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Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 2:21pm On Apr 07, 2018

Post-MPC: Investors Eyes On Q1 Earnings, GDP Data For Nigeria’s Economic Health

At last, the Central Bank of Nigeria’s all-important Monetary Policy Committee (MPC) ended its first two-day meeting of the year Wednesday, with investors likely to focus their gaze on the expected first quarter earnings of companies, as well as GDP and inflation data that would confirm Nigeria’s Economic wellbeing.

The stock market’s benchmark indicators suffered another slip for the day, with the index dropping at the opening session, a situation that lingered till afternoon in expectation of the outcome of the MPC meeting, the first for the year(READ). There was however a rally back to resistance few minutes to the close of trading, as the losing momentum reduced when it became evident that the committee members voted to leave the rates unchanged. Trading today and the coming days would however either validate that belief or show whether it was mere happenstance.

The members had considered the uncertainties within the socio-political environment, particularly inflation and heavy spending that would accompany the coming general elections and other happenings in the developed economies and markets, especially UK and the U.S. However, Nigeria’s benchmark market index moved from a low of 40,512.27 to intraday high of 40,855.83, before closing up at 40,749.84. This monetary stimulus-driven economic recovery could support more inflow of capital. However, foreign investors cannot be predicted since their funds are for different purposes and these fund managers have a limit of exposure for different markets.

As we said back in January, after the market had experienced an up trend in 2017 which continued into the early sessions of this year, knowing that stock markets do not go in just one direction. With that in mind, we should expect to have dips along the way, especially in a pre-election year as this, despite the ongoing economic recovery and bull market that ushered investors into 2018.
In the history of Nigeria’s stock market, the benchmark index has had an average 10-12% decline once a year. A correction here would be healthy and set the table for hotter company earnings, as well as market and economic growth to ultimately drive returns for the year. More of that could come after the 2019 election if the economic recovery and growth path are sustained.

The market has had more than 10% decline from this year-high already, and we expect to have a little V-shaped recovery before the political environment become more tensed ahead of the general elections. Expectations are that the passage of the 2018 budget into law soon and its faithful implementation thereafter will bring about monetary and fiscal stimulus-driven economic recovery. Happenings in the coming weeks would also validate the impact of the monetary and fiscal authorities on the system.

Despite, the mid-week’s mixed market technicals, traded volume was high on a buying pressure of 69%. Market breadth was however negative as investor sentiment was strengthened going by the buying position of 69% and selling volume of 31% on a volume index of 0.79 of the day total transaction. Money flow index side-trended at 23.54 points from the previous day’s position of 23.43 points.
More companies in readiness of releasing their Q1 earnings reports, notified the exchange of their closed period for Q1 numbers, while investors and traders continued to use the qualification and markdown dates for audited 2017 full-year financials to position for dividend income in the face of a declining market.

Indexes Side Further
At the end of the day, the composite NSE All-Share index shed 105.78 points to close at 40.749.86 basis points after opening at 40,855.64bp, representing a 0.26% decline on a relatively low volume that was higher than the previous day’s. Similarly, market capitalisation for the day went down by N38.21bn to close at N14.72tr from an opening value of N14.76tr, which represented 0.26% depreciation in value, that further dragged investors positions into red.

The second consecutive day of down market was as a result of price adjustment in Zenith Bank shares due to the N2.45 final dividend proposed by the directors for the 2017 financial year, as well as profit taking in low, medium and high cap stocks like Dangote Flour, Honeywell, Flourmills and Double One. These impacted negatively on the NSE’s Year-To-Date returns, as it contracted to 6.55%, just as market capitalisation gains for the period reduced to N1.16tr, representing 7.98% YTD growth.

Sectoral performance for the day was mixed, as the NSE Industrial and NSE Oil/Gas were up, while NSE Banking, NSE Insurance and NSE Consumer goods closed lowerand in the same direction as the benchmark index. Market breadth for the day remained negative with decliners outweighing advancers in the ratio of 26:18.
Market activities were up in volume and value by 9.79% and 8% respectively at 401.41m shares worth N6.77bn from the previous day’s 365.72m units valued at N6.28bn.

Transaction volume was boosted by financial services stocks like: FBNH, Zenith Bank, Fidelity Bank, Access Bank and Guaranty Trust Bank, which witnessed increased trading to top the activity chart.
The best performing stocks for the trading session were LASACO and Fidelity Bank, that topped the advancers’ table after gaining 5.88% and 5.76% respectively to close at N0.36 and N2.57 each. This may signal the appreciation of Lasaco’s performance and dividend proposition, while anticipating equally robust earnings by Fidelity Bank. On the reverse side, Dangote Flour and Multiverse were the worst performers, after losing 9.54% and 9.09% to close at N13.75 and N0.20 respectively on below expected dividend and market forces.

Market Outlook
Following the outcome of the MPC and low-price attraction, expect the ongoing volatility to continue, ahead of Q1 scorecards and economic data, even as investors position for the short and long term on the strength of company fundamentals and the expected Q1 numbers.
However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing.

We advise investors to allow numbers guide their decisions while repositioning for the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. A stock market is in cycles. 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.

Get your home study pack of the INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy, thereby ensuring that you invest and trade with knowledge. You can also access stocks analysed in the home study pack of the Chart Summit held on February 24, 2018, including the 15 stock-picks for 2018 are available now to guide your positioning as trading for the year.
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and TV set. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.
Investdata Trading and Investing education train move to Abuja on April 14, 2018, at Chida International Hotel, Plot 224 Solomon Lar Way, Utako District. Abuja. Time is 10.00am.

Abuja Workshop
Theme: “The Power of Fundamental and Technical Analysis In Protecting your Capital In Pre-Election Year and Beyond”, holding on 14th April, 2018.

You would learn from our team of experts/analysts:
1. ABC of Technical Analysis for trading Equity Market and other
2. The 3 Simple trading secrets that can help anyone succeed in equities investing
3. The tenets of stock trading and investing Using TA
4. Trading and investing strategies that will help you manage your risk, protect your capital and profit from market oscillation.
5. Self-online trading.
6. The psychology of trading and investing and how it will make you successful.
7. The simplest way to predict when time will meet price, which is the optimal trading point
8. The high value of Investdata buy and sell signal in a down or up market, even when it DOESN’T work.

While access to the workshop is free, you are required to purchase a minimum N5,000 worth of INVESTDATA comprehensive stock market trading materials to enhance your knowledge of equities for profitable investing. For more details, call or send YES to 08032055467, 08028164086 or 08111811223.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2018/04/post-mpc-investors-eyes-q1-earnings-gdp-data-nigerias-economic-health/

Adverts › Re: Get Paid Posting Threads, Replies and Blog Comments by ACAN(m): 2:12pm On Apr 05, 2018

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Smile ville properties limited
Office address :suite 34 ikosi shopping mall ikosi Lagos, 32 tinubu road oke sokori Abeokuta Ogun state.
Contact person: isibor Sunday
Position of contact person : CEO/MD
Phone numbers: 07039265440, 07016252820, 07067680456
Email info@smilevilleproperties.com
Website: www.smilevilleproperties.com

Business To Business › Re: Introduce Your Business to all over world free of cost by ACAN(m): 2:12pm On Apr 05, 2018

Business To Business › Re: Introduce Your Business by ACAN(m): 2:11pm On Apr 05, 2018

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Adverts › Re: Get Paid Posting Threads, Replies and Blog Comments by ACAN(m): 12:57pm On Apr 05, 2018

ABOUT US
Transwalk Interior is an interior and exterior design company with expertise in residential, commercial, and hospitality projects based in Osapa London, Lekki, Lagos, Nigeria. Transwalk interior was established in 2002 but incorporated in March 2012 by Chinyere Udeagbala who has become a prominent expert in the industry. Transwalk Interior combines extraordinary talent and experiences to create spaces that can be as “cutting edge” or “timeless” as the exceptionality of each of its Clients.

Our mission is simple: To develop interior and exterior design experiences that are distinctive, compelling and of superb quality and individuality.

Transwalk Interior
Office Address : Plot 2, 5th avenue Osapa London, Lekki, Lagos, Nigeria.
Contact Person : Chinyere Udeagbala
Position : Marketing Manager
Phone : 08188883125, 08188883124
Email : info@transwalkinterior.com
Website : http://interior.transwalkintl.com/

Business To Business › Re: Introduce Your Business to all over world free of cost by ACAN(m): 12:56pm On Apr 05, 2018

Business To Business › Re: Introduce Your Business by ACAN(m): 12:55pm On Apr 05, 2018

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 6:17pm On Apr 04, 2018

INVESTDATA TRADING AND INVESTING EDUCATION TRAIN MOVE TO ABUJA

Investdata Trading and Investing education train move to Abuja on April 14, 2018, at Chida International Hotel, Plot 224 Solomon Lar Way, Utako District. Abuja. Time is 10.00 am

Theme“The Power of Fundamental and Technical Analysis In Protecting your Capital In Pre-Election Year and Beyond”, holding on 14th April, 2018.

What to learn from our team of experts/analysts at the workshop are:

1. ABC of Technical Analysis for trading Equity Market and other

2. The 3 Simple trading secrets that can help anyone succeed in equities investing

3. The tenets of stock trading and investing Using TA

4. Trading and investing strategies that will help you manage your risk, protect your capital and profit from market oscillation.

5. Self-online trading.

6. The psychology of trading and investing and how it will make you successful.

http://investdataonline.com/abuja/

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 6:15pm On Apr 04, 2018

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 6:08pm On Apr 04, 2018

Strong Investment Ratios, Juicier Reward For Shareholders

CCNN: Strong Investment Ratios, Juicier Reward For Shareholders
Company: Cement Company of Northern Nigeria (CCNN)
Rating: Buy
Current Market Price: N19.65
Intrinsic Value: N25.17
By: Jeariogbe Tunde Segun (Equity Analyst)

Key Financial Tickers:
· Our analysis is chiefly based on the financial performance of CCNN by the full-year 2017 performance statistics. Although, comparisons were made Quarter-on-Quarter to establish growth and sustainability of improved performance and to also project the firm’s income expectations for the first quarter of 2018.
· According to information contained in the released financial report under review, the management of CCNN proposed N1.25 cash dividend for the reported year (an improvement over the no cash dividend of 2016). In fact, the last time the directors paid a dividend was the N0.10 of 2015 financial year.
· Details of the said dividend was not readily available as at the time of compiling this report.
· Meanwhile, the said cash dividend is 48.72% of the company’s earnings for the year.
Cement Company of Northern Nigeria (CCNN)
Bourse
Nigerian Stock Exchange
Code Name
C C N N
Market Classification
Main Board
Nature of Business
Cement Manufacturing & Marketing
Date of Incorporation
August 15th 1962
Date Listed
October 4th 1993
End of Accounting Year
31st December
Website
www.sokotocement.com
Registrar
AFRICA PRUDENTIAL REGISTRARS PLC
Auditor
Gbenga Badejo & Co.
EPS (MRQ)
2.57
INTRISINC VALUE
25.17
Share Price (N)
19.65
Share Outstanding
1,256,598,864
Market Capitalisation
24,692,167,678

The Strength
· The company operates in a sector with huge growth potentials. The infrastructure gap in the country is evident in the poor road network, insufficient housing units for the rapidly growing population and inadequate infrastructure. The abundance of the sector’s primary raw material (lime stone) in the country is equally a major incentive.
· Strong presence in the North Western space: If CCNN continues to consolidate on its near monopolistic advantage in Nigeria’s North West geo-political zone, without playing for size with its bigger competitors, then its revenue is sustainable. Please note that the company’s revenue growth has been estimated at 11.47%.
Corporate Figures
· It is indeed an impressive performance over the released figures for the full year ended 31st December, 2016.
· Sales figure improved by 39.05% from the N2.463 billion in 2016 to N3.133 billion in the year under review.
· Operating profit soared above previous year by 133.98% from N4.226 billion to N14.087 billion. Further impacting this figure was the appreciable adjustment in the Cost of Sales (CoS) Ratio. The company spent 61.17% of its sales as CoS, an improvement from the 72.06% of 2016.
· Operating Expenses Ratio on the other hand grew above the previous year’s. Please note that the Opex to Sales ratio of CCNN increased to 17.77% from 72.06%.
· Both Profit before and after Tax grew outstandingly by 141.49% and 157.13% respectively.
Cement Company of Northern Nigeria (CCNN)
Financial Positions
2017(000)
2016(000)
%CHG
Cash and Cash Equivalence
3,133,663
2,463,485
27.20
Sales
19,588,260
14,087,553
39.05
EBIT
4,226,852
1,806,500
133.98
PBT
4,203,153
1,740,522
141.49
PAT
3,223,853
1,253,805
157.13
Total Comp. Income
2,918,934
1,474,171
98.01
Retained Earnings
10,173,690
6,949,836
46.39
Non Current Assets
12,325,166
10,531,183
17.03
Current Assets
12,323,509
9,499,038
29.73
Total Assets
24,648,675
20,030,222
23.06
Non Current Liabilities
3,070,514
3,034,968
1.17
Current Liabilities
7,165,954
5,501,981
30.24
Total Liabilities
10,236,469
8,536,950
19.91
Net Assets
14,412,206
11,493,271
25.40

Liquidity/Risk Ratios
· CCNN’s Debt to Equity looks cool at 4.4%, far below the industry average of 17.25%. Nevertheless, the management can still do with more debt to finance activities, a situation that will help achieve and even outperform its sustainable growth rate.
· The Current Ratio is equally acceptable at 1.76x, though the index is below the industrial average.
· The beta value is estimated at 1.72, well above the industry average of 1.43, which confirms the activeness and liquidity of its shares on the floor of the exchange. Working with the industry average, we can safely confirm that it is far more active than industry peers.
· At Interest Coverage of 1.63x the firm holds enough muscle to push through its finance expenses. Nevertheless, judging by the industrial average, few of its industry peers are stronger in this regard.
Liquidity/Risk Ratios
CCNN
Industry
%CHG
Debt to Equity Ratio
4.40%
17.25%
-74.49
Current Ratio
1.76
2.36
-25.42
Beta
1.72
1.43
20.28
Interest Coverage
1.63
23.08
-92.94

Profitability Ratios
· Typical of its industry, CoS margin is measured at 61.17%, lower than the 2016 estimate.
· Both Profit before and after tax margins are fair at 21.46% and 16.46% respectively, especially since this ratio are an improvement over the previous year’s.
· Compared to prior year, Return on Average Equities and Assets doubled at 22.37% and 13.08% respectively.
Profitability Ratios
2017
2016
%CHG
Cost of Sales Margin
61.17%
72.06%
-15.10
PBT Margin
21.46%
12.36%
73.67
Profit Margin
16.46%
8.90%
84.92
RoAE
22.37%
10.91%
105.05
RoAA
13.08%
6.26%
108.95

Efficiency Ratios
· Generally, the management of CCNN could be rated high considering the impressive ratios estimated from its financials below.
· Total Assets Turnover increased to 79.47% from 70.33% last year
· The Turnover figure replicated what Equity 1.36x above 1.23x achieved last year
· Meanwhile, it was also established that the Total Assets of the firm can replicate the Equity’s 1.71x, slightly below the 1.74x achieved in the comparable year of 2016.
Efficiency Ratio
2017
2016
%CHG
Total Asset Turnover
79.47%
70.33%
12.99
Equity Turnover
1.36
1.23
10.89
Equity Multiplier
1.71
1.74
-1.87
Fixed Asset Turnover
1.59
1.34
18.81

Investment Ratios
· Growing by 157.13% over the 2016 estimate, the amount earned during the one-year financial operation (2017) of CCNN is currently N2.57 as against N1.00.
· Similarly, the Total Comprehensive Income per unit of CCNN soared by 132.81% as it moved to N2.32 from N1.00
· Despite the strong positive revaluation by investors before the release of this result, the said earnings yielded 13.68% of the current market price of N18.75 (as at the released date), although this is a lower yield when compared to the 21.23% achieved last year when the price was N4.70
· It should be noted however that the equity is currently trading at 17.32% above its Book Value of N11.47
· The N1.25 cash dividend declared is 48.72% of the amount earned per share during the 2017 financial year, hence we have estimated CCNN’s Sustainable Growth Rate (SGR) at 11.47%.
Investment Ratios
2017
2016
%CHG
EPS
2.57
1.00
157.13
TCIP/SHARE
2.32
1.00
132.81
Earnings Yield
13.68%
21.23%
-35.55
P/E-RATIO
7.31
4.71
55.15
P/BV
1.6348
0.5139
218.14
BVPS
11.47
9.15
25.40
Opex Margin
16.46%
0.09
84.92
DIVIDEND DETAILS
Dividend/Share (N)
1.25
-
#DIV/0!
Payout Ratio
48.72%
0.00%
#DIV/0!
Sustainable Growth Rate
11.47%
10.91%
5.14%

Valuation/Recommendation
Our valuation explored the constant perpetual growth rate model where we discounted by 11.4% using the sustainable growth rate of 11.47%, we arrived at an intrinsic value of N25.17 for each unit of CCNN.
On the strength of the above and other strong improvements established through the financials of CCNN, we rate the stock a Buy.

https://investdataltd..com.ng/2018/04/strong-investment-ratios-juicier-reward.html

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 6:04pm On Apr 04, 2018

CORPORATE ACTIONS FOR APRIL 2018

https://investdataltd..com.ng/2018/04/corporate-actions-for-april-2018.html

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 6:02pm On Apr 04, 2018

INVESTDATA PRICE & EARNINGS TRACKING FOR MARCH 29 2018

https://investdataltd..com.ng/2018/04/investdata-price-earnings-tracking-for.html

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 6:01pm On Apr 04, 2018

INVESTORS TRADE N136.24BN WORTH OF NIGERIAN EQUITIES IN MARCH 2018

Equities’ trading on the Nigerian Stock Exchange for the month of March recorded a total of 10.166bn units valued at N136.241bn in 103,441 deals, representing an 14.88% drop and 28.49% rise from the 11.944bn shares exchange in the month of February for N106.025bn respectively in 112,118 deals during the month of February.

The financial services sector accounted for 5.74bn units worth N54.064bn, buoyed by the 4.005bn units of N50.264bn in 29,981deals, with 1.69bn shares of Access Bank accounting for N21.21bn in 4,844 deals, compared to the 8.437bn shares of the sector exchanged for N39.933bn in 55,075 deals. Sterling Bank 1.876bn changed hands for N4.836bn in 1,624 deals; just as Guaranty Trust Bank’s 262.801m traded for N12.524bn in 5,597 deals.

Market Roundup for Q1 2018
At the end of the first quarter of the year, Nigeria’s equity market continued to look up despite the recent technical correction that had shaken many investors and traders out of their position, slowing down market momentum since February after an unprecedented rally in January that changed the January effect, closing the last trading session of the 63-day period on a positive note as fund managers engaged in quarter-end account balancing.

Activities in the quarter under review was up, amidst mixed sentiments due to the combination of positive macro-economic data, stronger corporate earnings and growing consumer confidence and despite the socio-political instability, the nation’s rising debt profile and the government’s unclear economic reforms programme.
One factor that has been noticed over the past recent weeks is the failure of the market to react positively to the otherwise impressive 2017 full year earnings reports, which have been accompanied by high dividend payouts and yields. It is also noteworthy that major market players continue to sell down in the name of profit taking because they had factored in these numbers into their stock pricing before now, given that the stock market is a discounting machine that prices the future of a company into the present.

Nigeria’s case is seemingly not peculiar, given the continued decline of equity market indicators in the international markets, due to technical shake up of global economies and markets, despite the oscillating crude oil price over the period from $70.44 in January, down to $65 per barrel in February before ending the quarter at $69.10 near its 52-week high.
Meanwhile, despite its slide in recent weeks, the composite NSE All Share Index for the first quarter of the year still gained 3,261.32 points to close at 41,504.51 points from the opening level of 38,243.19 points, representing 8.53% growth on a huge volume of 42.87bn shares traded by market players, from previous quarter’s 23.26bn shares traded. Within the period however, the market index touched a high of 45,321.82 basis points and a 37,646.88 low to reveal the high level of volatility within the period.

The buying volume of total transactions for the period was 45%, while selling position was 55% to continue the fourth consecutive quarter of bullish transition.
Similarly, market capitalisation for the period was up by N1.38tr to close higher at N14.99tr, from an opening value of N13.61tr, representing a 10.14% value gain, in an earnings season with mixed sentiments. This is despite the relatively stable and recovering business environment, but the massive sell offs in February and March sent shock waves to the market ahead of the 2019 election year, regardless of the improving companies, market and economic fundamentals. Market capitalization for the period was supported by the listing of additional shares of some companies at the end of their recent concluded right issues. The new listings made the effects of the price adjustments for dividend declared recently on the market capitalization to pale into insignificance.

The better-than-expected corporate earnings released, especially towards the end of the quarter did not impact equity prices and market fundamentals, as there seemed more negative sentiment than positive reactions to the companies reported impressive numbers that had supported higher yields before now despite the relative high valuations in the market.
It is however, good to mention that the continued intervention by the Central Bank of Nigeria (CBN) in the interbank segment of the foreign exchange market has supported the Naira’s stability against major currencies and driving national output. This has closed the gap between the interbank and black-market rates, stabilizing prices and controlling imported inflation, just as consumer price index fell for the 13th consecutive months to 14.33% in February, to reflect the impact of monetary authority in its bid to ensure price stability and drive economic growth and development.

Meanwhile, market breadth for the period remained weak and mixed as the number of advancers outpaced decliners in the ratio of 48:31 to continue the bull market in the face of price correction to continue its fourth consecutive quarters of bullish run from three quarters in 2017.
As shown in the sectoral performance chart below, the NSE Premium, NSE Pension, NSE Industrial and NSE Banking influenced the market the most in the quarter under review. The Premium index gained 15.05%, more than double the gain by the NSEASI, followed by Pension index’s 14.84%, while NSE Industrial rose 10.96%. Other sectors that were up during the quarter included Banking, Insurance, Consumer goods, Oil and Gas. On the flipside, the only sector that was down on the quarter was NSE AseM, which shed 9.09%.

Sectorial Indexes First Quarter Performance

The tables below list the best and worst performing stocks during the quarter. Of the 31 stocks that suffered various levels of decline, 10 lost over 13% of their share prices, while low priced stocks, particularly insurance companies dominated the decliner table. FTN COCOA was the biggest laggard after shedding 56.52% due to impact of market forces and implementation of new price rule on the exchange that allowed share prices to fall below the previous 50 kobo per value.
The agribusiness company was followed by Multiverse with 54.17%, which has not faithfully kept to the NSE post-listing requirements before ongoing market forces impacted on its price. Nevertheless, the decline in prices on the market, should not come as too much of a surprise after the market had rallied from 2017 to first month of 2018. Many players that had positioned earlier continued booking profit.

Worst Performing Stocks in Q1 2018
Securities
Sector
Open
Close
% Change
Ftn Cocoa
Agribusiness
0.45
0.20
-56.52
Multiverse
Natural Resources
0.48
0.22
-54.17
Sovereign Insurance
Insurance
0.50
0.24
-52.00
Africa Alliance Insur
Insurance
0.44
0.22
-50.00
Unity Kapital Insur
Insurance
0.48
0.26
-45.83
Royal Exchange
Insurance
0.50
0.31
-38.00
Consolidated Hallmark Insurance
Insurance
0.50
0.33
-34.00
Cornerstone Insur
Insurance
0.47
0.37
-21.26
Guinea Insurance
Insurance
0.50
0.40
-20.00
LASACO
Insurance
0.38
0.33
-13.10

The upside for the period under review was led by banking stocks but dominated by financial services providers, with Unity Bank topping the table by 121.82% on account of initial bullish run at the beginning of the year and rumor of foreign investors entering the bank before it was canceled, followed by Wema Bank with 98%; CCNN, 96.84%; and NEM, 74%. Others are on impressive earnings reports and good dividend.
See others on the table below:
Best Performing Stocks in Q1 2018
Securities
Sector
Open
Close
% Change
Unity Bank
Financial
0.55
1.22
121.82
Wema Bank
Financial
0.50
0.99
98.00
CCNN
Industrial
9.50
18.70
96.84
NEM Insurance
Insurance
1.58
2.75
74.00
NPF Micro Finance
Financial
1.25
2.12
69.60
GSK
Healthcare
21.61
34.00
57.33
Eterna
Oil/Gas
4.26
6.65
56.10
Sterling Bank
Financial
1.13
1.73
54.87
Fidson Healthcare
Healthcare
3.71
5.70
53.64
FCMB
Financial
1.58
2.38
50.67

Investdata Trading and Investing education train move to Abuja on April 14, 2018, at Chida International Hotel, Plot 224 Solomon Lar Way, Utako District. Abuja. Time is 10.00 am

Theme“The Power of Fundamental and Technical Analysis In Protecting your Capital In Pre-Election Year and Beyond”, holding on 14th April, 2018.
What to learn from our team of experts/analysts at the workshop are:
1. ABC of Technical Analysis for trading Equity Market and other
2. The 3 Simple trading secrets that can help anyone succeed in equities investing
3. The tenets of stock trading and investing Using FA & TA of the current market condition to know when to hold cash or equity.
4. Trading and investing strategies that will help you manage your risk, protect your capital and profit from market oscillation.
5. Self-online trading.
6. The psychology of trading and investing and how it will make you successful.

https://investdataltd..com.ng/2018/04/investors-trade-n13624bn-worth-of.html

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 5:59pm On Apr 04, 2018

INVESTORS TRADE N136.24BN WORTH OF NIGERIAN EQUITIES IN MARCH 2018

Equities’ trading on the Nigerian Stock Exchange for the month of March recorded a total of 10.166bn units valued at N136.241bn in 103,441 deals, representing an 14.88% drop and 28.49% rise from the 11.944bn shares exchange in the month of February for N106.025bn respectively in 112,118 deals during the month of February.

The financial services sector accounted for 5.74bn units worth N54.064bn, buoyed by the 4.005bn units of N50.264bn in 29,981deals, with 1.69bn shares of Access Bank accounting for N21.21bn in 4,844 deals, compared to the 8.437bn shares of the sector exchanged for N39.933bn in 55,075 deals. Sterling Bank 1.876bn changed hands for N4.836bn in 1,624 deals; just as Guaranty Trust Bank’s 262.801m traded for N12.524bn in 5,597 deals.

Market Roundup for Q1 2018
At the end of the first quarter of the year, Nigeria’s equity market continued to look up despite the recent technical correction that had shaken many investors and traders out of their position, slowing down market momentum since February after an unprecedented rally in January that changed the January effect, closing the last trading session of the 63-day period on a positive note as fund managers engaged in quarter-end account balancing.

Activities in the quarter under review was up, amidst mixed sentiments due to the combination of positive macro-economic data, stronger corporate earnings and growing consumer confidence and despite the socio-political instability, the nation’s rising debt profile and the government’s unclear economic reforms programme.
One factor that has been noticed over the past recent weeks is the failure of the market to react positively to the otherwise impressive 2017 full year earnings reports, which have been accompanied by high dividend payouts and yields. It is also noteworthy that major market players continue to sell down in the name of profit taking because they had factored in these numbers into their stock pricing before now, given that the stock market is a discounting machine that prices the future of a company into the present.

Nigeria’s case is seemingly not peculiar, given the continued decline of equity market indicators in the international markets, due to technical shake up of global economies and markets, despite the oscillating crude oil price over the period from $70.44 in January, down to $65 per barrel in February before ending the quarter at $69.10 near its 52-week high.
Meanwhile, despite its slide in recent weeks, the composite NSE All Share Index for the first quarter of the year still gained 3,261.32 points to close at 41,504.51 points from the opening level of 38,243.19 points, representing 8.53% growth on a huge volume of 42.87bn shares traded by market players, from previous quarter’s 23.26bn shares traded. Within the period however, the market index touched a high of 45,321.82 basis points and a 37,646.88 low to reveal the high level of volatility within the period.

The buying volume of total transactions for the period was 45%, while selling position was 55% to continue the fourth consecutive quarter of bullish transition.
Similarly, market capitalisation for the period was up by N1.38tr to close higher at N14.99tr, from an opening value of N13.61tr, representing a 10.14% value gain, in an earnings season with mixed sentiments. This is despite the relatively stable and recovering business environment, but the massive sell offs in February and March sent shock waves to the market ahead of the 2019 election year, regardless of the improving companies, market and economic fundamentals. Market capitalization for the period was supported by the listing of additional shares of some companies at the end of their recent concluded right issues. The new listings made the effects of the price adjustments for dividend declared recently on the market capitalization to pale into insignificance.

The better-than-expected corporate earnings released, especially towards the end of the quarter did not impact equity prices and market fundamentals, as there seemed more negative sentiment than positive reactions to the companies reported impressive numbers that had supported higher yields before now despite the relative high valuations in the market.
It is however, good to mention that the continued intervention by the Central Bank of Nigeria (CBN) in the interbank segment of the foreign exchange market has supported the Naira’s stability against major currencies and driving national output. This has closed the gap between the interbank and black-market rates, stabilizing prices and controlling imported inflation, just as consumer price index fell for the 13th consecutive months to 14.33% in February, to reflect the impact of monetary authority in its bid to ensure price stability and drive economic growth and development.

Meanwhile, market breadth for the period remained weak and mixed as the number of advancers outpaced decliners in the ratio of 48:31 to continue the bull market in the face of price correction to continue its fourth consecutive quarters of bullish run from three quarters in 2017.
As shown in the sectoral performance chart below, the NSE Premium, NSE Pension, NSE Industrial and NSE Banking influenced the market the most in the quarter under review. The Premium index gained 15.05%, more than double the gain by the NSEASI, followed by Pension index’s 14.84%, while NSE Industrial rose 10.96%. Other sectors that were up during the quarter included Banking, Insurance, Consumer goods, Oil and Gas. On the flipside, the only sector that was down on the quarter was NSE AseM, which shed 9.09%.

Sectorial Indexes First Quarter Performance

The tables below list the best and worst performing stocks during the quarter. Of the 31 stocks that suffered various levels of decline, 10 lost over 13% of their share prices, while low priced stocks, particularly insurance companies dominated the decliner table. FTN COCOA was the biggest laggard after shedding 56.52% due to impact of market forces and implementation of new price rule on the exchange that allowed share prices to fall below the previous 50 kobo per value.
The agribusiness company was followed by Multiverse with 54.17%, which has not faithfully kept to the NSE post-listing requirements before ongoing market forces impacted on its price. Nevertheless, the decline in prices on the market, should not come as too much of a surprise after the market had rallied from 2017 to first month of 2018. Many players that had positioned earlier continued booking profit.

Worst Performing Stocks in Q1 2018
Securities
Sector
Open
Close
% Change
Ftn Cocoa
Agribusiness
0.45
0.20
-56.52
Multiverse
Natural Resources
0.48
0.22
-54.17
Sovereign Insurance
Insurance
0.50
0.24
-52.00
Africa Alliance Insur
Insurance
0.44
0.22
-50.00
Unity Kapital Insur
Insurance
0.48
0.26
-45.83
Royal Exchange
Insurance
0.50
0.31
-38.00
Consolidated Hallmark Insurance
Insurance
0.50
0.33
-34.00
Cornerstone Insur
Insurance
0.47
0.37
-21.26
Guinea Insurance
Insurance
0.50
0.40
-20.00
LASACO
Insurance
0.38
0.33
-13.10

The upside for the period under review was led by banking stocks but dominated by financial services providers, with Unity Bank topping the table by 121.82% on account of initial bullish run at the beginning of the year and rumor of foreign investors entering the bank before it was canceled, followed by Wema Bank with 98%; CCNN, 96.84%; and NEM, 74%. Others are on impressive earnings reports and good dividend.
See others on the table below:
Best Performing Stocks in Q1 2018
Securities
Sector
Open
Close
% Change
Unity Bank
Financial
0.55
1.22
121.82
Wema Bank
Financial
0.50
0.99
98.00
CCNN
Industrial
9.50
18.70
96.84
NEM Insurance
Insurance
1.58
2.75
74.00
NPF Micro Finance
Financial
1.25
2.12
69.60
GSK
Healthcare
21.61
34.00
57.33
Eterna
Oil/Gas
4.26
6.65
56.10
Sterling Bank
Financial
1.13
1.73
54.87
Fidson Healthcare
Healthcare
3.71
5.70
53.64
FCMB
Financial
1.58
2.38
50.67

Investdata Trading and Investing education train move to Abuja on April 14, 2018, at Chida International Hotel, Plot 224 Solomon Lar Way, Utako District. Abuja. Time is 10.00 am

Theme“The Power of Fundamental and Technical Analysis In Protecting your Capital In Pre-Election Year and Beyond”, holding on 14th April, 2018.
What to learn from our team of experts/analysts at the workshop are:
1. ABC of Technical Analysis for trading Equity Market and other
2. The 3 Simple trading secrets that can help anyone succeed in equities investing
3. The tenets of stock trading and investing Using FA & TA of the current market condition to know when to hold cash or equity.
4. Trading and investing strategies that will help you manage your risk, protect your capital and profit from market oscillation.
5. Self-online trading.
6. The psychology of trading and investing and how it will make you successful.

Access to the workshop will cost a minimum of N5000 purchase of INVESTDATA comprehensive stock market trading materials to enhance your investing knowledge for profitable investment. For more details call or text Yes to 08032055467, 08023381388 and 08179547605

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2018/04/investors-trade-n13624bn-worth-of.html

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 5:57pm On Apr 04, 2018

NESTLE 2017FY: STRONGER EARNINGS DRIVEN BY ECONOMIC RECOVERY, STABLE FX RATE

Nestle Nigeria Plc recently presented its full year earnings report for the period ended December 31, 2017 to the investing public in line with the post-listing requirement of the exchange the same time as the release date for that of 2016. Notwithstanding the fact that the company moved from its early filer status of February to March, it allows investors and traders plan their investment and forecast the company's pattern.

The company's performance for the period was impressive, reflecting an improvement in the operating environment, compared to the situation in 2016 when the Nigerian economy was steeped in recession that negatively impacted the manufacturing sector, as well as the purchasing power of many Nigerians. With the recovering economy came improved demand for goods and services.
Nestle Nigeria’s products engaged in products repackaging during the period in affordable sizes to meet different income levels while the nation’s macro-economic indicators are improving,
Nestle recorded a 34.2% rise in sales revenue from N181.91bn to N244.15bn, while profit after tax grew significantly from N7.92bn in 2016 to N33.72bn, a 325.5% growth over the preceding year’s level. Shareholders' Funds increased by 45.34% to N44.88bn, just as earnings per share rose from N10.00 in 2016 to N42.55, which beat market expectation and estimates.
The company is technically placed at a fair value of N860 per share. The growth in its numbers is attributable to the above-mentioned factors, as well as the continued capacity building to meet market demand, just as it continues to capture new markets.

However, despite the increase in cost of production, drop in finance expenses due to an improvement in foreign exchange situation following the intervention of the Central Bank of Nigeria (CBN)and creation of the investors and exporters’ window that has ensured exchange rate stability. This also impacted interest expenses, which dropped, thereby enhancing operating profit. This also reflected in the profit margin of 13.81% that is below the 15% international standard.
The impressive full year earnings had further boosted the intrinsic value of the stock.
The food segment remained the company’s mainstay, contributing the lion’s share of total revenue at N244.15bn in 2017 from N181.91bn. The business model and products of the company are essential elements that support future growth in revenue and profit.
NESTLE NIGERIA PLC
AUDITED ACCOUNT FOR 2017
COY
2016
2017
% Chg
(N)
(N)
Date Released
March 2, 2017
March 2, 2018

Price at Released Date
570.00
1,442.00
152.98
Turnover
181,910,977,000
244,151,411,000
34.21
Profit After Tax
7,924,968,000
33,723,730,000
325.76
Shareholders' Fund
30,878,075,000
44,878,177,000
45.34
Dividend
10.00
42.50
325.00
ESTIMATED RATIOS
Earnings Per Share
10.00
42.55
325.5
PE Ratio(x)
57.01
33.89
-40.55
Earnings Yield
1.75
2.95
68.57
Book Value
38.95
56.62
45.37
Price to Book
14.63
25.47
74.09
ROE(%)
25.67
75.15
192.75
Profit Margin(%)
4.36
13.81
216.74
Year End
Dec
Dec

Source: Company Financial & Investdata Research

The company’s rebounding earnings power was supported by increasing sales and finance income added to decline in cost of financing its operations which boosted the year’s bottom line. This also was enhanced by management's cost cutting efforts, which reflected much also in the profit level, looking at profit margin for the period.
With the economic recovery and continued improvement in the company's operation, shareholders should expect a better dividend payout in 2018 financial year, if this tempo is sustained.

Valuation/Recommendations
The company's full year Book Value stands at N56.62, with Price/Earnings ratio of 33.89x on the strength of its growing earnings per share of N42.55, that reduced investors’ waiting period from 57.01x in 2016. Its 2017 profit margin of 13.81% is a sign of recovery from the lean 4.36% in 2016, compared to previous year’s over 15%.
Income investors with medium and long-term horizon should look the way of this stock, while traders should stay away for now and wait for the pullback before positioning in the company. We have revalued Nestle and placed it on HOLD for now until first quarter 2018 result is made available.

Technical View
Nestle in the recent years had rallied after breaking out from a two-year bearish channel with different attempts to rebound within the channel. The stock rebounded in March 2017 after a major breakdown of the strong support level of N615 to a low of N570 to retrace up on its financials that beat market expectation, despite the earnings decline. The stock is currently trading above its 20 and 50-Day moving average at N1,380. Currently, MACD is bearish for the last eight trading sessions. RSI is reading 54.75 and at the same signaling sell, while other technical indicators like CCI and SO are mixed in signal as CCI said buy while SO is signaling sell.

The trending momentum and direction is strong as ADX is above 20, but money flow index just turned up, indicating that funds are entering the stock which is a sign of positioning ahead of mark down for its final dividend of N27.50 and the 2018 Q1 earnings report.

Nestle Nigeria PLC

Share Holding Structure
Nigerians/Others
26.92%
Nestle S.A., Switzerland
65.74%
Stanbic IBTC Nominees
7.34
Other Statistics
Shares Outstanding (MN)
792,656,252
Open Price (2017)
N810
Close Price (2017)
N1,555.90
Current Price as at (March 29 2018)
N1,380
Date Listed
20th April, 1979
Year End
31st December

Source: Company Financial & Investdata Research

Management
The impact of strategic plans and internal cost efficiency of the management, are becoming obvious on its numbers as macro-economic data remain upbeat on the strength of improved liquidity in the FX market that supported relative exchange rate that moderated cost of production. This is in addition to its earlier backward integration to drive production and deliver value to all stakeholders, which however had reflected in its impressive performance, despite the seemingly challenging business environment and improving purchasing power.

Five-Year Earnings Performance
Looking at the company’s five years performance and its consistency in the release of its numbers over the years have helped the market players and analysts forecast its performance and release dates. The company’s share price as at release dates had been unstable, hitting the highest ever in 2017 to reflect its impressive performance after the setback in 2016 where it touched the recent lows of N570. Market value decline for four years after the first breakout of N1000 mark in 2013 to rebound fully in 2017 when it touched an all-time high of N1,550.99 before closing the week at N1,380.
The company’s performance in the last five years has seen a stable up-trend in sales revenue even as profit remained positive but continued to undulate as revealed by the posted numbers for the period, which also reflected the challenging business environment for the period under consideration.
The company's turnover for the period was up by 83.46% to N244.15bn from N133.08bn in 2013; while profit level for the same period rose by 51.62% to N33.72bn from N22.24bn in 2013 after touching low of N7.92bn in 2016. It has in the last five years paid a total dividend of N133 to its shareholders for having faith in the company and its management, regardless of the boom or gloom in the economy within the period.

Meanwhile, net asset of the company stood at N44.88bn from the N40.59bn posted in 2013. Dividend grew through the period from N24 per share in 2013 to N42.50 after dropping to N10 in 2016. Please note that dividend reward grew more than the earnings for that same period at 77.05% to reflect the high payout of it earnings.
NESTLE NIGERIA

FIVE YEARS FINANCIAL PERFORMANCE

YEAR
2013
2014
2015
2016
2017
Ticker
000(N)
000(N)
000(N)
000(N)
000(N)
Date Released
26-Feb-14
25-Feb-15
16-Mar-16
2-Mar-17
2-Mar-18
Price At Released
1071.00
820.00
680.00
570.00
1,442
Turnover
133,084,076
143,329,000
151,271,526
181,910,977
244,151,411
PAT
22,238,279
22,236,000
23,736,777
7,924,968
33,723,730
Net Assets
40,594,801
35,939,640
38,007,074
30,878,075
44,878,177
DIVIDEND
24.00
27.50.
29.00
10.00
42.50
BONUS

Source: Company Financial & Investdata Research

Five-Year Estimated Ratios
Nestle earnings power for the period seems to be supporting its share price for same period, despite the seeming over valuation that was helped by its shareholding structure and its relatively small number of shares in issue. The rebounding earnings from N28.06 in 2013 before sliding to N10.00 in 2016 had moved up to N42.55, reducing investors waiting periods over the years as PE ratio stood at 33.89x from high of 56.01x in 2016 and other previous years from 2013 except for 2015.
As observed, this is because of improvement in earnings while market price relatively remained high. The Book Value of the equity over the years revealed high premium on the stock which was as a result of consistent dividend and strong numbers with that of 2017 at N42.55 as against the market price of N1, 442 when the report was released. Long term investors have over the years recouped their investment, as they continue to enjoy relative capital protection in this stock.
NESTLE NIGERIA

FIVE YEARS ESTIMATED RATIOS

YEAR

2013
2014
2015
2016
2017
EPS(N)
28.06
28.05
29.95
10.00
42.55
PE Ratio
38.17
35.49
22.71
57.01
33.89
Earnings Yield
2.62
3.68
4.40
1.75
2.95
Book Value
51.21
45.34
47.95
38.95
56.62
Return on Equity (%)
55.00
48.00
62.00
25.67
75.15
Profit Margin (%)
16.71
15.51
15.69
4.36
13.81
Year End
Dec
Dec
Dec
Dec
Dec
Source: Company Financial & Investdata Research
https://investdataltd..com.ng/2018/04/nestle-2017fy-stronger-earnings-driven.html

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 5:52pm On Apr 04, 2018

Amidst Negative April Trading Opening, NGSE Rebound May Require More Than Q1 Earnings

Trading on Nigeria’s equity market for the week and month of April on Tuesday closed negative after the long holiday to mark the Easter festivities with yet another volatile and terrible trading session. As if that was not enough, it reversed all of previous session’s gain, as the composite Nigerian Stock Exchange (NSE) index opening the day with a gap down and staying so all morning.
By midday, it tried to rally, got right to the breakdown point, at the intraday resistance high of 41,615.41 from low of 40,795.66 and rolled over only to go lower, on a corrective wave 4 decline that ensued on profit taking since March 12, 2018.

Historically, April has been one of the strongest months of the year for Nigeria’s stock market, although in recent times, the gains have always come in the second half of the month. We could therefore see a repeat of that trend this time as it is the period when the 2018 Q1 corporate earnings start hitting the market. Consequently, the market rally happens as investors and traders react by taking positions for short, medium to long-term portfolio realignment.

It is also noteworthy that the market is kicking off the month of April on the downside, after the just concluded 2017 earnings reporting session that showed stronger fundamentals for many companies on the bourse, besides offering an insight into the ongoing economic recovery and its impact on the companies and the general market. Also, the slide came on a day when the Central Bank of Nigeria’s Monetary Policy Committee (MPC) began its first meeting of the year after a stand-off between the Federal Executive Council and the upper chamber of the National Assembly that had delayed confirmation of new nominees, leading to the lack of quorum for the meeting that last held in November. Since then, two other should have held in third week of January and March to fix Nigeria’s benchmark money market rate.

As the two-day meeting ends Tuesday afternoon, investors and analysts expect to get a sense of direction for the economy, even as the market awaits Q1 numbers in the face of low liquidity and demand for equities.
Tuesday’s was a session that struggled to breakdown the symmetrical triangle chart pattern, which is a continuation pattern that supports downtrend. This is especially given that the market is trading on the 100-Day Moving Average in a bearish zone and waiting for positive news to trigger upward retracement.

For the first trading session of April therefore, the NSE composite index revealed a bloody Tuesday, as all sectorial indexes and highly capitalized stocks closed in red, dragging down the market as investors look forward to a sense of direction from the outcome of MPC meeting. The composite index at the moment is seriously trying to break down the yellow trend line, confirming that the market has entered its long bearish mode, since the stronger company fundamentals as shown by the earnings have not influenced equity prices positively or supported reversal so far. This further shows that 2018 Q1 numbers will not do much as per impacting the market, except there is a major positive information in the market arena, since the election is coming closer every day.

Q1 Closed Periods
Market technicals for the first trading day of April were negative and mixed, as traded volume was high on a selling pressure of 93%. Market breadth was negative, signaling negative sentiment at the beginning of Q1 earnings reporting season as companies have started notifying the investing public of their closed period for Q1 numbers.
The closed period is when company boards meet to review the earnings report, preparatory to its being submitted to the NSE. During the period, senior executives of the company are forbidden from trading on its shares to prevent the use of such price sensitive information that could lead to insider trading.
Even then, qualification and markdown dates for audited 2017 full-year financials continue to influence the flow of funds into and within the market, due to the good dividend yield.
Volume index was 0.76 with money flow index momentum looking down at 23.43 points, from the previous day’s 23.09 points.

Index and Capitalisation Side
The All Share index shed 648.87 points to close at 40.855.64 basis points after opening at 41,504.51bp, representing a 1.56% decline on a low volume that was higher than the previous day’s.
Similarly, market capitalisation for the day lost N234.39bn to close at N14.76tr from an opening value of N14.89tr, also represented a 1.56% value loss.

The downturn resulted from selling pressure and profit booking in medium and high cap stocks which impacted negatively on the NSE’s Year-To-Date returns, dragging it down to 6.83%, just as market capitalisation gains for the period reduced to N1.18tr, representing 8.21% YTD growth.
mAll the market indexes closed in red due to the broad-based sell-off, even as market breadth for the day remained negative with decliners dominated advancers in the ratio of 38:11.
Market activities were up in volume and value by 34.15% and 68.75% respectively to 365.72m shares worth N6.27bn from the previous day’s 272.761m units valued at N3.71bn.
Transaction volume was boosted by financial services and conglomerates goods stocks like: Zenith Bank, Transcorp, Sterling Bank, FBNH, LASACO Insurance and ETI, which witnessed increased trading to top the activity chart.

Caverton and Law Union Insurance were the best performing stocks, topping the advancers’ table after gaining 8.99% and 4.11% respectively to close at N2.91 and N0.76 on the back of market forces and dividend. Fidelity Bank and Transcorp were the worst performers after losing 9.33% and 9.19% to close at N2.43 and N1.68 respectively on profit taking and market forces. Fidelity Bank is one of the few stocks yet to present their audited financials for the 2017 full-year, thereby arousing suspicion, a situation the market could be reacting negatively to, after the management notified the market of its delayed result.

Market Outlook
We expect the market to continue its volatility as investors await outcome of MPC meeting ahead of Q1 scorecards and economic data, even as investors position for the short and long term on the strength of company fundamentals and the expected Q1 numbers.
However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing.
We advise investors to allow numbers guide their decisions while repositioning for the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.

It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. A stock market is in cycles. 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.
Get your home study pack of the INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy, thereby ensuring that you invest and trade with knowledge. You can also access stocks analysed in the home study pack of the Chart Summit held on February 24, 2018, including the 15 stock-picks for 2018 are available now to guide your positioning as trading for the year.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and TV set. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.
Investdata Trading and Investing education train move to Abuja on April 14, 2018, at Chida International Hotel, Plot 224 Solomon Lar Way, Utako District. Abuja. Time is 10.00 am

Abuja Workshop
Theme: “The Power of Fundamental and Technical Analysis In Protecting your Capital In Pre-Election Year and Beyond”, holding on 14th April, 2018.
You would learn from our team of experts/analysts:
1. ABC of Technical Analysis for trading Equity Market and other
2. The 3 Simple trading secrets that can help anyone succeed in equities investing
3. The tenets of stock trading and investing Using TA
4. Trading and investing strategies that will help you manage your risk, protect your capital and profit from market oscillation.
5. Self-online trading.
6. The psychology of trading and investing and how it will make you successful.
7. The simplest way to predict when time will meet price, which is the optimal trading point
8. The high value of Investdata buy and sell signal in a down or up market, even when it DOESN’T work.

http://investdata.com.ng/2018/04/amidst-negative-april-trading-opening-ngse-rebound-may-require-q1-earnings/

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 5:50pm On Apr 04, 2018

Amidst Negative April Trading Opening, NGSE Rebound May Require More Than Q1 Earnings

Trading on Nigeria’s equity market for the week and month of April on Tuesday closed negative after the long holiday to mark the Easter festivities with yet another volatile and terrible trading session. As if that was not enough, it reversed all of previous session’s gain, as the composite Nigerian Stock Exchange (NSE) index opening the day with a gap down and staying so all morning.
By midday, it tried to rally, got right to the breakdown point, at the intraday resistance high of 41,615.41 from low of 40,795.66 and rolled over only to go lower, on a corrective wave 4 decline that ensued on profit taking since March 12, 2018.

Historically, April has been one of the strongest months of the year for Nigeria’s stock market, although in recent times, the gains have always come in the second half of the month. We could therefore see a repeat of that trend this time as it is the period when the 2018 Q1 corporate earnings start hitting the market. Consequently, the market rally happens as investors and traders react by taking positions for short, medium to long-term portfolio realignment.

It is also noteworthy that the market is kicking off the month of April on the downside, after the just concluded 2017 earnings reporting session that showed stronger fundamentals for many companies on the bourse, besides offering an insight into the ongoing economic recovery and its impact on the companies and the general market. Also, the slide came on a day when the Central Bank of Nigeria’s Monetary Policy Committee (MPC) began its first meeting of the year after a stand-off between the Federal Executive Council and the upper chamber of the National Assembly that had delayed confirmation of new nominees, leading to the lack of quorum for the meeting that last held in November. Since then, two other should have held in third week of January and March to fix Nigeria’s benchmark money market rate.

As the two-day meeting ends Tuesday afternoon, investors and analysts expect to get a sense of direction for the economy, even as the market awaits Q1 numbers in the face of low liquidity and demand for equities.
Tuesday’s was a session that struggled to breakdown the symmetrical triangle chart pattern, which is a continuation pattern that supports downtrend. This is especially given that the market is trading on the 100-Day Moving Average in a bearish zone and waiting for positive news to trigger upward retracement.

For the first trading session of April therefore, the NSE composite index revealed a bloody Tuesday, as all sectorial indexes and highly capitalized stocks closed in red, dragging down the market as investors look forward to a sense of direction from the outcome of MPC meeting. The composite index at the moment is seriously trying to break down the yellow trend line, confirming that the market has entered its long bearish mode, since the stronger company fundamentals as shown by the earnings have not influenced equity prices positively or supported reversal so far. This further shows that 2018 Q1 numbers will not do much as per impacting the market, except there is a major positive information in the market arena, since the election is coming closer every day.

Q1 Closed Periods
Market technicals for the first trading day of April were negative and mixed, as traded volume was high on a selling pressure of 93%. Market breadth was negative, signaling negative sentiment at the beginning of Q1 earnings reporting season as companies have started notifying the investing public of their closed period for Q1 numbers.
The closed period is when company boards meet to review the earnings report, preparatory to its being submitted to the NSE. During the period, senior executives of the company are forbidden from trading on its shares to prevent the use of such price sensitive information that could lead to insider trading.
Even then, qualification and markdown dates for audited 2017 full-year financials continue to influence the flow of funds into and within the market, due to the good dividend yield.
Volume index was 0.76 with money flow index momentum looking down at 23.43 points, from the previous day’s 23.09 points.

Index and Capitalisation Side
The All Share index shed 648.87 points to close at 40.855.64 basis points after opening at 41,504.51bp, representing a 1.56% decline on a low volume that was higher than the previous day’s.
Similarly, market capitalisation for the day lost N234.39bn to close at N14.76tr from an opening value of N14.89tr, also represented a 1.56% value loss.

The downturn resulted from selling pressure and profit booking in medium and high cap stocks which impacted negatively on the NSE’s Year-To-Date returns, dragging it down to 6.83%, just as market capitalisation gains for the period reduced to N1.18tr, representing 8.21% YTD growth.
mAll the market indexes closed in red due to the broad-based sell-off, even as market breadth for the day remained negative with decliners dominated advancers in the ratio of 38:11.
Market activities were up in volume and value by 34.15% and 68.75% respectively to 365.72m shares worth N6.27bn from the previous day’s 272.761m units valued at N3.71bn.
Transaction volume was boosted by financial services and conglomerates goods stocks like: Zenith Bank, Transcorp, Sterling Bank, FBNH, LASACO Insurance and ETI, which witnessed increased trading to top the activity chart.

Caverton and Law Union Insurance were the best performing stocks, topping the advancers’ table after gaining 8.99% and 4.11% respectively to close at N2.91 and N0.76 on the back of market forces and dividend. Fidelity Bank and Transcorp were the worst performers after losing 9.33% and 9.19% to close at N2.43 and N1.68 respectively on profit taking and market forces. Fidelity Bank is one of the few stocks yet to present their audited financials for the 2017 full-year, thereby arousing suspicion, a situation the market could be reacting negatively to, after the management notified the market of its delayed result.

Market Outlook
We expect the market to continue its volatility as investors await outcome of MPC meeting ahead of Q1 scorecards and economic data, even as investors position for the short and long term on the strength of company fundamentals and the expected Q1 numbers.
However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing.
We advise investors to allow numbers guide their decisions while repositioning for the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.

It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. A stock market is in cycles. 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.
Get your home study pack of the INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy, thereby ensuring that you invest and trade with knowledge. You can also access stocks analysed in the home study pack of the Chart Summit held on February 24, 2018, including the 15 stock-picks for 2018 are available now to guide your positioning as trading for the year.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and TV set. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.
Investdata Trading and Investing education train move to Abuja on April 14, 2018, at Chida International Hotel, Plot 224 Solomon Lar Way, Utako District. Abuja. Time is 10.00 am

Abuja Workshop
Theme: “The Power of Fundamental and Technical Analysis In Protecting your Capital In Pre-Election Year and Beyond”, holding on 14th April, 2018.
You would learn from our team of experts/analysts:
1. ABC of Technical Analysis for trading Equity Market and other
2. The 3 Simple trading secrets that can help anyone succeed in equities investing
3. The tenets of stock trading and investing Using TA
4. Trading and investing strategies that will help you manage your risk, protect your capital and profit from market oscillation.
5. Self-online trading.
6. The psychology of trading and investing and how it will make you successful.
7. The simplest way to predict when time will meet price, which is the optimal trading point
8. The high value of Investdata buy and sell signal in a down or up market, even when it DOESN’T work.
While access to the workshop is free, you are required to purchase a minimum N5,000 worth of INVESTDATA comprehensive stock market trading materials to enhance your knowledge of equities for profitable investing. For more details, call or send YES to 08032055467, 08028164086 or 08111811223.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2018/04/amidst-negative-april-trading-opening-ngse-rebound-may-require-q1-earnings/

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 4:57pm On Mar 29, 2018

AXA Mansard Profit Snails To N2.675bn, Offers N0.06 Dividend

Despite a 30% growth in gross written premium for the year ended December 31, 2017, directors of AXA Mansard, on Wednesday reported a mere 2% limp in profit after tax for the period, even as they have recommended a six kobo dividend per share for approval at the next annual general meeting to consider the accounts.

According to the result submitted to the Nigerian Stock Exchange (NSE), gross written premium rose from N20.713bn to N26.824bn; while gross premium income increased to N26.198bn from N20.676bn; with non-life as the biggest premium earner at N11bn, while the life business yielded N3.87bn, bringing total insurance revenue to N14.71bn; followed by the N5.871bn from the health maintenance segment. Property development contributed N3.026bn; and pension management, N580.284m.
Re-insurance expenses increased to N12.409bn from N9.727bn; leaving net premium income at N13.788bn, representing a 26% improvement over the N10.949bn recorded in 2016.

Fee and commission on insurance contracts grew to N1.545bn from N995.557m, resulting in net underwriting income of N15.333bn from N11.944bn.
Gross claims expenses jumped to N15.849bn, which represented N6.486bn or 69.27% rise from N9.363bn; just as claims expenses recovered from reinsurers jumped by N3.763bn or 148.33% from N2.547bn in 2016 to N6.311bn; while underwriting expenses increased to N2.936bn from N2.071bn. Changes in individual life reserves, though still negative improved to N9.363m from N162.838m; even as changes in annuity reserves turned negative at N265.049m from a positive of N98.098m, following which net underwriting expenses increased to N12.749bn from N8.952bn.

Total underwriting profit slipped by 14% from N2.992bn to N2.584bn; while investment income rose to N5.119bn from N3.836bn; net losses on financial instruments dropped to N219.784m from N576.17m. Net gains on investment property fell to N2.055bn from N2.811bn; with profit on investment contracts rising to N249.899m from N198.85m; other income also closed at N173.72m from N120.677m; as total investment income came to N7.378bn from N6.391bn.

Expenses for marketing and administration rose to N1.692bn from N1.425bn; employee benefit expense increased slightly from N2.054bn to N2.399bn; other operating expenses was constrained at N2.274bn from N2.287bn.
Writeback of premium receivables stood at N26.18m from impairment of N46.285m; following which results of operating activities stood at N3.232bn profit from N3.125bn; just as finance cost dropped to N390.687m from N444.224m.
Profit before tax was flat at 3% from N3.125bn to N3.232bn; while income tax expense rose to N556.991m from N490.631m; resulting in net profit of N2.675bn from N2.634bn; which translated to Earnings Per Share of 19.16 kobo, 4% down from 20 kobo in the prior year.

http://investdata.com.ng/2018/03/axa-mansard-profit-snails-n2-675bn-offers-n0-06-dividend/

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 4:54pm On Mar 29, 2018

Wema, Two Others Get $50m Islamic Bank Loan For Nigerian SMEs

Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD) says it has extended a combined $50m to enable three Nigerian banks finance Small and Medium-scale Enterprises in the country.
According to Reuters, the multilateral body said it had signed $20m financing agreements with Wema Bank and Jaiz Bank; and another $10m for SunTrust Bank.
the ICD, the private sector arm of the Islamic Development Bank, has in recent years sought to expand its activities across Africa, home to a quarter of the world’s Muslims.

The funds would be extended to SMEs in sectors like health, communication, technology, manufacturing and agriculture, the ICD said.
The ICD has previously extended financing of $120 million for Nigerian businesses, while advising several African governments on their plans to issue Islamic bonds, including Senegal, Nigeria and the Ivory Coast.
A statement by the ICD Management noted “the small and medium sized enterprises (SMEs) have a crucial role to play in a country’s growth and development, and ICD has big plans for them. This is an important niche in all the member countries, especially in Africa. ICD is now focusing on increasing access to funding to the private sector by channeling the funds to established financial institutions in its member countries”.

The facility is coming days after Nigeria’s Finance Minister, Mrs. Kemi Adeosun urged ICD to initiate innovative financial products to fund the private sector.
Mrs Adeosun who spoke while declaring open the third edition of the Africa Islamic Finance Forum organised by the Federal Ministry of Finance in collaboration with the ICD in Lagos on Tuesday, also called on the ICD to establish a long-term commitment toward the economic development of member countries.
Represented by Aliyu Ahmed, the Director, Economics Relations Department Federal Ministry of Finance, Mrs Adeosun said the forum establishes a strong partnership for the development of the private sector, the largest employer of labour worldwide, and the engine of growth in the country.

She assured that the Federal Government would explore every available opportunity to achieve strong and sustainable economic development.
“This serves as a tool for providing innovative sources of investment and financing support to our governments, large corporations, Small and Medium Enterprises, SMEs, and our entrepreneurs.

“We expect that ICD would be able to demonstrate to us its capacity and capability to deliver on this front,” said Mrs Adeosun.
Speaking earlier, the Acting Chief Executive officer of ICD, Mohammed Anmari, said the forum was to promote Islamic finance as well as showcase the finances the organisation had been providing.
In his words, “it is like any other pool of capital available from both local and international resources and the difference is that Islamic finance is about risk sharing.
“This comes handy in times of economic crisis or downturns and increases the resilience of the financial sector,” said Mr Anmari.

http://investdata.com.ng/2018/03/wema-two-others-get-50m-islamic-bank-loan-nigerian-smes/

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 4:50pm On Mar 29, 2018

Caution On NSE, Amidst Sustained Decline Despite Earnings Season Peak

Mid-week’s trading session on the Nigerian Stock Exchange (NSE) had a very hard roll over on the major support level to the downside, following through the four-day downtrend as a result of the persisting sell-offs to close the session lower on a high traded volume. It was a session that dragged the market deeper into the bearish zone as the NSE Index dropped at the opening, rallied back to intraday highs of 41,280.46 resistance level, but could not get through, came down and made lower-lows to breakdown the psychological line of 41,000 which had been an inflection point.

The NSE trading board was mixed, but mostly red as the highly capitalized stocks shed value, despite their impressive financials and high dividend payout for the 2017 financial year. The NSE All-Share index broke down the yellow trend line, confirming that the market has just entered its long bearish mode, since the full year earnings season has not influenced equity prices positively or supported market value. This further shows that not even the 2018 Q1 numbers will do much as per impacting the market, since liquidity is not flowing into the market. Rather, the Nigerian market is experiencing a liquidity squeeze as revealed by institutional money flow index of the NSE.
The recent performance of both the international and locally markets show that there is a clear divergent between the equity market and crude oil price movement. Before now, oil price movement had been linked to equity market movement, unlike the present situation when oil prices are looking up while equity markets globally are going south. All of these are happening despite the growth being experienced in the world economy and recovery being experienced here in Nigeria.
As Wednesday’s trading session had broken down the strong support level at this point, we advise cautious trading and positioning even when changing strategy to invest for dividend income.

The day’s technical positions were negative and mixed, as traded volume was high on a selling pressure of 90%. Market breadth was negative, signaling negative sentiment at the conclusion of a major earnings reporting season and end of first quarter and irrespective of strong numbers and high dividend payout. The NSE indicators continued to slide, gradually wiping away all the recorded gains before now. Volume index was 1.16 with money flow index momentum looking down at 37.12 points, from the previous day’s 38.46 points.
Meanwhile, the composite index NSE ASI shed 441.16 points to close at 40.802.08 basis points after opening at 41,243.24 bp, representing a 1.1% decline on a high volume that was higher than the previous day’s.
Similarly, market capitalisation for the day went down by N159.37bn to close at N14.74tr from an opening value of N14.9tr which also represented a 1.1% value loss, which further dragged investors’ position into red.
The continue downturn is attributed to selling pressure and profit booking on medium and high cap stocks like Dangote Cement, NB, Total Nigeria, GTBank, Access Bank, UBA, Zenith Bank, Fidelity, ETI, Flourmills and Dangote Sugar which impacted negatively on the NSE’s Year-To-Date returns, which contracted to 6.69%, just as market capitalisation gains for the period reduced to N1.13tr, representing a 8.31% YTD growth.

The sectorial performance indexes were lower in the same direction with the general market index except for NSE Consumer Goods that closed higher. Market breadth for the day remained negative also as decliners dominated advancers in the ratio of 29:18.
Market activities were mixed as volume traded was up 51.6% to 535.19m from the previous day’s 352.89m units, while value traded dropped by 11.7% to N3.66bn from Tuesday’s value of N5.13bn.

Transaction volume was boosted by financial services and consumer goods stocks like: Champion Brewery, Skye Bank, Sterling Bank, FBNH and LASACO Insurance, which witnessed increased trading to top the activity chart.
GSK and Wema Bank were the best performing stocks that topped the advancers’ table, after gaining 10.00% and 9.4% respectively to close at N34.00 and N0.93 on the back of strong dividend yields and market forces, while Japaul Oil and Mutual Benefits were the worst performers after losing 8.5% and 5.4% to close at N0.65 and N0.35 respectively on profit taking and market forces.
During the trading session, AXA Mansard released its 2017 full-year results, proposing a final dividend of N0.06.

Market Outlook

Despite the continued bearish mode of the market, we expect a rebound, being the last trading day quarter and expiration day of the 90-day statutory period for companies with December year-end to release their audited accounts, expect more earnings reports to the market, ahead of first quarter economic data and corporate earnings which would give the health status of the economy and the companies so far in 2018. With more income investors taking position in value and dividend paying stocks, alongside bargain hunters, we expect next week’s MPC meeting to give direction of the interest rate as inflation continues to decline, thereby further driving the economic recovery and flow of funds.
Also, expect repositioning to continue, while profit taking will reduce on the strength of expected payouts and earnings surprises.
However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing.

We advise investors to allow numbers guide their decisions while repositioning for the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. A stock market is in cycles. 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.

Get your home study pack of the INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy, thereby ensuring that you invest and trade with knowledge. You can also access stocks analysed in the home study pack of the Chart Summit held on February 24, 2018, including the 15 stock-picks for 2018 are available now to guide your positioning as trading for the year.
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and TV set. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.
We say big thanks to all the participants and resources persons that made Investdata Investment education workshop debut in Port Harcourt a success. The trading and investing education train move to Abuja on April 14, 2018.

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

http://investdata.com.ng/2018/03/caution-nse-amidst-sustained-decline-despite-earnings-season-peak/

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 4:47pm On Mar 29, 2018

CCNN Reports 157% Net Profit Growth, Offers N1.57bn Dividend

The board of Cement Company of Northern Nigeria (CCNN), on Tuesday presented its audited result for the year ended December 31, 2017, showing that profit grew at a faster pace than turnover, just as cost of sales was constrained, just as the management successfully reduced borrowings for the period.

The directors have therefore recommended a dividend of N1.57bn, which translates to N1.25 per share for the period, to be distributed subject to shareholders’ approval at the next annual general meetinging.
Turnover for the period rose 39% from N14.087bn to N19.588bn, almost of which was earned from selling cement in Nigeria, while only N154.979m came from outside the country.

CCNN’s cost of sales could only rise by 18% to N11.983bn from N10.151bn, the lion’s share of which was the N6.694bn energy cost, as against N5.399bn in 2016; followed by N1.61bn spent on raw materials and consumables, down from N2.031bn; while salaries, wages and benefits gulped N1.403bn, up from N1.241bn. This resulted in gross profit of N7.605bn, which was 93% better than the N3.936bn recorded in the prior year.

Other income dropped to N103.213m from N138.319m, with insurance claims of N47.073m, as against N3.383m; followed by deferred revenue of N37.017m, down from N48.476m.
Selling and distribution expenses increased to N882.806m, up from N367.636m, of which distribution cost amounted to N707.331m, compared to the previous N109.805m.
Administrative expenses jumped to N2.598bn from N1.9bn, buoyed by the N760.821m for salaries, wages and benefits, which rose from N631.407m; followed by technical and management fees of N648.28m, as against the previous N459.055m.
Operating profit stood at N4.226bn, as against the previous N1.806bn.

Finance income slipped from N132.722m to N108.202m, with interest income at N123.833m from N51.425m, while interest on defined benefit obligation was negative at N15.631m from N81.297m; finance cost dropped to N131.901, down from N198.7m, with interest on borrowings dropping to N154.841m from N221.092m; bringing net finance expenses to N23.698m from N65.977m; while Profit before tax jumped to N4.203bn from N1.74bn, representing a 141% increase; just as net profit increased from N1.253bn to N3.223bn, which was a 157% improvement. The net profit translated to Earnings Per Share of 257 kobo, as against the previous 100 kobo.

http://investdata.com.ng/2018/03/ccnn-reports-157-net-profit-growth-offers-n1-57bn-dividend/

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 4:42pm On Mar 29, 2018

UK Banking Licence Will Help Us Support Africa’s Real Sector- Uzoka

Kennedy Uzoka, group managing director of the United Bank for Africa Plc, says the regulatory permission by its London subsidiary to carry out Wholesale Banking activities in the UK is another step to truly becoming Africa’s global bank, providing support to customers across the real sector of the continent’s economy.
A statement by the group said the upgrade of UBA Capital (Europe) Ltd to United Bank for Africa (UK) Limited, makes it only Sub-Saharan African bank to conduct banking activities in New York and London, as well as in 20 other countries across Africa.

The statement quoted Uzoka as saying: the “authorisation strengthens our capabilities in meeting the growing cross-border financing needs of our customers. It enhances our customer coverage and product offerings whilst positioning our group as an optimal conduit for trade and foreign investments into and across Africa as well as export flows to the United Kingdom.
“Importantly, the licence will enable us to fulfill our aspiration of deepening financial intermediation in Sub-Saharan Africa and providing the much-needed financial support to the broader real sector of the African economy,” he added.

Andrew Martin, CEO of United Bank for Africa (UK) Ltd, also described the enhanced positioning of the group as timely, coming “at a time when the UK is seeking to expand trade and broaden economic ties with Nigeria and Africa in general.”
Following the authorization, UBA (UK) will in addition to a full suite of treasury services, cash management, corporate lending and wholesale deposit offerings to professional and eligible counterparties, plans to extend its operations “to all aspects of trade finance; issuance, acceptance, confirmation and refinancing of Letters of Credit of different variations, including SBLCs.”
The broader licence is also expected to help in the group’s determination to broaden its earnings and profit, by especially growing the contributions from its operations outside of Nigeria.

At the end of 2017 full year, for example, the group’s revenue grew 20% to N462bn, a third of which is attributable to non-funded income, even as subsidiaries outside Nigeria contributed a third of the group’s top-line and 45% of profit for the year, which the management described as a remarkable improvement from the 31% made in 2016.

http://investdata.com.ng/2018/03/uk-banking-licence-will-help-us-support-africas-real-sector-uzoka/

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 4:38pm On Mar 29, 2018

NSE Extends Bearish Trend, Amidst Hope For Economic Direction Ahead MPC Meeting

Trading on the Nigerian Stock Exchange (NSE) Tuesday extended its bearish trend on a continued volatility wave to close lower amidst a low traded volume and negative sentiments, despite the impressive 2017 corporate earnings and weak inflow of funds into the market, which had made equity prices react positively to the high dividend payout and yields. Even so, major market players continue to stylishly take profit because they had factored in these numbers into their pricing before now, given that the stock market is a discounting machine that prices the future into the present.
Nigeria’s case is seemingly not peculiar, given the continued decline of equity market indicators in the international markets, due to technical shake up of global economies and markets, despite the rising crude oil price over the last year, trading above $65 per barrel which is near its 52-week high.
Trading on the NSE on Tuesday started out on a weak note which was sustained through the mid-morning till midday on the back of sell-offs, after which it spiked to an intraday high of 41,466.48 after touching low of 41,232.61 that had been the major support level it tested five trading days ago, making this level an inflection point. As such, any breakdown of this point will add to more than the 10% the market has lost so far from its year-high, which calls for cautious even when changing strategy to invest for dividend income.
Market technicals for the day was weak, as traded volume was low on a selling pressure of 95% with negative market breadth, signaling negative sentiment at the peak of earnings reporting season irrespective of strong numbers and high dividend. This should ordinary be of concern for the investing public as they await the outcome of next week’s Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) two-day meeting beginning on April Tuesday. Volume index was 0.77 with money flow index momentum looking down at 38.46 points, slightly better than previous day’s 38.85 points.
At the close of the day’s trading, the All-Share index shed 211.06 points to close at 41,243.24basis points after opening at 41,454.30bp, representing a 0.51% slide on volume that is lower than the previous day’s. Similarly, market capitalisation for the day fell by N76.25bn to close at N14.9tr from an opening value of N14.98tr which also represented a 0.51% dip in value as investors portfolio continue to bleed in an earnings season.
Price depreciation suffered by low, medium and high cap stocks like NB, Total Nigeria, Guinness, PZ, UBA, Zenith Bank, UBN,ETI, Double One, Cadbury, Seplat and Diamond Bank impacted negatively on the NSE’s Year-To-Date returns, which dropped to 7.84%, just as market capitalisation gains for the period reduced to N1.3tr, representing a 9.49% YTD growth.
The composite index and sectorial performance all closed in red, except for the NSE Industrial and NSE Consumer Goods that was green. Market breadth for the day was negative also as decliners outnumbered advancers in the ratio of 22:31. Market activities were down in volume and value by 7.12% and 19.30% respectively to 352.89m shares, worth N4.14bn from the previous day’s 379.93m units valued N5.13bn.
Transaction volume was boosted by financial services, conglomerates and oil stocks like: Japual Oil, Zenith Bank,FBNH, Transcorp and Access Bank, which witnessed increased trading to top the activity chart.
The best performing stocks were GSK and MRS Oil that topped the advancers table, after gaining 10.12% and 5% respectively to close at N30.90 and N28.05 respectively on the back of their strong dividend yields and bonus share. Diamond Bank and International Brew were the worst after losing 7.32% and 5% to close at N1.90 and N54.15 respectively on market forces and profit taking.
During the trading session, CCNN (READ) released their 2017 full year results, proposing N1.25 dividends.

Market Outlook
Wednesday and Thursday, being the last two days to the expiration of the 90-day statutory period for companies with December year-end to release their audited accounts, we expect more earnings reports to the market, ahead of first quarter economic data and corporate earnings which would give the health status of the economy and the companies so far in 2018. With more income investors taking position in value and dividend paying stocks, alongside bargain hunters, we expect next week’s MPC meeting to give direction of the interest rate as inflation continues to decline thereby further driving the economic recovery and inflow of funds.
Also, expect repositioning to continue, while profit taking will reduce on the strength of expected payouts and earnings surprises.
However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing.
We advise investors to allow numbers guide their decisions while repositioning for the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. A stock market is in cycles. 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.
Get your home study pack of the INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy, thereby ensuring that you invest and trade with knowledge. You can also access stocks analysed in the home study pack of the Chart Summit held on February 24, 2018, including the 15 stock-picks for 2018 are available now to guide your positioning as trading for the year.
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and TV set. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.
We say big thanks to all the participants and resources persons that made Investdata Investment education workshop debut in Port Harcourt a success. The trading and investing education train move to Abuja on April 14, 2018.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2018/03/nse-extends-bearish-trend-hope-for-economic-direction/

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 4:29pm On Mar 29, 2018

Reversal Imminent Ahead Of Quarter-end Portfolio Rebalancing, MPC Meeting

The stock market started the week on Monday very volatile, closing flat, as the day started out with a gap up which was sustained from the mid-morning till noon before a reversal due to the intra-day profit booking in banking stocks that plunged the index in the closing minutes. This pull was strong enough, forcing the session to close marginally lower.
Trading in recent days have formed a double bottom, but continues to side-trend at 38.2% Fibonacci retracement level which suggests that the market is resisting to breakdown this major support despite the mixed sentiment in the trading arena. The NSE index has retested this level in the last four trading sessions, trying to retrace up on a mixed volume of up and down movements. Bottoming out of the Nigerian Stock Exchange’s All-Share index is imminent, especially as investor sentiments are strengthening, as the earnings reporting seasons reaches its peak this week, just as the first quarter ends and the filings are expected by the end of April.
During Monday’s trading session also, the index hit intraday highs of 41,662.40 basis points in the afternoon before the pullback to the low of 41,454.30 at which it closed the day. This resulted from value loss by the combination of Guaranty Trust Bank, Seplat Petroleum Development Company, Unilever, Forte Oil and Lafarge Africa.

The mixed market technicals for the day supports rebound in Tuesday’s trading sessions, the low traded volume on a selling pressure of 100% with positive market breadth, equally signals the impact of high dividend attraction for investors who are taking advantage of the markdown dates to position and move their funds for dividend income, considering the high yields in the short-term. Volume index was 0.82 with money flow index momentum looking up at 38.85 points, slightly better than previous day’s 38.37 points.
Meanwhile, the composite index NSEASI shed 17.80 points to close at 41,454.30 basis points after opening at 41,472.10bp, representing a growth of 0.04% on low traded volume that is lower than the previous day’s. Similarly, market capitalisation for the day lost N5.97bn to close at N14.98tr from an opening value of N14.98tr which also represented a 0.04% value loss.

The downturn was as a result of price decline among the low, medium and high cap stocks which slight impacted negatively on the NSE’s Year-To-Date returns, to contract at 8.40%, just as market capitalisation gains for the period stood at N1.37tr, representing a 10.04% YTD growth.
Market and sectorial performance were mixed, as the benchmark index and other market indices closed lower, except for the NSE Insurance and NSE Consumer Goods that closed higher. Market breadth for the day was positive as advancers outweighed decliners in the ratio of 34:17, while market activities were down in volume and value by 32.17% and 24.08% respectively to 379.93m shares, worth N5.13bn from the previous day’s 560.12m units valued N6.76bn.

Transaction volume was boosted by financial services, conglomerates and oil stocks like: Access Bank, Zenith Bank, UBA, Transcorp and Japaul Oil, which witnessed increased trading to top the activity chart.
Custodian & Allied Insurance and GSK were the day’s best performing stocks, as they topped the advancers table, after gaining 10.00% to close at N4.51 and N28.05 respectively on the back of their strong dividend yields, while Forte Oil and Royal Exchange Assurance came out worst after losing 9.09% and 6.06% to close at N40.00 and N0.31 respectively on market forces and sentiments.
During the trading session, Chemical & Allied Products, Okomo Oil Palm and MRS Oil released their 2017 full year results, proposing N2.03, N3.00 dividends and 1:5 bonus shares respectively.

Market Outlook
We expect a reversal on the strength of end of the quarter fund managers trading account balance, expiration of 90-day statutory period to release December 31, year-end account which will result to more earnings reports to the market, ahead of first quarter economic data and corporate earnings to give the state of the economy and the companies so far in 2018. Even as more income investors take position in value and dividend paying stocks, alongside bargain hunters. As MPC meeting holds next week to give direction of the interest rate that will drive the economic recovery and inflow of funds.

Also, expect repositioning to continue, while profit taking will reduce on the strength of expected payouts and earnings surprises.
However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing.
We advise investors to allow numbers guide their decisions while repositioning for the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.

It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. A stock market is in cycles. 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.

Get your home study pack of the INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy, thereby ensuring that you invest and trade with knowledge. You can also access stocks analysed in the home study pack of the Chart Summit held on February 24, 2018, including the 15 stock-picks for 2018 are available now to guide your positioning as trading for the year.

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and TV set. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.
We say big thanks to all the participants and resources persons that made Investdata Investment education workshop debut in Port Harcourt a success. The trading and investing education train move to Abuja on April 14, 2018.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2018/03/reversal-imminent-ahead-quarter-end-portfolio/#more

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 3:56pm On Mar 29, 2018

Expect Month-End Rebalancing, Positioning, Ahead Regulatory Deadline For December Accounts

http://investdata.com.ng/2018/03/expect-month-end-rebalancing-positioning-ahead-regulatory-deadline-december-accounts/

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 7:26pm On Mar 23, 2018

Photo News: Finance Minister, Gates Foundation, Meet On Vaccine Financing For Nigeria

Caption: Nigeria’s Minister of Finance, Mrs. Kemi Adeosun; Co-Chair of Bill and Melinda Gates Foundation, Mr. Bill Gate; President, Global Development, Bill and Melinda Gates Foundation, Chris Elias; Country Director, Nigeria Office of Bill and Melinda Gates Foundation, Paulin Basinga, during a meeting on vaccine financing and support for Nigeria’s fiscal agenda in Abuja on Thursday, 22nd March, 2018.

http://investdata.com.ng/2018/03/photo-news-finance-minister-gates-foundation-meet-vaccine-financing-nigeria/#more

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 7:22pm On Mar 23, 2018

Photo News: Institute Of Directors Nigeria President Sound Closing Gong On NSE

Caption: Dr. Mrs. Ije Jidenma, F.IoD, Second Vice President, Institute of Director (IoD); Oscar Onyema, Chief Executive Officer, The Nigerian Stock Exchange (NSE); Alhaji Ahmed Rufai Mohammed, President/Chairman of Council, IoD; Chief (Dr.) Chris Okunowo, First Vice President, IoD; Samuel Yemi Akeju, Immediate Past President, IoD and Bola Adeeko, Head, Shared Services Division, NSE during the Closing Gong Ceremony at the Exchange 0n Tuesday, March 20, 2018.

http://investdata.com.ng/2018/03/photo-news-institute-directors-nigeria-president-sound-closing-gong-nse/#more

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 7:18pm On Mar 23, 2018

ECOWAS single currency in 2020? Not credible

By Charles Robertson, Renaissance Capital

Despite the leaders of the Economic Community of West African States (ECOWAS) declaring last month that they will push ahead with a single currency by 2020, we think this is not credible. Nigeria’s critique that a single currency is unwise at this time is valid. We think an East African single currency by 2024 is also unlikely.

Ghana says it’s keen for a single ECOWAS currency by 2020, even without Nigeria

The market has entirely ignored the leaders of ECOWAS who on 21 February reaffirmed their commitment to a single currency for up to 15 ECOWAS member states, to be enacted by 2020. This is partly explicable because Nigeria has made clear its lack of interest in joining the single currency at this stage. While ECOWAS had a GDP of $566bn in 2017 (IMF estimate) or 25% of Africa’s and 37% of SSA’s GDP, without Nigeria, the figures are less significant at $171bn and 8% and 11%, respectively, of which half would be accounted for by Ivory Coast and Ghana alone. But more important for the market is that 2020 looks impossible to achieve, in our view, which raises the question as to why the target was reiterated and whether it is in fact a good idea.

A nascent West African central bank was already established in 2001

A single currency for ECOWAS has been on the agenda for at least a generation. Over a decade ago, the target was a single currency for the West African countries not already in the CFA franc zone, to be established in 2015, and then integrated with the West African Economic and Monetary Union (WAEMU) countries by 2020. A West African Monetary Institute was set up – and still exists – to enact this single currency. Its last annual report was for 2015 and the latest statistical data on its website are for 2011-2012. Nothing we can find suggests the “by 2020” date is realistic.

Ghana might like to see borrowing costs drop by 50-90% and the stock market boom

We can guess why Ghana may be keen to join a single currency with others in the region. The Bank of Ghana policy rate is 20%, while WAEMU short rates are around 2-3%. Ten-year bond yields at 15.7% in Ghana would halve if they could converge at WAEMU borrowing costs. Ghana could enjoy a boom as its local debt servicing costs would plunge by 50-90%, and the cost of private sector borrowing could fall sharply too. It is a similar incentive to Greece’s in 2000, which this analyst recognised at the time, but warned would have severe repercussions for the country in 2005 (three years too early). The Greek stock market trebled in just over a year as it became clear it would join the euro, lost all those gains within three years, then more than trebled again in the subsequent four years before collapsing back to 1995 levels today.

But we think deep structural differences will emerge

Encouraging an extreme boom-and-bust cycle is not our primary concern though with the ECOWAS plan. Our core worry is that Ghana in particular is well placed to pull ahead of WAEMU countries in a dramatic fashion in the coming decade. Literacy data imply it can industrialise now, and grow at a sustainable 6-9% annually, while WAEMU countries cannot do so for another generation, and Nigeria is unlikely to do so for a decade. This would lead to very significant structural differences within ECOWAS, which will be highly challenging for any central bank to manage. Meanwhile we struggle to see why WAEMU countries would drop the CFA which seems to be working well, for an untested new currency regime. Last, we agree with Nigeria’s President Muhammadu Buhari who raised many valid and economically insightful reasons to suggest a common currency is unwise at this time.

http://investdata.com.ng/2018/03/ecowas-single-currency-2020-not-credible/#more

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 7:13pm On Mar 23, 2018

Low Valuation, High Dividend Yield Lure Investors, As Bargain Hunters Return

Market Update for March 22, 2018

It was a spectacular trading session on Nigeria’s equity market on Thursday, as the benchmark All-Share index halted a six-day consistent pullback of mixed investors sentiment but weak inflow that kept the market’s movement in the south direction, irrespective of impressive earnings and dividend payouts announced by the quoted companies.
As INVESTDATA has noted repeatedly, the market’s technical correction had created buy opportunities for bargain hunters to capitalize on the decline and relatively low equity prices to position for short term rally. Money flow index turned the corner, moving north at the end of Thursday’s trading session to signal that funds are again entering the market after several days of seizure apparently to wait for more numbers, especially the blue-chips and banking stocks.

The day’s trading started with a little gap up, but pulled back by the mid-morning when it became obvious that the Nigerian Stock Exchange (NSE) Index was holding support. Thereafter it took off again, and in the process, eliminated some loses from midweek’s low position. That is when it had a very strong intraday rally by the afternoon to hit a high of 41,640.04 basis points from its 41,370.69 low pullback to test, but held once again, and ran up to the session’s highs with about an hour to go, holding on till the close of the day’s session.
This high traded volume that reversed the downtrend should trigger traders and investors demand for stocks in an earnings reporting season, as the market awaits more positive numbers with recommendation of juicy dividend. However, market rebounded in line with INVESTDATA’s expectations as bargain hunters hit the market to take advantage of the high dividend payouts and yields.
Market technicals for the day were strong and positive despite the seeming flat market breadth, with buying pressure improving to 98% on a high volume traded that signals improved investors demand for stocks, while selling position stood at 2%. Volume index was 1.16 with money flow index momentum looking up at 35.65 point from the previous day’s 28.13 points.

The All Share index for the day gained 138.36 points to close at 41,49633.79 basis points after opening at 41,496.25bp, representing a growth of 0.33% on high traded volume that is higher than the previous day’s. Similarly, market capitalisation was up by N195.79bn to close at N15.04tr from an opening value of N14.85tr which also represented a 0.33% value gain.

The upturn resulted from value gain in stocks like Fidelity Bank, FCMB, PZ Cussons, UBA, Nigerian Breweries, Zenith Bank, Guaranty Trust Bank, Dangote Flour, Flourmills and Stanbic IBTC. This expectedly impacted positively on the NSE’s Year-To-Date returns, which rose to 8.87%, just as market capitalisation gains for the period stood at N1.43tr, representing a 10.51% YTD growth.
The market’s composite index and other market indices were higher except for the NSE AseM that closed lower. Market breadth for the day was slightly positive as advancers outnumbered decliners in the ratio of 29:28, while market activities rose in volume and value by 11.0% and 30.2% respectively to 542.35m shares, worth N7.35bn from the previous day’s 488.7m units valued N5.64bn.
Transaction volume was boosted by financial services stocks like: Access Bank, Zenith Bank, GTBank, FBNH and UBA, which witnessed increased trading to top the activity chart.

The best performing stocks was GSK which gained 10.20% to close at N24.30 on the back of the N7.50 per share special dividend proposed and market sentiments, while Japual Oil notched 8.62% at N0.63 after the plethora of profit taking, especially following doubts over the Milost investment in the country. Multverse and Unity Kapital were the worst performers, shedding 8.70% and 8.33% to close at N0.21 and N0.22 respectively on market forces.

Market Outlook
Being the last trading day of the week, profit taking is expected but due to the previous days of downtrend, we foresee the improved sentiment continuing as bargain hunters take opportunities of low prices. This follows expectation of more earnings reports hitting the market up till Friday and beyond, especially as companies have up to Thursday next week as regulatory deadline to submit their December year-end audited results in line with the post-listing rule of the NSE. We do not expect this pullback to linger on, in a recovering economy with the outpouring of stronger corporate earnings, positive economic data and transparent market that is technology driven.
Also, expect repositioning to continue, while profit taking will reduce on the strength of expected payouts and earnings surprises.
However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing.

We advise investors to allow numbers guide their decisions while repositioning for the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. A stock market is in cycles. 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.

Get your home study pack of the INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy, thereby ensuring that you invest and trade with knowledge. You can also access stocks analysed in the home study pack of the Chart Summit held on February 24, 2018, including the 15 stock-picks for 2018 are available now to guide your positioning as trading for the year.
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and TV set. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.
We say big thanks to all the participants and resources persons that made Investdata Investment education workshop debut in Port Harcourt a success. The trading and investing education train move to Abuja on April 14, 2018.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2018/03/low-valuation-high-dividend-yield-lure-investors-bargain-hunters-return/

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 7:08pm On Mar 23, 2018

Ahead April 3 Meeting, Senate Clears 2 CBN Deputy Govs, 3 MPC Members, Rejects 1

Nigeria’s upper legislative chamber- the Senate, on Thursday approved the appointment Mrs. Aisha Ahmad and of Edward Lametek Adamu as Deputy Governors of the Central Bank of Nigeria (CBN), and three of the four Monetary Policy Committee (MPC) members nominated by President Muhammadu Buhari.

Despite the Senate’s decision to withhold the approval of the fourth MPC, the two-day meeting at which the nation’s benchmark Monetary Policy Rate (MPC) is fixed is expected to open on April 3 as announced by Godwin Emefiele, the CBN Governor.
Considering the report of the Committee on Banking, Insurance and other Financial Institutions, presented by Senator Rafiu Adebayo, Senate President Bukola Saraki said Aisha Ahmad and Edward Lametek Adamu had been confirmed as deputy governors, while Prof. Festus Adenikinju, Aliyu Rafindadi Sanusi and Robert Chinwendu Asogwa had been appointed to the MPC.

The Senate however rejected the nomination of Asheikh Maidugu, urging the President to expedite action and present a replacement for screening.
Dr. Saraki, while thanking the committee members and wishing the MPC members a fruitful and successful tenure, noted that the “exercise will allow the Central Bank to continue to play its role in providing stability in our economy.”
On the comment by the Senate Leader, Senator Ahmed Lawan, that the MPC is not fully constituted because of the rejected nominee, Senator Saraki said the issue will be revisited when the Senate reconvenes next week.

Commenting specifically on Edward Adamu who was appointed Deputy Governor from his position as Director, Human Resources at the apex bank, Saraki said such “will be great encouragement to the staff of the CBN who will see one of their own in this position. I am sure it will boost the morale within the institution.”

While also congratulating Mrs. Ahmad, he said “the two new Deputy Governors of the CBN are coming at a time when the economy is a major issue. We have just come out of a recession and we need to continue with our economic growth and see the sustainability of the foreign exchange and other related challenges.
“We hope that the new new Deputy Governors will work with the Governor to move the country and our economy in the right direction,” he stressed.

He urged the CBN management to continue working closely with the National Assembly to update the nation’s legislators “on the progress that is achieved.”

http://investdata.com.ng/2018/03/ahead-april-3-mpc-meeting-senate-clears-2-cbn-deputy-govs-3-mpc-members-rejects-1/

Investment › Re: Investdata Market Updates For Investors And Traders Forum by ACAN(op): 7:05pm On Mar 23, 2018

Low Valuation, High Dividend Yield Lure Investors, As Bargain Hunters Return

Market Update for March 22, 2018

It was a spectacular trading session on Nigeria’s equity market on Thursday, as the benchmark All-Share index halted a six-day consistent pullback of mixed investors sentiment but weak inflow that kept the market’s movement in the south direction, irrespective of impressive earnings and dividend payouts announced by the quoted companies.

As INVESTDATA has noted repeatedly, the market’s technical correction had created buy opportunities for bargain hunters to capitalize on the decline and relatively low equity prices to position for short term rally. Money flow index turned the corner, moving north at the end of Thursday’s trading session to signal that funds are again entering the market after several days of seizure apparently to wait for more numbers, especially the blue-chips and banking stocks.

The day’s trading started with a little gap up, but pulled back by the mid-morning when it became obvious that the Nigerian Stock Exchange (NSE) Index was holding support. Thereafter it took off again, and in the process, eliminated some loses from midweek’s low position. That is when it had a very strong intraday rally by the afternoon to hit a high of 41,640.04 basis points from its 41,370.69 low pullback to test, but held once again, and ran up to the session’s highs with about an hour to go, holding on till the close of the day’s session.
This high traded volume that reversed the downtrend should trigger traders and investors demand for stocks in an earnings reporting season, as the market awaits more positive numbers with recommendation of juicy dividend. However, market rebounded in line with INVESTDATA’s expectations as bargain hunters hit the market to take advantage of the high dividend payouts and yields.

Market technicals for the day were strong and positive despite the seeming flat market breadth, with buying pressure improving to 98% on a high volume traded that signals improved investors demand for stocks, while selling position stood at 2%. Volume index was 1.16 with money flow index momentum looking up at 35.65 point from the previous day’s 28.13 points.
The All Share index for the day gained 138.36 points to close at 41,49633.79 basis points after opening at 41,496.25bp, representing a growth of 0.33% on high traded volume that is higher than the previous day’s. Similarly, market capitalisation was up by N195.79bn to close at N15.04tr from an opening value of N14.85tr which also represented a 0.33% value gain.

The upturn resulted from value gain in stocks like Fidelity Bank, FCMB, PZ Cussons, UBA, Nigerian Breweries, Zenith Bank, Guaranty Trust Bank, Dangote Flour, Flourmills and Stanbic IBTC. This expectedly impacted positively on the NSE’s Year-To-Date returns, which rose to 8.87%, just as market capitalisation gains for the period stood at N1.43tr, representing a 10.51% YTD growth.

The market’s composite index and other market indices were higher except for the NSE AseM that closed lower. Market breadth for the day was slightly positive as advancers outnumbered decliners in the ratio of 29:28, while market activities rose in volume and value by 11.0% and 30.2% respectively to 542.35m shares, worth N7.35bn from the previous day’s 488.7m units valued N5.64bn.
Transaction volume was boosted by financial services stocks like: Access Bank, Zenith Bank, GTBank, FBNH and UBA, which witnessed increased trading to top the activity chart.

The best performing stocks was GSK which gained 10.20% to close at N24.30 on the back of the N7.50 per share special dividend proposed and market sentiments, while Japual Oil notched 8.62% at N0.63 after the plethora of profit taking, especially following doubts over the Milost investment in the country. Multverse and Unity Kapital were the worst performers, shedding 8.70% and 8.33% to close at N0.21 and N0.22 respectively on market forces.

Market Outlook
Being the last trading day of the week, profit taking is expected but due to the previous days of downtrend, we foresee the improved sentiment continuing as bargain hunters take opportunities of low prices. This follows expectation of more earnings reports hitting the market up till Friday and beyond, especially as companies have up to Thursday next week as regulatory deadline to submit their December year-end audited results in line with the post-listing rule of the NSE. We do not expect this pullback to linger on, in a recovering economy with the outpouring of stronger corporate earnings, positive economic data and transparent market that is technology driven.

Also, expect repositioning to continue, while profit taking will reduce on the strength of expected payouts and earnings surprises.
However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing.

We advise investors to allow numbers guide their decisions while repositioning for the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. A stock market is in cycles. 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.

Get your home study pack of the INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy, thereby ensuring that you invest and trade with knowledge. You can also access stocks analysed in the home study pack of the Chart Summit held on February 24, 2018, including the 15 stock-picks for 2018 are available now to guide your positioning as trading for the year.
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and TV set. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

We say big thanks to all the participants and resources persons that made Investdata Investment education workshop debut in Port Harcourt a success. The trading and investing education train move to Abuja on April 14, 2018.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2018/03/low-valuation-high-dividend-yield-lure-investors-bargain-hunters-return/

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