₦airaland Forum

UBA Plc Begins 2019 Full-Year Strong After Flat 2018 Outing


United Bank for Africa Plc (UBA) recently presented its unaudited account for the three month- ended March 31, 2019 as and when due, keeping to its post-listing requirement and best practice to allow investors forecast and plan their investment. The result was released on the same date as the previous year.
The increasing Pan-African business offices and spread of its retail outlets supported its profitability ratios, despite the high loan loss provision and operating expenses level within the period under consideration. The group has remained committed to the vision of staying true to its name, by continuing to strengthen its presence and operational capacity, while sustaining growth and profitability across its all operational bases.
The bank reported N124.2bn top line, up by 8.63%from N114.33bn in 2018, while profit climbed 20.76% up to N28.66bn, as against N23.74bn in the previous year. Impairment loss on financial assets for the period increased to N1.71bn from N1.45bn in 2018, slowing down the bank’s bottom line, with provisions up by 17.88%.

These notwithstanding, UBA Plc has shown resilience, remaining in the green despite the weak economy and risk exposure, with all sectors of the system struggling as a result of economic policies n need of a total overhaul.
Coupled with over-regulation of its industry, despite the recent easing of the monetary policy with the 50 points rate cut by the Central Bank of Nigeria (CBN), which left it at 13.5%.
The marginal growth in the gross earning of UBA Plc in the period under review is a reflection of the instability in many Africa economies The bank’s dexterity in navigating its balance sheet towards areas of opportunities was also revealed within the review period.
Q1 Earnings Per Share (EPS) was up by 20.76% to N0.84 from N0.69 in 2018.

If this up-trend is sustained in the subsequent quarters of the year, it would support the share price and hope for higher dividend payout as expressed by shareholders during the last Annual General Meeting. The shares are currently trading at N6.70each, which is over 137% below its Book Value of N15.88 per share. This has revealed the undervalued state of the bank’s share, as well it’s upside potential.
The bank’s Earnings ratio is 2.04x, while investors’ waiting period has dropped significantly from 4.03x as a result of growth in its earnings power and general down market condition.


UBA reported a mixed year-on-year margin movement with Net Interest Income Margin dropping to 4.92% from 5.46%, while pre-tax profit margin declined slightly to 41.82%, from 43.48% in 2018. Meanwhile, Net Income Margin improved to 23.68% from 20.76% in 2018: Return on equity stood at 5.28%, just another profitability ratio for the period closed green as a testimony to the group’s real improvement in its earnings power over the period. As shown in the table above

Technical View

The bank’s price action has been on a downward trend for more than a year same as the general market trend but recently rebounded in April to form a symmetrical triangle, a chart pattern that indicates continuation or reversal of the trend. The strong support level of the bank in its pullback movement is N5.60 per share. The attempt to breakdown the triangle last week failed due to mixed sentiments.
Traders and Investors should look the way of UBA for the breakout of the first resistance at N7.00 and the second resistant at N8.10 or reversal to first support level at N6.40 and second support price of N6.15. The momentum of the trend is strong at 40.82 points above 20 ADX.

Forecasts
Our FY 2019 gross earnings forecast for UBA is N496.79bn representing a 6.63% improvement relative to FY 2018, while our net income estimate for FY 2019 is N92.40bn, which translates to a 17.6% improvement on FY 2018. This yields an EPS of N2.70 and a forward P/E of 2.28X.
The banking sector still remains attractive to foreign and local investors due to the nature of its service, marketability and relatively high volume for traders. We expect less loan loss provisions if the key sectors of the experience recovery in the second half of the year as expected. This is with the belief that the government will hit the ground running after May 29 inauguration.

Analysts Opinion/Recommendations
The shares of UBA is undervalued, bearing in mind our FY 2019 estimates. The stock is currently trading at a 150% discount to our Fair Value estimate of N17.00.
We are mildly optimistic due to the tight operating environment in Nigeria, especially with the rate cut and insecurity across the entire northern Nigerian stretch, coupled with the delay in budget implementation.
The seeming high oil price should boost loan recovery in the oil and gas sector and enhance asset quality for most Nigerian banks. This resulted from their exposure to the sector and the tight regulatory policies of the CBN which has weakened the earnings capacity of banks in the country, but UBA Plc has the capacity to grow as its operating network outside the nation wax stronger.
We are also impressed with the steady rise in the bank’s Book Value position over the last few years. However, the group’s management must be proactive with its Return on Equity (ROE) growth. We have a BUY recommendation on the shares of UBA Plc.


Enhancing Balance Sheet, Growing Profitability
The bank’s ability to reposition its retail and investment banking business segments will further enhance earnings, profit and enable the board to reward investors handsomely in the nearest future. The ongoing deposit drive and proactive balance sheet deployment will deliver positive results, going into the future. The group’s management was very effective, with the cost of risk at 0.40%, ensuring that the backlash of some regulatory policy changes was moderated. The relative stability in local currency is an incentive for UBA Plc to sustain offshore earnings through its operating network and in the process support bottom-line growth.
Four-Years Performance (2015-2018)
The bank has been resilient as mentioned earlier, despite the tight economic conditions, especially since the crash in oil prices and the resultant pressure on disposable income. This may have been the major restraining factor against the creation of risk assets during the review period.
Gross earnings over the four-year period grew by 47.98% to N456.9bn from N314.83bn in 2015. The profitability level for this period was stable, despite different regulatory rules and huge provisions. The bottom line for the same period was up by 31.76% from N59.65bn in 2015 to N78.6bn as shown in the table below.
Efficiency for the period declined before the recent reversal, as shown by Return on Equity (ROE) of 17.98%, 16.13%, 14.68% and 15.64% for 2015, 2016, 2017 and 2018respectively. Profit margin (PM) experienced downward swing during the same period to 16.87%, from 18.95% year-on-year remaining above the 15% international standard. It also grew shareholders fund for the period by 51.11% to N502.6bn, from N332.62bn in 2015.


VALUATION ANALYSIS
Based on our analysis, the stock is currently trading at a 150% discount to our estimated fair value of N17, with a 12-month investment horizon. In arriving at our fair value for the stock, we focused on the historical financial performance of the stock and our projection for full-year 2019. Our Fair Value for UBA shares was calculated using the Price to Book Value method of valuation as well as the Dividend Discount Model. This comprises our expected dividend estimate for the bank, adjusted for the risk of investing in the Nigerian Financial Services sector. We have placed a positive rating on the stock of UBA Plc.

https://investdata.com.ng/2019/05/uba-plc-begins-2019-full-year-strong-after-flat-2018-outing/

SOUL MATE: TOO GOOD TO BE TRUE?

Some people believe marrying one's soul mate is a complete fallacy. It is an emotional hype to get singles feel good momentarily. It's something that simply does not exist.

Some guys believe good ladies are scarce. If you are lucky to have one, then, you must be a a rare specie. Some ladies believe good men are almost non-existent. If you are lucky to find a good man whether soul mate or not, jump at it!

Not every good person is meant for you. Someone can be good but not good for you. That is one of the problem most prophecy seekers face. The prophet/prophetess tells them the person they came to pray about is good, the lady/guy jumps at it, rushes into the arms of the proposer/ proposee, rushes into marriage, only to realize later they've made the greatest mistake of their lives!

This is not just about getting married. It is getting married to your soul mate, your real bone and flesh, your better half, your best friend, your personal person, your husband or wife. That is what this book is about.

Many marriages are suffering because people are getting married to strangers they have no single feeling or affection for in the name of God's will. Romance, friendship, passion and affection are dying very fast in many marriages because religion has blinded so many people's eyes from picking the man/woman who fit, suit and agrees with their destiny!

Your perfect soul mate exists. The man/woman who will cherish, love and totally adore you is on this planet earth, waiting, desiring and yearning to meet you. How do you locate each other? Where can you find them? You will find out in the next chapter...

From my ebook: HOW TO ATTRACT YOUR PERFECT SOUL MATE
© Seun Oladele

Seun Oladele‎ UNCOMMON SINGLES AND COUPLES (USAC)


Uncommon Singles And Couples Programme shall be great. It's for singles and married. Come and learn how to enjoy UNLIMITED BLISS in your marriage and courtship and find true, lasting love if you are still single.

Date: Saturday, May 18, 2019.

Venue: RCCG (Path Of Life Parish). 116, Ogba Road, Agege/Ikeja, Lagos.
Time: 10am prompt.

Ministering: Coach Joshua Chibuike and other anointed men and women of God.

It's going to be a wonderful time in God's presence. Come and be blessed.
Jesus is Lord!

© Seun Oladele, 2019.

BUY AND SELL SIGNAL

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Civil Servants Union Tasks Buhari On SEC Board, Panel Report On Gwarzo

Four years after his administration, then freshly inaugurated, announced its dissolution, the Association of Senior Civil Servants of Nigeria (ASCSN), at the weekend urged President Muhammadu Buhari to put an end to the ad hoc board and management of the Securities & Exchange Commission (SEC), and in the process, the nation’s capital market, in line with global best practice.
The association by Alade Bashir Lawal, General Secretary of ASCSN, addressed to President Muhammadu Buhari and copied to Finance Minister, Zainab Usman and DG of the State Security Service, among others, also challenged the Federal Government to publish the report of the panel of Inquiry set up by former Minister of Finance to probe allegations against former SEC DG, Mounir Gwarzo for necessary action.

Allowing the SEC to operate without a board since 2015, the group said, has created a very serious credibility gap, which has impacted negatively on the image and performance profile of the commission, sending wrong signals to stakeholders within and outside the country.
t, therefore, urged the President to reconstitute “the board of the Securities and Exchange Commission (SEC) so as to allow the body operate professionally for the restoration of confidence in the system.”
The ASCSN linked the series of infractions witnessed during the tenure of Mounir Gwarzo, suspended Director-General of the SEC to the absence of a board to oversee the management in the spirit of good corporate governance.
It stressed, “that all those infractions would not have arisen if a board had been in place to supervise the operations of the Commission and also act as a check to the activities of the DG.”

ASCSN alluded to ongoing “frantic efforts” to sweep the case established against Mounir Gwarzo now before the Independent Corrupt Practices and other Related matters Commission (ICPC) under the carpet.
The need for the presidential intervention in the matter at this time, the group stressed, “has become very necessary and extremely urgent given reports that subterranean moves are being made to throw spanners in the works as regards the case against the suspended DG,” which it said would negatively affect the image of the present administration if allowed to happen.

https://investdata.com.ng/2019/05/civil-servants-union-tasks-buhari-on-sec-board-panel-report-on-gwarzo/

Cautious Outlook On NGSE, As Investors Await Buhari’s Economic Agenda

Market Update for the week ended May 3 and Outlook for May 6-10
Trading activities on the Nigerian Stock Exchange in the past week were mixed, extending the bear run for the second consecutive week. This could not be changed by marginal gains in the last two trading sessions of the period under review.
In the four-day trading week owing to the public holiday declared to mark the international labour day, overall sentiments, as measured by market breadth showed a slight improvement over that of the previous week. Volume traded was higher, ushering in what may be another dicey month of May that may defy the saying: sell in May and come in October. This has been defied thrice in the last five years with the month ending positive twice in the three years of a down market in 2014, 2015 and 2016. It was up again in 2017 but negative in 2018, given the factors that militated against the market, particularly uncertainties associated with the pre-election year, among other factors.

Now the elections are over, but the dust generated by it was still so thick and beclouded the benchmark indicators of the bourse in April and although the month of May started positively with two sessions of mild gains. Like happens every four years and in the month of May, Nigerians are looking forward to another inauguration day, as incumbent President Muhammadu Buhari will be sworn in and announce a new cabinet. This month also, before then, the National Bureau of Statistics (NBS) will publish critical economic data such as the April inflation and Q1 GDP report, while the Federal Government, hopefully, unveils its economic reform agenda. This will mostly focus on boosting productivity and job creation, using the delayed 2019 budget passed by the National Assembly only recently as a catalyst.

Given that the economic realities have not changed, just like the policy implementation style, the Nigerian equity market is looking for positive surprises to trigger a rebound. Oil price has relatively remained stable, the nation’s external reserve is looking up and attracting foreign inflows now that our benchmark Nigerian Stock Exchange (NSE) All-Share index is forming a double bottom, which supports upward reversal.
While watchers of the nation’s economy await official confirmation, the story being told by numbers released during the just-concluded Q1 earnings season may not be palatable after all. The numbers reveal the real position of companies and stocks to guide repositioning and reshuffling of portfolios.

Movement Of The NSEASI
The NSEASI opened for the four-day week on a negative note, losing 0.73% on Monday as selling pressure from the previous week continued. This trend was sustained on Tuesday with the index declining further, after shedding 1.23% on high traded volume, regardless of the increasing number of listed companies that released their quarterly reports earnings reports. It is noteworthy that the reports generally came below market expectations.

The trend got reversed after May 1 public holiday, a situation that was attributed to bargain hunting on blue-chip stocks that have suffered in over 52 weeks of correction, closing Thursday with a miserly 0.04% gain. This was slightly improved upon on Friday, when the index notched 0.14%, reducing the week’s total loss to 1.78%, compared to previous week’s 1.15% decline.
Low and medium cap stocks dominated the advancers table, as sell-offs hit highly capitalized equities and blue-chip companies after their Q1 numbers closed season weak and mixed.

Sectors that suffered the heaviest losses for the period were the NSE Industrial Goods, Banking and Consumer goods which lost 3%, 1.3%, and 0.3% respectively. TheNSE Oil/Gas and Insurance chalked 0.02%, and 1.3% to reflect new positioning, as investors digested the numbers in expectations of fiscal stimulus and external positive news.
The impetus behind the week’s performance was weak, as shown by the money flow index at 23.77 basis points, compared to 30.64bps in the previous week. This is indicating that funds are leaving the market, just as sell volume stood at 85% and buy position, 15% on a transaction volume index of 0.95.

NSEASI Weekly Time Frame
The NSE ASI’smovement for the week pulled back on a high traded volume and 100% Fibonacci retracement that supports reversal at a time it has formed a triple bottom of ABC, as revealed by the above chart. This is even as sentiments remain negative at the peak of financial reports. The Money Flow index is looking down. Also, the NSEASI is trading below its 20-Day Moving Average and MACD breaking down the signal line that confirms a full bearish trend. But the index touched the lower Bollinger bands signals ‘buy’ as reversal is imminent.

Mixed Sectoral Indices
The sectoral performance indices were largely, bearish except for the NSE Insurance and Oil/Gas that closed in green, while market breadth was negative with decliners outnumbering advancers in the ratio of 44:32, to extend the bearish outing.
Transactions activities in volume and value for the period rose by 2.80% and 2.72% respectively to 1.47bn shares worth N15.5bn, compared to previous week’s 1.43bn units valued N15.09bn. The high volume confirms the impact of sell pressure as Q1 earnings season failed to support the market, due to the weak numbers and despite the relatively positive economic data.

The best-performing stocks for the week wereJapaul Oil and Julius Berger, that topped advancers’ chart with 38.28% and 19.78% gains respectively, closing at N0.39 and N26.95 per share on market forces. Note that there is no tangible reason behind the rally by the shares of Japaul rally since last year’s stalled acquisition bid. The gain by Julius Berger was due to its low price attraction after the market had earlier reacted to it seeming weak Q1 numbers. On the other hand, Goldlink Insurance and First Aluminum lost 18.18% and 12.5% respectively, closing at N0.36 and N0.42, on market forces after lifting its suspension and profit taking as the company proposed voluntary delisting.
During the week also, the prices of Newest ASL, Berger Paints, Wema Bank, and 11 Plc were adjusted for a dividend of 20kobo, 65 kobo, 3 kobo, and N8.25 respectively, as proposed by their directors.
Also, investors are already expecting the Q1 GDP ahead of President assent to the 2019 budget approved by the National Assembly.

Market Outlook
We expect the mixed performance to continue this week, despite the soft gains recorded in the first two trading sessions in May, we maintain a cautious outlook for this trading week as the gains were not triggered by any major catalyst. Hence, we advise investors to trade cautiously in the short-term. We must look to a positive trigger to sustain the seeming 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.
The sustained volatility will continue as investors and fund managers rebalance their portfolios, with eyes fixed on the political space and post-election market dynamics. Investors should review their positions in line with their investment goals, the strength of company numbers and act as events unfold in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value and allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain low in the midst of mixed company numbers, weak economic and market fundamentals.

Take Action
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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/2019/05/cautious-outlook-on-ngse-as-investors-await-buharis-economic-agenda/

NEXIM NPL Ratio Hits 91%, CBN Delays N500bn Fund

Indications at the weekend are that all may not be well at the Nigerian Export-Import Bank (NEXIM), following allegations of high-level fraud in the disbursement of loans by the former management team.
Sources within NEXIM and Price Waterhouse Coopers (PwC), the audit firm, pointed to several violations of laid down procedures, as reflected in the bank’s unprecedented Non-Performing Loan (NPL) ratio at 91% of its total loan book.
“That level of fraud within the system is perhaps why the CBN is yet to activate the N500bn Export Stimulation Fund set up to promote non-oil exports in Nigeria,” one of the sources lamented.

The ESF was last year revamped, using the Anchor Borrowers’ Programme model, just as the CBN introduced a N50 billion direct intervention funding for NEXIM, which Godwin Emefiele, the apex bank told journalists was to further the country’s economic diversification efforts. It was also to develop sources of foreign exchange, especially in the agriculture value chain and reduce the reliance on crude oil earnings.
“We want to encourage exporters with the N500bn Export Facility to increase the volume of export earnings that is routed back to the economy to help us grow the economy,” Emefiele had noted.

A forensic audit commissioned by the new board of directors, led by Dr. Okwu Joseph Nnanna, a deputy governor, who represents the interest of the Central Bank of Nigeria (CBN), had exposed different levels of procedural abuse at NEXIM.
According to one source, before Nnanna’s appointment as NEXIM board chairman in March 2018, its NPL stood at about N48.9bn, out of its total loan portfolio of N53bn far above its permissible 10% benchmark.

Investdata further learned that about 181 of 191 loans granted before Nnanna’s assumption of office were non-performing, even as a third of the supporting documents could not be supported or verified to justify the loan applications and subsequent disbursements.
It is part of a grand design to stop the unearthing of such monumental fraud perpetrated by the past management, close watchers of events at NEXIM believe that a group- Awareness for Good Governance Group (AGGG) recently called for the removal of as Nnanna as chairman.
The protesters, on Thursday, April 30, 2019, accused Nnanna of not being qualified to chair the NEXIM board, wrongly described him as “a former Deputy Governor (Economic Policies) at the CBN.”
Nnanna is still a serving DG of the apex bank.

Princess Ajibola, convener of the group had expressed regret at “the fraudulent and nepotistic crave of Dr. Nnana, who has soiled his already filthy hands with cans of worms without traces of professional approach and has proven to the world that he is not fit to occupy any public office; not even a treasurer of any hamlet developmental union much less of a reputed public treasury like NEXIM Bank.”

But reacting, NEXIM management had in a statement on Thursday dismissed the allegations as unfounded, misleading “and targeted at tarnishing “the reputation of Dr. Nnanna as well as diverting attention from the on-going efforts by the board to address cases of gross mismanagement and poor state of affairs of the Bank under the old management which had since been sacked by the government of President Muhammadu Buhari.”
The management also announced plans for a media briefing on the situation on Monday, May 6, 2019.

https://investdata.com.ng/2019/05/nexim-npl-ratio-hits-91-cbn-delays-n500bn-fund/

Investdata Price & Earnings Tracking For Week Ended Friday, May 3, 2019

https://investdata.com.ng/2019/05/investdata-price-earnings-tracking-for-week-ended-friday-may-4-2019/

Corporate Actions On NGSE As At Friday, May 3, 2019

https://investdata.com.ng/2019/05/corporate-actions-as-friday-may-3-2019/

MTN Applies to Nigerian Regulator for Share Listing

MTN Group Ltd. asked the Nigerian Securities & Exchange Commission for permission to proceed with a listing of its shares, according to two people familiar with the matter.

The company, Africa’s biggest mobile-phone company by subscribers, applied to the Abuja-based SEC for a registration of shares and a listing on the Nigerian Stock Exchange, said the people who asked not to be identified because they’re not authorized to speak publicly about the matter.

MTN appointed former Nigeria central bank Governor Lamido Sanusi to its board on Friday as part of the preparation for the listing and after the conversion of its Nigerian unit into a public company last week. The listing in Africa’s most populous nation is a condition of the settlement of a $1 billion regulatory fine three years ago.

https://www.bloomberg.com/news/articles/2019-05-03/mtn-is-said-to-apply-to-nigerian-regulator-for-share-listing

Investdata Weekly Sentiment Report as at May 6, 2019

NSEASI buy 15% sell 85% volume index 0.95 MFI 23.77
Access buy 80% sell 20% volume index 1.08 MFI 60.47
Afrprud buy � volume index 0.70 MFI 44.51
Aglev buy � volume index 0.94 MFI
36.00
Aiico buy 80% sell 20% volume index 2.11 MFI 71.48
Cadbury buy 57% sell 43% volume index 3.09 MFI 82.28
Caverton buy 57% sell 43% volume index 14.65 MFI 94.29
Ccnn buy � volume index 18.08 MFI 3.08
Chams buy 17% sell 83% volume index 1.69 MFI 100.00
Conoil buy 0% volume index 4.26 MFI 0.00
Cutix buy 10% sell 90% volume index 1.92 MFI 39.69
Dangcem buy 13% sell 87% volume index 0.77 MFI 44.43
Dangflour buy 0% volume index 5.41 MFI 79.32
Dangsugar buy 43% sell 57% volume index 0.97 MFI 52.95
Eterna buy 0% MFI 14.56
Eti buy 0% MFI 28.74
Fbnh buy � volume index 1.01 MFI 48.67
Fcmb buy 64% sell 36% MFI 40.81
Fidelity buy 25% sell 75% MFI 50.50
Fidson buy � MFI 75.72
Fmn buy 60% sell 40% volume index 0.74 MFI 23.97
FO buy 59% sell 41% volume index 1.75 MFI 57.93
Glaxo buy � volume index 2.31 MFI 42.80
GT buy 45% sell 55% volume index 0.71 MFI 50.13
Honyflour buy � MFI 33.99
Jaiz buy � volume index 0.98 MFI 72.74
Japaul buy � volume index 5.02 MFI 92.18
JBerger buy � volume index 1.38 MFI 81.38
Lasaco buy 50% sell 50% MFI 82.13
Lawunion buy 0% MFI 68.19
Linkass buy 80% sell 20% volume index 0.97 MFI 28.55
Lvstk buy 0% volume index 1.13 MFI 52.42
M&B buy � volume index 3.10 MFI 54.08
Mben buy � volume index 1.35 MFI 46.96
Mobil buy 18% sell 82% volume index 9.29 MFI 82.19
Nahco buy 0% MFI 31.42
Nascon buy 0% volume index 1.68 MFI 50.96
Nem buy 28% sell 72% MFI 56.48
Nestle buy 0% MFI 61.13
Oando buy 0% MFI 60.09
Okomu buy 0% volume index 2.08 MFI 33.44
Presco buy 0% MFI 28.79
PZ buy 0% MFI 45.73
Regalins buy 0% volume index 0.75 MFI 58.88
Royalex buy 0% MFI 67.04
Seplat buy � volume index 1.15 MFI 63.83
Sovereins buy 0% MFI 82.66
Stanbic buy 16% sell 84% MFI 48.71
Sterling buy 80% sell 20% MFI 88.14
Total buy 0% volume index 1.19 MFI 21.55
Transcorp buy 62% sell 38% volume index 2.00 MFI 57.87
Uacp buy � MFI 54.47
Uacn buy 79% sell 21% volume index 9.78 MFI 58.37
Uba buy 33% sell 67% MFI 45.84
Ubn buy 25% sell 75% MFI 82.93
Ucap buy 10% sell 90% volume index 0.81 MFI 20.52
Uniondac buy � MFI 45.90
Vitafoam buy 48% sell 52% volume index 0.74 MFI 34.27
Wapco buy 0% MFI 47.66
Wapic buy 25% sell 75% volume index 1.68 MFI 26.92
Wema buy 38% sell 62% MFI 55.89
Zenith buy 9% sell 91% MFI 51.68

https://investdataltd..com/2019/05/investdata-weekly-sentiment-report-as.html

THESE RELATIONSHIPS WON'T WORK!

1. FLIRY RELATIONSHIP: Unrepentant flirts with seductive messages don't build realistic relationships. It is a lust filled, dirty talking relationship with no single substance in it. End it before it ends your destiny.

2. GOSSIPPING RELATIONSHIP: If all you do when you are together is gossip, make jest of, criticize and condemn others, you are in a disastrous relationship going some where to happen.

3. NEGATIVE TALKING RELATIONSHIP where all you do is talk about every damn negative thing in your life and nothing positive whatsoever, that relationship will drag you backward and empty every energy you need to succeed in life. End it, before it ends you.

4. LIES FILLED RELATIONSHIP: No truth whatsoever! You tell lies, pretend and decieve each other with fake stories, reports, lifestyle and achievements that are out of this world. You pretend and lie a lot to gain acceptance from them and people!

5. LUSTY RELATIONSHIP: All you do here is talk dirty; sex chat, flirty chat, porn chat, video your private part chat, club, act dirty, have sex and only God knows what else you do together will ruin your destiny in capital letters, as in RUIN!

5. PURPOSELESS RELATIONSHIP: No purpose, just wasting and whiling away time. Every relationship should be defined at the beginning, if it has no bearing, you shouldn't be together in the first place.

6. GODLESS RELATIONSHIP where you never once talk about Jesus, pray together or encourage one another in the word except talk about useless, irrelevant things will throw you in hell!

It's one thing to know how to make friends, it's another thing to know which relationship is best for you to keep and the one to put an abrupt end to.

Not everyone can be your friend. If you want to become great in life and fulfil your destiny, you must practice Amos 3:3 and 2 Corinthians 6:14-18 with no apology, it will be great if you add Proverbs chapter 4:14-27 to it.

Select the people you walk with. The path of greatness is narrow, not everyone can walk with you.

My father in the Lord, Bishop David Oyedepo is fond of saying, "Those who walk, walk with many, those who run, run with few, those who fly, fly alone." If you want to soar high like the eagle, you need to do the needful. May the good Lord grant you understanding. Thanks for reading, God bless you, cheers!
© Seun Oladele, 2018; reposted, 2019.

May your SOUL MATE locate you this year!

CONTINUE, BIKONU!!!

Some men can do anything to win a lady's love, then change almost immediately the wedding service is over. They can do push up, push down, climb tree, act like a monkey, jump like a frog, dance, do dangerous acrobatic display, weep, promise heaven on earth, swear, faint, "die" , fall sick, do abracadabra to make her fall in love then after wedding and few more years, vooose! Everything disappears, I mean evaporate, vamoose with nothing left expect sex and payment of bills!

Whatever you do to get her before marriage, you must continue in marriage ooo or your wife will be lost. That friendly, always laughing at your jokes, very attractive, joyful, youngish, lively lady will be lost.

She married you because she liked your drama and hoped you will continue. Why did you stop? Were you deceiving her when you were chasing her?

If you were singing 5 love songs in courtship, you should sing 10 in marriage. If you used to take her out every weekend, you must continue in marriage. If you used to write 20 love letters per week, you better continue in marriage. If you bought her love with money, oga, make plenty of it and continue to buy it in marriage.

Bottom line, what you cannot finish, don't start. What you won't do, don't promise, what you cannot sustain, don't venture into it. Only do what you can honestly continue to do in marriage and get better at doing them. Hubby always showed me courtesy in courtship, he still does so and more in marriage. How would open the door and allow me to go in first, he still does so in marriage. You must follow the rules of simple courtesy and etiquette both in courtship and marriage!

Marriage can be lots of fun and bring immense joy and pleasure if couples will learn to chase, desire and do what they promised in courtship but it will be a big disappointment and a source of boredom if fun, friendship and romance is taken out of marriage.

Never stop courting each other in Marriage, continue, bikonu! You must CONTINUE!!!

Thanks for reading. God bless you. Cheers!
© Seun Oladele, 2019.

Investdata Daily Sentiment Report as at May 3, 2019

NSEASI buy 74% sell 26% MFI 51.97
Access buy 50% sell 50% MFI 82.37
Aiico buy 70% sell 30% volume index 2.10 MFI 92.84
Cadbury buy 0% volume index 3.05 MFI 71.52
Caverton buy 0% volume index 4.37 MFI 94.69
Ccnn buy � MFI 1.20
Chams buy 29% sell 71% volume index 0.83 MFI 96.56
Conoil buy 0% volume index 8.36 MFI 0.00
Dangcem buy 56% sell 44% volume index 1.44 MFI 31.70
Dangflour buy 44% sell 56% volume index 4.84 MFI 99.65
Dang sugar buy � volume index 0.77 MFI 76.91
Eti buy 0% MFI 55.41
FBNH buy 50% sell 50% MFI 43.43
Fcmb buy � volume index 0.89 MFI 71.10
Fidelity buy 0% MFI 52.92
FO buy 43% sell 57% volume index 5.64 MFI 55.50
GT buy 20% sell 80% volume index 0.87 MFI 54.82
Honyflour buy � volume index 0.88 MFI 41.77
Jaiz buy 0% volume index 1.24 MFI 40.14
Japaul buy � volume index 1.14 MFI 100.00
Linkass buy � volume index 2.01 MFI 46.48
Mben buy � volume index 1.85 MFI 64.74
Mobil buy � volume index 4.43 MFI 96.36
Nascon buy 0% volume index 0.82 MFI 22.25
Nem buy 0% volume index 0.72 MFI 90.47
Sterling buy � MFI 14.89
Total buy 0% volume index 2.93
Transcorp buy � volume index 2.22 MFI 80.77
Uacn buy 33% sell 67% volume index 2.86 MFI 60.50
Uba buy 25% sell 75% volume index 0.76 MFI 65.05
Ucap buy 0% MFI 33.45
Uniondac buy � volume index 2.53 MFI 45.06
Vitafoam buy � volume index 0.73 MFI 85.36
Wapco buy 50% sell 50% volume index 0.96 MFI 33.72
Wapic buy � volume index 2.59 MFI 19.12
Wema buy 50% sell 50% MFI 51.50
Zenith buy 25% sell 75% MFI 38.49

https://investdataltd..com/2019/05/investdata-daily-sentiment-report-as-at.html

Please Tell me if I got This Wrong

It is Ambrose Again,

"The biggest risk is not taking any risk... In a world that changing really quickly, the only strategy that is guaranteed to fail is not taking risks." Mark Zuckerberg

Over the years I have come to realize that taking risk is part of life. In fact, it is inevitable; giving birth to me and you as person was also a risk. I believe you know what I mean.

Unfortunately, many people don’t want to take risk. You want to sit on the fence and hope things will adjust. You can even go ahead and run under an excuse that it is fate. That is, what will be, Will be.

Well, I don’t really blame you for it because as a man thinketh in his heart so is he. This is exactly why the book of proverb says that you should guide your heart diligently out of it are the issues of life.

As a result, there are 3 basic reasons why people don’t take risk namely:

Over-caution: According to Murphy’s Law, if one thing can go wrong, then all things can go wrong. Life entails both happiness and disappointment. So, why are you waiting for the perfect time (a mirage) to take that action. Practically, disappointment is a free gift for everyone. So, get started Now!

Pessimism: You don’t want to tke risk because when other people are seen one reason your idea could go wrong, you are seeing 7 reasons. This will not take you any where in life no matter how hard you work.

Complaining: This is an economy Cancer of the bone. This can change your destiny for worse. A classical example is Marriage, a complaining spouse at all times will eventually make his or her spouse tired of the whole thing. Nobody can tolerate it for longtime.

Hence, if you currently indulge in such habit, please STOP NOW…

Dedicated to your Financial Success
Ambrose Omordion

Get the

1.ABC of Technical Analysis for Novice and Advance Trader Workshop Training Video.
2. Register for the Buying and Selling Signal Subscription.
Call Now 08028164085,08032055467

Weak Numbers May Impact Low Equity Prices, Amidst Hope For Fiscal Stimulus

Market Roundup for April 2019
Nigeria’s equity market had a negative outing in the month of April, suffering the worst monthly performance year-to-date, with the All-Share Index lost 6.06%, significantly higher than the negative position of 2.14% in the month of March on the back of the increasing selling volume. This reflected the low confidence and liquidity in the market and the economy at large.

This post-election stock market lull or bearishness was deepened by confidence crisis arising from the electoral process that short-lived the inflow of funds as smart money exited their position immediately the outcome of the election was opposite of their expectations. This led to 41.46% decline in Foreign Portfolio Investment inflow in March to N110.1bn as against February’s N188.1bn, as the high rate in fixed income market further reduced liquidity in the equity segment with the government continuing to borrow and dominate the market.
Also important is the weak corporate earnings that revealed weak economic fundamentals which continued from 2018 into the year 2019, despite the seemingly improved economic data.

The low consumer and investor confidence persisted during the month under review, despite the seeming rise in oil prices and sustained stable, as well as the robust foreign exchange market that had supported the Naira.
Recall that the February market rebound was due to investor expectations of strong 2018 full-year earnings season, just as the pro-market ideas with the hope that the main opposition Peoples Democratic Party (PDP) could emerge victorious in the elections were dashed. This was despite the seeming high dividend yield that triggered this prevailing pessimism and low liquidity on the NSE. This was in addition to the 2019 first-quarter earnings reports that were weak.

Meanwhile, in the 20 trading sessions of April, the composite NSE index oscillated to close lower after recording 12 trading days of the down market and eight sessions of upmarket for the period. The composite NSEASI for the month shed 1,881.68 basis points to close at 29,159.74bps, from the opening figure of 31,041.42bps, representing 6.06% decline over the period.
The sell volume of total transactions for the month was 83% while buying position was 17% to continue the previous months down market as volume index for the period was 1.16. Market capitalization for the month dropped by N713.38bn, closing significantly lower at N10.9tr from an opening value of N11.67tr. This represented 6.08% value depreciation, despite the listing of additional shares of Access Bank and Sahco by way of introduction after a successful Initial Public Offering. This was in the midst of negative sentiment in the midst of Q1 earnings season that continued due to weak numbers that were below market and analysts expectations.
The month’s traded volume was up by 26.22% at 8.28 billion shares from 6.56bn in the previous month.
The NSEASI’s year-to-date negative position stood at 7.22%, just as market capitalization decline by N762bn, representing 6.48% YTD loss from the opening value.

Market breadth for April was negative as decliners outpaced advancers in the ratio of 55:26 to continue the bear transition, despite the fact that over 68% of quoted company’s shares are undervalued, even with the recent weak and mixed numbers as prices are generally low as many are trading below price earnings ratio of 8.22x.
The sectoral performance chart below shows that the NSE Industrial Goods sector depressed the market the most in the period under review, losing 12.98%, compared to a loss by the benchmark NSEASI. It was followed by the NSE Consumers Goods, which shed by 5.78% to reflect gloomy economy and low purchasing power of Nigerians, making the April CBN Purchasing Managers’ Index figure of 57.7 points that indicated expansion in manufacturing sector for period a bit somehow as NSE Banking was next after shedding 5.51% ahead of NSE Insurance and Oil/Gas index, which declined by 3.74% and 3.40% respectively.


The month’s best performer was Chams Plc, which is finding its true market value following its recently announced three kobo dividend that was paid from removed debt, despite the company weak numbers. Chams closed the month better by a significant 150% of its opening price; followed by Dangote Flour Mills, which chalked 84.31% as a result of acquisition talk/offer by Olam International, despite the dwindling performance of the company (READ MORE); while Japaul Oil grabbed 65% due to market forces/sentiment; and First Aluminum, 56.67% purely market forces.
Low and medium cap stocks dominated the top gainers for the month, including Forte Oil, 27.44% low price and the entrance of new investor; Sovereign Trust Insurance, 20% proposed right issue; and Caverton, 19.28% strong Q1 numbers and 25 kobo dividend; among others.


The worst performing stock for the period was ABC Transport, which lost 43.4%, linked to market forces and profit taking. CCNN shed 29.65% due seeming weak Earnings Per Share and price correction; Union Diagnostic declined by 23.33% as a result of market forces; International Breweries, 23.08%; and Guinness Nigeria, 22.18% on the back of weak earnings power.


Where To Invest And expectations for May, June
The expected economic direction and recovery are tied to the government’s policy as the market looks to the constitution of a new cabinet in the month of May, as the new dispensation kicks off. Also, we expect more encouraging economic data as the 2019 budget was approved on Tuesday by the National Assembly and will be accented by the President. Investors are expecting a change in the implementation style of the government so that this huge budget can make impact in the economy and living standard of Nigerians, and at the same time complementing the Central Bank of Nigeria’s effort to boost productivity that will create jobs and sustain recovery.
Reasons for this are not far-fetched, given the relative peace and security in Niger Delta region, resulting in oil production stability, all of which would impact the nation’s revenue positively, despite the unstable oil price.

In May, we expect the release of the nation’s April consumer price index (CPI) by the National Bureau of Statistics (NBS), with inflation dropping further; just as the CBN’s PMI improved in April to 57.7%, indicating an expansion in the manufacturing sector for the 23thconsecutive month. The nation’s GDP is also expected this month and would confirm the true state of the economy.
With the Q1 earnings reporting season officially coming to close, just as the month of April and company fundamentals have come out relatively weak, leading to mixed numbers that kick-started the 2019 financial year, while providing a guide for investors to know where to seek returns depending on their investment horizon, especially as the May 29 inauguration date draws nearer.
Traders and investors who understand the importance of combining fundaments and technical analysis in making investment decisions in the stock market should take this opportunity to position in some sectors for medium and short-term gains, especially in banking, Industrial, services and conglomerates subsectors after a careful study of recent numbers made available to the market.

What to expect in May and June
• In the new month, the weak numbers are likely to impact equity prices because prices are already low waiting for positive stimulus to rebound and create wealth for discerning investors and traders.
• Expect few quarterly and full year earnings to hit the market. Earnings from blue-chip companies may strengthen market fundamentals if liquidity improves.
• Continuation of the oscillating trend of equity prices as a result of the repositioning of the portfolio along the line of positive numbers and profit taking. Also due to lack of direction, the second half of this year will be mixed sentiment.
• Market outlook for May is always dicey, in line with popular saying that traders always “sell in May and come back in October,” which may necessarily depress the market in May. But in the Nigerian market, however, this theory has been defiled five times over the past seven years when the market was up, contrary to the expected down market for the period. The approved 2019 budget with CBN’s readiness to sustain its intervention in the FX market; and with the nation’s external reserve still robust, there is a likelihood of improvement in liquidity if the rate is further reduced; and business activity ahead of the second half of the year improves.
• The sustained low valuation in the market may trigger high demand for stocks as the government rolls out its reform policies very soon. However, there is need to invest wisely, using value area of support and resistance, volume spike when taking decisions as a trader.
• Managing risk and protecting capital at this point is very important, to enable you to determine when to buy or sell, by watching the stocks and the market, using technical tools. Look for investdata daily sentiment report.
• Let numbers released by the companies guide your decision and time to stay in that position.
• Full-year earnings reports of March year-end companies will start hitting the market this month until June.

TAKE ACTION
As the market phase is changing, it is time to combine fundamentals and technical tools to take decision by knowing the value area which are the support and resistant levels to reposition or exit any position. You must know the cycle it, or particular stocks therein are to successfully manage your trading and investment risk. For stocks that should be on your shopping list to buy in these seasonal changes as the year unfolds, sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

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.
Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

https://investdata.com.ng/2019/05/weak-numbers-may-impact-low-equity-prices-awaiting-positive-stimulus-for-rebound/

Investdata Monthly Sentiment Report as at May 2, 2019

NSEASI buy 17% sell 83% volume index 1.16 MFI 14.63
Access buy 97% sell 3% volume index 0.92 MFI 12.59
Afrprud buy 76% sell 24% MFI 53.39
Aglev buy 0% volume index 1.72 MFI 29.25
Aiico buy 85% sell 15% MFI 45.57
Berger buy 0% volume index 0.83 MFI 26.74
Beta buy 0% MFI 76.30
Cadbury buy 82% sell 18% volume index 0.91 MFI 24.09
Cap buy 8% sell 92% MFI 49.64
Caverton buy � volume index 6.18 MFI 54.55
Ccnn buy 0% volume index 6.24 MFI 26.17
Chams buy � volume index 15.18 MFI 97.93
CIleasing buy 0% MFI 63.86
Conoil buy 0% MFI 8.15
Custodian buy 50% sell 50% MFI 70.94
Cutix buy 62% sell 38% volume index 3.36 MFI 71.65
Dangcem buy 28% sell 72% MFI 25.23
Dangflour buy � volume index 1.81 MFI 51.83
Dangsugar buy 35% sell 65% MFI 39.34
Eterna buy 31% sell 69% volume index 2.80 MFI 36.37
Eti buy 4% sell 96% volume index 1.20 MFI 18.70
Fbnh buy 27% sell 73% volume index 0.98 MFI 58.05
Fcmb buy 52% sell 48% MFI 17.74
Fidelity buy 56% sell 44% MFI 39.22
Fidson buy 42% sell 58% MFI 95.28
Falum buy 94% sell 6% volume index 2.00 MFI 68.93
Fmn buy 13% sell 88% MFI 35.94
FO buy � volume index 0.74 MFI 51.55
Glaxo buy 44% sell 56% volume index 0.74 MFI 38.83
GT buy 22% sell 78% volume index 1.15 MFI 22.75
Honyflour buy 10% sell 90% MFI 16.75
Jaiz buy 75% sell 25% MFI 31.88
Japaul buy � volume index 6.38 MFI 68.34
JBerger buy 89% sell 11% MFI 57.81
Lasaco buy 80% sell 20% volume index 2.49 MFI 53.42
Lawunion buy 0% MFI 60.28
Learn buy 48% sell 52% MFI 58.59
Linkass buy 40% sell 60% MFI 50.54
Lvstk buy � MFI 10.89
Mansard buy 33% sell 67% MFI 27.88
M&B buy 27% sell 73% volume index 0.89 MFI 48.57
Mben buy 33% sell 67% volume index 1.54 MFI 21.39
Mobil buy 71% sell 29% volume index 1.26 MFI 51.55
Nahco buy 25% sell 75% MFI 14.97
Nascon buy 5% sell 95% MFI 57.82
Neimeth buy � MFI.27.00
Nem buy 48% sell 52% MFI 86.28
Nestle buy 67% sell 33% volume index 0.97 MFI 50.95
Npf buy 79% sell 21% volume index 0.80 MFI 36.91
Oando buy 48% sell 52% MFI 42.79
Okomu buy 0% MFI 63.82
Prestige buy 0% MFI 58.52
PZ buy 32% sell 68% MFI 24.00
Regalins buy 60% sell 40% volume index 1.40 MFI 9.83
Royalex buy 67% sell 33% MFI 19.93
Seplat buy 67% sell 33% MFI 48.37
Sovereins buy 80% sell 20% volume index 1.65 MFI 57.64
Stanbic buy 5% sell 95% MFI 14.10
Sterling buy 93% sell 7% volume index 2.89 MFI 71.50
Total buy 0% MFI 46.52
Transcorp buy 35% sell 65% volume index 0.71 MFI 36.84
Uacp buy 94% sell 6% MFI 53.99
Uacn buy 42% sell 58% volume index 3.18 MFI 17.73
Uba buy 50% sell 50% volume index 0.97 MFI 19.14
Ubn buy 56% sell 44% volume index 3.41 MFI 70.81
Ucap buy 40% sell 60% MFI 47.46
Unilever buy 5% sell 95% volume index 5.17 MFI 40.72
Uniondac buy 33% sell 67% volume index 1.34 MFI 86.61
Unity buy 41% sell 59% MFI 22.52
Vitafoam buy � volume index 0.78 MFI 50.34
Wapco buy 32% sell 68% MFI 21.17
Wapic buy 67% sell 33% MFI 93.97
Wema buy 57% sell 43% volume index 5.78 MFI 16.18
Zenith buy 67% sell 33% volume index 0.80 MFI 24.15

https://investdataltd..com/2019/05/investdata-monthly-sentiment-report-as.html

Happy May Day and How are we doing?

It is Ambrose Again...

Work is an extension of personality. It is an achievement. It is one of the ways in which a person a person defines himself, measure his worth and his humanity. Peter F. Drukcer

Hence, we want to use this opportunity to hope that these month of May will will help you enjoy access to unlimited success and prosperity.

To ensure that we continue to serve you best, we need you to tell us how we are doing because we want to see through your eyes which will help us become better and better every day in every way.

So, click on the below link to tell us your rare and well appreciate feedback.

https://docs.google.com/forms/d/e/1FAIpQLSeBv_zeXmZmoman1oeih2ryXplMWCjm8CyrYVCF7Akui26lXA/viewform?usp=sf_link

Dedicated to Your Financial Success,
Ambrose Omordion

Happy May Day and How are we doing?

It is Ambrose Again...

Work is an extension of personality. It is an achievement. It is one of the ways in which a person a person defines himself, measure his worth and his humanity. Peter F. Drukcer

Hence, we want to use this opportunity to hope that these month of May will will help you enjoy access to unlimited success and prosperity.

To ensure that we continue to serve you best, we need you to tell us how we are doing because we want to see through your eyes which will help us become better and better every day in every way.

So, click on the below link to tell us your rare and well appreciate feedback. It won't take more than 2 minutes of your time.

https://docs.google.com/forms/d/e/1FAIpQLSeBv_zeXmZmoman1oeih2ryXplMWCjm8CyrYVCF7Akui26lXA/viewform?usp=sf_link

Dedicated to Your Financial Success,
Ambrose Omordion

*Happy May Day and How are we doing?*

It is Ambrose Again...

Work is an extension of personality. It is an achievement. It is one of the ways in which a person a person defines himself, measure his worth and his humanity. Peter F. Drukcer

Hence, we want to use this opportunity to hope that these month of May will will help you enjoy access to unlimited success and prosperity.

To ensure that we continue to serve you best, we need you to tell us how we are doing because we want to see through your eyes which will help us become better and better every day in every way.

So, click on the below link to tell us your rare and well appreciate feedback. It won't take more than 2 minutes of your time.

https://docs.google.com/forms/d/e/1FAIpQLSeBv_zeXmZmoman1oeih2ryXplMWCjm8CyrYVCF7Akui26lXA/viewform?usp=sf_link

Dedicated to Your Financial Success,
Ambrose Omordion

NGSE Outlook Mixed, As Investors Digest Q1 Numbers, Await 2019Q1 GDP, Budget Passage

Market Update for April 29
Monday’s trading activities on the Nigerian Stock Exchange (NSE) extended the bearish mood, into the week amidst caution by investors as the Q1 earnings season winds down to ushers in fresh opportunities for portfolio reshuffling and repositioning for the new month, bearing in mind the weak numbers and mixed performance posted so far.

It is expected at this point that market players are looking forward to various economic developments and individual equities’ fundamental positions and news, which are likely to keep the market in this oscillation wave until end of Q2 as the government prepares for a new dispensation. This is just as the 2019 federal budget has not been passed into law by outgoing National Assembly, barely one month to the end of its four-year lifespan.

We therefore recommend that traders should be fully abreast of both economic and individual equity’s fundamental developments as they combine fundamentals and technical tools in making their investment decisions.

The NSE benchmark All-Share Index opened for the day trading with slight upside movement, before coming down by the mid-morning to early afternoon, and then touched intraday lows of 29,476.29 basis points from its high of 29,813.37bps. It then retraced up, finishing the session at 29,521.06bps on bargain hunting for consumer goods and Insurance stocks like Dangote Flour Mills, Cadbury, Vitafoam, Nigerian Breweries, NEM, Aiico, Wapic, Veritaskapital Insurance and Regency Assurance.

Monday’s market technicals were negative and mixed with higher volume than previous day’s in the midst of flat breadth and selling pressure as revealed by Investdata’s daily sentiment report that shows a sell position of 84% and buy volume of 14% of the total daily transaction volume index of 0.74.
The momentum behind the day’s market performance was relatively strong but is looking down as shown by Money Flow Index of 51.94 points, from previous day’s 59.93bps, indicating a gradual exit of funds from the market as selloff hit blue chip stocks to reflect the Q1 earnings position of these companies.

Index and Market Cap
At the end of day’s trading, the NSE All-Share index lost 210.35bps, closing at 29,521.06bps, after opening at 29,740.41bps, representing a 0.74% decline, just as market capitalization fell by N82.44bn to N11.1tr from its opening value of N11.18tr, also representing 0.74% value loss.

Attention: Join Investdata buy and sell signal setup to get all our in-depth analysis of the picture and to get access to our carefully created watch list of stocks. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. The number of stocks on our watchlist has increased due to the prolonged market correction. Take advantage of this service to buy right and sell right during this Q1 earnings season and beyond.

The session’s downturn was driven by sell down in stocks like: Dangote Cement, Total Nigeria, Stanbic IBTC, Guaranty Trust Bank, Zenith Bank, UBA, UACN, Dangote Sugar, Oando, Eterna and Honeywell Flour, among others. This impacted negatively on the Year-to-Date loss, increasing it to 6.08%, just as market capitalization growth reduced to N626.21bn, or 5.34%, from the year’s opening level of N11.72tr.

Mixed Sector Indices
Sectoral performance indexes for the day were largely bearish, except for the NSE Insurance and Consumer goods that closed higher, while the NSE Industrial goods and banking indexes slipped 2.99% and 1.15% down respectively. Market breadth was slightly negative as decliners outnumbered advancers in the ratio of 26:25.

Market activities in volume and value were up by 18.26% and 42.65% respectively to 290.19m shares worth N2.16bn, as against previous day’s 240.16m units valued at N1.46bn. Volume was driven by financial services, service providers and oil stocks like Japaul oil, Caverton, UACN, Access Bank and FBN Holdings, as investors continued reacting to their Q1 numbers.

VeritasKapital Insurance and Dangote Flourmills were the best-performing stocks for the day, gaining 10% and 9.97% respectively and closing at N0.22 and N17.10 per share, on market forces and the ongoing acquisition offer by Olam International. On the flip side, CCNN and May & Baker lost 9.71% and 8.89% respectively, closing at N15.35 and N2.05, on seemingly weak Q1 earnings and market forces and the markdown for 20kobo dividend proposed by the board respectively.

Market Outlook
We expect the mixed performance to continue as market player digest Q1 numbers that had hit the market so far in the light of the expected 2019Q1 GDP and budget passage today.
Investors look to government’s policy direction as the market faces low liquidity problems in the ongoing Q1 earnings reporting season, vis-à-vis market and economic fundamentals.
Given the drop in the prices of major blue chips in recent times, creating entry opportunities, we expect speculative trading to shape the market direction going forward.
The volatility witnessed from last week until Thursday was driven by traders and investors repositioning ahead of Q1 corporate earnings from the major listed companies.

The ongoing volatility will continue as investors and fund managers rebalance their portfolios, with eyes fixed on political space and ongoing quarterly earnings position and post-election market dynamics. Investors should review their positions in line with their investment goals, the strength of the company numbers and act as events unfold in the global and domestic environment.

However, we would like to reiterate our advice that investors should go for equities with intrinsic value,
We advise investors to allow numbers to guide their decisions while repositioning in any stock, especially now that stock prices remain low in the midst of mixed company numbers, weak economic and market fundamentals.

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 successful, insightful and educative outing that not only offered direction as to where investors should look for a 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/2019/04/ngse-outlook-mixed-as-investors-digest-q1-numbers-await-2019q1-gdp-budget-passage/

NB Plc 2019Q1: Insurgency, Importation Cost, Low Purchasing Power

Company: NIGERIAN BREWERIES PLC (NB)
Rating: Hold
Current Market Price at Earnings Release: N64.00
Intrinsic Value: N75.03
Latest Cash Div: N1.83
Equity Analyst: Jeariogbe Tunde Segun

Key Financial Tickers:
• This report assessed the financial statistics of Nigerian Breweries for the first three months of 2019 and compared the same with the corresponding period of 2018 to established growth/decline where appropriate.
• All key financial indices reported show that performance during the quarter stood below that of the corresponding period of 2018.
• In other words, estimated ratios stemmed below that of the corresponding quarter.
• Safe for the Cost of Sales Margin that slightly improved, other observed Profitability Ratios in this report stood below corresponding quarter estimates.
Nigerian BreweriesPlcStrength
• NB is Nigeria’s largest brewing group, controlling over 60% of the country’s beer market.
• The Group has a well-diversified product portfolio comprising 26 brands.
• Beyond this is a wide geographical footprint (with nine breweries and two malting plants across the country).
• There is also its large distribution network and extensive customer base, run by an experienced management team.
• A further strength is operational and strategic support from its parent company, Heineken N.V. Global, a major global brewing group, with operations in over 70 countries.
• Nigerian Breweries Plc and Cross-Boundary Energy Limited recently signed a Solar Power Purchase Agreement for the installation and operation of a 650 kW solar plant located at its Ibadan Brewery. According to the management, the solar energy plant will become operational this year 2019.
• This landmark project is the first of its kind in Nigeria as it will supply 1GWh annually to the Ibadan Brewery at a significant discount to the current cost of power. It will also reduce the Brewery’s CO2 emissions by over 10,000 tonnes over the lifespan of the plant.
Challenges
• Although the giant brewer seems to be taking giant steps to significantly drive down its power challenges, including costs, following which it is imperative we mention that power instability is one major challenge faced by operators in the manufacturing industries
• High Cost of raw materials import is another tough point currently faced by the company
• This is not forgetting the widespread insurgency in key parts of the country, which has impacted the company’s sales revenue negatively.
• The low purchasing power is another major challenge facing the sale of Nigerian Breweries’ Products, around the country. Please understand that although the government is now positive on minimum wage increment, the plan to be more strategic and aggressive on tax collection will definitely take back the said increments, thereby affecting disposable income and consequently, purchasing power.
• In other words, the chances of Nigerian Breweries building performance indices might be slim at the moment. In our opinion, the same goes for others in this line of business and especially other manufacturers.


Corporate Figures
• At the end of the first three months of 2019, Nigerian Breweries built its revenue by a marginal 3.33% above that of a similar period in 2018. That is, current Revenue is estimated at N91.38 billion, as against N88.44 billion.
• A total of N8.11 billion was reported through the period as expenses on Excise Duty, up from the N5.47 billion expended in the similar quarter of 2018.
• Thus, Cost of Sales stood at N48.22 billion, as against N44.94 billion reported for the same item in the corresponding period of 2018.
• Gross Profit for the period, therefore, stood at N35.05 billion, compared to the N38.01 billion achieved in 2018 first quarter business activities.
• Having considered all operating expenses, Operating Profit stood at N14.05 billion, which is 20.42% lower than the N17.66 billion reported in 2018.
• Finance Cost was constrained through the period, as it only inched north by 2.83% to N21.15 billion compared to the previously reported N20.57 billion.
• Profit before Tax is estimated at N11.45 billion, which is exactly 24.86% below the N15.24 billion earned in 2018.
• In the same trend, Profit reported for the first three months of 2019 stood at N8.02 billion, below the N10.20 billion posted in its 2018 first-quarter report.


• Retained Earnings also dipped by 12.43% at the current value of N96.24 billion as against the N109.89 billion reported in 2018.
• Non-Current Assets inched marginally north by 2.34% at N300.88 billion, compared to N293.99 posted in 2018.
• Meanwhile, Current Assets inched south 14.89% up to N87.20 billion, compared to N102.45 billion last year.
• Boosted by various commercial papers during the quarter, the Non-Current Liabilities appreciated by 65.57% to N83.45 billion, up from N51.33 billion.
• Current Liabilities, on the other hand, dropped by 17.09% to N129.70 billion, compared to the N156.44 billion reported in 2018first quarter performance.
• On the strength of the above, Net Assets value fell by 7.29% at the reported N174.92 billion.

Liquidity/Risk Ratios
• Total Debt is currently estimated 1.22x the size of its equity, that is, Debt-Equity Ratio is currently 1.22x, this is far above the 0.70x industry average.
• At below unity Current Ratio, the firm could find it somehow tight to service its Current liabilities as and when due. The industry average is just one, signifying that such situation is common among its peers.
• Standing above unity, the estimated beta value of 1.09x confirms favorable investor patronage of the shares of Nigerian Breweries Plc.
• At 14.31x Interest Coverage, we can safely conclude that Nigerian Breweries Plc will easily service its interest yielding liabilities as and when due. This is a further confirmation of the safety of its various commercial papers.


Profitability Ratios
• Cost of Sales margin is currently estimated at 52.77%, which is 3.83% above the 50.82% estimated at the end of the corresponding quarter of 2018.
• Profit before Tax margin is 27.28% below the Q1-2017 estimate. The ratio is now estimated at 12.54% as against 17.24% last year.
• Profit Margin estimated for the year is 8.78%, same as 23.88% below the 11.54% margin achieved in 2018 first quarter.
• Return on Average equity is currently estimated at 4.59% below the 5.41% achieved in 2018.
• The return achieved on Average Assets is now 2.07% as against 2.57%.


Efficiency Ratios
• Testing the management’s efficiency, the Asset Turnover was gauged. The Ratio improved marginally by 5.56% from 22.31% to 23.55%.
• Also tested was the Equity Turnover, which currently stands at 52.25%, as against the 46.88% estimated in 2018.
• In other words, the equity was multiplied 2.22x through the quarter under review, this is 5.59% above the 2.10 times multiples achieved in 2018.
• It was also estimated that Fixed Assets turnover is the same as 23.55% above the 22.31% estimated in 2018.


Investment Ratios
• In a similar pattern to the company’s earnings reported above (since shares outstanding remains same), the estimated Earnings Per Share (EPS) is N1.00, same as 21.35% below the N1.28 estimated in 2018 first quarter
• The said earnings yielded 1.57% of the equity’s share price on the floor of the exchange as at the date the result was released to the investing public.
• Price Earnings Ratio remained on the high side at 15.94x, as against the previous 25.41x, which can equally mean high investor sentiments for the shares of Nigerian Breweries.
• Showing an overpriced position, the Price to Book value ratio is 2.93x, compared to the previously estimated 5.50x
• Further confirming this position is the estimated Book Value of N21.87.
• Operating Expenses Margin to Turnover is 23.15% this is 0.48% below the 23.26% estimated in 2018.


Valuation
• While trying to value the share price of Nigerian Breweries, we put into consideration the unstable growth rate of the dividend, the poor performance which will surely reduce the expected future returns from the firm. Thus, we explored the Dividend Discount Model Valuation model using 2-stage H-Model.
• We have valued each unit of Nigerian Breweries shares at N75.03

https://investdata.com.ng/2019/04/nb-plc-2019q1-insurgency-importation-cost-low-purchasing-power/

Investdata Daily Sentiment Report as at April 30th, 2019

NSEASI buy 14% sell 86% volume index 0.74 MFI 51.94
Access buy 75% sell 25% MFI 81.44
Aiico buy � volume index 2.30 MFI 77.68
Cadbury buy 57% sell 43% volume index 2.12 MFI 60.65
Caverton buy 17% sell 83% volume index 16.33 MFI 90.08
Ccnn buy 0% volume index 1.43 MFI 57.77
Chams buy � MFI 96.73
Dangcem buy 36% sell 54% volume index 2.36 MFI 38.48
Fbnh buy 0% volume index 0.79 MFI 45.90
Fcmb buy 88% sell 12% MFI 64.24
Fidelity buy 50% sell 50% MFI 54.61
Fmn buy 0% volume index 1.09 MFI 21.30
Fo buy � volume index 2.87 MFI 83.90
GT buy 29% sell 71% MFI 45.88
Jaiz buy 0% volume index 2.10 MFI 33.46
Japaul buy � volume index 4.57 MFI 100.00
JBerger buy 0% volume index 3.46 MFI 35.89
M&B buy 12% sell 88% volume index 3.04 MFI 40.23
Nascon buy � volume index 1.65 MFI 38.07
Oando buy 33% sell 67% volume index 0.84 MFI 54.30
Okomu buy � volume index 6.02 MFI 56.55
Regalins buy 50% sell 50% volume index 2.31 MFI 75.89
Sovereins buy � MFI 15.31
Sterling buy � MFI 66.23
Transcorp buy � MFI 72.63
Uacn buy 0% volume index 12.56 MFI 60.11
Uba buy 0% MFI 66.88
Ucap buy � volume index 0.95 MFI 30.67
Wema buy 17% sell 83% MFI 59.60
Zenith buy 11% sell 89% MFI 25.05

https://investdataltd..com/2019/04/investdata-daily-sentiment-report-as-at_30.html

NSEASI buy 0% volume index 0.80 MFI 30.63
Access buy 11% sell 89% volume index 0.73 MFI 63.01
Afrprud buy � volume index 0.73 MFI 43.81
Aglev buy 0% volume index 1.90 MFI 32.23
Aiico buy 75% sell 25% MFI 65.92
Berger buy 0% volume index 3.35 MFI 37.31
Cadbury buy � volume index 5.78 MFI 77.25
Caverton buy 74% sell 26% volume index 2.75 MFI 86.38
Ccnn buy � MFI 30.70
Chams buy � volume index 1.38 MFI 100.00
Conoil buy 0% volume index 1.21 MFI 0.00
Custodian buy 71% sell 29% MFI 80.66
Cutix buy � volume index 1.50 MFI 33.21
Dangcem buy 0% MFI 48.08
Dangflour buy � volume index 1.42 MFI 67.69
Dangsugar buy 0% MFI 60.01
Eterna buy 14% sell 86% MFI 17.39
Eti buy � MFI 34.34
Fbnh buy 0% MFI 56,15
Fcmb buy 0% MFI 44.31
Fidelity buy 40% sell 60% MFI 56.09
Fidson buy � MFI 60.29
Falum buy � volume index 4.18 MFI 69.77
Fmn buy 0% volume index 0.86 MFI 31.72
FO buy � volume index 1.38 MFI 36.04
Glaxo buy 60% sell 40% MFI 42.58
GT buy 47% sell 53% MFI 58.05
Honyflour buy � MFI 39.03
Jaiz buy � MFI 72.96
Japaul buy � volume index 14.55 MFI 89.24
JBerger buy 0% MFI 75.99
Lasaco buy 0% volume index 3.94 MFI 85.59
Lawunion buy 0% MFI 77.27
Lvstk buy � MFI 52.07
M&B buy 0% volume index 1.46 MFI 63.36
Mben buy 0% MFI 43.94
Mobil buy 0% MFI 64.30
Nahco buy � MFI 38.17
Nascon buy 0% MFI 55.13
Neimeth buy � volume index 0.89 MFI 41.78
Nestle buy 0% MFI 64.05
Npf buy � volume index 1.39 MFI 38.30
Oando buy � MFI 67.57
Okomu buy 0% volume index 1.06 MFI 40.54
Prestige buy 0% volume index 1.25 MFI 32.61
Regalins buy 0% MFI 64.17
Royalex buy � MFI 69.82
Seplat buy 92% sell 8% volume index 0.77 MFI 46.81
Sovereins buy � volume index 0.72 MFI 82.21
Stanbic buy � MFI 53.83
Sterling buy � volume index 0.79 MFI 89.81
Transcorp buy 57% sell 43% volume index 0.88 MFI 56.21
Uacn buy 29% sell 71% volume index 5.38 MFI 18.99
Uba buy 56% sell 44% volume index 1.12 MFI 50.63
Ucap buy � MFI 26.87
Unilever buy � volume index 6.90 MFI 49.19
Uniondac buy � MFI 51.33
Veritas buy 0% MFI 12.28
Vitafoam buy � volume index 1.51 MFI 29.50
Wapco buy 33% sell 67% MFI 44.35
Wapic buy 0% volume index 1.35 MFI 31.41
Wema buy 88% sell 12% MFI 55.83
Zenith buy 64% sell 36% MFI 56.40

Investdata Weekly Sentiment Report

Starting from Now, Using This Philosophy Will Transform Your Investment

It is Ambrose Again,

I could still remember when market crashed in 2008/2009 I blamed

1. The government
2. The economy
3. People's quick fix Mentality
4. Society at large
5. Government policies
6. Companies
7. Directors of different companies etc.

After several study and research, I found out that one thing is missing, one thing all other ones affect is not there.

As a result, I tore where I wrote this list and wrote one thing Me. Simply put, I am responsible for any result I am currently getting.

Besides, disappointment is a gift reserve for every single investor. However, it is your response that matters a lot.

For a better understanding, there were 2 investors that have been affected by a bearish Market. The first investor says this market is just going here and there. I will just withdraw my fund then wait until it gets better.

While the second investor will say that this is a window of opportunity for me to get the best out of the market.

Hence, you can see that the event (bearish Market) still remains the same but response is what differs.

My question to you now is how are you responding to the current bearish market? Are sitting on the fence like the first investor or you are taking action to learn more and seize the opportunity?

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https://investdataltd..com/2019/04/this-philosophy-will-transform-your.html

Investdata Weekly Sentiment Report as as April 29, 2019

NSEASI buy 0% volume index 0.80 MFI 30.63
Access buy 11% sell 89% volume index 0.73 MFI 63.01
Afrprud buy � volume index 0.73 MFI 43.81
Aglev buy 0% volume index 1.90 MFI 32.23
Aiico buy 75% sell 25% MFI 65.92
Berger buy 0% volume index 3.35 MFI 37.31
Cadbury buy � volume index 5.78 MFI 77.25
Caverton buy 74% sell 26% volume index 2.75 MFI 86.38
Ccnn buy � MFI 30.70
Chams buy � volume index 1.38 MFI 100.00
Conoil buy 0% volume index 1.21 MFI 0.00
Custodian buy 71% sell 29% MFI 80.66
Cutix buy � volume index 1.50 MFI 33.21
Dangcem buy 0% MFI 48.08
Dangflour buy � volume index 1.42 MFI 67.69
Dangsugar buy 0% MFI 60.01
Eterna buy 14% sell 86% MFI 17.39
Eti buy � MFI 34.34
Fbnh buy 0% MFI 56,15
Fcmb buy 0% MFI 44.31
Fidelity buy 40% sell 60% MFI 56.09
Fidson buy � MFI 60.29
Falum buy � volume index 4.18 MFI 69.77
Fmn buy 0% volume index 0.86 MFI 31.72
FO buy � volume index 1.38 MFI 36.04
Glaxo buy 60% sell 40% MFI 42.58
GT buy 47% sell 53% MFI 58.05
Honyflour buy � MFI 39.03
Jaiz buy � MFI 72.96
Japaul buy � volume index 14.55 MFI 89.24
JBerger buy 0% MFI 75.99
Lasaco buy 0% volume index 3.94 MFI 85.59
Lawunion buy 0% MFI 77.27
Lvstk buy � MFI 52.07
M&B buy 0% volume index 1.46 MFI 63.36
Mben buy 0% MFI 43.94
Mobil buy 0% MFI 64.30
Nahco buy � MFI 38.17
Nascon buy 0% MFI 55.13
Neimeth buy � volume index 0.89 MFI 41.78
Nestle buy 0% MFI 64.05
Npf buy � volume index 1.39 MFI 38.30
Oando buy � MFI 67.57
Okomu buy 0% volume index 1.06 MFI 40.54
Prestige buy 0% volume index 1.25 MFI 32.61
Regalins buy 0% MFI 64.17
Royalex buy � MFI 69.82
Seplat buy 92% sell 8% volume index 0.77 MFI 46.81
Sovereins buy � volume index 0.72 MFI 82.21
Stanbic buy � MFI 53.83
Sterling buy � volume index 0.79 MFI 89.81
Transcorp buy 57% sell 43% volume index 0.88 MFI 56.21
Uacn buy 29% sell 71% volume index 5.38 MFI 18.99
Uba buy 56% sell 44% volume index 1.12 MFI 50.63
Ucap buy � MFI 26.87
Unilever buy � volume index 6.90 MFI 49.19
Uniondac buy � MFI 51.33
Veritas buy 0% MFI 12.28
Vitafoam buy � volume index 1.51 MFI 29.50
Wapco buy 33% sell 67% MFI 44.35
Wapic buy 0% volume index 1.35 MFI 31.41
Wema buy 88% sell 12% MFI 55.83
Zenith buy 64% sell 36% MFI 56.40

https://investdataltd..com/2019/04/investdata-weekly-sentiment-report-as_29.html

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Speculative Trading May Shape NGSE’s Direction, Despite Seeming Negative Outlook

Market Update for the week ended April 26 and Outlook for April 29-May 3
Profit booking and price adjustment on the Nigerian Stock Exchange during last week helped to short-lived previous week’s bullish transition on the Nigerian Stock Exchange (NSE), in the midst of mixed sentiment as its benchmark All-Share index closed lower at the peak of the Q1 earnings reporting season.

The market’s continued mixed performance has weakened the recent seeming recovery move, with the bears winning the battle ahead of the new week, which ends the month of April, pushing the NSE index below the 30,000 basis points psychological line as other indexes closed lower on a high volume traded, which reflected sell-offs during the period.

The intra-week low of 29,740.40bps shows the bears are still in charge, just as Friday’s bearish move indicates that traders and investors are merely awaiting positive news, and indeed hints of the government’s economic policy direction that can drive economic activities and support development.
Despite the mixed economic data from the National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN), showing that 20.9m Nigerians are unemployed, just as the 2018 full-year and Q1 corporate earnings which have been uninspiring. There are also the dwindling consumer price index, interest rate marginal cut with both manufacturing and services Purchasing Managers’ Indexes expanded for Q1 and April, while stock prices try to recover from losses suffered before now

Dangote Flourmills was the biggest winner for the week, gaining 45.53%, as the company soared after its management announced that it will put the ₦130bn binding offer by Olam International to acquire its entire five billion issued share capital (READ MORE).
Although many investors have taken speculative positions on the basis of this announcement since it was first made on Tuesday to benefit from a possible capital appreciation, for the Nigerian equity market as a whole, we believe the major effect of this deal (when consummated) would result in the loss of ₦70.75bn approximately, being the contribution of Dangote Flour Mills, from the NSE market capitalization.
On the other hand, we anticipate a fair deal to the benefit of current shareholders of the company if the deal materializes.

Nonetheless, we advise speculative investors to be modest in accumulating the stocks as the principal terms of the offer, which will be conveyed in the scheme document, have not been released to guide the investing public. This news overshadowed last Wednesday’s listing of SAHCo Plc, which added N6.3bn to the NSE capitalization.

Movement Of NSEASI
In the four trading sessions of last week, arising from the Easter holiday recorded a mixed performance with two days of up and down sessions on selling pressure, due to weak Q1 numbers being released to the market.
Trading activities for the week opened on a marginally positive note on Tuesday with 0.01% gain, which was reversed on Wednesday due to profit taking, as the index lost 0.63%. On Thursday, it inched up 0.07%, on the strength of buying interest in undervalued stocks, before being sold down on Friday, losing 0.60%, which brought the week’s total loss to 1.15%, thereby reversing previous week’s 1.74% gain.

The advancers’ table for the period was dominated by low priced stocks as profit-taking hit blue-chip stocks due to weak Q1 scorecards that were below expectations. The selloff was evidenced in the sector indexes that closed in red, except the NSE Oil/Gas index that was up 0.48%, while the NSE Consumer index led the decliners’ side with 2.52%, followed by the NSE Insurance and Industrial goods indices with 0.90% and 0.71% respectively.

The momentum behind the week’s performance was weak, as revealed by the money flow index at 30.64 basis points, compared to 35.55bps in the previous week, indicating that funds are leaving the market. This was just as selling position stood at 100% for the period under review.

NSEASI Weekly Time Frame
The NSE All-Share index during the week pulled back on a high traded volume, while at the same time forming a double bottom and signaling an uptrend with negative sentiments, at a time Money Flow index is looking down. Also, the NSEASI is trading below its 20-Day Moving Average and MACD is set to breakdown the signal line that confirm full bearish trend.

Bearish Sectors Indices
All the sectoral performance indices were down, except for the NSE Oil/Gas that closed in green, while market breadth was negative with decliners outnumbering advancers in the ratio of 40:30, to halt previous week’s up market. Volume and value for the period were up by 44.84% and 32.02% respectively to 1.43bn shares worth N15.09bn, compared to previous week’s 988.86m units valued N11.43bn. The high volume confirms the impact of selling pressure as Q1 earnings season withdrew to a close next week and economic data relatively positive.

The best-performing stocks for the week were Dangote Flour and Japaul Oil, which led the advancers’ table with 45.33% and 40% gains respectively, closing at N15.55 and N0.28 per share on the proposed acquisition and market forces. On the other hand, Guinness Nigeria and May & Baker lost 19% and 13.4% respectively, closing at N48.65 and N2.25, as investors react to weak Q3 earnings reports released during the week and price adjustment for dividend.

During the week also, the prices of Total Nigeria, GSK, FBN Holding, May & Baker, Capital Hotel and Infinity Mortgage Bank were adjusted for a dividend of N14, 50 kobo, 26 kobo, 20kobo, three kobo and three kobo respectively, as proposed by their directors.
Also, investors are already expecting the Q1 GDP ahead of 2019 budget approval next week.

Market Outlook
We expect the mixed performance to continue this week as the end of month window dressing and trading account balance in the midst of expected budget approval and a new cabinet to drive the economy in the new dispensation. We must look to a positive trigger to sustain the recent 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.

The sustained volatility will continue as investors and fund managers rebalance their portfolios, with eyes fixed on the political space and post-election market dynamics. Investors should review their positions in line with their investment goals, the strength of company numbers and act as events unfold in the global and domestic environment.

However, we would like to reiterate our advice that investors should go for equities with intrinsic value and allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain low in the midst of mixed company numbers, weak economic and market fundamentals.

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/2019/04/speculative-trading-may-shape-ngses-direction-despite-seeming-negative-outlook/

Fidelity Bank Nets N5.9bn Q1 Profit, Despite 47.44% Impairment Charge Rise

Barely 24 hours to the annual general meeting where shareholders will consider its performance for the full year ended December 31, 2018, the board of Fidelity Bank Plc, on Thursday presented its unaudited financials for the first quarter ended March 31, 2019, showing that profit grew faster than earnings.

The profit rise despite the 106.76% rise in income tax expense, could have been more significant, but for the 47.44% increase in credit loss expense; even as fee and commission income rose 39.52%, while cost notched 11.4%; just as operating income soared by 348.56%.

Gross earnings rose by 11.81% from N43.33bn in the first quarter of 2018, to N48.44bn; despite the marginal 2.64% increase in interest and similar income from N37.68bn to N38.67bn; and expenses from N21.5bn to N22.9bn. Net interest income, therefore, stood at N15.77bn, down by 2.52% from N16.18bn.

Credit loss expense jumped to N1.04bn from N0.7m; resulting in net interest income after credit loss expense came to N14.74bn, down from N15.48bn, representing a drop of 4.78%.
Fee and commission income increased by 39.52% from N4.66bn to N6.5bn; fee and commission expense increased from N1.03bn to N1.14bn, up by 11.4%; just as other operating income stood at N2.49bn, compared to from N0.56bn; which was mainly the net foreign exchange gains of N2.25bn, up from N146m.

Net gains from financial assets at fair value rose by 78.62% from N0.44bn to N0.78bn; even as personnel expenses was constrained at N5.35bn from N5.07bn; depreciation and amortization increased to N0.99bn from N0.77bn. Other operating expenses by 11.56% from N9.28bn to N10.35bn; the bulk of which was the N2.191bn banking sector resolution cost, which climbed from N1.766bn; followed by the N1.299bn marketing, communication and entertainment cost which dropped from N1.35bn in 2018. Within the period, outsourced cost increased from N894m to N1.048bn.

Profit before tax climbed 33.96% up from N4.98bn to N6.67bn; and net profit by 28.36% to N5.94bn from N4.63bn; translating to earnings per share of 21 kobo, compared to 16 kobo in the corresponding first quarter of 2018.
On the balance sheet, total assets increased by a robust 26.39% to N1.87tr from N1.479tr, with loans and advances climbed to N966.254bn from N738.727bn; just as total liabilities increased by 28.31% from N1.3tr to N1.668tr, lifted by the N1.016tr customer deposits, which increased from N859.358bn. Shareholders inched 12.45% from N179.66bn to N202.03bn.

According to the segment analysis of the financials, revenue was driven primarily by retail banking, which contributed N22.325bn, compared to N21.352bn in the corresponding period of 2018; followed by N16.262bn, up from N14.256bn from corporate banking; while investment banking pooled N9.856bn, as against the previous N7.72bn in prior Q1. Net profit for the period was also helped by the retail banking, which contributed N3.136bn, up from N2.361bn; corporate banking added N1.624bn or N1.415bn; just as investment banking pooled N1.179bn, up from N851m.

https://investdata.com.ng/2019/04/fidelity-bank-nets-n5-9bn-q1-profit-despite-47-44-impairment-charge-rise/

Oando Nets N4.1bn Q1 Profit On Rising Costs, As Tax Expense Up 78.7%

Nigeria’s energy giant, Oando Plc, on Thursday presented its unaudited financials for the first quarter ended March 31, 2019, showing some promise for full-year, if the management would sustain the tempo, even as operating costs continue to pale the effects of rising revenue and ‘reversal of receivables’ for the period.

Revenue for the period, for example, rose by N17.463bn, or 11.56%, from N150.546bn in the 2017Q1 to N168.009bn; while the cost of sales rose by a faster N22.194bn or 18.1% to N23.209bn from N122.605bn. Gross profit, therefore, dropped by N4.732bn or 16.94% to N23.209bn, compared to the previous N27.941bn.

Other operating expense stood at N1.457bn, as against the N802.279m income; just as N9.951bn was recorded as the reversal of receivables, up from the N275.886m impairment in the corresponding Q1. Administrative expenses rose by about N1bn from N13.579bn to N14.603bn; resulting in operating profit of N17.1bn, which increased by N2.212bn or 14.86% from N14.888bn.

Management successfully contained finance costs at N10.694bn from N10.642bn; at a time finance income stayed flat at N2.491bn from N2.399bn; resulting in net finance costs of N8.202bn, down marginally from N8.242bn.

Profit before tax, therefore, stood at N8.77bn, improving by N2.264bn or 34.79% from N6.506bn from N8.77bn. Tax expenses however soared by N1.822bn or 78.74% from N2.314bn in 2017Q1 to N4.136bn; with net profit closing flat at N4.634bn, or Earnings Per Share of 42 from N4.191bn
A breakdown of the financials showed that supply and trading strategic business unit contributed the lion’s share of N122.638bn, followed from afar by exploration and production’s N42.225bn; while “corporate and other” added N13.146bn.

Most of the operating profit, however, was the N12.923bn from “corporate and other,” which also incurred N3.455bn net finance cost; followed by exploration and production, N2.681bn, as well as N4.623bn of income tax expense; and supply and trading, N1.495bn, as well as N1.495bn cost.
At the end of the period, “corporate and other” contributed N5.864bn to net profit, despite the N3.474bn tax expense; followed by N1.372bn from supply and trading, while exploration and production suffered N2.603bn net loss.

In 2018Q1, exploration and production contributed N9.468bn, while supply and trading posted N681.218m net loss; while was child’s play compared to the N4.595bn by corporate and other.

https://investdata.com.ng/2019/04/oando-nets-n4-1bn-q1-profit-on-rising-costs-as-tax-expense-up-78-7/

Investdata Daily Sentiment Report as at April 26th, 2019

NSEASI buy 46% sell 54% volume index 0.89 MFI 56.61
Access buy 0% MFI 82.83
Aglev buy 0% volume index 3.60 MFI 34.90
Cadbury buy � volume index 11.05 MFI 12.56
Caverton buy � volume index 1.82 MFI 51.68
Ccnn buy � volume index 1.19 MFI 71.35
Chams buy � MFI 97.97
Cutix buy � volume index 1.00 MFI 35.42
Dangcem buy 5% sell 95% volume index 0.82 MFI 50.80
Fbnh buy 71% sell 29% volume index 1.02 MFI 31.50
Fcmb buy 33% sell 67% volume index 0.73 MFI 63.11
Fidelity buy 0% volume index 0.91 MFI 52.89
Falum buy � volume index 2.38 MFI 97.85
Fmn buy � volume index 0.92 MFI 19.66
Fo buy � volume index 5.70 MFI 81.68
GT buy � MFI 51.71
Honyflour buy 0% volume index 3.05 MFI 29.91
Japaul buy � volume index 9.80 MFI 100.00
JBerger buy 0% volume index 3.67 MFI 0.00
Lasaco buy 0% volume index 3.94 MFI 46.74
Mben buy � MFI 95.50
Npf buy � volume index 4.92 MFI 72.07
Oando buy � MFI 59.30
Sterling buy � MFI 55.34
Transcorp buy 69% sell 31% volume index 2.11 MFI 71.86
Uacn buy 0% volume index 5.30 MFI 4.80
Uba buy 0% MFI 63.78
Ucap buy 0% MFI 22.36
Wapic buy 0% volume index 3.64 MFI 55.20
Wema buy 50% sell 50% MFI 25.18
Zenith buy 75% sell 25% volume index 0.77 MFI 21.83