 44% sell 56% MFI 25.50
Wapic buy � MFI 2.39
Wema buy � MFI 42.50
Zenith buy 67% sell 33% volume index 0.83 MFI 33.94

https://investdataltd..com/2020/03/investdata-daily-sentiment-report-as-of_27.html

Mixed Session May Continue, As Investors Interpret Impact Of MPC Decisions, Stimulus Package

Market Update for March 24
The composite All-Share index of the Nigerian Stock Exchange had a mixed performance on Tuesday as seen in the trading patterns of bargain hunters, with medium and high cap stocks hitting new lower lows. They are therefore selling at a huge discount, considering their intrinsic values as the Coronavirus continue to take a toll on the global and domestic economy, even as the central bank and government continue to unfold a bouquet of stimulus package to mitigate the impact on the Nigerian economy. The market reacted favorably to this on Tuesday, following which the indicators closed higher on Tuesday in the midst of rising new cases of the virus outbreak in the country involving prominent government officials.

In the midst of the wobbling economic situation and fear of the diseases triggering a major economic crisis, the Monetary Policy Committee while concluding its two-day meeting considered the continued rise in domestic prices; the glut in oil supplies and low oil prices in the wake of the current global pandemic. Members also reviewed the exchange rate pressure and other domestic monetary and fiscal responses as they affect the evolving crises. In view of these, the committee decided by a unanimous vote to retain the Monetary Policy Rate (MPR) at 13.5%, and to hold all other policy parameters constant (READ MORE).
Although the market rounded up in the green, we do not see the market fully recovering from the grip of the bear soon, nevertheless, we are of the opinion that the long bearish moves offer listed equities at very attractive prices. Consequently, we recommend long term position taking in fundamentally strong equities.

The technical devaluation of the Naira, the lingering border closure and the impact of the global pandemic has reduced cross-border trading resulting in inflationary pressure on everything.
Again, as we discussed early this week, hyperinflation is underway, which means the temptation to hold cash is the worst option for now. The early evidence includes the low money market rates and declining yield in the fixed income market, just as the fear of government being able to redeem its bonds, especially given the shaky revenue profile already. The first place you look to preserve buying power is in stocks as a way of hedging against inflation.

Meanwhile, Tuesday’s trading started slightly on the upside and fell in the midday to the early afternoon before rebounding on buying interests on low price attraction across medium and large company shares. This pushed the benchmark index to an intraday high of 21,770.42 basis points, from its low of 21,703.80bps, before retracing up to finish the day higher at 21,714.16bps on positive breadth.
Tuesday’s market technicals were positive and mixed, as volume traded was lower than previous day’s with breadth favoring the bulls and mixed sentiments, as revealed by Investdata’s Daily Sentiment Report, showing ‘buy’ volume of 56%. ‘Sell’ position stood at 44% on a total daily transaction volume index of 0.76 just as the impetus behind the day’s performance was seriously weak, as Money Flow Index dropped to 12.30points, from the previous session’s 16.40bps. This indicated that funds exited some stocks and the market, despite the seeming upmarket.

Index and Market Caps
The composite NSEASI at the end of the trading, gained 40.18bps, closing at 21.714.16ps, from its opening figure of 21,700.98ps, which represented 0.19% limp, just as market capitalization rose by N20.96bn, closing at N11.33tr, from the N11.33tr opening level which also represented 0.19% value gain.
Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new 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’s upturn was impacted by the demand for stocks like Guaranty Trust Bank, Zenith Bank, Access Bank, FBNH, FCMB, and NPF Microfinance. This impacted mildly on the NSE, reducing its Year-To-Date loss to 19%, while market capitalization loss stood at N1.63, representing a 12.57% decline over the year’s opening value.

Mixed Sector Indices
The sectorial performance indexes were largely bullish except for the NSE Banking and Consumer Goods that closed 0.33% and 0.24% lower respectively, while the NSE Oil/Gas led the advancers after gaining 0.23%, followed by the NSE Insurance and Industrial Goods which were up by 0.12% and 0.02% respectively.
Market breadth turned positive as advancers outnumbered decliners in the ratio of 19:10, just as market activity in volume and value terms were down by 28.91% and 7.75% respectively, with investors exchanging 330.1m shares worth N3.57bn from the previous day’s 464.36m units valued at N3.87bn. This volume was boosted by trades in Guaranty Trust Bank, Zenith Bank, Access Bank, FBNH and UBA.
NPF Microfinance and Stanbic IBTC were the best-performing stocks as they topped the advancers table, gaining 9.52% and 9.43% respectively, closing at N1.15 and N26.10 per share on dividend expectation and low price attraction. On the flip side, Caverton and Conoil lost 10% and 9.93% respectively, closing at N2.25 and N13.15 respectively on market forces and selloffs.

Market Outlook
We expect mixed performance to continue, as market players interpret the outcome of MPC and expected impact of the stimulus package on the economy in the midst of investors expecting their dividend payment from the companies that postponed their AGM. There is also a low price attraction as investors and traders review the impact of economic measures of the government and its economic managers. 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 mixed intraday movement in the midst of selloffs, with investors buying increased 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.

https://investdata.com.ng/2020/03/mixed-session-may-continue-as-investors-interpret-impact-of-mpc-decisions-stimulus-package/#more

Mixed Session Still On NGSE, As Investors Grapple With Realities Of Remote Trading

Market Update for March 26
Volatility and mixed trading continued Thursday on the Nigerian Stock Exchange as the benchmark index closed marginally higher, halting the previous session’s loss on low volume traded that reflected the level of indecision among traders. There is also the effects of the remote trading, following the closure of the trading floor as a safety measure in the wake of the ravaging Coronavirus pandemic that has made governments shut down non-essential services across the globe. Many stockbroking firms and their clients, especially those that have not perfected the act of remote trading, are struggling to execute trades from remote platforms, due to either inefficiency of their platforms, or a failure to give real online trading education to their clients before now.

The number of Coronavirus cases in Nigeria has increased to 65, with the world recording slightly above 500,000 cases and over 22,000 deaths to the virus that has so far devastated economies and markets, putting the globe on panic mode.
Bargain hunting in many markets across the world have been due to low valuation and expected impact of stimulus packages from central banks and governments to cushion the effects of the virus on businesses and individuals, like factories, airports, schools, and churches remain shutdown to curtail the spread of the deadly disease.

In the same way, the buying interest in Nigeria’s financial services stocks has resulted from low price attractions and high dividend payouts and yields among the banks, the recapitalization of insurance companies and the intrinsic value in some of the insurance stocks. The current prices provide ‘buy’ opportunities for short, medium and long-term investors who understand the power of timing in equity investment.
Meanwhile, Thursday’s trading started on the upside at the opening bell which was sustained midday before oscillating in the early afternoon on selloffs in large companies. Irrespective of the sell-down, the NSE index hit an intraday high of 21,903.00 basis points, from its low of 21,696.88bps, before closing the day higher at 21,757.47bps on positive breadth.

Market technicals for the session were positive and mixed, as volume traded was lower than previous day’s with breadth favoring the bulls, amidst a high selling pressure as revealed by Investdata’s Daily Sentiment Report, showing ‘sell’ volume of 71%. ‘Buy” position stood at 29% on a total daily transaction volume index of 0.39, just as the impetus behind the day’s performance was seriously weak, despite Money Flow Index inching up to 8.91 points, from the previous session’s 6.65bps, indicating that funds entered the market and some stocks.

Index and Market Caps
At the close of trading on Thursday, the composite NSE All-Share Index gained 27.99bps, closing at 21.757.47ps, from its opening figure of 21,729.48ps, which represented a 0.13% rise, just as market capitalization gained N15.2bn, closing at N11.34tr from the N11.32tr it opened, which also represented 0.13% appreciation in value. BOC Gases and Sterling Bank announced dividends per share of 30 kobo and five kobo respectively.
Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new 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 upturn was impacted by bargain hunting in stocks like Guaranty Trust Bank, Zenith Bank, Access Bank, UBA, UBN, ETI, and Honeywell, which impacted mildly on the NSE index, reducing its Year-To-Date loss to 18.94. Market capitalization loss YTD stood at N1.62tr, representing a 12.58% decline over the year’s opening value.

Mixed Sector Indices
The sectorial performance indexes were largely bearish except for the NSE Banking and Insurance that closed 5.99% and 1.89% higher, while the NSE Consumer Goods led the decliners after losing 4.64%, followed by the NSE Oil/Gas and Industrial goods which were down by 0.21% and 0.16% respectively.
Market breadth remained positive as advancers outnumbered decliners in the ratio of 24:8, just as market transactions in volume and value terms were down by 26.26% and 15.72% respectively after investors exchanged 172.16m shares worth N1.89bn from the previous day’s 233.47m units valued at N2.24bn. Volume was driven by trades in Zenith Bank, UBA, Stanbic IBTC, FCMB, and Access Bank.
Morison Industries and UBN were the best-performing stocks for the session, topping the advancers table with their gain of 10% each, closing at N0.55 and N6.56 per share on market forces. On the flip side, Nestle Nigeria and GSK lost 10% and 7.89% respectively, closing at N765.00 and N3.50 respectively on selloffs.

Market Outlook
We expect mixed performance to continue, being the last trading day of the week as market players cash in on low prices to position ahead of the expected impact of the stimulus package on the economy in the midst of dividend payment by the companies that postponed their Annual General Meetings. 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 mixed intraday movement in the midst of selloffs, with investors buying increased 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.

https://investdata.com.ng/2020/03/mixed-session-still-on-ngse-as-investors-grapple-with-realities-of-remote-trading/#more

Mixed Trading Ahead, As Investors Review Likely Impacts Economic Measures, Juicy Dividend Yields

Market Update for March 19
The trading volatility and negative sentiments on the Nigerian Stock Exchange (NSE)on Thursday reversed the attempted recovery, amidst diminishing selloffs in the previous sessions. The equity market turmoil has also resulted in a glut, as fearful investors and players rush to sell so as to stockpile cash that would carry them through these troubled economic times whose terminal date remains unknown. Intelligent and discerning investors are, however, taking advantage of the depressed stock prices to position in value companies with high and juicy margins of safety.

The selloffs on Thursday hit highly capitalized stocks, particularly in banking, telecommunication, consumer and industrial goods sectors on a day four new cases of the coronavirus decease was recorded in Lagos, propelling further panic selling even at the peak of earnings season. The plunge was despite the seeming rebound in crude oil prices in the international market.

The continued decline in the stock market indicators, despite the N1.1tr stimulus promised by the Central Bank of Nigeria for key economic sectors such as manufacturing, for import substitution, a situation that could be signaling that investors and consumers alike are apprehensive still, notwithstanding, the Federal Government’s palliative measures aimed at mitigating effects of the pandemic. Recall that besides the CBN’s offer (READ MORE), the government has adjusted Nigeria’s 2020 budget downward by N1.5tr, while crude oil benchmark has been reduced to $30 per barrel, which in itself is a confirmation that the year may be tough for the economy. The dwindling investor and consumer confidence is equally reflected in the fact that the market failed to take note of the N20 cut in the pump price of Premium Motor Spirit, popularly called petrol to N125 per litre, even as we note that most fuel stations around cities are yet to adjust their pumps to the new price.

Thursday’strading opened on the downside and was sustained throughout the day on strong negative sentiments, in addition to the price adjustment of some stocks for dividends. This pushed the NSE’s composite All-Share index to an intraday low of 22,018.58 basis points, from its high of 22,785.19bps, before retracing up slightly to close the session lower at 22,078.58bps on a high traded volume.

Market technicals for the day were negative and mixed, as volume traded was lower than previous day’s amidst of breadth favoring the bears and high selling pressure, as revealed by Investdata’s Daily Sentiment Report, showing ‘sell’ volume of 100%, on a total daily transaction volume index of 1.25. The momentum behind the day’s performance was seriously weak, with Money Flow Index marginally down to 21.57 points, from the previous session’s 21.66bps, an indication that funds left some stocks and the market. The current stock prices and Price/Earnings ratio of the market continue to reveal the presence of robust intrinsic value for medium and long-term investment considerations.

Index and Market Caps
At the end of Thursday’s trading, the NSEASI closed lost another 711.06bps, closing at 22,078.58ps, from its opening figure of 22,789.64bps, representing a 3.12% decline, just as market capitalization fell by N370.55bn, closing at N11.51tr, from the N11.88tr opening value which also represented 3.12% value loss.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new 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.

Thursday’s downturn was driven by selloffs in high cap stocks like Dangote Cement, MTNNigeria, Nestle Nigeria, Guaranty Trust Bank, Zenith Bank, UBA, Lafarge Africa, Access Bank, Ecobank Transnational Incorporated, United Capital and Fidelity Bank. This impacted negatively on the NSE Year-To-Date loss as it increased to 17.75%, while market capitalization YTD negative position up at N1.45tr, representing an 11.21% decline over the year’s opening value.

Bearish Sector Indices
The sectorial performance indexes were down, except for the NSE Insurance that closed 1.08% up, while the NSE Banking led the decliners, shedding 7.75%, followed by the NSE Industrial and Consumer Goods index, which lost 1.45% and 0.96% respectively, while NSE Oil/Gas was flat for the session.
Market breadth turned negative as decliners outweighed advancers in the ratio of 22:13, while market activity in terms of volume and value traded fell by 21.7% and 55.16% as investors exchanged 525.85m shares worth N4.74bn, from the previous day’s 671.52munits valued at N10.56bn. The day’s volume was driven by trades in Zenith Bank, Wapic Insurance, Guaranty Trust Bank, FBNH and UBA.

Africa Prudential and Jaiz Bank were the best-performing stocks for the day, gaining 9.91% and 9.76% respectively to close at N3.55 and N0.45 per share on low price attraction and dividend expectation. On the flip side, United Capital and Zenith Bank lost 10% each, closing at N2.34 and N12.15 respectively on profit-taking.

Market Outlook
We expect a mixed performance on low price attraction with investors and traders review the impact of economic measures of the government and its economic managers, even as high dividend yields continue to attract buying interests for investors that want to make 100% returns in 24 months. This is possible if you stick to good stocks by ordering a review of the 10 golden stocks, while more audited corporate earnings hit the market going forward.
This is despite the likely continuation of the mixed intraday movement in the midst of selloffs, with investors buying increased 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.

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

Nigeria’s Equity Market Lost N3.2tr Since Black Monday, Onyema, NSE CEO

Senat Capital Market Committee Pledges Support, Laws For Market Devt
Chief Executive of the Nigerian Stock Exchange (NSE), Oscar Onyema, on Thursday lamented that the bourse has lost all of N3.2tr from March 9, 2020, which he referred to as black Monday, when market capitalization fell by N329.387bn from N13.694tr on Friday to N13.365tr, while the benchmark All-Share index lost 632.07 basis points or 2.41%.
Onyema, who was reacting to a challenge by Senator Ibikunle Amosun, that the capitalization should hit the N15tr mark before the next visit of the Senate Committee on Capital Market to the bourse.
Amosun, chairman of the committee, who led members on a working visit to the exchange, had before striking the gong to close the day’s trading, was told that before that Monday, the market was rising towards N15tr.
Before striking the gong, Amosun, former Ogun State governor, noted that the NSE must play a significant role in the process of diversifying the nation’s economy, calling attention to sectors that would enhance greater participation of Nigerians in the economy.
Specifically, he said the real sector more be energized to do more for the people, even as “the MSMEs (Micro, Medium and Small-scale Enterprises) should be those feeding the conglomerates.”
He promised that the committee and the National Assembly as a whole will help the capital market by creating the enabling environment for its to thrive by making laws and revising existing ones. Such laws in need of a revisiting in support of the NSE and the capital market, he continued, include the Petroleum Industry Bill (PIB); and the Companies & Allied Matters Act (CAMA), among others.
The NASS, Amosun continued, will also look into how to make the nation’s pension assets play deeper into the market, even as he commended the level of improvement in the workings of the stock exchange and the room for improvement.
Fielding questions from journalists later, the committee chairman said despite the decline in market indices, it is time for the capital market to buckle up and prepare to absorb future shocks.
“We need to think outside of the box” to get the market out of murky waters, even as he expressed optimism that the situation would not last forever.
While commending stakeholders for their efforts so far, he stressed that it is for times like this that Nigeria needs to diversify, with the collapse in oil price.
“Now is the time to encourage other sectors for participatory development.
Addressing council members of the NSE during an interactive session earlier, Amosun commended efforts by the bourse to create a truly sustainable exchange hub for wealth creation and capital formation in Africa.
“We have met a very professionally run Exchange during this visit and we encourage you to keep up the good work. The Nigerian Stock Exchange has been a critical player in the development of the Nigerian economy. Your efforts have culminated in moving Nigeria out of a monolithic phase and we thank you for all the good work. On behalf of the Senate Committee, I assure you that we will continue to create that enabling environment that will support you in growing our market and providing Nigerians innovative opportunities to create wealth,” he stressed.
Despite the current gloom, Onyema expressed a positive outlook for the Nigerian economy, assuring the visitors of the NSE’s commitment to national development.
“Nigeria remains an attractive investment destination as Africa’s most populous country, positioned to be a top 20 economy by 2030 and top 10 by 2050. The Exchange is, therefore, committed to engaging stakeholders to set the Nigerian economy on a positive trajectory. To successfully do this, we will continue to advocate for the right economic policies that will ensure that both issuers and investors in our market can reap real value.”

Photo caption: Sen. Amah Micheal Nnachi, Member, Senate Committee on Capital Market; Sen. Kashim Shettima, Member, Senate Committee on Capital Market; Ms. Mary Uduk. Acting Director-General, Securities and Exchange Commission; Mr. Oscar N. Onyema, OON, Chief Executive Officer, The Nigerian Stock Exchange; H.E. Sen. Ibikunle Amosun, CON, Chairman, Senate Committee on Capital Market; Sen Yaroe Binos Dauda, Member, Senate Committee on Capital Market; and Sen. Yakubu Oseni, Member, Senate Committee on Capital Market during the Senate Committee on Capital Market’s courtesy visit to The Exchange on Thursday, March 19, 2020

https://investdata.com.ng/2020/03/nigerias-equity-market-lost-n3-2tr-since-black-monday-onyemia-nse-ceo/#more

Investdata Daily Sentiment Report as of 20 March, 2020

NSEASI buy 0% volume index 1.25 MFI 21.57
Access buy 57% sell 43% MFI 65.69
Afrprud buy � MFI 21.86
Aiico buy 50% sell 50% volume index 1.59 MFI 46.04
Dangsugar buy � volume index 1.24 MFI 36.15
Eti buy � MFI 62.60
Fbnh buy 25% sell 75% volume index 0.73 MFI 26.98
Fcmb buy � volume index 2.70 MFI 46.61
Fidelity buy 56% sell 44% volume index 2.60 MFI 56.12
Fmn buy � volume index 1.09 MFI 34.51
GT buy 79% sell 21% volume index 1.26 MFI 52.09
Jaiz buy � volume index 0.86 MFI 32.25
Lasaco buy 50% sell 50% volume index 0.91 MFI 30.64
Mansard buy � volume index 1.11 MFI 45.67
Oando buy 24% sell 76% MFI 53.92
Sterling buy � volume index 0.79 MFI 43.99
Transcorp buy 0% volume index 1.10 MFI 35.40
Uacn buy � volume index 0.73 MFI 66.44
Uba buy 0% MFI 33.40
Ucap buy 0% MFI 42.29
Unity buy � volume index 4.82 MFI 23.31
Wapic buy 0% volume index 11.83 MFI 3.04
Wema buy � volume index 2.13 MFI 43.91
Zenith buy 0% volume index 1.35 MFI 42.28

https://investdataltd..com/2020/03/investdata-daily-sentiment-report-as-of_20.html?m=1

Expect Mixed Performance, Slowdown In Loss Momentum, As Investors Review Economic Data Impact
- March 19, 2020



Market Update for March 17
Nigeria’s stock market again moved lower for the second consecutive session on Tuesday, after a failed attempt to retrace up as revealed by the trading pattern and mixed sentiments, before pulling back on high selloffs in medium and large-cap companies like Dangote Cement, Chemical Allied Products and NASCON Allied. This pushed the Nigerian Stock Exchange All Share Index to yet another lower low, despite the improved buying interest among market players on mixed economic data on a day the National Bureau of Statistics released the country’s February Consumer Price Index showing that inflation climbed higher to 12.20% from 12.13% in January.

As we observed on Monday and Tuesday, the panic selling in the market has slowed down even as the economic managers put measures in place to mitigate the negative impact of the Coronavirus (Covid-19).
We recall that in the case of the global financial crisis, the NSE index started strains of panic in March 2008, after touching an all-time high of 66,000 points on March 5. The market didn’t start feeling it until between late 2008 and early 2009 when the decision of the then Central Bank of Nigeria (CBN) governor, Mallam Sanusi Lamido Sanusi, when he began stress-testing the nation’s banking industry, resulting in the sacking of eight bank managing directors. This threw the banking industry and the economy into a full-blown crisis that depressing the stock market, from which the stock market finally bottomed out in 2011/2012.

The current Coronavirus-driven bear market and economic downturn that started two months ago have seriously impacted the global and local stock market setting off a panic over the last four-to-five days, pushing prices of crude oil to its recent lows. The bargain hunting in the last two trading sessions was driven by low price attraction and dividend news expectation, amidst more notification of board meetings ahead of the March 31, deadline for filling of 2019 financial year accounts.
Tuesday’s trading opened in the green and fluctuated in the midday to the afternoon on a mixed trading pattern that pushed the NSE composite index to an intraday low of 22,497.57 basis points, from its high of 23,008.57bps. Thereafter, it rebounded marginally before closing the session lower at 22,543.07bps on high traded volume.

Index and Market Caps
The benchmark NSEASI, at the end of the day’s trading, lost 162.12bps or 0.71%, closing at 22,543.07ps, from its opening figure of 22,705.19bps, just as market capitalization shed N84.49bn, closing at N11.75tr, from the N11.83tr opening value which also represented 0.71% depreciation in investors’ portfolios.
Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new 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 market’s decline was driven by selloffs in medium and high cap stocks like Dangote Cement, CAP, Ardova (formerly Forte Oil), NACON Allied, International Breweries, Champion and Lafarge Africa. This expectedly impacted mildly on the NSE, as Year-To-Date loss increased to 16.32%, while market capitalization YTD negative position stood at N1.89tr, representing a 9.83% decline over the year’s opening value.

Mixed Sector Indices
The sectorial performance indexes were largely bearish, except for the NSE Banking and Insurance that closed 5.59% and 0.85% higher respectively, while NSE Industrial Goods led the decliners, after losing 2.16%, followed by the NSE Oil/Gas and Consumer Goods, which lost 0.61% and 0.04% respectively.
Market breadth remained positive as advancers outnumbered decliners in the ratio of 27:12, while market transactions in terms of volume and value traded were up by 22.56% and 39.93% as investors traded 675.91m shares worth N8.6bn, from the previous day’s 551.48m units valued at N5.76bn. Volume was boosted by trades in Zenith Bank, Guaranty Trust Bank, FBNH, Access Bank and UBA.

Access Bank and Lafarge Africa were the best-performing stocks of the day that topped the advancers table, gaining 10% each, closing at N6.05 and N11.00 per share on market forces and expectation of earnings report. On the flip side, Dangote Cement and NASCON lost 10% each, closing at N139.70 and N8.55 respectively on sell down and profit-taking.

Market Outlook
We expect a mixed performance and slowdown on the losing momentum as investors and traders review the impact of the cocktail of economic data vis-à-vis the February inflation report released on Tuesday, as low stock prices and 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 mixed intraday movement in the midst of selloffs, with investors buying increased 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.

Expect Mixed Performance, Slowdown In Loss Momentum, As Investors Review Economic Data Impact
- March 19, 2020



Market Update for March 17
Nigeria’s stock market again moved lower for the second consecutive session on Tuesday, after a failed attempt to retrace up as revealed by the trading pattern and mixed sentiments, before pulling back on high selloffs in medium and large-cap companies like Dangote Cement, Chemical Allied Products and NASCON Allied. This pushed the Nigerian Stock Exchange All Share Index to yet another lower low, despite the improved buying interest among market players on mixed economic data on a day the National Bureau of Statistics released the country’s February Consumer Price Index showing that inflation climbed higher to 12.20% from 12.13% in January.

As we observed on Monday and Tuesday, the panic selling in the market has slowed down even as the economic managers put measures in place to mitigate the negative impact of the Coronavirus (Covid-19).
We recall that in the case of the global financial crisis, the NSE index started strains of panic in March 2008, after touching an all-time high of 66,000 points on March 5. The market didn’t start feeling it until between late 2008 and early 2009 when the decision of the then Central Bank of Nigeria (CBN) governor, Mallam Sanusi Lamido Sanusi, when he began stress-testing the nation’s banking industry, resulting in the sacking of eight bank managing directors. This threw the banking industry and the economy into a full-blown crisis that depressing the stock market, from which the stock market finally bottomed out in 2011/2012.

The current Coronavirus-driven bear market and economic downturn that started two months ago have seriously impacted the global and local stock market setting off a panic over the last four-to-five days, pushing prices of crude oil to its recent lows. The bargain hunting in the last two trading sessions was driven by low price attraction and dividend news expectation, amidst more notification of board meetings ahead of the March 31, deadline for filling of 2019 financial year accounts.
Tuesday’s trading opened in the green and fluctuated in the midday to the afternoon on a mixed trading pattern that pushed the NSE composite index to an intraday low of 22,497.57 basis points, from its high of 23,008.57bps. Thereafter, it rebounded marginally before closing the session lower at 22,543.07bps on high traded volume.

Index and Market Caps
The benchmark NSEASI, at the end of the day’s trading, lost 162.12bps or 0.71%, closing at 22,543.07ps, from its opening figure of 22,705.19bps, just as market capitalization shed N84.49bn, closing at N11.75tr, from the N11.83tr opening value which also represented 0.71% depreciation in investors’ portfolios.
Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new 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 market’s decline was driven by selloffs in medium and high cap stocks like Dangote Cement, CAP, Ardova (formerly Forte Oil), NACON Allied, International Breweries, Champion and Lafarge Africa. This expectedly impacted mildly on the NSE, as Year-To-Date loss increased to 16.32%, while market capitalization YTD negative position stood at N1.89tr, representing a 9.83% decline over the year’s opening value.

Mixed Sector Indices
The sectorial performance indexes were largely bearish, except for the NSE Banking and Insurance that closed 5.59% and 0.85% higher respectively, while NSE Industrial Goods led the decliners, after losing 2.16%, followed by the NSE Oil/Gas and Consumer Goods, which lost 0.61% and 0.04% respectively.
Market breadth remained positive as advancers outnumbered decliners in the ratio of 27:12, while market transactions in terms of volume and value traded were up by 22.56% and 39.93% as investors traded 675.91m shares worth N8.6bn, from the previous day’s 551.48m units valued at N5.76bn. Volume was boosted by trades in Zenith Bank, Guaranty Trust Bank, FBNH, Access Bank and UBA.

Access Bank and Lafarge Africa were the best-performing stocks of the day that topped the advancers table, gaining 10% each, closing at N6.05 and N11.00 per share on market forces and expectation of earnings report. On the flip side, Dangote Cement and NASCON lost 10% each, closing at N139.70 and N8.55 respectively on sell down and profit-taking.

Market Outlook
We expect a mixed performance and slowdown on the losing momentum as investors and traders review the impact of the cocktail of economic data vis-à-vis the February inflation report released on Tuesday, as low stock prices and 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 mixed intraday movement in the midst of selloffs, with investors buying increased 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...

Investdata Daily Sentiment Report as of March 19, 2020

NSEASI buy 9% sell 91% volume index 1.67 MFI 28.14
Access buy � volume index 6.27 MFI 51.35
Afrprud buy � MFI 11.57
Aiico buy � MFI 52.24
Caverton buy � MFI 54.05
Chams buy � MFI 27.92
Courtville buy 0% MFI 18.97
Fbnh buy 80% sell 20% volume index 2.46 MFI 28.09
Fcmb buy � MFI 45.44
Fidelity buy � MFI 56.02
GT buy 50% sell 50% volume index 1.85 MFI 53.08
Jaiz buy � volume index 1.10 MFI 22.46
Jberger buy 0% volume index 3.03 MFI 97.46
Mtnn buy � MFI 13.85
Nahco buy � volume index 1.54 MFI 25.82
Nascon buy 0% volume index 4.87 MFI 0.00
Nem buy � volume index 1.46 MFI 23.82
Oando buy 11% sell 89% volume index 2.53 MFI 46.51
Prestige buy � volume index 2.47 MFI 46.28
Stanbic buy 79% sell 21% volume index 5.96 MFI 40.04
Transcorp buy � volume index 1.12 MFI 38.89
Transcorp buy � volume index 1.12 MFI 38.89
Uba buy 43% sell 57% MFI 34.05
Ubn buy 0% MFI 26.06
Ucap buy � MFI 39.65
Wapco buy � volume index 2.21 MFI 15.17
Wapic buy 0% volume index 2.23 MFI 5.49
Wema buy � MFI 44.17
Zenith buy 69% sell 31% volume index 2.09 MFI 41.33

https://investdataltd..com/2020/03/investdata-daily-sentiment-report-as-of_55.html

Nigeria’s NSE Index Stays Red, Amidst Cocktail Of Policies To Mitigate Effects Of Covid-19

Market Update for March 16, 2020

Monday’s trading activities on the Nigerian Stock Exchange remained volatile and mixed with the benchmark All Share index closing red again, thereby halting the previous day’s marginal gain, amidst global fears as the coronavirus scourge fuels the bear market, resulting in the seeming bargain hunting across financial stocks.

The mixed sentiment during the trading session failed to lift the market as selloffs continued among high cap stocks, irrespective of news of another set of proactive measures by the Central Bank of Nigeria to cut interest rates on its intervention funds from 9% to 5% in the face of the challenging business environment (READ MORE).

Sell pressure subsided on the NSE during the Monday session, even as the Federal Government announced plans to cut the size of the 2020 budget while concentrating only on essential capital spending to the heavy crash of crude oil price (READ MORE).

Meanwhile, Monday’s trading started on the upside slightly in the morning and was sustained till midday before oscillating in the afternoon on mixed sentiment with buying interests in banking and insurance stocks. Selloffs, however, hit high cap stocks, pushing the NSE’s benchmark ASI to an intraday low of 22,618.36basis points, from its high of 22,797.39bps, before retracing up slightly. It closed at 22,705.19bps lower than it opened.

Market technicals were positive and mixed with volume traded lower than that of the previous sessions in the midst of breadth that favoured the bulls on mixed sentiments as revealed by Investdata’s Sentiment Report showing 52% ‘sell’ volume and 48% ‘buy’ position. The total transaction volume index stood at 1.44 points, just as the momentum behind the day’s performance remains weak, despite looking up as Money Flow Index reads 23.19points, from the previous day’s 16.85points. This is an indication that funds entered some stocks despite the down market, in the midst of prevailing low liquidity.

Index and Market Caps
The NSEASI, at the close of Monday day’s trading, shed a marginal 28.16bps, closing at 23,705.19bps, from its opening figure of 23,733.35bps which represented a 0.10% drop, just as market capitalization lost N15.05bn, closing at N11.83tr, from the N11.85tr opening value, which also represented 0.10% value loss.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new 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.

Monday’s downturn was impacted by continued selloffs in medium and high cap stocks like MTNN, FBNH, Lafarge Africa, UBA, NB, Dangote Sugar, and Fidelity Bank. This expectedly impacted mildly on the NSE, as Year-To-Date loss increased to 15.41%, while market capitalization YTD negative position stood at N1.13tr, representing an 8.67% decline over the year’s opening value.

Mixed Sector Indices
The sectorial performance indexes were largely bearish, except for NSE Insurance and Banking that closed higher by 1.51% and 0.63% respectively, while NSE Industrial Goods led the decliners, after losing 0.52%, followed by the NSE Consumer Goods with 0.16% decline, while NSE Oil/Gas was flat for the session.

Market breadth was positive as advancers outnumbered decliners in the ratio of 18:14, while market activities in terms of volume and value traded were down by 24.78% and 43.66% as investors traded 551.48m shares worth N5.76bn, from the previous day’s 724.61m units valued at N9.12bn. Volume was boosted by trades in Guaranty Trust Bank, Zenith Bank, FBNH, Access Bank and UBA.

The best-performing stocks for the session were Courtville Business Solution and Lasaco Assurance as they topped the advancers table, gaining 10% each, closing at N0.22 and N0.22 per share on market forces. On the flip side, Transcorp and Sky Aviation lost 10% and 9.73% respectively, closing at N0.63 and N2.32 respectively on sell down and profit-taking.

Market Outlook
We expect a mixed performance and slowdown on the losing momentum as February inflation data is expected to hit the market on Tuesday, low prices of stocks and high dividend yields attract buying interest, as more audited corporate earnings hit the market, going forward. This is despite the likely continuation of the mixed intraday movement in the midst of selloffs, with investors buying increasing 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 Worsen

https://investdata.com.ng/2020/03/nigerias-nse-index-stays-red-amidst-cocktail-of-policies-to-mitigate-effects-of-covid-19/#more

Investdata Daily Sentiment Report as of 18th March 2020

NSEASI buy 9% sell 91% volume index 1.67 MFI 28.14
Access buy � volume index 6.27 MFI 51.35
Afrprud buy � MFI 11.57
Aiico buy � MFI 52.24
Caverton buy � MFI 54.05
Chams buy � MFI 27.92
Courtville buy 0% MFI 18.97
Fbnh buy 80% sell 20% volume index 2.46 MFI 28.09
Fcmb buy � MFI 45.44
Fidelity buy � MFI 56.02
GT buy 50% sell 50% volume index 1.85 MFI 53.08
Jaiz buy � volume index 1.10 MFI 22.46
Jberger buy 0% volume index 3.03 MFI 97.46
Mtnn buy � MFI 13.85
Nahco buy � volume index 1.54 MFI 25.82
Nascon buy 0% volume index 4.87 MFI 0.00
Nem buy � volume index 1.46 MFI 23.82
Oando buy 11% sell 89% volume index 2.53 MFI 46.51
Prestige buy � volume index 2.47 MFI 46.28
Stanbic buy 79% sell 21% volume index 5.96 MFI 40.04
Transcorp buy � volume index 1.12 MFI 38.89
Transcorp buy � volume index 1.12 MFI 38.89
Uba buy 43% sell 57% MFI 34.05
Ubn buy 0% MFI 26.06
Ucap buy � MFI 39.65
Wapco buy � volume index 2.21 MFI 15.17
Wapic buy 0% volume index 2.23 MFI 5.49
Wema buy � MFI 44.17
Zenith buy 69% sell 31% volume index 2.09 MFI 41.33

https://investdataltd..com/2020/03/investdata-daily-sentiment-report-as-of_19.html

Nigeria’s NSE Index Stays Red, Amidst Cocktail Of Policies To Mitigate Effects Of Covid-19

Market Update for March 16, 2020
Monday’s trading activities on the Nigerian Stock Exchange remained volatile and mixed with the benchmark All Share index closing red again, thereby halting the previous day’s marginal gain, amidst global fears as the coronavirus scourge fuels the bear market, resulting in the seeming bargain hunting across financial stocks.

The mixed sentiment during the trading session failed to lift the market as selloffs continued among high cap stocks, irrespective of news of another set of proactive measures by the Central Bank of Nigeria to cut interest rates on its intervention funds from 9% to 5% in the face of the challenging business environment (READ MORE).

Sell pressure subsided on the NSE during the Monday session, even as the Federal Government announced plans to cut the size of the 2020 budget while concentrating only on essential capital spending to the heavy crash of crude oil price (READ MORE).

Meanwhile, Monday’s trading started on the upside slightly in the morning and was sustained till midday before oscillating in the afternoon on mixed sentiment with buying interests in banking and insurance stocks. Selloffs, however, hit high cap stocks, pushing the NSE’s benchmark ASI to an intraday low of 22,618.36basis points, from its high of 22,797.39bps, before retracing up slightly. It closed at 22,705.19bps lower than it opened.

Market technicals were positive and mixed with volume traded lower than that of the previous sessions in the midst of breadth that favoured the bulls on mixed sentiments as revealed by Investdata’s Sentiment Report showing 52% ‘sell’ volume and 48% ‘buy’ position. The total transaction volume index stood at 1.44 points, just as the momentum behind the day’s performance remains weak, despite looking up as Money Flow Index reads 23.19points, from the previous day’s 16.85points. This is an indication that funds entered some stocks despite the down market, in the midst of prevailing low liquidity.

Index and Market Caps
The NSEASI, at the close of Monday day’s trading, shed a marginal 28.16bps, closing at 23,705.19bps, from its opening figure of 23,733.35bps which represented a 0.10% drop, just as market capitalization lost N15.05bn, closing at N11.83tr, from the N11.85tr opening value, which also represented 0.10% value loss.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new 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.
Monday’s downturn was impacted by continued selloffs in medium and high cap stocks like MTNN, FBNH, Lafarge Africa, UBA, NB, Dangote Sugar, and Fidelity Bank. This expectedly impacted mildly on the NSE, as Year-To-Date loss increased to 15.41%, while market capitalization YTD negative position stood at N1.13tr, representing an 8.67% decline over the year’s opening value.

Mixed Sector Indices
The sectorial performance indexes were largely bearish, except for NSE Insurance and Banking that closed higher by 1.51% and 0.63% respectively, while NSE Industrial Goods led the decliners, after losing 0.52%, followed by the NSE Consumer Goods with 0.16% decline, while NSE Oil/Gas was flat for the session.
Market breadth was positive as advancers outnumbered decliners in the ratio of 18:14, while market activities in terms of volume and value traded were down by 24.78% and 43.66% as investors traded 551.48m shares worth N5.76bn, from the previous day’s 724.61m units valued at N9.12bn. Volume was boosted by trades in Guaranty Trust Bank, Zenith Bank, FBNH, Access Bank and UBA.
The best-performing stocks for the session were Courtville Business Solution and Lasaco Assurance as they topped the advancers table, gaining 10% each, closing at N0.22 and N0.22 per share on market forces. On the flip side, Transcorp and Sky Aviation lost 10% and 9.73% respectively, closing at N0.63 and N2.32 respectively on sell down and profit-taking.

Market Outlook
We expect a mixed performance and slowdown on the losing momentum as February inflation data is expected to hit the market on Tuesday, low prices of stocks and high dividend yields attract buying interest, as more audited corporate earnings hit the market, going forward. This is despite the likely continuation of the mixed intraday movement in the midst of selloffs, with investors buying increasing 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 Worsen

https://investdata.com.ng/2020/03/nigerias-nse-index-stays-red-amidst-cocktail-of-policies-to-mitigate-effects-of-covid-19/#more

NGSE Records Highest Weekly Loss, As CBN Assurance Stems Further Crash

Market Update for the Week Ended March 13 and Outlook for March 16-20
It was a turbulent week on the Nigerian Stock Exchange (NSE) with equity prices suffering huge declines due to panic selling and dumping propelled by heightened fears of the Coronavirus,

impacting global economic activities, while production facilities were shut and commodity prices, especially crude oil. The significant drop in crude oil prices spiked fears over the capacity of Nigeria’s reserves to withstand the shock, resulting in speculations that weakened the Naira against major currencies. The situation was however saved by a message by the Central Bank of Nigeria (CBN) to assure all that there was no plan for Naira devaluation (READ MORE).

The global markets during the period under view hit their new lows, just as the benchmark All-Share Index of the NSE hit its 11-year low, just weeks after the market had ranked among the world’s best performing at the beginning of the year.

The pullbacks that started in the last week of January due to factors ranging from the Q4 unaudited results released without corporate actions, which failed to meet investor expectations; just as the upward adjustment in the Cash Reserve Ratio (CRR) by the Monetary Policy
Committee to 27.5% from 22.5%. The CBN’s move was part of measures to curtail the rising inflation driven by many factors like the continued border closure since August 2019; the rising spate of insecurity and low farm produce owing to the banditry, kidnapping and Fulani herdsmen-farmers’ clash in the North West, Boko Haram menace that kept Nigeria’s North East on lockdown, and the general level of insecurity across the country.

All these triggered outflows of funds from equity assets in the previous month which has lingered until the peak of the 2019 audited corporate earnings reporting season, reversing all the expectations amidst the persistent selloffs in the market due to fear of global pandemic now ravaging the world.

Also, last week, Nigeria’s Senate began the amendment to the Finance Act 2019, as requested by the executive arm, to reflect new economic realities, even as the price of Brent crude slumped below the 2020 budget benchmark of $57 per barrel. Also, within the period, the House of Representatives suspended
indefinitely, discussions on the Federal Government’s request to borrow $22.8bn, assuggesteded by investdata in its update analysis a fortnight ago, based on realities that global economic happenings do not support such.


Movement Of NSEASI
The rapid spread of the Coronavirus contagion has triggered a wave of selloffs with the NSEASI losing all of 13.49% in just one week, pushing many stocks to a new loss of between 52-week and 15 years. It was a free fall of stock prices for four straight trading sessions of the week, except for Friday when the index closed marginally up by 0.17%.
Consequently, the benchmark index lost 3,546.26 basis points, after the week opened trading at 26,279.61bps, touching an intra-week low of 22,550.10bps from high of 26,141.21bps on a serious panic selloff and dumping of high cap stocks, even as some companies are yet to release their 2019 full-year results. The index closed the week at 22,733.35ps, on a huge traded volume when compared to the

previous week, just as the NSE index broke down four psychological levels of 26,000, 25,000, 24,000 and 23,000 in just five trading sessions.
Also, market capitalisation was down by N1.85tr, closing at N11.85tr, from an opening value of N13.7tr, representing a 13.5 % value loss, in a week the share prices of United Capital, Africa Prudential, Infinity Mortgage Bank, Transcorp Hotel and Zenith Bank, were adjusted for dividends of 50 kobo, 70 kobo, 3.5kobo, seven kobo and N2.50 per share respectively.

The selling pressure hit all the sectors of the exchange, with just two stocks featuring on the week’s gainers’ table. The negative sentiment and selloffs during the period were obvious in the market breadth as losers outnumbered gainers in the ratio of 64:2, even as the energy behind the week’s performance was weak, while Money Flow Index read 39.65bps, compared to the 44.44bps of the previous week.
The high volume of trade indicates the increased selloff in all the sectors, by traders and investors while they sought to cut their losses and hold cash as revealed by the Investdata’s Sentiment Report for the week showing 5% ‘buy’ volume, and 95% ‘sell’ position, on a transaction volume index of 2.74

Mixed Sectoral Indices
All the sectoral indexes for the week were bearish, with the NSE Banking index leading the decliners, after shedding 26.15%, followed by NSE Consumer Goods that lost 14.79%, while he NSE Oil/Gas, Insurance and Industrial Goods, followed with 8.51%, 5.66%, and 5.41%, respectively.

Market transactions, in terms, of volume and value for the week, were up by 118.77% and 68.01% respectively, as investors exchanged 3.96bn shares worth N43.7bn, as against the previous week’s 1.81bn units valued at N26.01bn. The week’s volume was mainly driven by trades in financial services stocks, especially Zenith Bank, Guaranty Trust Bank, and UBA

Consolidated Hallmark Insurance and Cornerstone Insurance were the best-performing stocks for the week, topping the advancers chart with 7.14% and 6% respectively, closing at N0.30 and N0.53 per share on market forces. On the flip side, Cadbury and Zenith Bank lost 38.89% and 36.47% respectively, closing at N4.95 and N11.90 per share on panic selling and dumping.

Market Outlook
We expect a mixed performance this week, as the market enters the second half of March, more audited earnings reports and dividend declarations, but market reaction to the epidemic this week as the virus hit more countries, dictating the market’s direction in the midst of the depressed price of fundamentally sound stocks and bargain hunting by market players. This has also resulted in significant improvement in Dividend Yields of stocks, even as we note the fact that funds
managers were holding on to cash before last week’s price meltdown.
This is just as more liquidity flows to high Dividend Yield stocks with sound fundamentals, which will also be based on the seemingly positive outlook for the domestic economy, and 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.

We should, however, not overlook the possibility of 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.
Again, the current undervalued state of the market offers investors opportunities to position for the short to 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 Opportunities & Trade Ideas Summit.
Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, CBN directives and its impact on the economy in the nearest future.

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.

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

https://investdata.com.ng/2020/03/ngse-records-highest-weekly-loss-as-cbn-assurance-stems-further-crash/#more

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https://www.facebook.com/Cheekersinnltd/videos/555713745045931/

InvestData Price & Earnings Tracking For The Week Ended March 6, 2020

https://investdata.com.ng/2020/03/investdata-price-earnings-tracking-for-the-week-ended-march-6-2020/#more

CORPORATE ACTIONS 2020

https://investdata.com.ng/2020/03/corporate-actions-2020/#more

Investors Ignored Good Dividend Stocks In The Midst Of Economic Uncertainties


Investors Ignored Good Dividend Stocks In The Midst Of Economic Uncertainties

Market Update for the Week Ended March 6 and Outlook for March 9-13

It was a mixed trading sessions on the Nigerian Stock Exchange last week to halt the five successive weeks of bearish sentiment and selloffs due to concerns over lack of liquidity in the equity segment and impact of one case of coronavirus in Nigeria that sent fear to investors with the global markets and economics being threatened by the epidemic outbreak.

Stocks advanced within the period under consideration as buying interest was noticed in banking, insurance and oil sectors due to the fact that more companies released their 2019 full year audited results to the market with impressive numbers and dividend declarations that attracted funds to the market.

In this same week, the government announced its plans to review the 2020 budget, senate approved $22.7 billion loan request from the executive and another rating agency S&P joined its counterparts to downgrade the nation’s economy from stable outlook to negative.

We at Investdata are not against the government borrowing but the timing and economic reality are the concerns here, because cost of borrowing and source of repaying are also very important.

The recent downgrade of the Nigeria economy from stable to negative by S&P rating agency will increase the cost borrowing in the international market, at a time the price of oil which is the nation major source of revenue is crashing to sell at $51 as at Friday, below the 2020 government benchmark price of $57.

Its obvious that borrowing helps to boost economic activities and enhance the living standard of people, but in Nigeria the case is different, upon the huge yearly budgets for good five years the nation economy is still struggling and there is no direction due to implementation and disbursement style of the economic managers, policy summersault and counter policies of the same governmenIt’s

Outlining how the $22.7 billion will be spent is not the problem but Implementation is the key for it to impact positively on the economy and the people. Repayment plan is the very key thing here considering the high cost of governance today and political ideology of Nigerian politicians. We suggest that the government should suspend the borrowing of $22.7billion for now, as government review its 2020 budget to reflect the prevailing economic reality.

Stock markets across the globe last week had a volatile sessions as some suffered setbacks on impact of the coronavirus outbreak that triggered selloffs for safe havens. On the fear of the virus influence on the world economy, US monetary policy committee has again cut rate to mitigate the effect of the outbreak on its economy and boost productivity just as G7 Finance officials agreed to implement policies that will support growth at the end of their conference held during the week. This is due to the impact of the disease on oil price that is below $50 now.



Movement Of NSEASI

The composite All-Share Index opened the week on a negative note. However, it rebounded on Tuesday and it was sustained till Thursday before pulling back on Friday to shed some of its gains and close the week marginally higher.

Consequently, the benchmark index for the period recorded a gain of 0.24%, as the week opened trading at 26,216.46bps, touching an intra-week high of 26,626.07bps and low of 25,816.57bps on panic selloffs and repositioning in high cap stocks as more companies released their dividend news. The index finally closed the week at 26,279.61ps, on a higher traded volume when compared to the previous week.

Also, market capitalisation was up by N37 billion to N13.70 trillion, from an opening value of N13.43 trillion representing a 0.275 % value gain. The difference in percentage change of the index and market cap was as a result of the listing of additional shares of 10.16 billion ordinary shares of Wapic Insurance at 50 kobo and 336.86 million shares of Restar Express at N4.00 respectively. We also noted, that the share price of Nigerian Breweries was adjusted for N1.51 dividend.

Medium and small companies stocks topped the week’s advancers table, with continued sell pressure in consumer and industrial goods, while the accumulation of high dividend-paying stocks persisted among financial services providers and Oil/Gas sectors in midst of audited corporate earnings that were released in the period under review. Market players have also continued to trade cautiously in the expectation of more scorecards and dividend news.

The mixed sentiment and seemingly improved buying interest during the period was evident in the market breadth as advancers outnumbered decliners in the ratio of 36:25. The impetus behind the week’s performance was weak, as Money Flow Index reads 44.44bps, compared to the 51.43bps of the previous week.

The high volume of trade indicates the increased demand for banking and insurance stocks by traders and investors as they position in small, medium and large companies, even as Investdata’s Sentiment Report for the week was mixed with 57% ‘buy’ volume, and 43% ‘sell’ position, on a transaction volume index of 1.36.



NSEASI Weekly Time Frame



From the above weekly chart of the NSE Index, the money flow index continues to indicate that funds are leaving the market while momentum indicators vary in their directional movement, with the index resisting further decline after 100% Fibonacci correction.

It is obvious that institutional investors are contemplating to be in cash or take position in these high yields stocks as macroeconomic data remained mixed with economic reality revealing negative outlook in the face of coronavirus impact and oil price at $48. The waiting game is expected to help investors determine which window they will be considering, whether equity or fixed income especially against the ongoing assets repricing in the financial market.

The index, on a weekly time frame, is trading below its 20-Day Moving Average; the Relative Strength Index reads 38.69.



Mixed Sectoral Indices

The sectoral indexes were largely bullish for the week, except for the NSE Consumer and Industrial Goods that closed lower by 5.87% and 4.27% respectively, while the NSE Banking Index led the advancers, after gaining 3.78%, followed by the NSE Insurance and Oil/Gas indexes that were up by 1.40% and 0.80%, respectively.

Market transactions, in terms, of volume and value for the week, were up by 16.77% and 7.21% respectively, as investors exchanged 1.81 billion shares worth N26.01 billion, as against the previous week’s 1.55 billion units valued at N24.26 billion. This volume was mainly driven by trades in financial services stocks, especially Guaranty Trust Bank, Zenith Bank and UBA

UACN Property and Skyway Aviation were the best performing stocks for the week, topping the gainers chart with 22..89% and 20.66% respectively, closing at N1.02 and N2.57 per share on low price attraction and market forces. On the flip side, Unilever and Lafarge Africa lost 13.33% and 11.94% respectively, closing at N13.00 and N36 per share on selloffs and profit-taking.

Market Outlook

As we enter the Second week of March, more audited earnings reports and dividend declarations to dictate the market direction in the midst of profit-taking and repositioning by market players, as more maturing OMO and bonds mature, making more funds available for equity investment, even as we noted the fact that funds managers are holding cash.

This is just as more liquidity flows to high Dividend Yield stocks with sound fundamentals, which will also be based on the seemingly positive outlook for the domestic economy, and 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.

We should, however, not overlook the possibility of 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.

Again, the current undervalued state of the market offers investors opportunities to position for the short to 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 Opportunities & Trade Ideas Summit.

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

Meanwhile, we thank all the participants of the PHC Invest 2020 Summit last weekend, as we also welcome you all to a bullish 2020. 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/2020/03/investors-ignored-good-dividend-stocks-in-the-midst-of-economic-uncertainties/

NSE Sustains Two Trading Session Of Positive Sentiment On Improving Inflows As MFI Looks Up

Market Update for March 4,

At midweek, stocks rallied higher on the Nigerian Stock Exchange on sustained buying interest as market players take advantage of low prices to position for dividend and capital gains ahead of markdown dates for some companies that had declared cash dividends earlier. These positive sentiments pushed the composite index higher on above-average traded volume.

In today’s market, stocks are yielding more than fixed income instruments. This sharp divergence in yields should be the attraction in the equity segment of the financial market considering the prevailing low-interest regime and rising inflation rate. The government suspending its earlier plan to borrow N2 trillion from the pension fund and continued OMO maturities that washed the system with excess liquidity as institutional investors continued to trade with caution. But with the money flow index looking up in the last two trading days, indicating that funds are gradually returning to the stock market.

Despite, the reduce momentum in today’s gain, one may safely conclude that traders are already gaining confidence against the effect of coronavirus. As global markets are already on a recovery mood just as China where the virus commenced, their capital market and economy are recovering, more so, with the news that, the vaccine had already been discovered in Israel to cure the strange virus. Here in Nigeria, the government had consistently assumed to be ready to combat the spread of the diseases.

Meanwhile, Wednesday’s trading opened in green and oscillated in the mid-morning till afternoon on the accumulation of dividend stocks and buying of undervalued equities that had suffered losses over the years and recently for capital appreciation, which pushed the benchmark index above intraday high of 26,438.78 basis points, from its low of 26,256.24bps. Thereafter, closing the session higher at 26,415.54bps on a positive market breadth.

Midweek market technicals were positive and mixed, with volume traded lower than the previous session in the midst of breadth favoring the bulls and positive sentiment as revealed by Investdata’s Sentiment Report showing 83% ‘buy’ volume and 17% sell position. The total transaction volume index stood at 1.07, as the energy behind the day’s performance remained seriously weak, but Money Flow Index moved up to read 15.40points, from the previous day 8.84points, an indication that funds entered the market again, despite the prevailing low liquidity in equity segment.

Index and Market Caps

All Share index at the end of the day’s trading gained 160.43bps, closing at 26,415.54bps from its 26,255.11bps opening, representing a 0.61% growth, just as market capitalization was up by N83.60 billion to close at N13.76 trillion, from the N13.68 trillion opening level, which also represented a 0.61% appreciation in value.

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

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 advancers were driven by position taking in low, medium and high cap stocks like BUA Cement, Guaranty Trust Bank, Access Bank, UBA, Ecobank Transnational Incorporated, FBNH, NB, and Fidelity Bank. This expectedly impacted positively on the NSE, as the Year-To-Date loss reduces to 1.59%, while market capitalization YTD gain rise to N806.41 billion, representing 6.19% growth over the year’s opening value.

Bullish Sector Indices

All the sectorial performance indexes were bullish, except for the NSE Oil/Gas that closed lower by 0.68%, while the NSE Insurance index led the advancers, after gaining 2.77%, followed by the NSE Banking and Consumer Goods with 1.7% and 0.82% respectively, just as NSE Industrial goods index was up by 0.37%. .

Market breadth remained positive, with advancers outnumbering decliners in the ratio of 22:10, while market transactions in terms of volume and value traded were down by 20.69% and 44.74% as investors exchanged 307.72 million shares worth N2.81 billion from the previous day 387.9 million units valued at N5.08 billion. This volume was boosted by trades in FBNH, Zenith Bank, UBA, Guaranty Trust Bank and Trancorp.

The best-performing stocks for the day were NEM Insurance and Royal Exchange Assurance that topped table, after gaining 10% each, closing at N1.87 and N0.22 per share on market forces and low price attraction. On the flip side, Ardova and Deap Capital lost 10% and 8.33% respectively, closing at N15.30 and N0.33 each respectively on selloffs.

Market Outlook

We expect the trend to be sustained as funds may flow the way of stocks, dividend news and resist further decline as more audited earnings hit the market this March. This is despite the likely continuation of the mixed intraday movement in the midst of profit-taking, with investors increasing buying positions in high dividend-paying 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 potentials to grow their dividend on the strength of their earnings capacity.

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

This was noted in the 10 golden stocks and trading ideas for 2020, which was 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 Investdata team welcomes you to a bullish 2020. 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.


Ambrose Omordion
CRO|Investdata Consulting Ltd

https://investdata.com.ng/2020/03/nse-sustains-two-trading-session-of-positive-sentiment-on-improving-inflows-as-mfi-looks-up/#more

New York Stock Exchange trips circuit breaker. Stock trading has been halted for 15 minutes

The New York Stock Exchange has halted stock trading for 15 minutes after the S&P 500 fell 7% on Monday morning.

Stocks plummet amid coronavirus fears and oil selloff
From CNN Business' Anneken Tappe

Stocks plummeted on Monday as worries about the growing global coronavirus pandemic and an oil price race to the bottom weighed on global financial markets.

The selloff had begun in overnight futures trading, which was halted after futures contracts dropped nearly 5%.

The Dow opened 1,800 points, or 7%, lower.

The S&P 500 dropped 6.9%.

The Nasdaq Composite dropped 7.1%

All this comes after stocks managed to end the last turbulent week in the green. Despite three steep selloffs, the Dow also recorded its best point-gain on record last week.

https://edition.cnn.com/webview/business/live-news/stock-market-news-today-030920/h_92d9e012b331c593bfa9ec2b1226507d