₦airaland Forum

Sustained Decline Throws Up ‘Buy’ Opportunities On NGSE, As Investors Await Fiscal Trigger


Market Update for August 15
The negative stance of the Nigerian Stock Exchange (NSE) seems unending these days, with Thursday’s session turning out very volatile while breaking down the 27,000 basis points psychological line on a mixed sentiment and relatively high volume.
There was however a relative slowdown in the loss momentum of the composite NSE All-Share index, just as buying interest improved as revealed by Investdata’s Daily Sentiment Report, showing ‘buy’ volume at 70% and sell position at 30% of the total daily transaction volume index of 1.13. This is an indication that discerning investors and bargain hunters are gradually accumulating at the current prices, realizing that many stocks have hit their 52-week, five and 10-year new lows, making the Nigerian stock market a buy one after it had suffered 22.37% loss in one year, 14% year-to-date and 2.4% month-to-date, respectively, signaling ‘buy’ opportunities. This is however despite the prevailing low liquidity befalling the market and economy due to the seeming lack of economic direction and non-implementation of the 2019 budget. We, however, expect that the assigning of portfolio’s and assumption of office by the Minister-designates will trigger action and eventual governance before the end of this quarter.

At the current state of the Nigerian equity market, it is only positive news in the form of a reassuring statement from the government and improved liquidity that can change the narrative and serve to trigger a rebound, with corporate earnings so far revealing that the listed companies are not looking too good. Their position is somewhat confirmed by the emerging mixed economic data such as the July Purchasing Managers Index (PMI() at 57. 6 points, June consumer price index at 11.22%, Q1 GDP of 2.01%, representing a decline from the 2.38% Q4 2018 level, even as external reserves remain at $44.38bn, amidst the oscillating oil price. These have glaringly told the story of the Nigerian economy in the face of looming global recession as bond market yield become messier on daily basis, while the supremacy battle between the U.S and China, the world’s two largest economy rages unending.

Meanwhile, the benchmark NSEASI opened on Thursday trading on the downside, a situation that was extended till midday and early afternoon on selloffs among the high cap stocks, before retracing by the mid-afternoon after touching intraday lows of 26,895.43bps from 27,120.09bps, before closing the day marginally lower at 27,052.93 basis points.
Market technicals were negative but mixed as traded volume was lower than the previous session in the midst of negative breadth. The momentum behind the day’s performance was seriously weak as Money Flow Index read a mere 0.00points, down from Friday’s 5.89bps, an indication that funds left some stocks and the market despite the seeming buying interest.

Index and Market Cap
At the close of Thursday’s trading, the All-Share index lost a marginal 30.18bps to close at 27,052.93bps, after opening at 27,083.11bps, representing a 0.11% decline, just as market capitalization shed N14.71bn, closing at N13.18tr, from an opening value of N13.2tr, which also represented 0.11% value loss.
Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the 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 during this new lows and post Q2 earnings reports portfolio reshuffling and repositioning ahead of fiscal and monetary policy catalysts.

The day’s decline was due to selloffs in stocks like Dangote Cement, Guaranty Trust Bank, Lafarge Africa, ETI, UACN, Access Bank, FBNH, UBA, Unilever, Stanbic IBTC, FCMB, Fidelity Bank, Flour Mills and Custodian Investment, among others. This impacted negatively on the NSE’s Year-to-Date loss, which heightened to 13.93%, just as YTD market capitalization gain reduced to N1.46 trillion or 12.48% from the year’s opening level of N11.72tr.

Bearish Sector Indices
The sectoral performance indexes were in red, except for the NSE Oil/Gas that was flat, while the consumer goods index led the decliners’ after losing 1.13%, followed by Banking index with 0.86%, just as Insurance and industrial goods were next by 0.85% and 0.18%respectively.
Market breadth remained negative as decliners outnumbered advancers in the ratio of 23:9; market activities were mixed as traded volume was down by 0.82% at 233.2m shares from the previous day’s 235.12m units, while value rose by 10.64% to N3.64bn, as against the previous day’s N3.29bn. This volume was driven by trades in financial services and conglomerates stocks such as Guaranty Trust Bank, Transcorp Plc, Access Bank, Fidelity Bank, and Zenith Bank.

The best-performing stocks for the session were CCNN and Unity Bank which gained 9.43% and 7.81% respectively, closing at N14.50 and N0.69 per share, on the back of improving earnings despite enlarged outstanding shares and market forces. On the flip side, Unilever and ETI lost 10% each to close at N28.80 and N6.30 on market selloffs and bearish trend.

Market Outlook
We expect the mixed performance to continue as selloff persists in the absence of positive news and economic stimulus, despite the mixed economic indices and the seeming fair position corporate earnings due to prevailing low market value, as investors continue to reshuffle their portfolios in expectation of interim earnings reports of dividend-paying companies. Also, we see bargain hunters taking advantage of the-low prices stocks, as economic indices seemingly look positive.

Discerning investors should target value stocks considering the current low valuation to position for dividend income and capital gain, especially as the market’s Price to Earnings ratio is 5.12x, which is well below the 8.01x average of its peers and a five-year average of 9.56.x. This revealed value and high upside potentials for a rally. But wait to confirm reversal before jumping into a new position.

They may also take into consideration the expected economic reforms as the government is set to assign portfolio to the minster-designates, just as Central Bank of Nigeria (CBN) had earlier rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.
There is also the likely impact of portfolio repositioning for the last quarter of the year ahead of Q3 financials in the midst of analyzing Q2 numbers and unfolding political events.

https://investdata.com.ng/2019/08/sustained-decline-throws-up-buy-opportunities-on-ngse-as-investors-await-fiscal-trigger/#more

Breaking: Nigeria’s July Inflation Slips To 11.08%


Nigeria’s National Bureau of Statistics (NBS), on Friday, published the Consumer Price Index for July 2019, showing that inflation growth decline for the second consecutive month, rising by 11.08%, representing 0.14% drop from 11.22% recorded in June.
On a month-on-month basis, the headline index increased by 1.01 percent in July 2019, down 0.06%from the previous month’s 1.07%; while percentage change in the average composite CPI for the 12 months period ending July 2019 over that of the previous 12 months was 11.29%, compared to 11.29% recorded in June 2019.

The urban inflation rate increased by 11.43% (year-on-year) in July 2019 from 11.61% recorded in June 2019, while the rural inflation rate climbed by 10.64% in July 2019 from 10.87% in June 2019.
Food inflation at 13.39% in July 2019, from 13.56% in June; just as Core inflation at 8.80% in June 2019 slipped from 8.84% in June.

https://investdata.com.ng/2019/08/breaking-nigerias-july-inflation-rises-by-11-08/

Investdata Daily Sentiment Report as of August 16, 2019

NSEASI buy 70% sell 30% volume index 1.12 MFI 13.36
Access buy 82% sell 18% volume index 1.52 MFI 51.50
Afrprud buy 0% volume index 2.14 MFI 29.13
Ccnn buy 0% volume index 3.48 MFI 63.42
Chams buy 0% volume index 0.96 MFI 48.99
Dangflour buy � volume index 1.39 MFI 46.61
Eti buy 0% volume index 0.97 MFI 4.43
Fbnh buy 12% sell 88% MFI 17.21
Fcmb buy 36% sell 64% volume index 1.98 MFI 57.36
Fidelity buy 0% volume index 3.67 MFI 11.18
GT buy 20% volume index 1.72 MFI 7.83
Lasaco buy 0% MFI 52.26
Lvstk buy � volume index 1.00 MFI 29.76
Sovereins buy 0% volume index 2.69 MFI 93.58
Transcorp buy 45% sell 55% volume index 2.92 MFI 30.57
Uacn buy 0% volume index 1.35 MFI 17.49
Uba buy 67% sell 33% MFI 41.91
Ucap buy 0% volume index 0.97 MFI 8.10
Wapco buy 0% MFI 56.24
Wapic buy 0% MFI 51.57
Wema buy 0% MFI 63.44
Zenith buy 0% volume index 0.88 MFI 16.42

https://investdataltd..com/2019/08/investdata-daily-sentiment-report-as-of_64.html

NGSE Index Slip Lower, Hits New 19-Month Lows, As Top-30 Stocks Hit Rock Bottom Prices


Market Update for August 14
Trading for the week resumed on the Nigerian Stock Exchange (NSE) Wednesday (owing to the two-day public holiday declared by the Federal Government to mark the Moslem festival of Eid-El Kabir) on a negative note.
Two significant things happened at mid-week’s trading: the benchmark NSE All-Share index touched a new 19-month low on the back of sell-offs in high and medium cap stocks ahead of consumer price index data and the inauguration of the federal cabinet; amidst strong selling momentum for many stocks that made new 10-year lows. Stocks that made a new 10-year low on the NSE include Total Nigeria, UACN Property Development Company, UAC of Nigeria, Nigerian Breweries, Guinness, Chemical & Allied Products, Oando, Ecobank Transnational Incorporated, Julius Berger, Honeywell Flour, Flour Mills, and GSK, among others. This happened on the back of persistent policy summersault and concerns over the Federal Government’s failure to reinvigorate the economy, now faced with a possible recession.

There is potential in the Nigerian Agric-business space as we continue the economic diversification agenda, which has seemingly remained a mantra over the past several years, even as successive governments failed to fashion a clear roadmap to achieve the programme. Diversifying the economy towards the agric sector, we believe, is not merely about extending credit facilities to framers. There must be a plan to impact the value chain, such that whether it is harvest season or not, prices of food items should not be significantly altered, with a good storage system in place. This will encourage farmers to produce more and get the adequate reward and the economy will be the ultimate beneficiary.

Since we have not, in truth, attained self-sufficiency in the various areas of food production, the Federal Government’s plan to ban importation, which should have been directed at the Nigerian Customs Service (NCS) and other border patrol agencies, rather than the Central Bank of Nigeria (CBN) as President Muhammadu Buhari did on Tuesday, should rather be gradual. This may likely create panic; uncertainty and fear that government can wake up one morning and make policies that would destroy investment. A gradual approach to the ban will also help the nation avoid demand-push inflation.

Meanwhile, Wednesday’s trading was a very negative and volatile session as the NSE’s All-Share index gapped down at the opening in the morning, moved lower, and oscillated between the midday and early afternoon. This could, however, not be sustained as the index went further down, touching intraday lows of 27,083.11 basis points, from its high of 27,307.60bps.
Wednesday’s market technicals were negative and mixed as traded volume and number of deals were higher than the previous session’s in the midst of negative breadth and sentiment, as revealed by Investdata’s Daily Sentiment Report, showing ‘sell’ volume at 100% and total daily transaction volume index of 1.15.
The impetus behind the day’s performance remained seriously weak as Money Flow Index read a mere 5.89 points, down from Friday’s 11.31bps, an indication that funds left some stocks and the market amidst persistent selloffs in blue-chip stocks.

Index and Market Cap
At the close of midweek’s trading, the All-Share index shed 223.70bps to close at 27,083.11bps, after opening at 27,306.81bps, representing a 0.82% decline, just as market capitalization lost N108.68bn, closing at N13.2tr, from an opening value of N13.31tr, which also represented 0.82% depreciation in value.
Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the 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 during this post Q2 earnings reports portfolio reshuffling and repositioning ahead of fiscal and monetary policy catalysts.

The day’s downturn was driven by continued selloffs in stocks like MTN Nigeria, Guaranty Trust Bank, Lafarge Africa, ETI, UACN, Total Nigeria, Dangote Sugar, Flour Mills, Cement Company of Northern Nigeria (CCNN), and Oando, among others. This impacted negatively on the NSE’s Year-to-Date loss, which heightened to 13.82%, just as YTD market capitalization gain reduced to N1.21tr or 12.61% from the year’s opening level of N11.72tr.

Bearish Sector Indices
All sectoral performance indices closed the session lower, except for the NSE Insurance that notched 0.45% up, while the industrial goods index led the decliners’ after shedding 1.55%, followed by Banking index with 1.26%, as just as Oil/Gas and consumer goods followed, dipping by 1.12% and 0.46%respectively.
Market breadth remained negative as decliners outnumbered advancers in the ratio of 27:4; market activities were mixed as traded volume was up by 6.48% at 235.12m shares from the previous day’s 220.8m units, while transaction value fell by 26.49% to N3.29bn, compared to Friday’s N4.48 billion. Volume was driven by trades in financial services stocks such as Guaranty Trust Bank, Zenith Bank, Access Bank, FBNH and Fidelity Bank.

Continental Reinsurance and Custodian Investments were the best-performing stocks, after gaining 4.32% and 3.33% respectively, closing at N1.45 and N6.20 per share, on the back of market forces and reactions to the industry recapitalization moves. On the flip side, UACN and NPF Microfinance lost 10% and 9.32% respectively to close at N4.95 and N1.07 on selloffs.

Market Outlook
We expect the mixed performance to continue as selloff persisted, despite the ongoing interoperation of economic indices and the corporate earnings reports released, as investors continue to reshuffle their portfolios in expectation of interim earnings reports of dividend-paying companies. Also, we see bargain hunters taking advantage of the-low prices stocks, as economic indices seemingly look positive. Discerning investors should target value stocks considering the current low valuation to position for dividend income and capital gain, especially as the market’s Price to Earnings ratio is 5.45x, which is well below the 8.24x average of its peers and a five-year average of 9.56.x. This revealed value and high upside potentials for a rally. But wait to confirm reversal before jumping into a new position.

They may also take into consideration the expected economic reforms as the government is set to assign portfolio to the screened minsters, just as Central Bank of Nigeria (CBN) had earlier rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.

There is also the likely impact of portfolio repositioning for the last quarter of the year ahead of Q3 financials in the midst of analyzing Q2 numbers and unfolding political events.

https://investdata.com.ng/2019/08/ngse-index-slip-lower-hits-new-19-month-lows-as-top-30-stocks-hit-rock-bottom-prices/

Investdata Daily Sentiment Report as of August 15, 2019

NSEASI buy 0% volume index 1.10 MFI 13.60
Access buy 0% volume index 2.32 MFI 53.85
Aiico buy 0% MFI 73.45
Ccnn buy 0% volume index 2.63 MFI 50.29
Dangflour buy 0% volume index 2.14 MFI 44.17
Dangsugar buy 50% sell 50% volume index 1.05 MFI 50.84
Eti buy � volume index 2.18 MFI 4.61
Fbnh buy 17% sell 83% volume index 0.98 MFI 28.61
Fcmb buy 43% sell 57% volume index 1.40 MFI 64.47
Fidelity buy 0% volume index 2.26 MFI 14.48
GT buy 8% sell 92% volume index 2.08 MFI 8.56
Jaiz buy 0% volume index 2.68 MFI 20.26
Lasaco buy 0% MFI 50.91
Oando buy 50% sell 50% MFI 44.77
Red buy � volume index 3.68 MFI 0.00
Sovereins buy 0% volume index 2.69 MFI 93.58
Sterling buy � MFI 94.06
Transcorp buy 0% MFI 15.60
Uacn buy 0% volume index 1.40 MFI 16.36
Uba buy 0% MFI 40.11
Ucap buy 29% sell 71% volume index 1.19 MFI 9.73
Wapco buy 0% MFI 58.16
Zenith buy 40% sell 60% volume index 1.68 MFI 10.15

https://investdataltd..com/2019/08/investdata-daily-sentiment-report-as-of_19.html

FX Ban: Respect Autonomy, Stop Ordering CBN, Muoghalu Tells Buhari

Dr. Kingsley Muoghalu, a candidate in the 2019 Presidential election under the platform of the Young Progressives Party (YPP) and former deputy governor of the Central Bank of Nigeria (CBN), on Tuesday even berated President Muhammadu Buhari for “directing” the apex bank to ban the sale of foreign exchange to food importers.

Reacting to a statement by Presidential spokesman, Garba Shehu, who quoted Buhari as giving the directive when he hosted state governors elected on the platform of his party- the All Progressives Congress (APC) to Eid-el-Kabir lunch at his country home in Daura, Katsina State, Muoghalu urged the President to respect the autonomy and independence of the CBN as enshrined in the enabling Act.

Writing on his personal twitter handle, he urged the President to carry out its functions unencumbered and stop “directing” the apex bank of which he was a deputy governor between 2009 and 2014.

Also, this is the time, he stressed, for the CBN to assert “its independence (assuming it actually believes it should be independent, but the Act says so, clearly!)”
Continuing, he lamented that “Nigeria’s entire economy appears to have been sub-contracted to our central bank, including industrial and trade policy. In the process, the economy has fared poorly and the Bank has lost its independence. This is sad!

“Our marketplace should be regulated and guided in a rational manner that creates a level playing field. Our economy will not be saved by Ad Hoc political decisions like this, handed down by the very institutions that should be shielded from the whim and caprice of politicians.

“The issue here isn’t whether or not CBN should allow access to forex for food imports. It is about whether such an economic policy of a central bank should be imposed by a political authority. A major reason for our poverty, instability and weak economy is weak institutions,” he stressed further.

investdata.com.ng/2019

Buhari Backs CBN, Bans Sale Of FX to Food Importers

The Central Bank of Nigeria (CBN), on Tuesday got the backing of President Muhammadu Buhari to stop sale of foreign exchange for importation of food into the country, even as experts say such directive impinges on the autonomy of the apex bank as guaranteed by an enabling law.

Presidential spokesman, Mallam Garba Shehu announced the directive via his personal twitter handle, said Buhari spoke while hosting state governors elected on the platform of his party- the All Progressives Congress (APC) to Eid-el-Kabir lunch at his country home in Daura, Katsina State.
The move, he recalled the President as saying, will help the nation conserve its scarce foreign reserve, which will be used strictly to diversify Nigeria’s economy, rather than continued dependence on foreign food import bills.

This seems some support for CBN Governor, Godwin Emefiele, who is still under attacks from some members of the Organised Private Sector, who see his recent addition of dairy products to the list of items banned from the official foreign exchange window as ill-advised.

Shehu reported the President as basing his directive to the CBN on the steady improvement in agricultural production, & attainment of full food security, noting “that some states like Kebbi, Ogun, Lagos, Jigawa, Ebonyi and Kano had already taken advantage of the Federal Government’s policy on agriculture with huge returns in rice farming, urging more states to plug into the ongoing revolution to feed the nation.”
He quoted the President as stressing “we have achieved food security, and for physical security we are not doing badly.”

President Buhari said he was particularly delighted that young Nigerians, including graduates, had started exploring agric-business and entrepreneurship, with many posting testimonies of good returns on their investments, Shehu added.

President Buhari, he stressed, assured that the incoming ministers will be “taught’’ and thoroughly guided to ensure they meet the targets of the APC-led government for the people, with regular monitoring of their performances and scaling up of targets by the Office of the Secretary to the Government of the Federation (SGF).
The President assured that he will attend the Presidential Policy Retreat organized for the ministers by the OSFG, and insisted on compliance with laid down targets on key sectors of the economy that will directly impact on the livelihood of Nigerians, he further noted.

Commenting on the directive, Shehu quoted the Chairman of the Nigerian Governors’ Forum and Governor of Ekiti State, Dr John Kayode Fayemi, as saying the President’s sense of justice, fairness and forthrightness had turned a major inspiration to governors on the way forward for the country.
He said the challenges faced by states “were enormous’’, but the governors had remained undaunted, assuring the President of strong support and “the very best effort’’ to overcome all the obstacles.

https://investdata.com.ng/2019/08/buhari-backs-cbn-bans-sale-of-fx-to-food-importers/#more

Investdata Weekly Sentiment Report as of 12 August 2019

NSEASI buy 0% MFI 14.07
Access buy 0% volume index 1.06 MFI 50.56
Afrprud buy 34% sell 66% volume index 1.00 MFI 31.89
Aiico buy 0% MFI 34.46
Beta buy 0% volume index 4.28 MFI 52.90
Cadbury buy 0% MFI 47.86
Caverton buy 0% MFI 21.33
Ccnn buy � MFI 58.43
Chams buy 25% sell 75% MFI 18.65
Chiplc buy 0% MFI 46.81
CIleasing buy � MFI 5.39
Conoil buy � volume index 0.72 MFI 33.34
Custodian buy � MFI 28.64
Cutix buy 31% sell 69% MFI 25.71
Dangcem buy 0% MFI 43.80
Dangflour buy 89% sell 11% volume index 1.93 MFI 53.06
Dangsugar buy 67% sell 33% MFI 11.05
Eterna buy 0% MFI 21.35
Eti buy 65% sell 35% volume index 1.04 MFI 17.19
Fbnh buy 7% sell 93% volume index 1.22 MFI 15.51
Fcmb buy 56% sell 44% volume index 0.74 MFI 49.35
Fidelity buy 0% MFI 40.97
Fmn buy 57% sell 43% MFI 55.79
Fo buy 17% sell 83% volume index 1.18 MFI 47.98
Glaxo buy � volume index 0.73 MFI 62.04
GT buy 0% volume index 1.67 MFI 54.65
Honyflour buy 0% MFI 37.52
Jaiz buy 33% sell 67% MFI 22.27
Japaul buy 0% MFI 6.82
Lasaco buy � volume index 0.73 MFI 82.17
Lawunion buy 0% MFI 91.88
Lvstk buy 0% MFI 6.22
Mansard buy � MFI 60.69
M&B buy 0% volume index 0.95 MFI 74.74
Mben buy 0% MFI 48.65
Nahco buy 0% MFI 62.02
Nem buy 0% MFI 61.37
Oando buy 17% sell 83% MFI 30.15
Pz buy 0% volume index 0.70 MFI 18.42
Red buy 0% MFI 47.41
Sterling buy � volume index 3.32 MFI 72.43
Transcorp buy 27% sell 73% MFI 30.97
Uacp buy 0% volume index 6.77 MFI 79.04
Uacn buy 55% sell 45% MFI 41.24
Uba buy 10% sell 90% MFI 31.68
Ubn buy 50% sell 50% MFI 39.28
Ucap buy 0% volume index 1.15 MFI 25.64
Uniondac buy 0% MFI 15.73
Unity buy 0% MFI 38.51
Wapco buy 93% sell 7% MFI 91.93
Wapic buy 75% sell 25% volume index 0.72 MFI 31.51
Wema buy 100% MFI 98.85
Zenith buy 0% volume index 0.79 MFI 9.22

https://investdataltd..com/2019/08/investdata-weekly-sentiment-report-as_12.html

Zenith, GTB, NB, Guinness, FO, Hit New 52-week Low As Portfolio Reshuffling Continue


Market Update for the week ended August 9 and Outlook for 14-16
Any further doubt about the sustained negative sentiments in the nation’s stock market increased last week due to the myriads of challenges militating against investor confidence, domestic productivity, and consumption.
These kept the key performance indices on the downtrend, just as other markets across the globe suffered decline due to uncertainties surrounding arising from the raging battle for supremacy between the U.S and China, the world’s biggest economies. The trade dispute has so far entered another level capable of slowing down global economic growth.
The trade war is expectedly already having multiplier effects on the price of crude oil, following which it closed the period under review at a six-month low of $57.82 per barrel, which is already below the $60pb benchmark oil price set for Nigeria’s 2019 budget.
Meanwhile, the chairman of Nigeria’s Revenue Mobilization, Allocation and Fiscal Commission (RMFC) recently announced plans for a committee to review the current sharing formula among the three tiers of government, considering the reality on the ground today and the national economic situation (READ MORE).
Also, the expected inauguration and portfolio allocation to cabinet members hold August 19 and 20, even as recent moves and initiatives by the Central Bank of Nigeria (CBN) to boost lending to the productive sector of the economy, thereby enhancing consumer protection in the financial market.
These are likely to trigger positive sentiment going into the future.

Movement Of NSEASI
At the end of last week’s trading, the composite All-Share index of the Nigerian Stock Exchange (NSE) recorded mixed performance, with the first trading session closing positive, despite the bearish sentiment. This was reversed on Tuesday with the index losing 0.51% on selloffs and the dwindling confidence, a situation that was sustained at midweek when the NSE benchmark index shed 0.42% as the selling pressure persisted. Thursday’s performance close marginally up at 0.05%, before nose-diving again on Friday, when the index fell by 0.43%, bringing the week’s total loss to 1.17%, compared to the previous week’s 1.03% decline.
The market gave way to selling pressure as highly capitalized stocks lost value, pushing the NSE year-to-date loss to 13.12%; just as market breadth stayed negative with decliners outnumbering advancers in the ratio of 43:12. In the midst of this, 16 stocks touched new 52-week lows. They are Zenith Bank, Guaranty Trust Bank, FBNH, UBA, Eterna, NB, Guinness Nigeria, Forte Oil, Law Union, United Capital, Livestock Feeds, UACN Property, Continental Reinsurance, Jaiz Bank and Dangote Sugar, while just two stocks- BOC Gases and Dangote Flour, made new year high. Dangote Flour’s rise was driven by the ongoing bid by Olam International for its entire five billion ordinary shares at a reviewed price of N120bn (READ MORE).
As usual, low and medium cap stocks topped the week’s advancers’ gainers’ table, while high cap and interim dividend stocks led the decliners on improved traded volume higher than the previous week transactions as low liquidity prevailed. The continued decline may not be unrelated to the fact already stated, in addition to the fact that investors may not be expecting anything significantly different from what has been seen so far from the Q2 score-cards.
The momentum behind the week’s performance was weak and flat as shown by Money Flow Index at 13.57 basis points, compared to 13.57bps in the previous week, indicating that funds left some stocks and the market, despite the indecision among many market players. Also, sentiments remained negative, with a sell position at 100% and ‘buy’ volume, 0% on a transaction volume index of 0.66.

NSEASI Weekly Time Frame
The negative outlook and trend seem to have worsened as many stocks touched their new 52-week low amidst portfolio reshuffling on the strength of the just concluded earnings power of the listed companies. Despite the cautious trading, the low prices of stocks present opportunity for discerning investors to take the stage by stage buying to position for the weeks ahead. However, the anticipated reversal will be a function of liquidity and economic policy direction.
The current NSEASI chart pattern remains mixed and somehow, despite the Bollinger band giving a signal as the index continues to trade on the lower band and below its 20-Day Moving Average, as Relative Strength Index reads ‘oversold’ at 28.59. But then, Money flow at 13.57 points remains weak.

Bearish Sectoral Indices
All sectoral performance indexes for the week were in red, except for the NSE Industrial goods that closed higher by 1.3%, while the NSE banking index led the decliners after losing 6.1%, followed by the NSE Insurance with 3.9% and next were NSE Oil/Gas and Consumer goods with 1.6% and 0.7% respectively.
Market activities for the period were mixed as volume traded was up by 42.11% at 1.08bn shares, from the previous week’s 759.27m units, while transaction value dropped by 14.46% to N12.07bn, from prior week’s position of N14.04%
CCNN and Dangote Flour were the best-performing stocks for the week, as they topped the advancers’ chart with 13.36% and 11.35% gains respectively to close at N14.0 and N20.60 per share on improved Q2 numbers and market forces. On the flip side, Continental Reinsurance and Law Union & Rock Insurance lost 19.19% and 17.02% respectively, closing at N1.39 and N0.39, on selloff and profit-taking.

Market Outlook
We expect the mixed performance to continue after the public holidays declared for Monday and Tuesday, even as the market remains dicey due to rising global geopolitical issues, local political risk, and weak economic fundamentals. Also, portfolio reshuffling and repositioning ahead of inflation data from the Nigeria Bureaus of Statistics (NBS), as discerning investors take advantage of low valuation to buy into interim dividend stocks and undervalued equities.
Investors may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as plans by the CBN to reduce banks’ participation in government securities is expected to boost private-sector lending to drive economic activities and investment.
Profit-taking may persist in highly capitalized stocks due to portfolio restructuring. Hence, overall market performance will expectedly remain mixed amidst positive sentiments and negative breadth.
Market players should maintain a cautious outlook due to low confidence, liquidity and the wait for major economic triggers. Hence, we advise investors to trade cautiously in the short-term, with their gaze fixed on blue-chip stocks that are selling more than 40% below their 52 weeks high. As we look out for a positive catalyst to drive market recovery.
That notwithstanding, we would not overlook the possibility of a bargain-hunting motive supporting positive performance, especially with many fundamentally sound stocks remaining underpriced. With the prices of major blue chips continuing to drop in recent weeks, we expect speculative trading to shape the market’s direction this week, despite the seeming negative outlook.


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/2019/08/zenith-gtb-nb-guinness-fo-hit-new-52-week-low-as-portfolio-reshuffling-continue/#more

NGSE Indicators Flounder Further, As Stocks Await Fiscal Stimulus For Rebound

Market Update for August 8
Stocks closed lower again at the end of Thursday’s trading on the Nigerian Stocks Exchange (NSE), despite the seeming marginal rebound that was driven by slight gains recorded by MTNN, CCNN, Dangote Sugar, AXA Mansard Insurance, Dangote Flour Mills and FCMB that saved the composite index from further decline.

The continued bearish-run was worsened as 14 market indices and 13 stocks made new 52-week lows, revealing the weak nation’s economic fundamentals, considering the influence of the oscillating crude oil price in the international market. Nigeria’s 2019 budget is already under threat with crude oil, the nation’s main revenue earner trading below $60, at a time of ballooning sovereign debt, while the trade dispute between the U.S and China, the world’s biggest economies continues to escalate. The situation is further worsened by the absence of a clear economic policy direction from a government that is seemingly in no hurry to constitute a cabinet, weeks after the Minister-designates were approved by the Senate, eight months into the fiscal year 2019.

Meanwhile, the near-absence of governance, even as the already existing policies continue to impact negatively on the economy, calling for an urgent review of some policies putting the economy in bad shape, as already indicated by the half-year corporate earnings and mixed macroeconomic indices that are now available to the investing public.
Thursday’s session was a very volatile and mixed as usual, as the NSE All-Share index opened slightly on the upside before slipping between then and early afternoon, touching intraday lows of 27,308.64 basis points from its high of 27,450.92bps. It, therefore, consolidated the downtrend before inching up, closing at 27,424.92bps on improved transaction volume.

Market technicals for the day were positive and mixed as traded volume, value and number of deals were higher than the previous day’s in the midst of negative breadth and high buying pressure revealed by Investdata’s Daily Sentiment Report, with ‘buy’ position at 82% and sell volume is 18% of total daily transaction volume index of 1.39
The momentum behind the day’s performance remained weak and flat as Money Flow Index read 21.69 points, slightly down from Wednesday’s 21.70bps, indicating that funds left some stocks despite the positive sentiment among high cap stocks.

Index and Market Cap
The benchmark index NSEASI at the close of trading gained a marginal 12.79bps to close at 27,424.92bps, after opening at 27,413.13bps, representing a 0.05% growth, just as market capitalization notched N6.23bn, closing at N13.36tr, from N13.36tr, which also represented 0.05% value gain.

Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the 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 during this post Q2 earnings reports portfolio reshuffling and repositioning ahead of fiscal and monetary policy catalysts.
The day’s upturn resulted from buying an interest in some stocks which slightly impacted the NSE’s Year-to-Date loss, reducing it to 12.72%, just as YTD market capitalization gain reduced to N1.23tr or 14.02% from the year’s opening level of N11.72tr.

Bearish Sector Indices
All sectoral performance indexes were red, except for the NSE Industrial that closed 0.34% up, while the banking index led the decliners’ after losing 2.89%, followed by Oil/Gas index with 0.67%, as just as Insurance and consumer goods followed, shedding 0.39% and 0.31%respectively.

Market breadth remained negative as decliners outweighed advancers in the ratio of 23:9; market activities were up with traded volume and value rising by 116.84% and 127.03% respectively to 279.63m shares worth N2.68bn, from the previous day’s 128.95m units valued at N1.81bn. The day’s volume was driven by trades in financial services and construction/estate stocks such as FBNH, Zenith Bank, Access Bank, GTBank and UACN Property.

AXA Mansard Insurance and Jaiz Bank were the best-performing stocks after gaining 9.09% and 5.26% respectively, closing at N1.80 and N0.40 per share, on the back of reactions to the insurance industry recapitalization and impressive earnings. On the flip side, Guinness and Africa Prudential lost 10% each to close at N41.40 and N3.42 on market forces and selloffs.

Market Outlook
We expect the mixed performance to continue as traders and investors analyze the earnings reports released and reshuffle their portfolios in expectation of interim dividend-paying earnings reports. Also, we see bargain hunters taking advantage of new year-low stocks, as economic indices seemingly look positive. Discerning investors should target value stocks considering the current low valuation to position for dividend income and capital gain, especially as the market’s Price to Earnings ratio is 5.45x, which is well below the 8.24x average of its peers and a five-year average of 9.56.x. This revealed value and high upside potentials for a rally. But wait to confirm reversal before jumping into a new position.

They may also take into consideration the expected economic reforms as the government is set to assign portfolio to the screened minsters, just as Central Bank of Nigeria (CBN) had earlier rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.

There is also the likely impact of portfolio repositioning for the last quarter of the year ahead of Q3 financials in the midst of analyzing Q2 numbers and unfolding political events.

https://investdata.com.ng/2019/08/ngse-indicators-flounder-further-as-stocks-await-fiscal-stimulus-for-rebound/#more

Investdata Daily Sentiment Report s of 16 August 2019

NSEASI buy 82% sell 18% volume index 1.24 MFI 13.50
Access buy 0% volume index 2.56 MFI 58.15
Afrprud buy 0% volume index 3.95 MFI 26.12
Chams buy � volume index 1.07 MFI 48.91
Dangflour buy 33% sell 67% MFI 36.72
Dangsugar buy � volume index 1.43 MFI 48.96
Fbnh buy 40% sell 60% volume index 2.87 MFI 23.34
Fcmb buy 77% sell 23% volume index 2.75 MFI 64.57
Fidelity buy 0% volume index 1.98 MFI 14.02
Fo buy � MFI 45.05
GT buy 0% volume index 1.45 MFI 11.57
Jaiz buy � volume index 1.01 MFI 29.98
Japaul buy 0% volume index 3.16 MFI 19.82
Lasaco buy � MFI 74.13
M&B buy 0% volume index 2.75 MFI 32.24
Nahco buy 0% MFI 27.52
Oando buy 0% MFI 52.18
Pz buy 0% volume index 1.18 MFI 47.12
Transcorp buy 45% sell 55% volume index 0.93 MFI 15.25
Uba buy 57% sell 43% MFI 36.16
Ucap buy 0% volume index 3.35 MFI 11.02
Wapco buy 0% MFI 55.12
Wapic buy 0% MFI 41.19
Zenith buy 0% volume index 1.37 MFI 11.77

https://investdataltd..com/2019/08/investdata-daily-sentiment-report-s-of.html

How to Invest Using Double Tops and Bottom

It Ambrose here,

This is a short video on the 3 index movement on how the market is responding. That is, what next will happen in the market.

Furthermore, I also mentioned the best and most important quarter of the year.

It is a must-watch for serious traders and investors.

https://www.youtube.com/watch?v=z0UdLZGnaL4

Dedicated to Your Financial Success
Ambrose Omordion

Investdata Daily Sentiment Report as of August 8, 2019

NSEASI buy 6% sell 94% MFI 13.98
Access buy 50% sell 50% MFI 67.54
Aiico buy � volume index 0.91 MFI 64.69
Chams buy 0% volume index 2.21 MFI 52.45
Dangcem buy 0% MFI 29.43
Dangflour buy � volume index 0.88 MFI 36.54
Eti buy 33% sell 67% MFI 6.36
Fbnh buy 0% volume index 1.66 MFI 26.65
Fcmb buy 25% sell 75% volume index 2.81 MFI 58.64
Fidelity buy 0% volume index 1.30 MFI 15.87
Fmn buy � MFI 42.62
GT buy 50% sell 50% MFI 12.15
Jaiz buy 0% volume index 2.12 MFI 32.00
Japaul buy 0% volume index 0.77 MFI 24.60
Lasaco buy � volume index 0.73 MFI 79.76
Mben buy 0% MFI 87.30
Oando buy 0% MFI 56.55
Transcorp buy � volume index 1.39 MFI 25.25
Uba buy � MFI 33.40
Ubn buy � MFI 21.71
Ucap buy � MFI 17.46
Wapco buy � MFI 54.77
Wapic buy � MFI 39.55
Wema buy 0% MFI 43.64
Zenith buy 20% sell 80% MFI 13.38

https://investdataltd..com/2019/08/investdata-daily-sentiment-report-as-of_46.html

MTN Group Raises $140m Divestment Plan, Reports 240m Subscriber Base At Half-year

Africa’s largest mobile network by subscribers, South Africa’s MTN Group Limited, on Thursday reported a 9.3% fall in earnings, even as it announced $140.24m (2.1bn rand) revenue from asset sales in the first half of this year as part of a divestment plan in a bid to simplify its portfolio.

A report by Reuters said that MTN is in the middle of reviewing its presence in some markets alongside investments in e-commerce platforms as part of a plan to streamline the company into a focused operator in high-growth markets in the Middle East and Africa.
In March, it announced a 15bn rand divestment programme over the next three years that will also reduce risk and improve returns.
In the first half to June it sold its shareholder loan in ATC Ghana to American Tower Corporation for 900m rand, besides selling its interests in investment fund Amadeus and its associated holding in Travelstart for 1.2bn rand, Reuters reported MTN Group as saying in a statement.
“So we’re well on track for our 15bn rand (target) over three years,” Group Chief Executive Rob Shuter told reporters in a post-earnings conference call.

According to the interim financials for the half-year ended June 30, 2019, the group’s South African business is under pressure due to new sector regulations and the weak economy; following which EBITDA margin fell by 1.9% points in the past year to 33.3%, owing to the lower out-of-bundle tariffs and the onboarding of Cell C as a roaming customer.
Highlights of the half-year result showed a 7.7m rise in subscriber base to 240m across its 21 operational countries, from the level at the end of December 2018; a 9.7% growth in service revenue; while EBITDA margin improved to 35.2%. The group is offering 195 cents per share for the period, up by 11.4%.

The group said the financial information was “prepared excluding the impact of hyperinflation and the goodwill and asset impairments, tower profits, the Nigerian regulatory fine (consisting of the re-measurement impact when the settlement was entered into and the finance costs recognized as a result of the unwind of the initial discounting of the liability), gain on dilution of Jumia, impairment of investment in MEIH, gain on Travelstart and impact of IFRS 16 (‘the pro forma adjustments’) and constitutes pro forma financial information to the extent that it is not extracted from the segment disclosure included in the reviewed condensed consolidated interim financial statements for the six months ended 30 June 2019.”

The group’s service revenue increased by 9.7% in constant currency terms, led by growth of 12.2% by MTN Nigeria; 18.7% by MTN Ghana; and 3.3% by MTN South Africa. MTN South Africa’s performance was impacted “by changes to out-of-bundle (OOB) tariffs and a reassessment of revenue recognition criteria and adjustments required due to delayed payments under the network roaming agreement with Cell C.”
On its ongoing tax dispute between Nigeria’s Federal Government and MTN Nigeria which continues on October 29, 2019, the group said it remains resolute that it “has not committed any offense and will continue to defend this position.”

https://investdata.com.ng/2019/08/mtn-group-raises-140m-divestment-plan-reports-240m-subscriber-base-at-half-year/#more

NGSE Indexes Make New 3-year Low, Break Minor, Major Support levels

Market Update for August 7
Trading on the Nigerian Stock Exchange (NSE) at midweek maintained the now usual volatile and negative trend with the market lacking the needed stimulus to trigger positive reactions to the prevailing low valuations, notwithstanding the generally weak and disappointing Q2 earnings. Investors have so far priced these emergent numbers into stock valuation, making them look good relatively, considering their low prices.

The bearish sentiments which could end today, tomorrow or maybe in a month’s time has kept traders cautious, with prevailing indecision among investors that continues to reflect on the dwindling volume, value, and the number of trades on daily basis.
This increasing nervousness and volatility in the stock market have forced investors to seek alternative investments outlets for adequate returns with funds flows in search of a better window for profit and safety of capital, no matter how little such returns maybe, considering the yield, interest and inflation rates. For now, fixed income instruments and market are the close alternatives for investors, as they await a rebound in the equity segment of the market, especially now that FMDQ has become a full-fledged securities exchange (READ MORE).

Meanwhile, the composite NSE All-Share Index started the day’s trading on a gap down in the morning, extending the bearish sentiments that lasted all day, despite the seeming fluctuation during the afternoon session, after the index touched intraday low of 27.404.26bps from high of 27,534.56 basis points. It thereafter retraced up slightly, but still finished the day lower at 27,412.13bps on low traded volume, as key performance indices made new three-year low, breaking minor and major support levels.

Market technicals on Wednesday were negative as traded volume, value and number of deals dropped lower than previous day’s in the midst of negative breadth and high selling pressure as revealed by Investdata’s Daily Sentiment Report, with ‘sell’ position at 94% and buy volume is 6% of total daily transaction volume index of 0.64
The impetus behind the day’s performance remained weak, despite crawling up, as Money Flow Index read 21.70 points, higher than previous day’s 21.31bps, indicating that funds entered few stocks despite the high sell pressure among the blue-chip stocks.

Index and Market Cap
At the end of midweek’s trading, the NSEASI shed 115.27bps, closing at 27,413.13bps, after opening at 27,527.40bps, representing a 0.42% decline, just as market capitalization lost N56.17bn to close at N13.36tr, from N13.41tr, which also represented 0.42% value loss.
Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the 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 during this post Q2 earnings reports portfolio reshuffling and repositioning ahead of fiscal and monetary policy catalysts.

Wednesday’s downturn resulted from selloffs in stocks like Dangote Cement, Zenith Bank, FBN Holdings, UBN, Flour Mills, Wema Bank, Japaul Oil, as well as May & Baker. This impacted negatively on the NSE’s Year-to-Date loss, increasing it to 12.78%, just as YTD market capitalization gain reduced to N1.23tr or 14.02% from the year’s opening level of N11.72tr.

Bearish Sector Indices
All sectoral performance indexes were largely bearish, except for the NSE Oil/Gas that closed marginally up by 0.19%, while the Insurance index led the decliners’ after shedding 1.92%, followed by Industrial goods index with 0.79%, as just like banking and consumer goods, were next, losing 0.44% and 0.04%respectively.

Market breadth was negative as decliners outweighed advancers in the ratio of 17:11; market activities were down in traded volume and value by 24.46% and 47.72% respectively to 128.95m shares worth N1.81bn, as against the previous 170.72m units valued at N2.26bn. Volume for the day was driven by trades in financial services and conglomerates stocks such as FBNH, Transcorp, FCMB, Access Bank and Zenith Bank.
AIICO Insurance and Conoil were the best-performing stocks that topped the advancers chart after gaining 9.38% and 6.38% respectively, closing at N0.70 and N17.65per share, on impressive Q2 numbers and N2.00 dividend payout (READ MORE). On the flip side, Redstar Express and Continental Reinsurance lost 9.85% and 9.68% respectively to close at N4.76 and N1.40 on market forces and selloffs.

Market Outlook
We expect the mixed performance to continue as traders and investors analyse the earnings reports released and reshuffle their portfolios in expectation of interim dividend-paying earnings reports. Also, we see bargain hunters taking advantage of new year-low stocks, as economic indices seemingly look positive. Discerning investors should target value stocks considering the current low valuation to position for dividend income and capital gain, especially as the market’s Price to Earnings ratio is 6.12x, which is well below the 9.85x average of its peers and a five-year average of 11.x. This revealed value and high upside potentials for a rally. But wait to confirm reversal before jumping into a new position.

They may also take into consideration the expected economic reforms as the government is set to assign portfolio to the screened minsters, just as Central Bank of Nigeria (CBN) had earlier rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.

There is also the likely impact of portfolio repositioning for the last quarter of the year ahead of Q3 financials in the midst of analyzing Q2 numbers and unfolding political events.

https://investdata.com.ng/2019/08/ngse-indexes-make-new-3-year-low-break-minor-major-support-levels/#more

Market Reviews for the Week August 02, 2019

Hello Investors and Traders,

Ambrose Here Again,

A lot happened in the market last week especially the earning period was at its peak. 83 companies have released their result and frankly, they were below expectations and weak. What really happened? Watch the video to find out.

Furthermore, I also went ahead to share 5 factors you need to consider before investing in any company in this period.

As you know the government plays a major role in any economy, I also share the impact of how the appointment of ministers will have a positive impact on the market and so much more.

Need further clarification?
Call NOW 08028164085, 08032055467

https://www.youtube.com/watch?v=_8srgUXtiOc

Dedicated to your Financial Success
Ambrose Omordio

Investdata Daily Sentiment Report as of August 7, 2019

NSEASI sell 97%, buy 3% MFI 21.31
Access buy 20%,sell 80% MFI 72.64
Ccnn buy � volume index 0.63 MFI 60.13
Dangcem sell � volume index 1.16 MFI 38.28
Dangsugar buy0% volume index 1.16 MFI 28.38
Eterna buy 0% volume index 0.88 MFI 0.00
Fbnh buy 25% sell 75% MFI 47.93
Fcmb buy � volume index 0.73 MFI 82.33
Fidelity buy 0% MFI 27=37
Fmn buy 0%sell 0% MFI 64.91
Fo buy 100% volume index 0.82 MFI 22.81
GT buy 50% sell 50% MFI 17.51
Jaiz buy0% volume index 0.76 MFI 40.75
UBA buy 33% sell 67% MFI 48.39
Sterling buy � MFI 92.90
Transcorp buy 33% sell 67% MFI 30.16
Uacn buy 0% sell 0% volume index 0.70 MFI 22.65
ETI buy 59% sell 41% MFI 1.75
Wema buy 0% volume index 1.11 MFI 47.26
Ucap buy � MFI 34.68
Wapco buy 100% volume index 0.12 MFI 74.07
Wapic buy 67% sell 33% MFI 68.57
Zenith buy 33% sell67% MFI 24.50

https://investdataltd..com/2019/08/july-month-of-low-liquidity-negative.html

Oil/Gas Sector Still Enjoys Highest Concentration Of Bank Loans, NDIC


Not too long after accounting for the bulk of the loans that dragged many Nigerian banks into troubled waters, along with the capital market and government, new data by the Nigeria Deposit Insurance Corporation (NDIC) says the nation’s oil and gas sector enjoyed the highest credit concentration in 2018.

According to the NDIC’s audited report for the period, the banks were exposed to oil and gas companies to the tune of N4.66tr, representing 30.46% of the banking industry’s total credits of N15.29tr as at December 31, 2018.
It was followed afar off by the Manufacturing Sector with ₦2.25tr or 14.71%; government borrowings summed up to ₦1.34tr or 8.78% of the total credits; while General Commerce accounted for ₦1.14tr or 7.44%. Finance and Insurance, as well as General sectors, received 6.49% and 6% of total credit, respectively.

On the financial conditions of the nation’s 26 deposit money banks in the period under review, the corporation explained that based on Capital Adequacy, Asset Quality, Management, Earnings, Liquidity and Sensitivity to market risk, “the overall condition of DMBs in the year 2018 was relatively stable and sound in 2018.”
It also noted the improvement in “average capital adequacy ratio from 10.23% in 2017 to 15.26%, liquidity ratio of 51.87% as against 45.56% recorded in 2017, an improvement in NPLs ratio from 14.84% in 2017 to 11.70% as well as improvement in earnings and profitability.”

https://investdata.com.ng/2019/08/oil-gas-sector-still-enjoys-highest-concentration-of-bank-loans-ndic/

Olam Revises Bid Price For Dangote Flour Down To N119.86bn

The board of Dangote Flour Mills Plc, on Monday, announced receipt of a downward review of the final consideration by Olam International Limited and its subsidiary, Crown Flour Mills Limited for its entire five billion issued shares from the N130bn by 7.69% made in April, to N120bn.

This translates to an offer of N24 per share, an amount which will represent “the enterprise value on a debt-free, cash-free basis, payable in cash at the closing of the proposed transaction,” compared to the previous N26 each.
Already, Olam holds 5,113,229 ordinary shares of DFM, which makes it a minority shareholder, now plans to acquire all of what is left of the five billion total shares in issue at a new total cost of N119.877bn or 92.3% of the earlier N129.867bn (READ MORE).
As noted in the earlier consideration, the total offer will be adjusted for net working capital and net debt as at March 31, 2109, or any other later date that may be agreed by the boards of Olam and Dangote Flour Mills; and will exclude shares of DFM already held by Olam through Crown Flour.

These will be considered in arriving at a final price payable to the other shareholders of DFM, according to a statement by Aisha Ladi Isa (Mrs.), company secretary of DFM.
The other shareholders of DFM will be paid the final consideration in accordance with the terms of the scheme document, which will be considered and approved by shareholders at the court-ordered meeting to be convened for the purpose.

https://investdata.com.ng/2019/08/olam-revises-bid-price-for-dangote-flour-down-to-n119-86bn/#more

Trend, Or Reverse: Investors Determine Market Direction, As All Eyes On Cabinet List

Market Update for the week ended August 2 and Outlook for August

At the end of Friday’s trading, the composite All-Share index of the Nigerian Stock Exchange (NSE) closed lower, extending the five consecutive weeks of free falls in the equity prices of many medium and high cap stocks hit new their 52-week lows in the midst of weak and mixed earnings performance of listed companies. This, expectedly, weighed in on investor sentiments.
Notwithstanding the negative trend, Investdata believes that the market is near to its moment of truth of whether the trend will reverse or the downtrend continues.

Already, the just concluded earnings season has revealed the true earnings power and direction of listed companies, even as the global monetary policy stance is looking down with a rate cut likely to impact many markets and economies, especially the emerging and frontier markets. Expectedly, the rate of capital outflows will slow down as the 10-year U.S Treasury yield hit its new four-year lows, coupled with oil price relatively stable above $60 that had supported Nigeria’s external reserves and the foreign exchange market.

This is just as investors await the allotment of portfolios to the cabinet ministers who were last week cleared by the Senate to jumpstart governance and implementation of the 2019 budget. The off-take of the Federal Executive Council will equally complement the various initiatives of the monetary authorities, which seeks to enhance lending to stimulate the productive sectors of the economy, as well as consumption thereby indicating a clear direction in no distance time.
The mixed global economy outlook as a result of the trade dispute between the U.S and China, multiple global trade, technology transfer, and geopolitical tension has forced monetary authorities of the Peoples Bank of China, the European Central Bank, the Bank of England, and other major central banks across the world to keep interest rates at historic lows since the commencement of the trade spat in 2018. We believe, therefore, that CBN’s Monetary Policy Committee may consider a further rate cut in its next meeting slated for September.

Movement Of NSEASI
Meanwhile, trading opened for the week on a positive note with the NSEASI gaining 0.11% at the end of Monday’s session amid price appreciation in medium and high cap stocks. This momentum was reversed on Tuesday and Wednesday when the benchmark index shed 0.46% and 0.37% respectively under heavy sell pressure. The trend was halted on Thursday with the market notching 0.11%, before sliding on Friday with 0.43% as selloffs resumed among highly capitalized stocks, among others, bringing the week’s cumulative loss to 1.03%, compared to the previous week’s flat position.

With the official close of the earnings season in the month of July, over 80 companies have presented their quarterly scorecards, most of which came mixed.
Nonetheless, there were some companies that presented outstanding score-cards. So far, they are Wema Bank, Unity Bank, Jaiz Bank, FCMB, Caverton, Cement Company of Northern Nigeria (CCNN), Lasaco, AIICO, Forte Oil, Northern Nigerian Flour Mills, Cadbury, as well as C& I Leasing. Investors and traders are waiting to see whether the interim dividend-paying companies, which are being expected anytime soon, will release earnings reports different from the part.
Also, at the end of last week, the prices of UACN Property, Nigerian Breweries, Transcorp, International Brewery, Dangote Sugar, NASCON Allied, Total Nigeria, Eterna, Ucap, Ecobank Transnational Incorporated and University Press, made new 52-week lows, while BOC Gases, on the other hand, touched a new year-high.

Despite, the negative market sentiment that was propelled by the mixed performances of many of the major bellwether’s half-year earnings result, we expect short-term speculative trading to shape the direction of market performance. The market breadth was positive with advancers outnumbering decliners in the ratio of 32:27, to continue its five-week down market.
Market activities for the week were mixed, with volume traded down by 28.97% to 759.23m shares, from the previous 1.07bn units, while value grew by 23.27% to N14.04bn from the previous week’s N11.3bn.

The best-performing stocks for the week Unity Bank and C &I Leasing, which topped the advancers’ chart with 27.59% and 21.10% gains respectively to close at N0.74 and N6.05 per share on positive Q2 earnings and market reactions. On the flip side, Eterna and Nigerian Breweries lost 19.40% and 16.67% respectively, closing at N2.70 and N50, on selloff and unimpressive earnings.

Where To Invest On NGSE, Outlook For August and September
The reversal of inflation rate month-on-month and the seemingly positive economic data may support the market, going forward, depending on government policy and faithful implementation of the 2019 budget. This is especially true of the improvement in Purchasing Managers Index (PMI) for the first month in Q3, which should also give insight as to where the economy is heading, if the economic managers do the needful to sustain this tempo.

With the Q2 earnings season officially ended, the half-year company scorecards will help investors ascertain the health and wellbeing of listed companies as they make investment decisions on which to hold or sell. This is especially true as equity prices remain low.
Traders and investors who understand the operations of the stock market should take this opportunity to position in some sectors for medium to long-term gains, especially in the services, industrial goods, banking, insurance and consumer goods which signals recovery move.

The actual Q2 numbers of these companies will help to project whether they are likely to post better Q3 earnings or not, which is the most important quarterly earnings since it foreshadows how the full year could pan out. At the same time, it pictures economic activities as measured by the GDP.

August As Unpredictable month
Although the market is currently at a crossroad of reversal or continued downtrend, the performance of the market in the month of August over the last five years has been negative on the NSE, according to INVESTDATA research. There may be pockets of oscillation going into the month; investors must keep their gaze on market trend and happenings for quick action. This notwithstanding, however, portfolio reshuffling is underway since more than 70% of listed companies have released their numbers.

What to expect in August and September
• Implementation of new CBN initiatives to stimulate productivity and consumption.
• Few quarterly and full-year earnings would be released during the period, which may not make much impact on market fundamentals, whether they are good or bad numbers.
• Few Interim dividend expectations, especially from stocks of in financial services sector.
• There will be high market volatility as a result of portfolio rebalancing after digesting the numbers released so far. Also, the source of funds flowing into the market may cause fluctuations, giving that both local and foreign institutional investors trade thereon. There is the factor of the Federal Government crowding the private sector out of the financial market, with their offer of high and mouth-watering rates as they borrow to fund the budget.
• Investors are expected to reshuffle their portfolios and invest in equities with strong fundamentals and prospects of growing their earnings, going forward.
• A more vibrant market as a result of players positioning for Q3 and Q4 reports, even as we expect liquidity to improve more.
• Market outlook for these months are dicey but invest wisely, using fundamental and technical tools like bids, offers, and volume, when making decisions.
• Managing risk and protecting capital at this point is very important, so you can determine when to buy or sell, by watching the stocks and the market, using technical analysis tools.

Take Action
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the just concluded and life-transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT, CHART SUMMIT, and POST ELECTION BULLS & BEARS Home study pack (USB) that you can play on your phone, Laptop and Television set.

The events were a successful, insightful and educative outing that not only offered direction as to where investors should look for profitable trade in 2019 and beyond, insight into industries, sectors, and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with the possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment.

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/2019/08/trend-or-reverse-investors-determine-market-direction-as-all-eyes-on-cabinet-list/

Trend, Or Reverse: Investors Determine Market Direction, As All Eyes On Cabinet List

Market Update for the week ended August 2 and Outlook for August
At the end of Friday’s trading, the composite All-Share index of the Nigerian Stock Exchange (NSE) closed lower, extending the five consecutive weeks of free falls in the equity prices of many medium and high cap stocks hit new their 52-week lows in the midst of weak and mixed earnings performance of listed companies. This, expectedly, weighed in on investor sentiments.
Notwithstanding the negative trend, Investdata believes that the market is near to its moment of truth of whether the trend will reverse or the downtrend continues.

Already, the just concluded earnings season has revealed the true earnings power and direction of listed companies, even as the global monetary policy stance is looking down with a rate cut likely to impact many markets and economies, especially the emerging and frontier markets. Expectedly, the rate of capital outflows will slow down as the 10-year U.S Treasury yield hit its new four-year lows, coupled with oil price relatively stable above $60 that had supported Nigeria’s external reserves and the foreign exchange market.
This is just as investors await the allotment of portfolios to the cabinet ministers who were last week cleared by the Senate to jumpstart governance and implementation of the 2019 budget. The off-take of the Federal Executive Council will equally complement the various initiatives of the monetary authorities, which seeks to enhance lending to stimulate the productive sectors of the economy, as well as consumption thereby indicating a clear direction in no distance time.

The mixed global economy outlook as a result of the trade dispute between the U.S and China, multiple global trade, technology transfer, and geopolitical tension has forced monetary authorities of the Peoples Bank of China, the European Central Bank, the Bank of England, and other major central banks across the world to keep interest rates at historic lows since the commencement of the trade spat in 2018. We believe, therefore, that CBN’s Monetary Policy Committee may consider a further rate cut in its next meeting slated for September.

Movement Of NSEASI
Meanwhile, trading opened for the week on a positive note with the NSEASI gaining 0.11% at the end of Monday’s session amid price appreciation in medium and high cap stocks. This momentum was reversed on Tuesday and Wednesday when the benchmark index shed 0.46% and 0.37% respectively under heavy sell pressure. The trend was halted on Thursday with the market notching 0.11%, before sliding on Friday with 0.43% as selloffs resumed among highly capitalized stocks, among others, bringing the week’s cumulative loss to 1.03%, compared to the previous week’s flat position.

With the official close of the earnings season in the month of July, over 80 companies have presented their quarterly scorecards, most of which came mixed.
Nonetheless, there were some companies that presented outstanding score-cards. So far, they are Wema Bank, Unity Bank, Jaiz Bank, FCMB, Caverton, Cement Company of Northern Nigeria (CCNN), Lasaco, AIICO, Forte Oil, Northern Nigerian Flour Mills, Cadbury, as well as C& I Leasing. Investors and traders are waiting to see whether the interim dividend-paying companies, which are being expected anytime soon, will release earnings reports different from the part.
Also, at the end of last week, the prices of UACN Property, Nigerian Breweries, Transcorp, International Brewery, Dangote Sugar, NASCON Allied, Total Nigeria, Eterna, Ucap, Ecobank Transnational Incorporated and University Press, made new 52-week lows, while BOC Gases, on the other hand, touched a new year-high.

Despite, the negative market sentiment that was propelled by the mixed performances of many of the major bellwether’s half-year earnings result, we expect short-term speculative trading to shape the direction of market performance. The market breadth was positive with advancers outnumbering decliners in the ratio of 32:27, to continue its five-week down market.
Market activities for the week were mixed, with volume traded down by 28.97% to 759.23m shares, from the previous 1.07bn units, while value grew by 23.27% to N14.04bn from the previous week’s N11.3bn.
The best-performing stocks for the week Unity Bank and C &I Leasing, which topped the advancers’ chart with 27.59% and 21.10% gains respectively to close at N0.74 and N6.05 per share on positive Q2 earnings and market reactions. On the flip side, Eterna and Nigerian Breweries lost 19.40% and 16.67% respectively, closing at N2.70 and N50, on selloff and unimpressive earnings.

Where To Invest On NGSE, Outlook For August and September
The reversal of inflation rate month-on-month and the seemingly positive economic data may support the market, going forward, depending on government policy and faithful implementation of the 2019 budget. This is especially true of the improvement in Purchasing Managers Index (PMI) for the first month in Q3, which should also give insight as to where the economy is heading, if the economic managers do the needful to sustain this tempo.

With the Q2 earnings season officially ended, the half-year company scorecards will help investors ascertain the health and wellbeing of listed companies as they make investment decisions on which to hold or sell. This is especially true as equity prices remain low.
Traders and investors who understand the operations of the stock market should take this opportunity to position in some sectors for medium to long-term gains, especially in the services, industrial goods, banking, insurance and consumer goods which signals recovery move.
The actual Q2 numbers of these companies will help to project whether they are likely to post better Q3 earnings or not, which is the most important quarterly earnings since it foreshadows how the full year could pan out. At the same time, it pictures economic activities as measured by the GDP.

August As Unpredictable month
Although the market is currently at a crossroad of reversal or continued downtrend, the performance of the market in the month of August over the last five years has been negative on the NSE, according to INVESTDATA research. There may be pockets of oscillation going into the month; investors must keep their gaze on market trend and happenings for quick action. This notwithstanding, however, portfolio reshuffling is underway since more than 70% of listed companies have released their numbers.

What to expect in August and September
• Implementation of new CBN initiatives to stimulate productivity and consumption.
• Few quarterly and full-year earnings would be released during the period, which may not make much impact on market fundamentals, whether they are good or bad numbers.
• Few Interim dividend expectations, especially from stocks of in financial services sector.
• There will be high market volatility as a result of portfolio rebalancing after digesting the numbers released so far. Also, the source of funds flowing into the market may cause fluctuations, giving that both local and foreign institutional investors trade thereon. There is the factor of the Federal Government crowding the private sector out of the financial market, with their offer of high and mouth-watering rates as they borrow to fund the budget.
• Investors are expected to reshuffle their portfolios and invest in equities with strong fundamentals and prospects of growing their earnings, going forward.
• A more vibrant market as a result of players positioning for Q3 and Q4 reports, even as we expect liquidity to improve more.
• Market outlook for these months are dicey but invest wisely, using fundamental and technical tools like bids, offers, and volume, when making decisions.
• Managing risk and protecting capital at this point is very important, so you can determine when to buy or sell, by watching the stocks and the market, using technical analysis tools.

Take Action
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the just concluded and life-transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT, CHART SUMMIT, and POST ELECTION BULLS & BEARS Home study pack (USB) that you can play on your phone, Laptop and Television set. The events were a successful, insightful and educative outing that not only offered direction as to where investors should look for profitable trade in 2019 and beyond, insight into industries, sectors, and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with the possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment.
Don’t sit on the Fence call or text 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/2019/08/trend-or-reverse-investors-determine-market-direction-as-all-eyes-on-cabinet-list/

Investdata Weekly Sentiment Report as of 5 August 2019

NSEASI buy 4% sell 96% MFI 13.29
Access buy 8% sell 92% MFI 61.22
Afrprud buy � MFI 41.09
Aiico buy 33% sell 67% volume index 0.96 MFI 50.39
Berger buy � volume index 2.71 MFI 39.28
Caverton buy 50% sell 50% volume index 0.77 MFI 82.73
Ccnn buy � volume index 0.78 MFI 7.66
Chams buy � MFI 44.51
Cileasing buy � MFI 2.14
Conoil buy 18% sell 82% volume index 2.98 MFI 33.13
Custodian buy 37% sell 63% MFI 28.10
Dangcem buy � volume index 1.88 MFI 39.20
Dangflour buy 48% sell 52% volume index 1.25 MFI 66.65
Dangsugar buy 16% sell 84% MFI 10.22
Eterna buy 0% volume index 1.04 MFI 18.83
Eti buy 0% MFI 16.52
Fbnh buy 57% sell 43% volume index 0.73 MFI 17.35
Fcmb buy 56% sell 44% MFI 66.91
Fidelity buy 0% MFI 36.26
Fidson buy � volume index 0.94 MFI 85.74
Fmn buy 89% sell 11% volume index 0.76 MFI 46.22
Fo buy 81% sell 19% volume index 1.29 MFI 53.23
Glaxo buy � MFI 50.81
GT buy 27% sell 73% MFI 55.65
Honyflour buy � MFI 29.24
Jaiz buy 20% sell 80% MFI 30.70
Japaul buy 67% sell 33% MFI 42.79
JBerger buy � MFI 44.46
Lasaco buy 25% sell 75% volume index 0.89 MFI 85.40
Learn buy � volume index 1.62 MFI 78.13
Mben buy 50% sell 50% volume index 1.67 MFI 42.50
Nahco buy � volume index 0.92 MFI 60.71
Nascon buy � MFI 9.05
Nestle buy 0% volume index 0.79 MFI 39.94
Oando buy � MFI 28.21
Prestige buy � MFI 97.51
Stanbic buy 0% MFI 13.12
Sterling buy 67% sell 33% MFI 60.98
Total buy 0% volume index 1.61 MFI 0.00
Transcorp buy 27% sell 73% MFI 43.86
Uacn buy 73% sell 27% volume index 0.97 MFI 56.81
Uba buy 50% sell 50% MFI 35.16
Ubn buy � MFI 41.57
Ucap buy 17% sell 83% MFI 23.91
Uniondac buy � MFI 15.98
Unity buy � volume index 1.40 MFI 35.90
Vitafoam buy 98% sell 2% volume index 1.25 MFI 57.67
Wapco buy 67% sell 33% volume index 2.29 MFI 91.73
Wapic buy 0% MFI 30.08
Wema buy 0% MFI 98.80
Zenith buy 29% sell 71% MFI 9.11

https://investdataltd..com/2019/08/investdata-weekly-sentiment-report-as.html

NGSE Index Rebounds After Touching 3-year Intra-day Low, On Weak Market Breadth

Market Update for August 1
Thursday’s trading on the Nigerian Stock Exchange (NSE) was a continuation of its mixed performance so far, even though on a slower momentum as the composite NSE All-Share index closed marginally up to reverse the previous session’s negative outing on a very low traded volume and negative market breadth.
So far, the half-year earnings released have been weak, with most of them missing expectations and forecasts prompting negative price reactions in the midst of the prevailing low liquidity and even confidence crisis.

These are certainly major factors that have prolonged the negative market sentiments, in addition to the weak productivity and consumptions as earnings reporting season officially closed with the month of July on Wednesday. This is however except for interim dividend-paying companies, mostly banks that have to audit their accounts and await regulatory approval from the Central Bank of Nigeria (CBN).
The seeming improvement in the July Purchasing Manager Index, according to the CBN report, stood at 57.6 points as against the 57.4 points of June, showing that 11 businesses out of 14 covered recorded growth for the period under consideration.

The FBNQuest report on the manufacturing PMI for the same of July was below 50 points and reading 49.5 points lower than 49.9 points recorded in June. The slower contraction as revealed by this report shows that all is not well with Nigeria’s real sector which reflected in the Q2 corporate earnings from the manufacturing sector, because nothing has changed in the economy. Let us hope that the positive report from the CBN is sustained, with all the new initiative to make funds available for the private sector, so as to stimulate the nation’s production and consumption levels to oil the macro wheel of the economy at large.

Meanwhile, the NSEASI opened for the day’s trading on the downside as the negative sentiment arising from the numbers released so far dampened demand for stocks until midday and early afternoon. It then retraced up in the last minutes to close the session positively at 27,748.46 basis points, after touching a three-year intraday low of 27,615.46bps from high of 27,748.46bps
Market technicals for the day were positive but mixed, with volume traded lower than the previous day’s, as breadth favoured the bears, with high buying pressure as revealed by Investdata’s Daily Sentiment Report of ‘buy’ volume at 100% and sell position of 0% total daily transaction volume index of 0.43.

The energy behind the day’s performance remained weak, despite inching up, as Money Flow Index read 21.03 points, higher than previous day’s 20.98bps, indicating that funds entered some stocks as selloff slowdown among the high cap stocks.

Index and Market Cap
The benchmark NSEASI closed Thursday’s trading slightly up by 30.20bps at 27,748.46bps after opening at 27,718.26bps, representing 0.11% growth, just as market capitalization rose N14.73bn up to close at N13.52tr, from N13.51tr, which also represented 0.11% value gain.
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The day’s upturn was helped by position taking in stocks like MTN Nigeria, Flour Mills, CCNN, Dangote Sugar, NASCON Allied, Berger Paints and Fidson Healthcare, which reduced the NSE’s Year-to-Date loss to 11.71%, just as YTD market capitalization gain inched to N1.38tr or 14.34% from the year’s opening level of N11.72tr.

Bearish Sector Indices
The sectoral performance indexes were largely in the red, except for the NSE Consumer goods that closed 0.08%, while the Banking index led the decliners’ after shedding 0.96%, followed by Insurance index with 0.62% and followed by Oil/Gas and Industrial Goods after dropping by 0.54% and 0.08%respectively.
Market breadth turned negative as decliners outnumbered advancers in the ratio of 16:12; market activities were down in traded volume and value by 61.36% and 57.16% respectively to 97.36m shares worth N1.79bn, from the previous 251.93m units valued at N4.13bn. The day’s volume was driven by financial services, industrial goods and conglomerates stocks such as Zenith Bank, UBA, Lafarge Africa, Guaranty Trust Bank, and Transcorp.

Fidson Healthcare and Berger Paints were the best-performing stocks, gaining 9.76% and 9.65% respectively, closing at N4.50 and N6.25 per share, on market forces. On the flip side, Eterna and NCR lost 10% and 8.62% respectively to close at N2.70 and N5.20 on mixed earnings and market forces.

Market Outlook
Being the last trading session of the week, we expect the mixed performance to continue as investors continue to digest the earnings reports released so far, in expectation of earnings reports from interim dividend-paying stocks, as bargain hunters take advantage of new 52-week low prices. Discerning investors should target value stocks considering the current low valuation to position for dividend income and capital gain, especially as the market’s Price to Earnings ratio is 6.21x, which is well below the 11x average of its peers and a five-year average of 13.x. This revealed value and high upside potentials for a rally.

They may also take into consideration the expected economic reforms as the government is set to assign portfolio to the screened minsters, just as Central Bank of Nigeria (CBN) had earlier rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.
There is also the likely impact of portfolio repositioning for the second half of the year in the midst of expected Q2 numbers, especially banking stocks.

Take Action
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the just concluded and life-transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT, CHART SUMMIT, and POST ELECTION BULLS & BEARS Home study pack (USB) that you can play on your phone, Laptop and Television set.
The events were a successful, insightful and educative outing that not only offered direction as to where investors should look for profitable trade in 2019 and beyond, insight into industries, sectors, and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with the possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment.
Don’t sit on the Fence call or text 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/2019/08/ngse-index-rebounds-after-touching-3-year-intra-day-low-on-weak-market-breadth/#more

Happy New Month of August. How are your Investment Goals?Happy New Month of August. How are your Investment Goals?

It's Ambrose Here,

"You have greatness in you, insure it"

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

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

By implications, you must force yourself to learn something new in your field even when you don't feel like. After all, slow and steady wins the race.

So, never give up and be optimistic about getting a positive result.

Remember the 2nd quarter of the year is gone and maybe you are yet to achieve some of the goals you set for yourself this year. Hence, focus on adding more value to yourself so that you can avoid making the same mistake you made last year.


Happy New Month !!!
Ambrose Omordion

P.S. Time is the greatest resources on earth and time is the material from which everything in life is made. Therefore, time equals life. Hence, time wasters are life wasters because every success achieve in life is as a product of time. So, you can grow your finance to any length depending on how you convert your time. The choice is yours!!!

July: Month Of Low Liquidity, Negative Breadth, New Lows, As NGSE Suffers Deepest Cut


Market Roundup for July 2019
The month of July ended lower on the Nigerian Stock Exchange (NSE), extending its 18-month of decline as the benchmark All-Share index kicked started the second half of the year on a strong negative note as selling pressure heightened on weak market and economic fundamentals.

Add this to the heightening insecurity situation in the country and weak earnings reports from quoted companies that have revealed the weak fundamentals of the economy which have fueled the negative sentiments and outing in the period under review when many stocks suffered huge losses, as many hit new 52-week lows. The market, therefore, recorded what has become its worst monthly performance year-to-date and over even in many years, with the NSEASI shedding all of 7.5%%, more than double the 3.55% it lost in the month of June on the back of the decreasing transaction volume.
This is a reflection of low confidence and liquidity in the market and the economy at large, as consumer confidence and stock prices continue to look downward.

This continued rapid fall in stock prices since the inauguration of President Muhammadu Buhari for a second and final four-year term in office, with the sustained stock market lull or bear run- further deepened by the worsening confidence crisis. This has been propelled by the political risk, which became much talked about in February after the Presidential and National Assembly elections were postponed amidst a tinge of suspicion. Since then, the level of insecurity at a time government said it had decimated the Boko Haram insurgents; a seeming lack of direction for the economy and the calibre of 43 Ministerial nominees, all of which have been cleared by the Senate, have all but assuaged the fears of investors that a change is in the offing any time soon.

Also noteworthy, is the weak corporate earnings that tell the weak state of economic fundamentals, especially the lowering purchasing power among Nigerians that has only grown worse beginning from 2018 into the year 2019, despite the seemingly mixed economic data. The low purchasing power in the country was confirmed by CBN’s Purchasing Managers’ Index for July at 57.6 points, confirming the constraining expansion in Nigeria’s manufacturing sector during the period.

The low consumer and investor confidence persisted during the month under review, notwithstanding the seeming rise in oil prices as well as the sustained Central Bank of Nigeria (CBN) interventions in the foreign exchange market which has supported the Naira.
Recall that the rebound of the market in May was due to the listing of telecommunication giant MTN Nigeria by way of introduction, when demand by investors was unmatched, with the stock not available for the local investors, among other issues, including free-float deficiency, etc.
The company’s first earnings report to the NSE last month, however, shows strength with top and bottom lines in green, laced with an offer of N2.95 per share interim dividend, while Airtel Africa Plc, which was listed in the month under consideration by introduction, did not impact the market. It only gained 10% on the day it was listed and reversed the following day and went on to trade for as low as N323, from its N363 per share listing price.

Meanwhile, in the 23 trading sessions of July, the composite NSE index oscillated to close lower, recording 18 days of the down market and only five up-markets. The composite NSEASI, during the month, shed 2,248.61 basis points, closing at 27,718.26bps from its opening figure of 29,966.87bps, representing a 7.5% decline over the period.
The ‘sell’ volume of total transactions for the month was 98% while buying position stood at 2% to continue the previous month’s downmarket with volume index for the period at 0.64. Market capitalization for the month was up significantly by 23.26% as a result of Airtel Africa listing, closing at N13.51tr, amidst negative sentiments and Q2 earnings that came weak and below market and analysts expectations.
The month’s traded volume was down by 49.84% at 4.67bn shares, compared to 9.31bn in the previous month.
The NSEASI’s year-to-date negative position stood at 11.81%, just as market capitalization was up by N1.28tr, representing 14.38% YTD gain from the opening value.

Market breadth for July was negative as decliners outpaced advancers in the ratio of 72:21 to continue the bear transition, despite the fact that over 68% of quoted company’s shares are undervalued, even with the market price to earnings ratio of 6.21x lower than the previous month position 7.35x.
The sectoral performance chart below shows that the NSE Consumer Goods sector depressed the market the most in the period under review, losing 11.85%, compared to a loss by the benchmark NSEASI. It was followed by the NSE Oil with 10.80%. The NSE Banking index followed with a decline of 9.19%, ahead of the NSE Insurance and Industrial Goods index, which fell by 6.47% and 1.30% respectively.


The month’s best-performing stock was Academy Press, which is finding its true market value, following its recently announced three kobo dividend which was paid, despite the huge debt sitting in its books, as well as the mixed numbers. Consolidated Hallmark Insurance closed the month 26.52% better; followed by NPF Microfinance Bank with 22.86% on the impressive quarterly numbers and despite the lean 5kobo dividend; BOC Gases chalked 22.76% owing to its improved performance and high payout; while Lafarge Africa grabbed 20.83% due to improving numbers and expected sales of its South Africa operation; while LASACO Assurance rose 13.79% purely on market forces; among others (READ MORE).


The worst performing stock for the period was International Brewery (READ), which lost 31.69%, linked to poor and weak earnings performance of the company since it merger three years ago (READ MORE). Linkage Assurance shed 26.96% due to its seemingly weak Earnings Per Share and the pull by market forces; Forte Oil declined by 26.68% as a result of its weak earnings and exit of the major shareholder, Femi Otedola; Ecobank Transnational Incorporated, 25.45%; and Eternal, 24.05% on the back of mixed earnings and market forces.


Take Action
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the just concluded and life-transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT, CHART SUMMIT, and POST ELECTION BULLS & BEARS Home study pack (USB) that you can play on your phone, Laptop and Television set.
The events were a successful, insightful and educative outing that not only offered direction as to where investors should look for profitable trade in 2019 and beyond, insight into industries, sectors, and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with the possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment.

Investdata Monthly Sentiment Report as of 1st August 2019

NSEASI buy 2% sell 98% MFI 22.90
Access buy 60% sell 40% MFI 23.00
Afrprud buy 83% sell 17% MFI 65.06
Aiico buy 40% sell 60% MFI 58.47
Berger buy 0% volume index 2.06 MFI 14.05
Cadbury buy 62% sell 38% MFI 61.58
Cap buy 0% MFI 59.02
Caverton buy 67% sell 33% volume index 0.72 MFI 58.42
Ccnn buy 25% sell 75% volume index 0.81 MFI 14.54
Chams buy 29% sell 71% MFI 92.58
Chiplc buy 83% sell 17%
CIleasing buy 90% sell 10% MFI 59.58
Conoil buy 26% sell 74% volume index 2.79 MFI 14.11
Custodian buy 0% MFI 60.87
Cutix buy 41% sell 59% volume index 1.53 MFI 57.40
Dangcem buy 21% sell 79% volume index 1.07 MFI 28.15
Dangflour buy 92% sell 8% MFI 77.06
Dangsugar buy 0% MFI 53.10
Eterna buy 0% MFI 36.50
Eti buy 8% sell 92% MFI 5.12
Fbnh buy 24% sell 76% volume index 0.92 MFI 38.76
Fcmb buy 48% sell 52% MFI 30.13
Fidelity buy 24% sell 76% MFI 54.29
Fidson buy 0% MFI 82.20
Fmn buy 51% sell 49% volume index 0.75 MFI 30.09
Fo buy 27% sell 73% volume index 1.63 MFI 34.04
Glaxo buy 19% sell 81% MFI 14.61
GT buy 38% sell 62% volume index 0.96 MFI 34.98
Honyflour buy 33% sell 67% MFI 15.98
Jaiz buy 62% sell 38% MFI 40.35
Japaul buy 20% sell 80% MFI 68.63
JBerger buy 67% sell 33% volume index 0.77 MFI 41.87
Lasaco buy 50% sell 50% volume index 1.09 MFI 27.87
Lawunion buy 0% MFI 46.78
Learn buy 0% volume index 1.49 MFI 58.38
Linkass buy 10% sell 90% MFI 15.65
Lvstk buy 11% sell 89% volume index 0.74 MFI 13.99
Mansard buy 0% MFI 37.94
M&B buy 0% MFI 63.23
Mben buy � volume index 2.16 MFI 36.55
Mobil buy 0% MFI 37.79
Nahco buy 40% sell 60% volume index 0.81 MFI 23.16
Nascon buy 4% sell 96% MFI 53.18
Neimeth buy � MFI 26.89
Nem buy 33% sell 67% MFI 86.58
Nestle buy 27% sell 73% MFI 45.45
Npf buy � volume index 1.01 MFI 35.70
Oando buy 7% sell 93% MFI 12.49
Okomu buy 0% volume index 0.84 MFI 39.90
Presco buy 0% MFI 24.40
Prestige buy 40% sell 60% MFI 80.88
Pz buy 17% sell 83% volume index 0.81 MFI 29.20
Red buy 43% sell 57% MFI 34.46
Royalex buy 0% volume index 1.55 MFI 23.94
Seplat buy 20% sell 80% MFI 29.58
Sovereins buy 0% MFI 68.03
Stanbic buy 9% sell 91% MFI 33.70
Sterling buy 64% sell 36% volume index 0.74 MFI 73.76
Total buy 0% volume index 0.76 MFI 35.00
Transcorp buy 24% sell 76% MFI 51.04
Uacp buy 0% volume index 0.77 MFI 47.13
Uacn buy 33% sell 67% volume index 0.82 MFI 3.18
Uba buy 55% sell 45% volume index 0.96 MFI 23.96
Ubn buy 57% sell 43% MFI 75.71
Ucap buy 42% sell 58% MFI 54.59
Unilever buy 57% sell 43% MFI 33.23
Uniondac buy 0% MFI 80.45
Unity buy 80% sell 20% MFI 40.72
Vitafoam buy 99% sell 1% volume index 0.71 MFI 56.52
Wapco buy 96% sell 4% volume index 4.67 MFI 54.92
Wapic buy 55% sell 45% volume index 1.99 MFI 92.97
Wema buy 67% sell 33% MFI 8.30
Zenith buy 0% volume index 0.74 MFI 28.17

https://investdataltd..com/2019/08/investdata-monthly-sentiment-report-as.html

Poor Liquidity, Weak Transaction Value, Volume Still, As Investors Digest Q2 Earnings


Market Update for July 29
The Nigerian Stock Exchange (NSE) recorded a seeming rebound on Monday to start the week positive, as the disappointing half-year earnings reporting season enters its peak with mixed and weak numbers, despite the financial engineering apparent in some of the scorecards released recently.

The continued interpretation of corporate earnings made available so far by market players will determine the next direction, going forward, depending on the level of liquidity available in the market as the results of many high cap stocks came below expectations.
The prevailing low trades and mixed sentiment are clear reflections of the wait-and-see attitude of traders and investors, especially when the earnings are not sufficient motivation to reverse the negative market emotions, even as betrayed weak fundamentals.
The increase in the cost of trading due to the reintroduction of Valued Added Tax (VAT) on stock market transactions and delayed release of the half-year score-cards of banking stocks may further dampen investor confidence in the market and economy. Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, is however positive that the VAT waiver on the stock market transaction will be restored when the Finance Minister resumes office soon. He seems to agree with analysts arguments that the basis for the waiver is still very real in today’s market.

But, just as we have said earlier, the weak Q2 corporate earnings have given an insight into what Nigeria’s Q2 GDP numbers could look like when released eventually by the National Bureau of Statistics (NBS).
At the end of Monday’s trading, more companies published their financials including Ecobank Transnational Incorporation, Okomu Oil Palm, Total Nigeria, and others, with their stocks suffering a decline in value to hit 52 weeks low.
Monday’s trading opened slightly on the upside as buying interest in companies that posted surprising earnings increased in the early hours, before pulling back by the midday to early afternoon as more corporate earnings missed expectation. This pushed the NSE All-Share index down to intraday low of 27,912.70 basis points from a high of 27,976.14bps, before finishing the session higher at 27,950.36bps on a very low traded volume.

Market technicals for the day were positive but mixed, as volume traded was lower than the previous day’s, as the breadth favours the bulls, with mixed sentiment as revealed by Investdata’s Daily Sentiment Report of ‘buy’ volume at 51% and sell position of 49% total daily transaction volume index of 0.29.
The momentum behind the day’s performance remained weak, despite moving up, as Money Flow Index read 28.26 points, higher than previous day’s 26.21bps, indicating that funds entered some stocks and the market as selloff slowdown and high cap stock prices inched up in the phase of prevailing low liquidity and indecision.

Index and Market Cap
The benchmark NSEASI closed Monday’s trading slightly up by 31.77bps to close at 27,950.36bps after opening at 27,918.59bps, representing 0.11% growth, just as market capitalization rose N15.48bn up to close at N13.62tr, from N13.61tr, which also represented 0.11% growth.
Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the 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 during this portfolio reshuffling and repositioning ahead of Q2 numbers and fiscal stimulus.

The day’s upturn was helped by position taking in stocks like Nestle Nigeria, Guaranty Trust Bank, Stanbic IBTC, UBA, CCNN, FBN Holdings, Wema Bank and Honeywell, which reduced the NSE’s Year-to-Date loss to 11.07%, just as YTD market capitalization gain inched to N1.65tr or 15.34% from the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indexes were largely bullish, except for the NSE Banking and Oil/Gas that closed 0.02% and 1.25% lower respectively, while the Insurance index led the advancers’ after gaining 0.63%, followed by Consumer and Industrial Goods with 0.20%resectively.
Market breadth turned positive as advancers outnumbered decliners in the ratio of 21:14; market activities were down in transaction volume and value by 28.84% and 58.05% respectively to 93.11m shares worth N1.11bn, from the previous 130.85m units valued at N2.64bn. The session’s volume was driven by trading in financial services and conglomerates stocks such as Zenith Bank, Transcorps, Lasaco Guaranty Trust Bank and Access Bank.

C & I Leasing and Vitafoam were the best-performing stocks, as they gained 10% and 9.95% respectively, closing at N5.50 and N4.09 per share, on market forces and improved Q3 numbers. On the flip side, Total Nigeria and Chams lost 9.96% and 7.14% respectively to close at N114.80 and N0.26 on unimpressive earnings and profit-taking.

Market Outlook
We expect mixed trend as players digest the earnings reports released so far, in expectation of more earnings as bargain hunters take advantage of the prolonged bearish market, just as the half-year earnings reporting season peaks. Discerning investors should target value stocks considering the current low valuation to position for dividend income and capital gain, especially as the market’s Price to Earnings ratio is 7.23x, which is well below the 11x average of its peers and a five-year average of 13.x. This revealed value and high upside potentials for a rally.

They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as Central Bank of Nigeria (CBN) had rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.
There is also the likely impact of portfolio repositioning for the second half of the year in the midst of expected Q2 numbers, especially banking stocks.


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/2019/07/poor-liquidity-weak-transaction-value-volume-still-as-investors-digest-q2-earnings/

Investors Review Portfolios On NGSE, Amidst Depressed Half-year Earnings Reports, Poor Liquidity


Market Update for July 30
Stock prices were pulled further down on the Nigerian bourse Tuesday, as volatility continued due to the lingering low liquidity and the prevailing confidence crisis arising from the political risk and unwavering insecurity situation in the country, all of which worsened the country’s already unfriendly business environment and investment space. These have altogether manifested in the mixed and weak half-year earnings reports from quoted companies which have fueled the negative sentiments, wiping away marginal gains from a positive outlook on Monday.
The selling pressure in major sectoral indexes was also due to the mixed and disappointing earnings from players in these sectors, even as scorecards from the banking industry have been weak and mixed, with the exception of interim dividend payers who traditionally audited their half-year reports that are yet to release their numbers.

The consumer goods and oil/gas earnings were weak and below market expectation, except for few companies that posted above-average performance for the half-year. The impressive performance of Lafarge Africa and Cement Company of Northern Nigeria; in addition to the shareholding structure of the companies in this sector have supported the industrial goods index. The insurance index has stayed relatively stable on the strength of the planned recapitalization exercise in the industry, even as half-year numbers have been mixed.
Notwithstanding the disappointment various expressed over the ministerial list for which the investors were disappointed, all 43 nominees have been cleared by the Senate. All eyes are now on President Muhammadu Buhari to assign them portfolios so that implementation of the 2019 budget can commence immediately, as they settle down for the business of governance and policy formulation.
Meanwhile, crude oil prices extended its rebound on Tuesday amidst the prospects of a lower rate and the potential of the U.S-China trade deal providing a brighter outlook for oil demand on the horizon. The hope is based on the influence of oil price movements on the Nigerian stock market, economy, and its external reserves.

The benchmark Nigerian Stock Exchange (NSE) All-Share index started Tuesday on a marginal upside position as the end of the month window dressing moves lasted to till midday before pulling back by early afternoon with more disappointing and mixed earnings hitting the market. This pushed the index down to intraday low of 27,814.13 basis points from a high of 28,028.27bps, before retracing up slightly to close the session lower at 27,820.57 on below traded average volume.

Tuesday’s market technicals were negative but mixed, as volume traded was higher than the previous day’s, amidst negative breadth and sentiment as revealed by Investdata’s Daily Sentiment Report of ‘sell’ volume at 97% and buy position of 3% total daily transaction volume index of 0.67.
The impetus behind the day’s performance remained weak, as Money Flow Index read 21.41 points, lower than previous day’s 28.26bps, indicating that funds left some stocks and the market as selloff resume among the high and low cap stocks at the peak of earnings season and month-end.

Index and Market Cap
At the end of Tuesday trading, the composite index shed 129.79bps to close at 27,820.57bps after opening at 27,950.36bps, representing 0.46% decline, just as market capitalization lost N63.25 billion to close at N13.56 trillion from N13.62tr, which also represented 0.46% depreciation in value.
Attention: If you haven’t signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new favorite stocks of the 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 during this portfolio reshuffling and repositioning ahead of Q2 numbers and fiscal stimulus.

The decline was driven by selloff in highly capitalized stocks like Nestle Nigeria, Guaranty Trust Bank, Zenith Bank, Nigerian Breweries, Stanbic IBTC, UBA, Access Bank, and FBN Holdings, which pushed the NSE’s Year-to-Date loss to 11.49%, just as YTD market capitalization gain drop to N1.52 trillion or 15.81% from the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indexes were largely bearish, except for the NSE Insurance and Industrial goods that closed 0.02% and 0.57% higher respectively, while the Consumer goods index led the decliners’ after losing 2.07%, followed by Banking and Oil/Gas with 0.72% and 0.16% respectively.

Market breadth turned negative as decliners outnumbered advancers in the ratio of 20:11; market activities were up in traded volume and value by 66.7% and 101.23% respectively to 155.21m shares worth N2.23bn, from the previous 93.11m units valued at N1.11bn. Volume was driven by trading in financial services stocks such as Guaranty Trust Bank UBA, Zenith Bank, FBNH and African Alliance Insurance.
The best-performing stocks for the day were Mutual Benefit and Ikeja Hotel that topped the gainers’ chart with 10% and 8.96% respectively, closing at N0.22and N1.46 per share, on market forces. On the flip side, Japaul Oil and Nigerian Breweries lost 8.72% and 8.33% respectively to close at N0.21 and N55.00 on profit-taking and unimpressive earnings.

Market Outlook
We expect a positive outing being the last trading day of the month as traders balance their trading account and interpretation of earnings reports released so far continued ahead of more earnings in expectation as bargain hunters take advantage of the prolonged bearish market, just as the half-year earnings reporting season peaks. Discerning investors should target value stocks considering the current low valuation to position for dividend income and capital gain, especially as the market’s Price to Earnings ratio is 7.23x, which is well below the 11x average of its peers and a five-year average of 13.x. This revealed value and high upside potentials for a rally.
They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as Central Bank of Nigeria (CBN) had rollout it plans to boost productivity and investment by instructing the banks to lend more to the private sector. This is aimed at reducing banks’ participation in government securities and lending more to the private sector to drive economic growth.
There is also the likely impact of portfolio repositioning for the second half of the year in the midst of expected Q2 numbers, especially banking stocks.

Take Action
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the just concluded and life-transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT, CHART SUMMIT, and POST ELECTION BULLS & BEARS Home study pack (USB) that you can play on your phone, Laptop and Television set.
The events were a successful, insightful and educative outing that not only offered direction as to where investors should look for profitable trade in 2019 and beyond, insight into industries, sectors, and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with the possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment.


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/2019/07/poor-liquidity-weak-transaction-value-volume-still-as-investors-digest-q2-earnings/

Investdata Daily Sentiment Report as of June 30th, 2019

NSEASI buy 59% sell 41% MFI 28.26
Access buy 33% sell 67% MFI 51.62
Aiico buy � volume index 1.03 MFI 42.11
Caverton buy 0% volume index 4.43 MFI 34.42
Ccnn buy 75% sell 25% volume index 1.97 MFI 32.85
Cutix buy � volume index 0.98 MFI 66.85
Dangflour buy � volume index 1.81 MFI 93.62
Eti buy 0% MFI 5.07
Fbnh buy � MFI 18.43
Fidelity buy 0% volume index 1.18 MFI 33.07
Fmn buy 0% MFI 45.84
GT buy � MFI 27.16
Jaiz buy � volume index 1.05 MFI 26.44
Japaul buy 100 MFI 39.30
Lasaco buy � volume index 2.41 MFI 82.56
Linkass buy � volume index 2.20 MFI 0.00
Mben buy 0% MFI 88.51
Nahco buy � volume index 1.47 MFI 15.72
Total buy 0% volume index 5.27 MFI 0.00
Transcorp buy 25% sell 75% volume index 0.94 MFI 41.09
Uba buy � MFI 32.74
Ucap buy � MFI 38.60
Wapic buy � MFI 62.73
Wema buy � MFI 31.06
Zenith buy 0% MFI 52.32

https://investdataltd..com/2019/08/investdata-daily-sentiment-report-as-of.html

Q2 Season Enters Final Days, As Bargain Hunters Reposition, Await Improved Liquidity

Market Update for the week ended July 26 and Outlook for July 29-August 2

Nigeria’s equity market during the past week had a flat performance, just as the economy witnessed a lot of activities, ranging from the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting which left all of its monetary instruments unchanged; and release of the ministerial list by President Muhammadu Buhari. Also last week, the Senate immediately commenced screening, even when portfolios were not assigned to the nominees, even as investors and commentators have expressed disappointment over the recycling of the same old politicians.

Within the week also, over 30 companies released their quarterly earnings reports to investors, most of which came mixed and weak, except for a few that posted impressive numbers, thereby further reducing confidence and expectations among investors and citizens. The situation has not been helped by the process of screening the cabinet ministers, with the legislators making a joke of the Ministerial exercise by asking the bulk of nominees to take a bow, at a time Nigeria’s economy urgently needs reforms to turnaround the situation.

The mixed sentiment and low traded volume in the period is a sign of the confusion and indecision existing among traders and investors, despite the superlative entry opportunities presented by the current state of the market, given its low valuation.
Also, at the end of last week, Okomu Oil Palm, Livestocks Feeds, International Brewery, NASCON Allied, Total Nigeria, and Unity Bank made new 52-week lows, while Boc Gases touched its new year-high.

However, looking at the various half-year numbers of companies so far released, especially those in the consumer goods sector, there are signs of rekindling confidence. This will, however, materialise if managers of the economy do the needful, not minding the fact that the sector has suffered a year-to-date loss of 22.76%, worse than the 11.17% decline of the benchmark NSE All-Share index, as emerging earnings continue to miss expectations across sectors.

The situation is not altogether new, given what we saw early in the Q1 and Q2 earnings seasons from companies in the petroleum marketing, conglomerates, and consumer and industrial goods sectors.
During the week also, Caverton and Cement Company of Northern Nigeria set a new barometer for the services sector recording above 20% year-over-year earnings growth; and 30% sales revenue growth respectively over the same period of last year. Recall that earnings reports of stocks in the consumer goods sector have been in this bad and mixed state since 2018, due to the prevailing low purchasing power and weak economic fundamentals, in the face of the confidence crises in the country.

Movement Of NSEASI
Meanwhile, trading closed on the first day of last week on a negative note, reversing the previous gain with the NSEASI losing 0.40% on selloffs and mixed sentiments, a trend that was short-lived when the index gained a spectacular 1.21% Tuesday on positive sentiment. The day’s transaction volume was however low on a day the MPC voted to keep rates unchanged and the long awaited minister list was announced in the green chamber (the Senate). This gain was however short-lived as it was reversed on Wednesday, Thursday, as well as Friday, when the NSE composite ASI shed 0.20%, 0.35%, and 0.26% respectively. These, however, dragged the index flat, compared to the previous week’s 2.27% decline.

The market resisted further decline on the strength of indecision among traders and investors during the period as the NSE’s year-to-date loss climbed to 11.17%; while market breadth turned positive, as selling pressure subsided as investors continued to interpret the impact of the MPC decision. We note that some companies like Ikeja Hotel and MTNN have joined the interim dividend stocks with half-year payout of 3 kobo and N2.95 respectively.

Once again, low cap stocks dominated the week’s advancers gainers’ table, while highly capitalized and blue-chip stocks fell in the midst of a low traded volume and the prevailing low liquidity.
The energy behind the week’s performance was weak, as shown by Money Flow Index at 12.98 basis points, compared to 17.50bps in the previous week, indicating that funds left some stocks and the market, despite the indecision among market players. Also, sentiments remained negative and mixed, with a sell position at 75% and ‘buy’ volume, 25% on a transaction volume index of 0.64.

NSEASI Weekly Time Frame
The negative sentiment and selling pressure seem to however slowed down marginally as many stocks maintained flat position with few touching their new 52 weeks low at the peak of half-year earnings reporting season. Despite the cautious trading and seeming accumulation in some stocks, the mixed numbers currently being released to the market are likely to impact positively considering the prevailing low prices of equity, if right policies are put place. The positive market breadth and candlestick pattern for the week is a sign that bargain hunters are repositioning, a situation that supports reversal, especially as more companies release their numbers in this week.

However, the expected reversal will be a function of liquidity and analyses of half-year earnings position.
The current chart pattern on the NSEASI supports a reversal, as it trades below its 20-Day Moving Average and on top of the lower Bollinger band, line, while RSI is reading ‘oversold’ at 32.68. But then, Money flow at 12.98 points remains weak.

Mixed Sectoral Indices
The sectoral performance indexes for the week were largely bearish, except for the NSE Industrial and Consumer Goods that closed higher by 1.79% and 0.71% respectively, while the NSE Insurance led the decliners after losing 0.94%, followed by the NSE Banking with 0.39% and next was NSE Oil/Gas with 0.19%.

The slowdown in selling pressure was across all sectors at the peak of earnings reporting season and a positive market breadth with advancers outnumbering decliners in the ratio of 31:29, to halt the three-down market.
Market activities were down in volume and value by 1.83% and 14.94% respectively to 1.07bn shares worth N11.39bn, from prior week’s 1.09bn units valued at N13.39bn.

NPF Microfinance and BOC Gas were the best-performing stocks for the week, as they topped the advancers’ chart with 14.16% and 11.67% gains respectively to close at N1.29 and N5.07 per share on improved Q2 numbers and market forces. On the flip side, Linkage Assurance and International Brewery lost 20.31% and 18.36% respectively, closing at N0.51 and N12.50, on profit-taking and selloff.

Market Outlook
We expect the market to maintain the same trend, while portfolio reshuffling and repositioning will be on the half-year earnings strength and fundamentals, as discerning investors take advantage of low valuation to buy into interim dividend stocks and undervalued equities.
They may also take into consideration the expected economic reforms as government announces its much-awaited new cabinet, just as plans by the CBN to reduce banks’ participation in government securities is expected to boost private-sector lending to drive economic activities and investment.
Profit-taking may persist in highly capitalized stocks due to portfolio restructuring. Hence, overall market performance to remain mixed amidst positive sentiments and negative breadth.

Market players should maintain a cautious outlook due to low confidence, liquidity and the wait for major economic triggers. Hence, we advise investors to trade cautiously in the short-term, with their gaze fixed on blue-chip stocks that are selling more than 40% below their 52 weeks high. As we look out for a positive catalyst to drive market recovery.

That notwithstanding, we would not overlook the possibility of a bargain-hunting motive supporting positive performance, especially with many fundamentally sound stocks remaining underpriced. With the prices of major blue chips continuing to drop in recent weeks, we expect speculative trading to shape the market’s direction this week, despite the seeming negative outlook.

Take Action
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the just concluded and life-transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT, CHART SUMMIT, and POST ELECTION BULLS & BEARS Home study pack (USB) that you can play on your phone, Laptop and Television set.

The events were a successful, insightful and educative outing that not only offered direction as to where investors should look for profitable trade in 2019 and beyond, insight into industries, sectors, and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with the possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment.

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/2019/07/q2-season-enters-final-days-as-bargain-hunters-reposition-await-improved-liquidity/

Caverton Offshore Support Grows Half-year Net Profit By 78%

Caverton Offshore Support Group at the weekend presented its unaudited half-year ended June 30, 2019, to the Nigerian Stock Exchange (NSE), showing that profit before and after-tax rose at a faster pace than revenue, helped by jump in other operating income, in what may ensure shareholders get higher dividends at year-end, if the management and board sustain the current tempo.

Revenue for the period rose by N2.681bn or 18.85% from the N14.222bn reported in the corresponding period of 2018 to N16.904bn, with helicopter and airplane contract remaining the group’s cash-cow, contributing N15.989bn, representing an otherwise unhealthy 94.59% of the total, compared with the previous N13.827bn or 97.22% of the previous total. Helicopter charter pooled N803.384m, up from N310.922m previously; followed by N54.181m from vessel agency services, up from N28.852m; the N51.64m earned from vessel time charter and boat income, as against the previous N49.85m; and the N5.469m earnings from helicopter maintenance, up from N4.673m.

Operating expenses inched by N1.443bn or 15.26%; following which operating profit stood at N6.004bn from N4.766bn, representing an increase of N1.238bn or 25.94%, the biggest of which was the N4.404bn spent on aviation fuel and spare parts, from N3.038bn; followed by N3.621bn in crew salaries, an increase from N2.698bn; even as right to use-aircraft depreciation cost N2.395bn, soaring from N645.002m.
Aircraft insurance premium accounted for N374.283m, compared to N352.261m; landing and navigational expenses dropped from N122.081m to N43.094m. The group also did not incur expenses by way of aircraft rentals during the review period, compared to N2.587bn last year.

Administrative expenses rose by N781.654m or 39.18% to N2.776bn from N1.994bn, principally the N1.147bn employee benefits expense, which rose from N568.901m; other expenses and overheads dropped marginally to N534.254m from N573.04m; transport and travels slipped to N256.801m from N265.927m; even as management expenses rose from N188.035m in 2018 to N294.33m.

Other operating income however soared by N432.792m or 823.52% from N52.554m in 2018 to N485.346m, swelled by ‘others,’ which climbed to N371.643m, compared to N17.335m in the 2018 half-year; N92.356m grant income, which rose from N24.872m; just as interest income rose from N10.347m to N20.558. This resulted in a total operating profit of N3.713bn, compared to the N2.824bn in the prior half-year.

Finance cost, which was entirely the interest on debts and borrowings, dropped from N1.267bn to N1.088bn; profit before tax rose to N2.625bn, N750.119m or 77.92% up from N1.556bn. Income tax expense jumped by N318.916m or 53.67% to N913.103m from N594.187m; leaving a net profit of N1.712bn, an improvement of N750.119m or77.93% from N962.451m. which translated to Earnings Per Share of 51 kobo from 29 kobo in the similar period of 2018.

https://investdata.com.ng/2019/07/caverton-offshore-support-grows-half-year-net-profit-by-78/

Hello Traders and Investors,

Here is the Market update the week ended July 19, 2019


In this post, you will discover

1.Market Trend Movement from
2018 to date.

.The need to Invest in retirement
stocks
3.Concise Stocks to Invest in
whether you are planning you
retirement or not
4 Different Economic policies that
will help boost the economy
5.The main factor responsibility
for the Market Downtrend
6. Etc

For further clarification call NOw
08028164085,08032055467
or send an email to
ambroseconsultants@yahoo.com

Dedicated to your Financial
Success
Ambrose Omordion


https://www.youtube.com/watch?v=Tg9-LI3q7D4