₦airaland Forum

INVESTDATA QUESTION AND ANSWER FORUM


https://www.youtube.com/watch?v=kM1VEcjDfxA&feature=youtu.be

SEC Suspension: We’ll State Our Position Soon, Says Oando Plc

The management of Oando Plc, on Wednesday said it is reviewing the directive by Nigeria’s Securities & Exchange Commission (SEC), based on which the Nigerian Stock Exchange (NSE) placed its shares on suspension earlier that day.
A statement signed by the SEC management, said the decision followed a comprehensive review of the two petitions by Alhaji Dahiru Barau Mangal and Ansbury Incorporated which initially sought to stop the company’s annual general meeting (AGM) in Uyo, for which a waiver was given.

However, in a statement signed by Ayotola Jagun, its Chief Compliance Officer & Company Secretary, Oando Plc while expressing commitment to acting in the best interests of all its shareholders, said it “is currently reviewing subsequent correspondence received today October 18, 2017 from the NSE and SEC and will provide a full statement of the Company’s position as soon as possible.”
The review showed among others, that Oando, which is also listed on the JSE Stock Exchange, Johannesburg, South Africa, breached provisions of Nigeria’s Investments & Securities Act (ISA) 2007 and the SEC Code of Corporate Governance for Public Companies.
To ensure the independence and transparency of the exercise, the commission said “the Forensic Audit shall be conducted by a consortium of experts made up of auditors, lawyers, stockbrokers and Registrars.”
The statement added that it was in its bid to further ensure that the interests of all shareholders of Oando Plc are preserved during the course of the exercise that it “directed the Nigerian Stock Exchange to place the shares of Oando Plc on technical suspension.
“However in view of the fact that it is not technologically feasible for the Exchange to effect a technical suspension except after 48 hours, the Commission directed as follows:

“Effective for forty-eight (48) hours from today, 18 October 2017 to 20 October 2017, The Nigerian Stock Exchange should implement a full suspension in the trading of the shares of Oando Plc; and
“Effective from 20 October 2017 and until further directive, The Exchange should implement a technical suspension in the shares of Oando Plc.”
Specifically, the SEC management, according to the statement, found evidence of suspected insider dealing, “related party transactions not conducted at arm’s length (and) discrepancies in the shareholding structure of Oando Plc,” among others.
In line with its primary role as apex regulator of the Nigerian Capital Market to regulate the market and protect the investing public, the Commission noted “that the above findings are weighty and therefore needs to be further investigated.
“After due consideration, the Commission believes that it is necessary to conduct a forensic audit into the affairs of Oando Plc. This is pursuant to the statutory duties of the Commission as provided in section 13(k), (n), (r) and (aa) of the ISA 2017.

http://investdata.com.ng/2017/10/sec-suspension-well-state-position-soon-says-oando-plc/#more

Past History Of Failures Must Not Define Africa’s Future- Osinbajo

Vice President Yemi Osinbajo, at the weekend in Lagos challenged young entrepreneurs of Africa not to give in to the failures of the past by leaders across the length and breadth of the continent, but seek a future that is not defined by history of everything that is evil and even unpalatable.
Addressing the 2017 class of the Tony Elumelu Foundation Entrepreneurship Forum from Africa’s 54 countries as a special guest, he said: “Our political history in Africa would appear dominated by wars, famine, coups d’etat, corrupt governments, dictators and failed or failing states. Our economic history would also largely be of large scale poverty, infant mortality, maternal mortality, mortality in literacy, disease and misery.”
Osinbajo who spoke on the Tyranny of history, urged the 1000 beneficiaries of the $10,000 each seed fund annual for a 10-year period, not to allow such history subdue their faith or conscript their vision the society.

Such history, he continued is capable of stopping us from dreaming big, and that such history should be consigned to the past stressing that “our future is not determined by history or the past unless we allow it. The history of Africa does not determine its future. The days you live here are much greater and better than the past.”
He charged the participants and indeed budding African entrepreneurs to pursue their dreams with single mindedness, which is indeed more powerful than facts.
“Courage and persistence can triumph even over experience; no matter whose experience it is.
“The third is that hope and imagination are more potent than history. Because your history is not necessarily your destiny.”
Based on the headstart, the Vice President predicted that the 2017 cohorts of the programme “will be the wealthiest and most successful people in a few short years.

“I have always known that this group of individuals, this generation of young people will do the exceptional,” recalling his speech at the Financial Times Africa Summit, on the theme ‘What Makes Africa Work,’ expressing confidence that the answers to that question were the young entrepreneurs from the TEF programme.
“Indeed, you are right here with us – a thousand reasons why Africa will work,”
he told the participants who cut across agriculture, ICT, Hospitality, Fashion, Energy, Manufacturing, Entertainment, and many other fields.
“The breadth and depth of talent and innovation on display in the current and previous Tony Elumelu Entrepreneurship cohorts have shown there is indeed hope,” Osinbajo enthused.

http://investdata.com.ng/2017/10/past-history-failures-must-not-define-africas-future-osinbajo/

GTBank Nets N125.577bn Q3 Profit, As Customer Loans, Deposits Fall

GTBank 2017 Q3 graph courtesy TRW Stockbrokers Ltd.

Directors of Guaranty Trust Bank Plc, on Wednesday presented its un-audited financials for the nine-month ended September 30, 2017, which showed that the period was not as smooth sailing as before, especially with the drop, though marginal, in gross earnings, customer loans, as well as deposit base, the life-blood all commercial banks.
The result also showed that the bank’s saving grace was the huge decline in loan impairment charges, which fell to N8.356bn, from prior nine-month’s N57.083bn as restated as well as the non-provision for the toxic Etisalat loan, both of which ensured it did not suffer a sharp drop in profit before and after tax.

Gross earnings income fell from N329.283bn in the corresponding period of 2016, to N309.913bn, boosted by interest income of N248.27bn, which jumped from N181.909bn, helped by interest from customer loans and advances of N153.688bn, up from N140.779bn; as well as from investment securities available for sale, which grew from N27.457bn to N66.357bn. Interest expense climbed from N49.161bn to N58.703bn, the bulk of which was the N44.14bn interest paid on customer deposits, which rose from N36.892bn; following which net interest income climbed from N132.748bn to N189.566bn.
Net interest income after loan impairment charges was N181.209bn, up from N75.665bn.
Fee and commission income dropped to N39.676bn from N50.41bn, due to the significant decline in electronic business (e-business) income from N23.18bn to N9.138bn; just as credit related fees and commission dropped from N8.66bn to N7.03bn; as commission on foreign exchange deals rose to N4.821bn from N3.272bn. GTBank also earned N2.077bn from transfers related charges, down from N3.702bn; and account maintenance charges from N6.311bn to N7.542bn.
Fee and commission expense fell from N2.275bn to N1.699bn, resulting in net fee and commission income N37.977bn, as against preceding nine-month’s N48.134bn.

Net gains on financial instruments classified as held for trading jumped to N9.938bn from N3.013bn; other income suffered a slump also, falling from N93.95bn in the third quarter of 2016, to N12.027bn, as foreign exchange revaluation gain fell to just N11.669bn from N93.639bn.
In a review of the result, analysts at FBN Capital (FBNQuest) noted that “the year-on-year decline in earnings was driven by a 73% year-on-year reduction in non-interest income due to negative base effects in the prior year (GT Bank’s 9M 2016 earnings were boosted by foreign exchange revaluation gains of N93.6bn vs. N11.7bn 9M 2017).”
Personnel expenses rose to N24.629bn from N21.772bn; operating lease expenses increased N1.45bn from N1.324bn; depreciation and amortization increased to N11.26bn from N10.961bn; just as other operating expenses rose from N48.713bn to N53.021bn, the bulk of which was the N13.066bn one-off Asset Management Corporation of Nigeria (AMCON) levy, which rose from N11.388bn; followed by outsourcing services of N6.323bn, up from N6.005bn; and the deposit insurance premium of N5.826bn from N4.582bn.
Profit before tax came to N150.032bn from N137.991bn; income tax expense increased to N20.909bn from N24.454bn; following which net profit stood at N125.577bn, up from N117.081bn, which translated to Earnings Per Share stood at N4.44, as against the previous N4.14.
Total assets rose to N3.212tr from N3.116tr, even as customer loans and advances dropped from N1.589tr from N1.428tr; derivative financial assets also dropped from N1.042tr to N696.129bn; while restricted deposits and other assets increased to N437.268bn as against N371.995bn in the prior nine months.

Total liabilities rose marginally to N2.631tr from N2.611tr, as customer deposits dropped to N1.891tr from N1.986tr, even as other liabilities climbed to N252.281bn from N115.682bn.
Shareholders’ fund for the period rose from N504.902bn to N581.908bn
While rating GTBank shares Neutral, FBN Quest noted that “despite the year-on-year decline in earnings, we expect the market to focus on the broad positives, particularly the year-on-year decreases in opex and loan loss provisions. Notwithstanding, the weakness in non-interest income and the q/q decline in funding income will concern investors.
“Although the bank’s shares have gained 65% ytd (vs. a 36% year-to-date return on the NSE ASI), we expect a slight positive reaction from the market,” the report added.

http://investdata.com.ng/2017/10/gtbank-nets-n125-577bn-q3-profit-customer-loans-deposits-fall/#more

Only 10% Of Nigeria’s 263 Stockbrokerage Firms Have Functional Online Trading Portals- Report

Proshare NG, an online finance, investment and economic news portal, has published the third edition of its online trading portals ranking report, focusing also on FX trading portals like MERIFX, Eagles Global Market, HFTM, unlike the previous editions released in H1 and H2 2016 that dwelt on trading portals owned by Capital Market Operators trading on the floor of the Nigerian Stock Exchange.
The result of the online trading ranking portal survey was carried out between July 4 and August 15, 2017 and reflected that of the 275 responses received from users, 38.18% were in favour of Meritrade; 22.18%, for Mytradebook; 20.36%, Easytrade; 7.64%, APTetrade; 3.27%, MorganCapital i-Trade; 1.09%, TRW e-Trader; 0.73% each in favour of InvestNow and CityTrade; and 0.36% for Stanbic IBTC’s e-Trade, Afrinvestor and LeadTrader respectively.
However, no response was obtained in favour of Bancorp e-Trade, WSTC e-Trader, GTI Online Trader, Cordros TradeButton and CapEx Trade trading poratls.
A statement by Proshare Ng listed criteria used for the ranking to included technology and services, with Easytrade emerging tops, based on Speed of Execution; while Meritrade and Myreadebook emerged 2nd and 3rd respectively.
Based on accessibility on mobile; Meritrade emerged first position, followed by Mytradebook and EasyTrade on the second and third respectively.
On customer service and expectation, Meritrade again placed first position, while EasyTrade and Mytradebook emerged 2nd and 3rd respectively, while based on customer service responsiveness Meritrade, EasyTrade and Mytradebook also emerged 1st, 2nd and 3rd respectively in that order.
A look at the FX Trading portals ranking showed MERIFX emerged on first position on all categories while FXTM emerged 2nd as responses were only received in relation to the two FX trading portals.

http://investdata.com.ng/2017/10/10-nigerias-263-stockbrokerage-firms-functional-online-trading-portals/#more

MARKET UPDATE FOR OCTOBER 18, 2017

CAUTION AMONG INVESTORS STILL, AS MORE Q3 COME BELONG EXPECTATION


The nation’s stock market struggled on Wednesday, searching for direction as Q3 earnings numbers continued to trickle in to the market, even as scorecards so far released have come with mixed performance, while the ones that even came with seemingly impressive numbers are yet to receive positive market acknowledgement in terms of upward price movements.
Guaranty Trust Bank Plc, Nigeria’s biggest banking stock (by market capitalization) released its numbers for the nine-month ended September 30, 2017, which analysts agree were below market expectation also at the midweek. This reality is expected to reflect on its price performance as the market open this morning. The earnings report came with marginal decline in Topline, while bottom line moved slightly up as the bank needed to make far less provisioning for loan loss during the period.

The trading session opened with the market index sliding down marginally in the early hours of the day, before continuing its back and forth movement till mid-day where it turned green, before slipping marginally into the red towards the last minutes of the afternoon trade, as profit booking continued in low, medium and high caps stocks.
Market traded volume was low with a stronger selling pressure as revealed by the volume index for the day that stood at 0.80, while buying position was at 11% and 89% selling volume of transactions to continue the down market just as market breadth turned negative.

It is gladdening to note the World Bank’s statement that it is with the Federal Government on the same page in terms of the need to step up the nation’s revenue drive that will support national economic growth and development, just as it commended the Central Bank of Nigeria (CBN) for its consistent intervention that had stimulated and driven the recovery so far. This has continued to attract foreign direct and portfolio investors into the economy at a time the exchange rate has remain relatively stable to allow investors plan their investment.

Meanwhile, the composite NSE All-Share Index shed 28.09 basis points to close at 36,641.52 from an opening figure of 36,669.61 basis points, which represented 0.08% decline, just as market capitalisation went down N9.67bn to close at N12.61tr, from the previous session’s N12.62tr, representing a 0.08% value loss in investors’ portfolios.
The downturn in the share prices of Zenith Bank, Access Bank, UBA, Total Nigeria, Flour Mills, Fidson Healthcare, FBNH and Dangote Sugar impacted negatively on the ASI’s year-to-date return, pulling it down to 36.34%, just as market capitalisation notched N3.37tr YTD, representing a 36.40% rise above the year’s opening value.

Market breadth on Wednesday was negative as the number of decliners outpaced advancers in the ratio of 21:13 on a volume traded that was lower than previous day’s level to halt Monday’s bull market.
Market activities for the day, in terms of volume and value, were down by 4.96% and 37.66% respectively to 198.63m shares value at N2.94bn from the previous day’s 211.96m units valued at N4.74bn.
Transactions in the shares of Guaranty Trust Bank, Zenith Bank, Access Bank, Dangote Sugar and Guinness topped the volume chart.

At the close of the day’s trading, Cutix topped the advancers’ table, chalking 9.09%, to close at N2.20 per share following the offer of 18 kobo dividend by its directors and market forces. It was followed by GSK’s 4.99% to close at N23.15 per share, also on market forces and expectations of its Q3 numbers.
On the flipside, Nahco Aviance lost 5.56% to close at N3.40 on profit taking activities, followed by Law Union & Rock Insurance, which shed 4.94% to close at N0.77 per unit on profit booking.
Also, the share price of Oando was placed on full suspension on the orders of the Securities & Exchange Commission (SEC), preparatory to a forensic audit.

TODAY’S OUTLOOK
As the market opens this morning, expect volatility to continue in the midst of positioning and profit taking ahead of more earnings releases.
One thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market fundamentals.

It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases know it in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable
The workshop materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 or 08111811223.

Attention! Attention!! Attention!!!

INVEST 2018 FINANICAL SUCCESS
If you are still asking yourself why Trade Stock? We have all the answers for you in this upcoming summit! INVEST 2018 TRADERS & INVESTORS FINANICAL SUCCESS
Are you a Forex Trader or Real Estate Investor?
You need to see the advantages of trading STOCKs - Day and weekly compared to any other market.
Have you ever traded Stocks?
In the coming INVEST 2018 you will learn:
· How to generate a consistent income trading stocks on your own via phone and laptop
· The power of trading full year earnings reporting season
· Our rules-based approach to trading stocks.
· How our buy & sell signal setup works
· How to take advantage of best market timing strategies to positon before Major market earnings reporting season.
· How to quickly and accurately "predict" the next market reaction
· Learn why trading less is making more
· Learn how to make use of trend identification, resistant and support to double your returns
· Learn how to follow the institutional money flow and much more
Learn how to identify opportunity in different sectors as the government is budgeting almost N8 trillion for 2018, which if implemented will faster the economic recovery.
Discover how you can unleash your Income Potential Trading stocks.

Discover why trading and investing in stock is the way to go.
Trading and investing are not Rocket science - it is just a blend of discipline, patience and market knowledge in fundamental and technical analysis to pick the right stock and sell at the right time.
Is this the summit that will pays for your vacation trip, puts your kids through college and some income in your pocket?
Maybe or Maybe not...but you will be kicking yourself everyday on the way to that work place everyday if you miss this!
"70% of success in life is SHOWING UP!"
We'll take care of the rest if the 30%....
This summit is the perfect opportunity to learn from the best industry experts and to get the personal attention in the exclusive Q&A session after presentations!
Saturday December 9, 2017
To register for the coming summit Kindly call or send yes to 08032055467 or 08111811223.

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

N.B: At this event you'll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.
If you are looking for a way to make money in the market as a Full-time or Part-time trader, this is your opportunity.
Dream it! Wish it! Do it! Enjoy it!


https://investdataltd..com.ng/2017/10/market-update-for-october-1

MARKET UPDATE FOR OCTOBER 17, 2017


TRADERS AGAIN TAKE PROFIT, AMIDST WAIT FOR MORE Q3, GDP NUMBERS

Trading on the floor of the Nigeria Stock Exchange (NSE) on Tuesday continued its volatility to close on a negative note, after losing almost all its gain in the previous three trading sessions, on the strength of profit taking by traders which is expected in any earnings reporting season, especially when the growing number of market players are short-term investors, including retails players.
The down market coincided with the release of September inflation rate by the National Bureau of Statistics (NBS) which dropped slightly for the eighth consecutive month to 15.98% from 16.01% in August. The marginal decline in the month, which coincides with the harvest period, is of concern to investors, suggesting that the celebrated success in agricultural sector is still shaky, meaning that either there is poor harvest or infrastructure like roads to transport farm produce to markets in the city centre. This has often led to waste of farm produce, most of which rot before arriving the markets, such that the little that make it there become expensive due to high cost of transportation, and other operational costs that are built-in.

The situation could have been worse, if not for the sustained intervention by the Central Bank of Nigeria (CBN) in the foreign exchange segment of the inter-bank market, without which there could have been imported inflation induced by FX scarcity.
This is where the fiscal authorities should come in, especially through a rethink of the current implementation of the 2017 budget, by seeking other more viable means of funding road and railway reconstruction across the country particularly to ensure real and sustained economic growth.
Tuesday’s trading session started with the benchmark All-Share index moving downside, before moving back and forth, reaching support and holding twice between the mid-morning and midday, as profit taking in highly capitalized stocks like Dangote Cement, NB, Guaranty Trust Bank, Mobil Oil and other low caps recorded cash gains.
Market traded volume was low with a stronger selling pressure as revealed by the volume index for the day that stood at 0.85, while buying position was at 0% and 100% selling volume of transactions to halt the bull transition.

Meanwhile, the NSE All-Share index shed 301.66 basis points to close at 36,669.61 from an opening figure of 36,971.27 basis points, which represented 0.81% decline, just as market capitalisation went down N103.84bn to close at N12.62tr, from the previous session’s N12.72tr, representing a 0.81% value loss in investors’ portfolios. The downturn in the share prices of low, medium and high caps stocks were impacted by the expected profit booking by traders, which had a negative influence on the ASI’s year-to-date return, dragging it to 36.45%, just as market capitalisation notched N3.4tr YTD, representing a 36.50% rise above the year’s opening value.
Market breadth was marginally positive as the number of advancers outnumbered decliners in the ratio of 22:21 on a low volume traded that was lower than previous day’s level to halt Monday bull market.

Market activities for the day, in terms of volume and value, were mixed as the volume was down marginally by 1.44% to 211.87m shares from previous day’s 214.96m units while value was up by 73.63% to N4.74bn from N2.73bn on Monday.
Transactions in the shares of Fidelity Bank, Zenith Bank, GTBank, Access Bank and UBA topped the volume chart.
At the close of the day’s trading, International Breweries topped the advancers’ table, chalking 5.72% to close at N44.31 per share on market sentiments and Q2 earnings expectation, followed by Jaiz Bank with 4.42% to close at N0.68 per share on market forces. On the flipside, Redstar Express lost 9.16% to close at N4.96 on profit taking followed by Neimeth which shed 8.17% to close at N0.62 per unit on profit booking.

TODAY’S OUTLOOK
As the market opens this morning, expect volatility to continue in the midst of positioning and profit taking ahead of more earnings releases.
One thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market fundamentals.

It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases know it in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable
The workshop materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 or 08111811223.

Attention! Attention!! Attention!!!

INVEST 2018 FINANICAL SUCCESS

Attend Invest 2018 Traders and Investors Financial Success Summit, where top investment tips for 2018 and beyond will be shared by stock market experts and professional Traders.
You may have had a few ideas as to what we are going to suggest, maybe Bitcoin, or the changes in the market in terms of companies whose shares are about to take off or the healthcare company with a new blockbuster product. It is much more than these…
I truly believe the best investment you can make if you want to check whether 2018 would be a great year for you financially, is to invest in education and I have a way for you to do that through the Investdata Buy and Sell Signal setup.

Plan to attend Invest 2018 and learn from industry experts the strategies that are working in today's market for starting or growing your trading business and for investing in the stock market, as well as strategies to fast track your success…
When you attend this summit you’ll find out how you can start a stock trading or grow your investment in a smart way - so that it is easy to manage and generate increasing earnings whilst you spent less time at work.

You will also learn what really works in stock market investing - strategies that even beginners and experienced traders/ investors can use.
In the Nigeria stock market today, it is no longer about how long you have been in the market, how close you are to MDs and stockbroking firms, being particularly smart or working hard - the most important thing is doing it yourself through your phone and laptop by knowing the right strategies via knowledge and understanding how to effectively combine economic, company fundamentals and technical tools for profitable investing.
And once you know these strategies even someone of average intelligence and average resources can achieve outstanding results relatively fast. To register for the coming summit Kindly call or send yes to 08032055467 or 08111811223.

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

N.B: At this event you'll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.

https://investdataltd..com.ng/2017/10/market-update-for-october-17-2017.html

TRUMP BLOWS OWN TRUMPET, SAYS U.S. BETTER SINCE HIS 2016 ELECTION

U.S President Donald Trump, on Monday took to his personal twitter handle- @realDonaldTrump.
This time, it was to count the gains his November 8, 2016 election has brought to America and Americans.
According to him, “the U.S. has gained more than 5.2 trillion dollars in stock market value since Election Day!”
Since the Election Day, he also noted, the U.S. stock market has risen by over 25%, just as “unemployment is at a 17-year low and companies are coming back to U.S.”

http://investdata.com.ng/2017/10/trump-blows-trumpet-says-u-s-better-since-2016-election/#more

Breaking! Nigeria’s Inflation Rate Records 8th Consecutive Fall To 15.98% In Sept- NBS

Nigeria’s National Bureau of Statistics (NBS), on Tuesday, published the data for inflation and Consumer Price Index (CPI), showing a decline for the eighth consecutive marginal decline to 15.98% from 16.01% in August.
There was a further rise in food inflation, even as core inflation slowed down in the period under review.
More details later…

http://investdata.com.ng/2017/10/breaking-nigerias-inflation-rate-records-8th-consecutive-fall-15-98-sept-nbs/#more

MARKET UPDATE FOR OCTOBER 16, 2017



INVESTORS, TRADERS RETURN AHEAD Q3, YEAR-END POSITIONING, ECONOMIC DATA INFLOW

The nation’s stock market had a positive, even if volatile Monday to start the week in consolidation of the three trading sessions of up market as earnings speculation trading which had commenced earlier entered top gear with hope of more numbers hitting the bourse in the coming days.
The first banking sector earnings report was made available by the directors of United Bank for Africa Plc during the session, giving an insight into the kind of third quarter reports that traders and investors should expect from its peers, especially the first tier stocks.

The day opened slightly up before having back and forth movement by the mid-morning trading as it searched for intraday direction until midday when highly capitalized stocks appreciated in value amidst continued positioning ahead of their nine-month numbers. As a result of this, there was an increased demand for banking, consumer goods, agribusiness and Industrial goods stocks during the session. There was a breakout of the recent resistant level of 36,888.48 to intraday high of 36,972.27, from a low of 36,847.15 to close the day higher on a mixed sentiment as profit taking at interval by traders remain strong.

Market traded volume was low with a stronger buying pressure as revealed by the volume index for the day that stood at 0.86, while buying position was at 66% and 34% selling volume of transactions. This continued previous day’s up market.
The continued Central Bank of Nigeria (CBN) intervention in the foreign exchange market continues to impact positively on the inflationary numbers since the month of February, as well as the strong backward integration in the nation’s manufacturing sector to further boost numbers from the consumer goods sector. Already, market players expect Q2 and Q3 earnings from companies in that sector.

Also important is the nation’s sustained growth in external reserves amidst the continued CBN FX intervention, which is a plus for the market as the price of oil keeps rising, a situation expected to boost government revenue and enhance implementation of the 2017 budget. As part of the spending plan in this fiscal year, the Federal Government plan to infuse 50% of the capital projects for 2017 Appropriation Act into that of 2018, at a time dwindling revenue is making a mess of its infrastructure fixing plans. The planned infusion would make the 2018 budget the nation’s all-time biggest, but implementation style and disbursement strategies of the government has made Nigerians and the economy not to feel the impact of huge spending plan so far.

Meanwhile, the composite NSE All-Share index gained a marginal 123.10 basis points to close at 36,971.27 from an opening figure of 36,848.17 basis points, which represented 0.33% rise, just as market capitalisation for the day went up N42.27bn to close at N12.73tr, from the previous session’s N12.68tr, representing a 0.33% appreciation in investors’ worth. The upturn in the share prices of blue chip stocks like Zenith Bank, Stanbic IBTC, ETI, National Salt, Flourmills, Presco, Guaranty Trust Bank and Dangote Cement, impacted positively on the ASI’s year-to-date return which stood at 37.57%, just as market capitalisation has grown by N3.5tr YTD, representing a 37.62% rise above the year’s opening value.
Market breadth for the day was positive as the number of advancers outpaced decliners in the ratio of 24:15 on a low volume traded that was higher than previous day’s level to continue Friday up market.

Market activities for the day, in terms of volume and value, were up by 37.18% and 24.10% respectively to 214.96 million shares worth N2.73 billion, up from previous day’s 156.70 million units valued at N2.20 billion.
Transactions in the shares of Transcrop, UBA, Guaranty Trust Bank, FBN Holdings and FBNH topped the volume chart.
As noted earlier, UBA announced it third quarter earnings report which came positive and impressive, with top and bottom line in the northward direction.
At the close of the day’s trading, C&I Leasing topped the advancers’ table, chalking 9.55% to close at N1.95 per share on market sentiment, followed by Fidelity Bank and Nahco with 5.00% respectively to close at N1.47 and N3.57 per share on market forces ahead of Q3 numbers. On the flipside, Learn Africa lost 5.00% to close at N076 on market forces/sentiments, followed by Medview Air which shed 4.40% to close at N1.52 per unit on market forces.

TODAY’S OUTLOOK
As the market opens this morning, expect volatility to persist owing to positioning ahead of more earnings releases and economic data.
One thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market fundamentals.

It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases know it in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable
The workshop materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 or 08111811223.

Attention! Attention!! Attention!!!

INVEST 2018 FINANICAL SUCCESS

Attend Invest 2018 Traders and Investors Financial Success Summit, where top investment tips for 2018 and beyond will be shared by stock market experts and professional Traders.
You may have had a few ideas as to what we are going to suggest, maybe Bitcoin, or the changes in the market in terms of companies whose shares are about to take off or the healthcare company with a new blockbuster product. It is much more than these…
I truly believe the best investment you can make if you want to check whether 2018 would be a great year for you financially, is to invest in education and I have a way for you to do that through the Investdata Buy and Sell Signal setup.

Plan to attend Invest 2018 and learn from industry experts the strategies that are working in today's market for starting or growing your trading business and for investing in the stock market, as well as strategies to fast track your success…
When you attend this summit you’ll find out how you can start a stock trading or grow your investment in a smart way - so that it is easy to manage and generate increasing earnings whilst you spent less time at work.

You will also learn what really works in stock market investing - strategies that even beginners and experienced traders/ investors can use.
In the Nigeria stock market today, it is no longer about how long you have been in the market, how close you are to MDs and stockbroking firms, being particularly smart or working hard - the most important thing is doing it yourself through your phone and laptop by knowing the right strategies via knowledge and understanding how to effectively combine economic, company fundamentals and technical tools for profitable investing.
And once you know these strategies even someone of average intelligence and average resources can achieve outstanding results relatively fast.

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

N.B: At this event you'll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.

https://investdataltd..com.ng/2017/10/market-update-for-october-16-2017.html

CORPORATE ACTION FROM 3 JULY TO 27 OCTOBER 2017
https://investdataltd..com.ng/2017/10/corporate-action-from-3-july-to-27.html

MARKET UPDATE FOR WEEK ENDED OCTOBER 13 AND OUTLOOK FOR 16-20





Nigeria’s stock market over the past week had a volatile and mixed performance to close higher on an uptrend that supports buying opportunity as demand for stocks were in the increase with the earnings reporting season entering its peak, ahead of the release of September inflation and Q3 GDP data from the National Bureau of Statistics (NBS).
The increasing buying pressure reflected on the volume traded for the period under review, which is likely to continue in this new week judging from the fact that technicals had given a buy signal for some sectors and individual stocks, especially the stocks that will beat Q3 earnings expectations.
The improvement in market breadth in the past two weeks has strengthened the up trending ability and direction which confirms the recovery in the market on positive sentiments.

The improved speculative activities of traders are becoming noticeable in the buying pressure that supported the recent breakout that ushered in the uptrend with profit booking at intervals may slow down the rally which would depend on earnings surprises in the financials expected from the first tier banks, consumer goods, industrial, services and agribusiness would keep the trend up in the short term.
The weekly volume index was 1.02, with buying position at 93% and 7% selling volume of the total transaction as volatility continued. The composite NSE All Share Index gained 527.24 points to close at 36,848.17points on Friday, from the week’s opening figure of 36,320.93 points, representing a 1.45% growth on a high volume of transactions. The index hit an intra-week high of 36,888.70 and low of 36,320.30 basis points. A breakout of this new resistant level at 36,888.70 will trigger another momentum that will surpass the year-to-date resistant point of 38,221.17 with expectation of strong numbers that will further boost market fundamentals that will drive prices as the year winds down with hope of impressive numbers that will impact equity prices positively. Similarly, market capitalisation for the period closed higher at N12.68tr from an opening value of N12.5tr, representing a 1.45% value gained in investors’ portfolios to reduce losses suffered recently and keep the two weeks bull transition.

Top performing stocks that dominated the advancers log for the week were low and medium caps stocks that had pulled back before now and are now attracting attention on the strength of their strong fundamentals and technical, thereby revealing buy opportunities in these stocks ahead of their second and third quarter earnings reports.
The upturn experienced during the period was as a result of improving speculative activities of traders and smart money willing to play the quarterly earnings reporting season that has already kicked off. The continued repositioning in low, medium and high cap stocks, has impacted the NSEASI’s year-to-date return to 37.11%, just as market capitalisation for the period increased to N3.45tr, representing a 37.42% gain from the year’s opening value.

Market breadth remained positive as the advancers outnumbered decliners in the ratio of 41:23 on a high volume of trades which reflect that investors and traders’ are repositioning ahead of earnings.
Stock markets across the world were mixed to close the past week higher, despite the pullback signaled in the developed market like the U.S where cautious trading and profit booking continues on the rise, regardless of the earnings reporting that had kicked off. Many players in that market are expecting tax cuts and December rate hike to underpin future results, amidst uncertainty surrounding North Korea and other geopolitical issues that remain major concerns to investors.
Back home, NSE’s benchmark Index opened the week on a positive note, gaining 1.41% which was short-lived on the second trading session when there was a marginal loss of 0.15%, continuing at the midweek’s session with a 0.34% slip. The trend was reversed on Thursday, as the indicators closed north with a gain of 0.22%, which was sustained on Friday, with the indicators recording a relatively higher gain of 0.32%, bringing total gained for the week to 1.45%, to continue the previous week’s up market.

Cumulatively, the week ended with the All-Share Index and sectoral indices closing higher, except for the NSE AseM which was flat to close the week, an indication that the positive sentiment that pushed prices up has touch all the represented sectors on the exchange.
The week’s activities, measured by aggregate volume and value, were mixed as volume was up marginally by 4.70% while investors crossed 1.56bn shares as against previous week’s 1.49bn units, while value for the period dropped by 10.66% at N13.5bn from the previous week N15.11bn.
During the week AXA Mansard Insurance topped the advancers’ table, gaining 25.50% to close at N2.51 per share on the back of market forces and expectation of Q3 numbers with possibility of interim dividend, followed by CCNN’s 20.10% notch to close at N9.88 each on market sentiments and expectations for its Q3 numbers. The decliners’ table on the other hand was led by University Press, which closed 13.62% lower at N2.22 on market forces; while AG Leventis followed with 11.29% drop to close at N0.55 per share.
During the week also, Cutix announced it dividend payout of 18 kobo, while the full suspension placed on the shares of Thomas Wyatt and Africa Alliance Insurance were lifted up. The companies are among those suspended for failing to meet the NSE’s post-listing requirement on the submission of quarterly and full-year financials.

Market Outlook
As the market opens this week, expect volatility to persist owing to positioning, profit taking and more earnings reports that would hit the market, expected to trigger more speculative activities that has kicked off ahead of September inflation and Q3 GDP figure in the amidst of year-end seasonality.
As we move into the middle of the earnings season more numbers are likely to be released but one thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market fundamentals.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.

Investing in the stock market is in phases. You must know this in order to manage your trading and investment risk. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable in this recovery market.
The workshop materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 or 08111811223.

Attention!!!!!!! Attention!!!!!!!!!!

INVEST 2018 FINANICAL SUCCESS

Attend Invest 2018 Traders and Investors Financial Success Summit, where top investment tip for 2018 and beyond will be shared by stock market experts and professional Traders.
You might have had a few ideas as to what we are going to suggest, maybe Bitcoin, or the changes in the market in terms of companies whose shares are about to take off or the healthcare company with a new blockbuster product. It is much more than these…
I truly believe the best investment you can make if you want to check whether 2018 would be a great year for you financially, is to invest in education and I have a way for you to do that through the Investdata Buy and Sell Signal setup.

Plan to attend Invest 2018 and learn from industry experts the strategies that are working in today's market for starting or growing your trading business and for investing in the stock market, as well as strategies to fast track your success…
When you attend this summit you’ll find out how you can start a stock trading or grow your investment in a smart way - so that it is easy to manage and generate increasing earnings whilst you spent less time at work.
You will also learn what really works in stock market investing - strategies that even beginners and experienced traders/ investors can use.

In the Nigeria stock market today, it is no longer about how long you have been in the market, how close you are to MDs and stockbroking firms, being particularly smart or working hard - the most important thing is doing it yourself through your phone and laptop by knowing the right strategies via knowledge and understanding how to effectively combine economic, company fundamentals and technical tools for profitable investing.
And once you know these strategies even someone of average intelligence and average resources can achieve outstanding results relatively fast.

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

N.B: At this event you'll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.

https://investdataltd..com.ng/2017/10/market-update-for-week-ended-october-13.html

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED OCTOBER 13, 2017

https://investdataltd..com.ng/2017/10/investdata-price-earnings-tracking-for.html

PEG RATIO REVEALED VALUE STOCKS IN NIGERIA BANKING INDUSTRY


It is a common saying that an investment is made against future expectation therefrom. In plain language, the price we are ready to pay for an investment today (stock, land, car, house, etc) is based on how much value we intend to extract therefrom in a short, medium or long timeframe. Such expectation is however not guess work, as it comes with careful analysis of the investment’s past and present situation, so as to project the future value.
In the case of a company we look at its growth trend and capacity to drive earnings power and thereby supporting price which makes the difference, apart from dividend payment which PEG analysis metric do not put into consideration.

Nigeria’s banking stocks recently suffered pull-back as a result of corrections and profit taking in the sector by investors, after it had led bull-run since the beginning of the year to surpass the NSE’s benchmark index as the market and economy continued to recover. Importantly, the decline in inflation rate from 18.55% in January 2017 to 16.01% in August and the exit of the nation’s economy officially from recession as shown in its Q2 GDP growth of 0.55% for the period, have not reflected in banks non-performing loans that continues to remain high. This has dimmed the otherwise positive quarterly earnings from the sector which is trending up, especially for first tier banks, a situation that continues to offer some form of confidence to investors, especially given that many of the first tier banks will beat expectations of the market and analysts.

Despite the strong apathy for credit risk assets, banks within the first half of the year recorded an average growth of 37.6% in interest income which was supported by a high yield environment as the government continued to crowd the financial market with securities at a relatively higher interest rate.
We however expect the banks to continue benefiting from attractive yields on fixed income, as a result of which we project an average growth of 29.0% YoY in interest income across the banks in 9M’17.
In recent times, the CBN phased out the one-year OMO (Open Market Operation) bills which moderated yields in the fixed income space, with yields on 364-days bills down by 400bps in the last one month. However, we believe the impact will be negligible on the Q3’17 performance, given that the easing started in the last month of the third-quarter. Should the Central Bank of Nigeria successfully sustain its ongoing effort, the impact on interest income may become significant from Q1’18. Also banks with strong FX liquidity would continue enjoying derivative income in Q3’17. For non-interest income, we expect UBA, ZENITHBANK and ACCESS to continue to report strong numbers from derivative transactions, given their strong dollar liquidity on the back of their recent Eurobonds Issuance in the last few months. Also, with the overall improvement in FX supply both at the interbank and Investors & Exporters (I&E) window, we expect a spike in income from trade related transactions to consequently boost non-interest income for the period.

Majority of economic data and indices released so far point to an economy recovering from recession, which is expected to impact banking stocks at a time many of the banks remain undervalued, a situation that has continued to attract local and international investors to the sector, given its role as an agent of economic growth and development, which cannot be overemphasized, especially as the sector remains the engine room of any economy.
The table below shows the position of Nigeria bank stocks- weather overvalued or underpriced. PEG ratio >1 (more than 1) implies that the stock is overvalued, which simply means that the bank’s future earnings is not going to grow much and the stock may undergo a correction in price at some point.
PEG ratio =1 implies that the stock is fairly valued, given the expected growth rate.
PEG ratio of <1 (less than) means the stock is undervalued, as the market is currently underestimating its growth.
Negative PEG ratio: This could be the case where the current earnings are negative, or the future earnings are going to decline



Source: NSE, Company Reports and Investdata Research
Given that many of Nigeria’s banking stocks remain undervalued, investors should be guided, by the bank’s consistency in growing earnings on quarterly basis, in releasing numbers and growing dividend. Also important to this discussion is the trending pattern of individual stocks.

https://investdataltd..com.ng/2017/10/peg-ratio-revealed-value-stocks-in.html

TECHNICAL POSITION OF NIGERIA STOCK EXCHANGE SECTORIAL INDEXES

Nigeria’s stock market after six weeks of correction broke-out the downtrend line with strong technicals that supports another rally, at a time investors positive sentiments continue to wax strong with buying pressure on the increase ahead of earnings season that had commenced as numbers have started trickling in already.

The Q3 numbers released so far are mixed in performance and yet to give a clear direction as to what investors should expect from the sectors wherefrom these numbers emanated, in addition to expected economic data like the September inflation and Q3 GDP figures.
The weekly technical chart appears stronger to support recovery with the increase in volume and price movers in the week under review, as volume index in the period at 2.14 and buying position of 96%, and 4% selling volume for the week’s transaction continue previous week’s up market.
Activities last week showed that some sectors had rebounded while others are still struggling, just as volume breakout are becoming stronger, with some sectors trading above their 20 and 50-day moving average.

From a technical perspective, the market’s short term rally is underway with earnings reporting season having kicked off already and speculators are trading the expected numbers while positioning ahead of the earnings reports. While trading earnings, market players should understand how to use resistant and support levels to boost their returns and manage risk.

NSEASI WEEKLY TIME FRAME



The index weekly time frame has sustained its up-trending on a positive sentiments despite profit booking. The increasing momentum from traders and investors as repositioning for quarterly earnings reports and end of the year seasonality changes.
The recent rebound remains strong as trending ability on weekly and daily time frame are still strong with ADX above 20 for the period at 38.24 and 26.14 respectively.
Traders should watch out for a breakout of resistant level of 37,088.45 as more speculators have return to trade Q3 earnings reporting season, while trading with caution ahead of economic data from the National Bureau of Statistics (NBS). Any move down to 35,488.81 if the numbers are below expectations.

Looking at technical indicators, the NSEASI closed below the upper band by 25.8%, while MACD has been bearish in the four trading sessions, just as the RSI is reading 67.11 relatively on overbought region. Money flow index on a weekly time frame is turning up, while daily, it is looking up to indicate that funds are entering the market. The momentum indicators like RSI, CCI and MACD are signaling SELL while SO indicates BUY. The index is trading above it 20 and 50 day moving average

NSE Banking Index



The banking index is trading above its 20 and 50-day moving average with strong positive sentiments ahead of the sector’s Q3 financials, which has increased the demand for banking stocks as volume index stand at 1.04 with buying position of 100%, and 0% selling volume for the week’s transaction to continue its four weeks rally despite profit taking. The sector’s trending ability on a weekly and daily time frame are strong since ADX is above 20 at 50.21 and 24.42 respectively.

Traders should position on a breakout of the double top that is currently being formed, as it is a reversal chart pattern that supports pullbacks, despite the expected return of speculators to trade the Q3 earnings season that had kicked off. The first resistance level is at 463.35 and the second at 471.28 point, any move down to 444.27 and 435.17 respectively.

Looking at technical indicators, the NSE BNK index closed below the upper band by 18.8%; MACD is bearish; RSI is reading 71.54, on overbought region; Money flow index on a weekly time frame is turning up, while daily, it is looking up to indicate that funds are entering the sector. The momentum indicators like RSI, CCI and MACD are signaling SELL, while SO is saying buy.

NSE Consumer Goods Index



NSE Consumer Goods index has formed a FLAG chart pattern that supports continuation of trend, after it had experienced a divergence when OBV was trending up and the index action moving down. A breakout of the flag will confirm a major rally in the short term if the numbers from the industry beat market estimate. The index still remain relatively strong as it is trading above the 20 to 50 day moving average as at last week Friday. The sector’s volume index of 0.78 with buying position of 68%, and 32% selling volume for the week’s transaction to continue a two-week uptrend despite profit taking from the industry. The sustainability of earnings in Q3 will further drive prices of stocks in the sector. As the year changing personality in terms of companies that had turn from a bearish situation at the beginning of the year but now bullish to lead the market are in this industry.
Traders should watch out for breakout levels of equities in this sector on this rebound. The first resistance level is at 966.27 and the second at 974.18 point, any move down to 921.28 and 935.82 respectively.

The NSE’s Consumer Goods index trending ability on weekly and daily time frame is strong since ADX trading above 20 at 43.12 and 22.46 respectively. Looking at technical indicators, the NSECONSGOODS closed below the upper band by 31.3%. MACD is bullish, while RSI is reading 65.25 almost at overbought region. The momentum indicators like RSI, SO, MACD and CCO are signaling sell.

NSE Industrial Goods Index



NSE Insurance index had rebounded to breakout the downtrend line. The weekly chart reveals the sector index is trading above 20 and 50-day moving average as at last Friday. In the last two weeks strength has returned as reflected on the improving volume and with the prices of some stocks in the sector rallying high. The sector’s volume index stood at 0.48, buying position of 86%, and 14% selling volume for the week’s transaction to continue the previous week’s bull transition.
Traders should take position with the breakout of yellow line on improving volume, confirm strength of rallying which more impetus will be added when numbers surpasses estimates. The first resistance level is at 2176.28 and the second at 2225.18 point, any move down to 1964.87 and 1,926.14 respectively.

The sector’s index trending ability on a weekly and daily time frame are strong since ADX is trading above 20 at 26.15 and 21.48 respectively. Looking at technical indicators, NSE INDUSTRIAL closed below the upper band at 36.7%. MACD is bearish, while RSI is reading 59.85 relatively strong. Momentum indicators like RSI, MACD and CCO are signaling sell, while SO signaled buy.

http://investdataltd..com/2017/10/technical-position-of-nigeria-stock.html

UNITED CAPITAL: MIXED Q3 NUMBERS IN ABSENCE OF EXTRA-ORDINARY INCOMES

United Capital Plc, Nigeria’s only listed Investment banking giant recently released its nine-month earnings report for the period ended September 30, 2017, with mixed performance with the top line looking north and bottom-line pointing the opposite direction- south, despite the relative improvement in the economy and the investment environment that had impacted positively on returns so far in the year.

The company’s performance on quarterly basis have been below the numbers posted in 2016 which had kept its price performance moving relatively sideways after the May rally.
United Capital has done well in its core operational areas of investment banking, trusteeship, asset management and securities trading as shown by the investment and trading income for the period under review. These were aggressively driven by robust technology, marketing and product innovation to deliver satisfactory services in an efficient manner, while ensuring cost is under serious management, to boost profitability.

The company’s under performance since the beginning of the current financial year, when compared to 2016 had reflected in the scorecard, with gross earnings managing to inch up by 9.67% to N6.24bn from N5.69bn in 2016. This was significantly boosted by returns on investment and net income from securities’ trading which is the core service area of the company. But profitability level for the period was down by 30.43% to N3.27bn from N4.7bn in 2016 on the back of an absence of extraordinary income that contributed about 33% in 2016.

In addition to the absence of extra-ordinary income, the total expenses for the period was up by 35.55% and was essentially due to the 38.4% increase in operating cost and overhead by 30.3%.
This was despite the high risk in the financial market environment, especially in a recovering economy where the effect of recession continues to linger, added to the fact that the highest spender- government is not judiciously implementing 2017 budget because its revenue projections are lagging behind.

The unstable performance in UCap’s financials so far in the year has kept its share prices trading at N3.04 each, which is about 24.39% above it price of N2.46 at the release of its report in 2016.
The stock is currently trading above its book value by 19.69%, which indicates unfairly priced situation that calls for discernment at this point on the part of investors.
The company’s book value currently stands at N2.54 and Price to Earnings Ratio is 1.87x, which means investors' waiting period has increased from the 1.09x in the corresponding period of 2016.



SOURCES: COMPANY DATA & INVESTDATA RESEARCH

Valuation/Recommendations
The company’s oscillating earnings is a major source of concern to stakeholders, especially the decline in return on equity which shows that for every 100 kobo provided by shareholders, 22 kobo was returned as profit, down from 36 kobo in the corresponding period of 2016, even when there was an improvement in the nation’s economic fundamentals in support of investment. However, the company’s current Book Value at N2.54 per share and profit margin of 52.47% is good, but investors expect equalization dividend to support price on the strength of its Price-Earnings-Ratio of 1.87x, which is relatively okay in the market, just as Dividend Yield at 16.45% is attractive, as it is above the nation’s current inflation rate of 16.05%.

The company has consistently paid dividend since 2013 and on the strength of its numbers for Q3, the chances for another dividend payout at the end of the year is high. The management's commitment to deliver outstanding services to drive performance will support price in the long run. Based on this reality, we advise investors in the stock to BUY for long and if you are there for dividend income, increase your stake as the year winds down gradually.
The possibility that the director would offer dividend of between 35 to 45 kobo is high.

Technical View



UCAP’s price action on daily time frame has formed a symmetrical triangle chart pattern that supports continuation of trend in upward or downward direction depending on market sentiments, especially after this stock had side-trended for five months. Traders should wait for a breakout of the blue trend line before buying, as well as reversal to first support level at N2.88 each and second support price of N2.48. The strength of the trend is weak given that ADX is below 20 points
History

United Capital Plc was established in 2002 and listed on the exchange in 2013 to provide financial services through its investment banking, Trustees, Asset Management and Stockbroking divisions. The company's capacity building and technology–driven business has supported its status as a one-stop Investment shop.

It was then fully owned by United Bank for Africa Plc before being quoted on the NSE, thereby becoming a publicly owned company with its own shareholders. Its excellent service delivery in helping governments, corporate organisations and individuals to achieve their financial goals in the financial market continues to support its strong performance.

Its 17 years of active participation in helping to deepen the Nigerian Financial Market has afforded the company opportunities to participate in various offers, including financing of projects, financial advisory service, packaging of Initial Public Offerings, Right Issues, Debentures, as well as corporate and government bonds

Performance Analysis
The company's performance for the four-year period (2013 to 2016) reveals that the management has surpassed forecast and projection it gave while company was being listed on the exchange, given its consistent growth in earnings and rewards to shareholders.
Within the period, for example, United Capital Plc has consistently grown gross earnings and other profitability ratios.

Gross income for the period grew by 96.94% from N4.57bn to N9bn in 2016, also profitability level moved significantly, from N1.76bn in 2013 to N6.91bn, a 292.61% increase. This is very much in line with the commitment of management to grow earnings and manage cost as reflected in its profit margin for the review period, as it remains above the 15% international standard.
Net assets currently stand at N14.23bn from N8.38bn in 2013, revealing an uptrend in the last four years.

The company has paid a total dividend of N1.30 per share since it became a quoted, a function of its strong earnings position for this period, but the recent two-year improvement in payout calls for more inputs to sustain the tempo by consistently growing earnings power.


SOURCES: COMPANY DATA & INVESTDATA RESEARCH

Estimated Performance Ratios
Performance ratios for the period under review shows that the amount earned per share was significantly better at 115 kobo, than the 29 kobo in 2013 when it became a public company, after which it increased yearly from 31 kobo in 2014; to 43 kobo in 2015. This is a reflection of the stable and up-trending earning power in an unstable-risk financial market. This shows how resilient the company has remained over the years.

Price Earnings ratio is okay and attractive at the current estimate of 3.20x from a high of 8.68x in 2013. The last full year EPS is a yield of just 31.23% of the market price as of the release date. This simply signifies an improvement in the stock's valuation by the market as against the posted numbers.

The Book Value moved from N1.40 in four years to N2.37 as the share price equally moved from the price of N1.30 as of listing date to N3.82. The enhanced Book Value for the period resulted from the company improving upon and retaining some of it its earnings which moved from N6.72bn in 2013 to N13.25bn, which supported shareholders’ funds tremendously. Putting this ratio and the market price of the stock side-by-side, signals opportunity for medium and long term investors. Also, the company’s profit margin over the years has improved as management effectively controlled cost to boost profit.

https://investdataltd..com.ng/2017/10/united-capital-mixed-q3-numbers-in.html

Photo News: Osinbajo, Elumelu Participate In 23rd NESG Panel Discussion

(From left to right) John Rice, Vice Chairman GE; Tony Elumelu, Chairman Heirs Holdings and Vice President Of Nigeria, Professor Yemi Osibanjo during the preliminary panel discussion titled: Opportunities, Productivity and Employment: Actualising the Economic Recovery and Growth Plan, at the 23rd Nigerian Economic Summit in Abuja on Monday.

http://investdata.com.ng/2017/10/photo-news-osinbajo-elumelu-participates-23rd-nesg-panel-discussion/#more

Buhari Renews Five-Year Contract Of Uche Orji As NSIA MD

President Muhammadu Buhari, on Thursday renewed the appointment of Uchechi X. Orji as managing director of the Nigeria Sovereign Investment Authority (NSIA) also known as the Sovereign Wealth Fund, for another five-year term.
Orji was first appointed in October 2012 for an initial term of five years, and will be in office until October 2022.
Under his leadership, NSIA played a pivotal role in implementation of the Presidential Fertilizer Initiative (PFI), which recorded 17,000 truck movements in its first six months, selling seven million bags.
The fund plans to revamp 20 fertiliser-blending plants by September 2018, up from 11 this year’s 11, which delivered six million bags of fertiliser at 30 per cent below market prices, thereby saving the country of huge foreign exchange as part of the Federal Government’s plan to boost agric output and reduce the dependence on oil.

The initiative has so far created 50,000 jobs, while saving the government N50 billion ($139 million) in would-be subsidies.
Orji was quoted as saying in an interview that the government’s contribution stands at $1.5 billion, with the rest including funds owned by the institution and those managed for several government agencies.
“At the moment, agriculture is our number one area of investment,” he said.
He put Nigeria’s sovereign wealth fund at $2bn this month with the investment agency seeking further growth through agriculture and the addition of asset management, the report showed.

“That’s the major line of conversation we are having with various agencies and various arms of the government,” Mr. Orji said.
Globally acknowledged as one of the best brokerage analysts, Orji graduated from the University of Port Harcourt with a Bachelor’s degree in Engineering, after which he obtained an MBA from Harvard University.
He began his banking financial industry career at Diamond Bank Plc, Lagos and Arthur Andersen, Lagos and joined NSIA from Switzerland’s UBS Securities, where he was Managing Director in the New York branch of its Equities Division, after spending six years at JP Morgan in London, 2001-2006, rising from the position of Vice President to Managing Director within the Equities Division.
Prior to JP Morgan, he worked for Goldman Sachs Asset Management, London, 1998-2001, as an Analyst/Portfolio Manager.
Also, President Buhari also approved the nomination of Prof Isa Hayatou Chiroma as Director General of the Nigerian Law School.
He is currently the Deputy Director-General in charge of the Yola Campus of the Nigerian Law School.

http://investdata.com.ng/2017/10/buhari-renews-five-year-contract-uche-orji-nsia-md/#more

Kachikwu, Baru Face-off: I Approved Two NNPC JV Financing Arrangements, Not Contracts, Says Osinbajo

Vice President Yemi Osinbajo, on Thursday evening further clarified his statement that he approved the N640bn contracts of the Nigerian National Petroleum Corporation (NNPC), in reaction to the face-off between the state-owned oil giant and its supervisory Ministry of Petroleum Resources.
Clarifying the statement made earlier by his office, Osinbajo who was fielding questions from reporters after the ground-breaking multi-billion Naira Bonny-Bodo road project which links Bonny Island in Rivers State, said the approval granted the NNPC while he was acting President were for financing arrangements for the Joint Ventures involve the NNPC and international oil companies and not contracts.
The road project, according to his Laolu Akande, Senior Special Assistant to the President on Media & Publicity, is part of the over N1.2tr infrastructure spend of the Muhammadu Buhari administration in the 2017 budget.
After a brief tour of Nigerian Liquefied Natural Gas (NLNG) plant, the Vice President visited the palace of Amanayabo of Grand Bonny Kingdom King Edward Asimini William, ahead of the ground-breaking.
Welcoming the Osinbajo and his team, the Amanayabo said the road project is very important to his community, while the Vice President responded: “Bonny is very important to Nigeria and this project is part of the Niger Delta New Vision (of the Muhammadu Buhari administration).

Speaking at the ground-breaking ceremony, Osinbajo said the idea of Bonny-Bodo project is 40 year-old, but was not implemented even when Nigeria was making $100 per barrel per day from sale of crude oil.
A tweet by the Presidency, the Bodo-Bonny Bridge “will cost N120bn and will be funded 50% each by FG and the NLNG.”
According to the Vice President the JV arrangements “were financing loans. Of course, you know what the Joint Ventures are, with the lOCs, like Chevron, that had to procure. In some cases, NNPC and their Joint Venture partners have to secure loans and they need authorisation to secure those loans while the President was away. The law actually provides for those authorisations. So I did grant two of them and those were presidential approvals, but they are specifically for financing joint ventures and they are loans not contracts.”
The Vice President’s office had earlier in the day tweeted that “in response to media inquiries on the NNPC Joint Venture financing arrangements, VP Osinbajo, as Acting President, approved the recommendations after due diligence and adherence to established procedures. This was, of course, necessary to deal with huge backlog of unpaid cash calls which the Buhari administration inherited, and to incentivize much needed fresh investments in the oil and gas sector,” he noted.

http://investdata.com.ng/2017/10/kachikwu-baru-face-off-approved-two-nnpc-jv-financing-arrangements-not-contracts-says-osinbajo/#more

MARKET UPDATE FOR OCTOBER 12, 2017

INVESTORS POSITION, TAKE PROFIT, LOOK TO EARNINGS SEASON, ECONOMIC DATA FOR DIRECTION

The stock market on Thursday had a volatile and mixed performance to slightly reverse two trading sessions of a down market that had been on sideways trending range, before closing higher. The NSE benchmark index opened the day lower, and then rallied marginally in the mid-morning till afternoon as the intraday high of 36,732.24 remained the new resistant to breakout for new trend to be ushered in in this recovery market and economy, especially when the Q3 corporate earnings reports that will further boost market fundamentals is around the corner. Add this to the September inflation figure and Q3 GDP numbers which will further reveal the health status of the Nigerian economy that is underway, as government still continues. It is also unfortunate that the promise has at this point in time continue to promise that it would release funds to implement capital projects in 2017 budget, just as it is going ahead with its plan to borrow to finance the year’s Appropriation Act.

With the market in recovery mode and the loss sustained so far this week, market breadth on Thursday was healthy on a very high volume largely driven by foreign investor activities in the shares of Diamond Bank, despite the decline in the banking sector index to close lower at the end of the trading session due to profit taking. The NSE Insurance and NSE Consumer Goods indexes were top performers for the day as prices of stocks in the sectors were up.

The up trending momentum for the day was supported by buying pressure that increased as revealed by the volume index of 2.12, while buying position was 100% and 0% selling volume, to halt the previous day’s bear transition. However, the market remain expectant on a mixed sentiments as investors and traders are still bullish on the bourse with seasonal changes likely to have positive effects on the market especially with positive fundamentals favouring oil price increase, as revealed recently by the research arm of the world’s biggest commodity trader. Also the expected reclassification of Nigeria into the emerging market index in November is expected to be a plus at a time many international fund managers look to emerging markets for higher yield at a time their domestic markets hit at saturated point amidst crashes, corrections and pullbacks.
Thursday’s marginal gain on a very high volume did not create a negative divergence, despite the pockets of profit taking here and there with a potential pullback, which the expected numbers will decide.

Meanwhile, the All-Share index gained a marginal 79.42basis points to close at 36,732.24 from an opening figure of 36,652.82 which represented a 0.22% growth, just as market capitalisation for the day went up by N27.34bn close at N12.64tr, from the previous session’s N12.62tr, also representing a 0.22% value gain in investors’ portfolio.
The upturn recorded in the share price of low, medium and high cap stocks impacted positively on the ASI’s year-to-date return, which stood at 36.68%. This is just as the market capitalisation growth year-to-date stood at N3.40 trillion within the same period, representing a 36.74% rise above the year’s opening value.

Market breadth for the day was positive and strong as the number of advancers widen to outpaced decliners l in the ratio of 30:13 on a high volume traded that was higher than previous day’s level to halt down market.
Market activities for the day, in terms of volume and value, were up by 31.98% and 73.77% respectively to 443.68m shares worth N3.18bn, from previous day’s 336.39m units valued at N1.83bn.

Transactions in the shares of Diamond Bank, UBA, Zenith Bank, Transcorp and Fidelity Bank topped the volume chart.
At the close of trading, AXA Mansard topped the advancers’ table, chalking 6.49% to close at N2.46 per share on market forces and Q3 expectations, followed by Diamond Bank which rose 5.00% to close at N1.05 per share on expectations of its Q3 numbers and market sentiment.
On the flipside, University Press dropped 4.90% to close at N2.33 on market sentiments, followed by Fidson Healthcare that lost 4.57% to close at N3.34 on market forces and profit taking.

TODAY’S OUTLOOK
As the market opens this morning, expect volatility to persist owing to positioning, profit taking and earnings season speculation that kicked off with traders returning to play the season ahead of September inflation and Q3 GDP figure in the amidst of year-end seasonality.
As we move into mid-month of earnings season period more numbers are likely to be released but one thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.

Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market fundamentals.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.

Investing in the stock market is in phases. You must know this in order to manage your trading and investment risk. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable in this recovery market.
The workshop materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 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
https://investdataltd..com.ng/2017/10/market-update-for-october-12-2017.html

MARKET UPDATE FOR OCTOBER 11, 2017

LONG TERM TRADERS STILL BULLISH ON THE MARKET DESPITE PROFIT TAKING AHEAD OF EARNINGS SEASON, MARCO-ECONOMIC DATA

Trading activities on the floor of the Nigerian Stock Exchange had a tough session on Wednesday to having closed lower for the second consecutive trading session, despite the presence of bull in the market arena ahead of macro-economic indices like September inflation and Q3 GDP figure expected to be released soon. In addition to Q3 earnings season that had just commenced with few companies like Infinity Trust Finance, United Capital and others which have made available their Q3 scorecards to the investing public.

The market index opened the day with a little slide in the morning, but the magnitude of losses increased in the mid-morning to midday, but price appreciation in Seplat and Nestle sharp took back about two-thirds or three-quarter of the losses. In spite of the gains by these companies, the market ended on a negative note.

The two-day bear market is attributed to profit booking and tight liquidity currently in the money market. Despite the equilibrium, state of market breadth, the intraday high of 36,776.60 remained the new resistance level, while the day’s low was 36,620.52 points before closing lower on a high volume.

Up trending ability or momentum for the day remained weak as selling pressure increased as revealed by the volume index of 1.36, while buying position was 32% and 68% selling volume, to continue the previous day’s bear transition. However, the market remained on a mixed sentiments as investors are earnestly expecting the listed companies quarterly earnings result to guide investment decision as the year winds down.

Meanwhile, the All-Share index shed 123.78 basis points to close at 36,652.82 from an opening figure of 36,776.60 which represented a 0.34% decline, just as the market capitalisation for the day fell by N42.61 to billion close at N12.62 trillion, from the previous session’s N12.66 trillion, also representing 0.34% value loss in investors’ portfolio.

Price depreciation suffered by medium and high cap stocks like: Dangote Sugar, Vitafoam, Stanbic IBTC, UBA, Oando, United Capital and Nigerian Breweries impacted negatively on the ASI’s year-to-date return, which stood at 36.38%. This is just as the market capitalisation growth year-to-date stood at N3.37 trillion within the same period, representing a 36.44% rise above the year’s opening value.

Market breadth for the day was flat as the number of advancers and decliners were equal in the ratio of 19:19 on a high volume traded that was lower than previous day’s level to continue a down market.
Market activities for the day, in terms of volume and value, were down by 4.76% and 43.87% respectively to 336.39 million shares worth N1.83 billion, from previous day’s 353.19 million units valued at N3.26 billion.
Transactions in the shares of Diamond Bank, Skye Bank, Zenith Bank, Fidelity Bank and FBNH topped the volume chart.

At the close of trading on Wednesday, AXA Mansard topped the advancers’ table, chalking 10.00% to close at N2.31 per share on market forces and Q3 expectations, followed by CCNN which rose by 9.23% to close at N10.18 per share on expectations of its Q3 numbers and market sentiment.
On the flipside, Vitafoam dropped 5.00% to close at N2.66 on market sentiments and profit taking, followed by Law Union that lost 4.71% to close at N0.81 on market forces.

TODAY’S OUTLOOK
As the market opens this morning, expect volatility to persist owing to positioning, profit taking and earnings season speculation that kicked off with traders returning to play the season ahead of September inflation and Q3 GDP figure in the amidst of year-end seasonality.

As we move into mid-month of earnings season period more numbers are likely to be released but one thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market fundamentals.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.
Investing in the stock market is in phases. You must know this in order to manage your trading and investment risk. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable in this recovery market.
The workshop materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 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
https://investdataltd..com.ng/2017/10/market-update-for-october-11-2017.html

MARKET UPDATE FOR OCTOBER 10, 2017

VOLATILITY RAGES AS SMART INVESTORS ENHANCE POSITIONS IN SELECTED STOCKS

The nation’s stock market had a generally mixed session on Tuesday. The day started out on a front and back movement of the index before selloff ensued as a result of profit booking by short-term traders that halted four trading sessions of bull-run. This profit taking is normal and should be expected in a recovering market especially when traders had recorded capital gains.
Volatility mode in the market continued ahead of more Q3 corporate earnings being released to the market in trickles, just many have announced their closed period and released board meeting notifications.

The market recorded intraday high of 36,846.77 which is becoming the new resistance level, while the day’s low was 36,747.68 points before closing the day marginally lower on a high volume. The new support level for the day was 36,747.68 as market breadth close flat.
Market momentum for the day turned weak with selling pressure resurfacing as revealed by the volume index for the day at 1.41, while buying position was 29% and 71% selling volume. This trend halted previous day’s up market, but on a mixed sentiments as investors are looking up to quarterly earnings for insight of the companies full year results.

Most of the expected earnings reports are likely to maintain the positive trend we have seen in their previous quarterly numbers as the recovering economic fundamentals that impacted their performance have not changed as such. The consumer goods, financial service and oil stocks are likely to post better numbers that will further support their share prices.

Despite the continued oscillation in crude oil price in the international market, crude oil on Tuesday was the biggest mover of the day across global markets, up almost 3%, back to the $50 per barrel level. Though oil has been oscillating around this $50 mark for some time, we've talked about the prospects for much higher oil prices. It is expected that the higher oil price will improve Nigeria’s 2017 budget implementation and her Economic Recovery & Growth Plan (ERGP) of the Federal Government which will further enhance economic and market fundamentals to drive growth and performance of companies. Also fundamentals have continued to build up in favor of much higher oil prices. We’ve seen supply drawdown for the better part of the past seven months – to the tune of more than $60 million barrels of oil taken out of the market.

Meanwhile, the NSE’s All-Share index shed 55.33 basis points to close at 36,776.60 on Tuesday from an opening figure of 36,831.93 which represented a 0.15% decline, just as market capitalisation for the day fell by N19.05bn to close at N12.66tr, from the previous session’s N12.68tr, also representing 0.15% depreciation in investors’ positions.

Downturn in the share prices of high cap stocks like: NB, Dangote Sugar, FBNH, Guaranty Trust Bank, Stanbic IBTC, UBA, Access Bank and Lafarge Africa impacted negatively on the ASI’s year-to-date return, which stood at 36.85%. This is just as market capitalisation growth year-to-date stood at N3.41tr within the same period, representing a 36.90% rise above the year’s opening value.
Market breadth for the day was at equilibrium as the number of advancers and decliners were equal in the ratio of 19:19 on a high volume traded that was higher than previous day’s level to halt the bull transition.

Market activities for the day, in terms of volume and value, were up by 34.72% and 8.67% respectively to 353.19 million shares worth N3.26 billion, from previous day’s 262.17 million units valued at N3.00 billion.
Transactions in the shares of Diamond, Fidelity Bank, FCMB, Guaranty Trust Bank and Zenith Bank topped the volume chart.

At the close of trading for the day, CCNN topped the advancers’ table, chalking 10.17% to close at N9.32 per share on market forces and Q3 expectations, followed by AXA Mansard Insurance, 5.00% notch at N2.10 per share on expectation of its Q3 numbers.
On the flipside, C & I Leasing dropped 9.36% to close at N1.74 on market sentiment and profit taking, followed by Paintcom that lost 4.84% to close at N0.59 on market forces.

TODAY’S OUTLOOK
As the market opens this morning, expect volatility to persist owing to positioning, profit taking and earnings season speculation that kicked off with traders returning to play the season ahead of September inflation and Q3 GDP figure in the amidst of year-end seasonality.
One thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.

Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market fundamentals.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.

Investing in the stock market is in phases. You must know this in order to manage your trading and investment risk. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable in this recovery market.
The workshop materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 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
https://investdataltd..com.ng/2017/10/market-update-for-october-10-2017.html

Making Money in today's equity market


https://www.youtube.com/watch?v=B1vF4rK29HI&feature=youtu.be

INVESTDATA LIMITED

Investdata is a Financial Consulting Company that offers professional services on Research Analysis, Investment Education and Training. Risk Management, Investment Education and development of Trading Methodology to enhance investor’s profitability.

Portfolio Management, Equity Research, Financial Advisory, Consulting, Training/Investment Education, Media/Publication, Position Management Advising.


For more inquiries about our services, please contact;

Ambrose Omordion
CRO | Investdata Consulting Ltd
3rd Floor, Church House, 29, Marina, Lagos, Nigeria
info@investdataonline.com, info@investdata.com.ng
ambrose.o@investdataonline.com, ambroseconsultants@yahoo.com
www.investdataonline.com, www.investdata.com.ng
Tel: 08028164085, 08032055467

Top Energy Nigeria Ltd

Top Energy Nigeria Ltd is the smart, simple solution to your energy needs. A company made up of passionate team of skilled professionals working round the clock in providing first class products and services delivery that are second to none. Our clientele needs are topmost priority, driving our core value at the forefront of managing a successful operation in the oil and gas industry in Nigeria and Africa at large.

We are Indigenous Licensed Oil & Gas Company established in Lagos, Nigeria. With Sales and Distribution of Petroleum Motor Spirit (PMS), Automotive Gas Oil (AGO), Dual Purpose Kerosene (DPK), Low Pour Fuel Oil (LPFO), Industrial Gas and Cylinder. Our operation is extended to recycling products such as; Iron, Can, Carton, Compact Dics, Polythene Bag, Paper, Plastic and tyre, etc.

Our Vision
To become the world’s best brand known for reliability and quality in petroleum products, medical gases, industrial gases and recycling.

Our Mission
To provide products that meets our customers’ satisfaction using highly trained workforce
and modern technologies in all we do.

CORE VALUES

INTEGRITY

EMPATHY

QUALITY

SAFETY

For Quotation or inquiries, contact us@;

Address: Goodnews Plaza, Plot 2 Samelein, Off Opebi links bridge, Oregun, Ikeja, Lagos State.
Phone: +2347037302693, +2347035158433, +2348170462044
Email: info@topenergynigeria.com
Website: http://topenergynigeria.com/
Facebook: https://www.facebook.com/Topenergyltd
Twitter: https://twitter.com/topenergyltd
Linkedin: https://www.linkedin.com/company/18276217/

FG TO RAISE 2018 CAPITAL BUDGET, OSINBAJO ASSURES

Despite a 60% drop in revenue compared to five years ago, the Federal Government says it still raised capital expenditure via infrastructure spending to N1.3tr in this year’s budget, the highest in its history.
Not done yet and with so much ground to cover in terms of infrastructure deficit across the country, Vice President Yemi Osinbajo has assured that the Muhammadu Buhari administration is poised to further increase capital expenditure in the 2018 budget currently in the works.
Prof Osinbajo, who spoke on “Africans’ ingenuity, resilience & incredible opportunities make the continent work,” on Monday at the FT Africa Summit in London, noted that “good governance, prudent management of resources, means that you can do more with far less. Ethiopia delivered its light rail and within Addis Ababa ahead of schedule, and Ethiopia/Djibouti rail with no cost overruns. Rwanda has shrugged off the tragedy of genocide of barely 20 years ago, delivering on infrastructure and earned its place as the second easiest place to do business in Africa. Ghana is galloping away with GDP growth figures this year of in excess of 8%.”
He spoke of commitment to providing “the much needed infrastructure in the form of power stations, ports, rail networks, roads, that not only bring down the cost of doing business but also actively engage the private sector in funding, in operation and or ownership,” across the entire continent.
Of importance, he continued, is the fact that “Africa now recognizes the limitations of governments, in cash and capacity, to run businesses. The wisdom today is in letting the private sector invest wherever it can, and in practically any sector of the economy even in those that once carried the halo of national security assets such as telecoms and power. Consequently we have seen the emergence of dynamic pan-African investors, who on account of their track records are even able to borrow commercially cheaper than governments.”
This is demonstrated, he told the gathering, by the quantum of private investments across Nigeria, all of which shows the confidence of local African investors in the opportunities available on the continent.
Some of these, he continued, include Aliko Dangote’s investments in cement manufacturing in 10 African countries, added to ongoing 650,000 barrels per day Refinery in project in Lagos, Nigeria, the largest single line Refinery in the world and larger than all four of government-owned refineries put together. This is to be complemented with a dedicated 550 kilometre subsea pipeline passing through major gas processing hubs across the country bringing crude to that refinery, among others.
Another investment that example the benefit of investing in Africa, he said is the MAIN ONE company floated by Funke Opeke, Nigerian-born broadband entrepreneur, which launched West Africa’s first privately owned submarine cable.
“The cable was built over a two-year period and the initial investment of $240 million was financed entirely by African investors and the project broke even just over 2 years after launch. Even during the economic turbulence, in 2016, private capital recognized the potential in infrastructure investments. General Electric (GE) infused $186M of investment in Phase 1 of the Nigerian Fast Power Program, and entered into an MOU with seven States in the North of Nigeria where radiation is highest, to supply 1000 MW of solar power across the states. GE is also finalizing the documentation for the concession of our Lagos-Kano narrow gauge rail line, which will focus on cargo transportation from the Apapa Port northwards passing through several economically strategic cities Northwards to Kano. This involves a total investment of USD2.2bn.”

http://investdata.com.ng/2017/10/fg-raise-2018-capital-budget-osinbajo-assures/#more

MARKET UPDATE FOR OCTOBER 9, 2017

VOLATILITY MAY PERSIST, AS INVESTORS, SPECULATORS POSITION FOR Q3 EARNINGS SEASON
· TRADERS RETURN AHEAD OF SEPTEMBER INFLATION, Q3 GDP DATA

Trading on the Nigerian Stock Exchange (NSE) started out the week Monday on a positive note to consolidate the four trading session of up market that supports another round of rally despite the day’s mixed technicals as stocks make new 2017 highs on high volume with investors and traders positioning for Q3 numbers.

The NSE’s benchmark index had an interesting but volatile Monday. It began slightly down in the early hours of the trading session, but had a really strong rally from mid-morning to midday and by the afternoon where it hit intraday high of 36,888.73 and low of 36,320.29 points. This was the support level for the day after breaking the resistant level of 36,640.34 to close high for the day.
The market uptrend momentum continued on the strength of price appreciation in the medium and high cap stocks as earnings session gradually kicks off with the high expectation, especially given that many companies have the prospect of sustaining their positive earnings trend that would likely influence their prices, judging by the insight of dividend possibility as revealed by the expected numbers. The positive market breadth and high buying pressure as shown by the volume index for the day at 1.06, while buying position was at 90% and 10% selling volume of the day’s transaction. This trend was a continuation of previous day’s up market, but on below average market traded volume which support uptrend as sentiments remain positive when trading session opens this morning.

With the mature markets of the world facing one challenge or the other, especially the U.S market that is pulling back on the recent labour data that revealed job loss in September that was beyond expectation, with geopolitical uncertainties that had triggered sell-offs and cautious trading. This is expected to have positive impact on emerging markets of which Nigeria is one. The nation’s exit from recession is a plus as market and economic fundamentals are looking up to drive assets value in this early expansion stage of the economy as macro-economic indices still remain positive ahead of Q3 corporate earnings season, September inflation figure and Q3 GDP numbers.
Meanwhile, the All-Share index gained a robust 511.00 basis points to close at 36,831.93 from an opening figure of 36,320.93 which represented a 1.41% growth, just as market capitalisation for the day went up by N175.9bn to close at N12.68tr, from the previous session’s N12. 5tr, also representing a 1.41% value gained in investors’ portfolios.

The upturn in the share prices of medium and high cap stocks like: Dangote Cement, Total, Zenith Bank, NB, Nestle, FBNH, Guaranty Trust Bank, Dangote Flour, National Salt and Flour Mills impacted positively on the ASI’s year-to-date return, which stood at 37.05%. This is just as market capitalisation grew by N3.48tr within the same period, representing a 37.11% rise above the year’s opening value.
Market breadth for the day remained positive with the number of advancers outweighing decliners in the ratio of 27:21 on a low volume traded that was lower than previous day’s level to continue the bull transition.

Market activities for the day, in terms of volume and value, were down by 28.55% and 19.96% respectively to 262.17m shares worth N3bn, from previous day’s 366.92m units valued at N3.74bn.
Transactions in the shares of Diamond, Access and Zenith banks, as well as FBNH and Transcorp topped the volume chart.
At the close of trading on Monday, May & Baker topped the advancers’ table, chalking 7.63% to close at N2.82 per share on market forces and Q3 expectations, followed by International Breweries, 5.00% notch at N39.90 per share on expectation of its Q2 numbers.
On the flipside, AG Leventis dropped 4.84% to close at N0.62 on market forces, followed by Diamond Bank that lost 4.55% to close at N1.05 on profit taking.

TODAY’S OUTLOOK
As the market opens this morning, expect volatility to persist owing to positioning and earnings season speculation that kicked off with traders returning to play the season ahead of September inflation and Q3 GDP figure in the amidst of year-end seasonality.
One thing that is clear in the current market situation is that smart investors are accumulating and enhancing their positions in selected stocks.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are looking down amidst improving economic and market fundamentals.

It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.
Investing in the stock market is in phases. You must know this in order to manage your trading and investment risk. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable in this recovery market.

The workshop materials on Trading and Investing for Financial Independence series are Available. Kindly call or send yes to 08032055467 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
https://investdataltd..com.ng/2017/10/market-update-for-october-9-2017.html

Nigeria@56: Financial experts point way forward for capital market growth

As Nigeria marks it’s 56th independence anniversary, some financial experts have advised the Federal Government to pursue economic policies that will boost liquidity in the financial system.



They told the News Agency of Nigeria (NAN) in Lagos on Sunday that the right economic policies would bring about the much needed liquidity and restore investor confidence in the capital market.

Dr Uche Uwaleke, the Head of Banking and Finance Department, Nasarawa State University, Keffi, said that the Nigerian stock market, established in 1960, was still fraught with a number of challenges like lack of depth and breadth.

Uwaleke said that faithful implementation of the 2016 budget together with monetary and fiscal stimulus packages were necessary to boost market liquidity in the near term.

“The CBN monetary policy tightening which reduces liquidity and pushes up interest rates is another negative influence on the stock market,” he said.

Uwaleke said that government, challenged by revenue shortfall, should borrow from concessional sources such as the World Bank and China Exim Bank instead of attempting to sell stakes in state-owned companies.

He said that the borrowed funds should be committed to employment generating activities such as agriculture and infrastructure.

“It is also important that the Niger Delta militants are invited to a roundtable with a view to halting disruptions in oil production as resorting to force will be counter-productive.”

Uwalekr advised that the Central Bank of Nigeria (CBN) should complement these efforts by scaling up its development finance functions targeting agriculture and SMEs in particular.

“Funds earmarked for this purpose should be channeled to beneficiaries at single digit interest rates through the development banks like Bank of Industry and Bank of Agriculture, instead of commercial banks.

“By so doing, jobs will be created, the economy will rebound with positive effects on the nation’s stock market,” Uwaleke said.

He said that performance of the stock market over the years underscored the fact it was not delinked from the macro economy.

“It has witnessed booms and burst cycles in response to oil price volatility.

“Given the country’s mono product economy, the market has been bullish for most of the time following rising oil prices and bearish when oil prices decline.

“The worst period in recent history was during the global financial crises when the stock market lost over 60 per cent of its value in 2008/2009,” he said.

Prof Sheriffadeen Tella of the Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, said that the market had not really grown over the years in terms of modus operandi.

Tella said the market had moved from analogue to digitised operations, but was still shallow in terms of the number and calibre of firms that were listed on it.

“Most firms on the stock exchange are local rather than international. So, there is the need to reform the exchange to attract or encourage listing by foreign or international businesses to increase its depth,” Tella said.

Mr Sola Oni, the Chief Executive Officer, SOFUNIX Investment and Communications, said that the major challenge militating against the capital market was lack of liquidity leading to underutilisation relative to its capacity.

“It is now compelling more than ever for the Federal Government to demonstrate the political will to work very closely with the capital market regulators and operators on ways to encourage multinational companies to be quoted on the exchange to deepen the market.

Government can grant them tax holiday of about three years and ensure patronage of their products and services by all government agencies,” Oni said.

He said that government should not force companies to be listed, but lure companies through mutually beneficial methods, particularly companies in the telecommunications and upstream sectors of the oil industry.

He said that the time had come for the government to accelerate the development of the economy through the inherent potential in the capital market.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Consulting Ltd., expressed dissatisfaction with low patronage of retail investors in the market estimated at less than four per cent.

Omordion said that government should make investment education compulsory in secondary and primary schools to enhance investment In the capital market.

He also called for the right operating business environment to encourage growth of businesses in the country.

Omordion advised that government should encourage PENCOM, Sovereign Trust Fund and other agencies to invest in the market.

NAN reports that the Nigeria Stock Exchange lost N1.025 trillion in market capitalisation in the last one year due to unfriendly regulatory policies.

Consequently, the market capitalisation, which stood at N10.728 trillion on Sept.30, 2015, lost N1.025 trillion or 9.55 per cent by the close of trading on Sept. 30, 2016 to stand at N9.703 trillion.

Also, the All-Share Index dipped by 2,970.21 points or 9.51 per cent by the close of trading on Sept. 30, 2016 at 28,247.56 against 31,217.77 posted in September 2015.

http://www.tribuneonlineng.com/nigeria56-financial-experts-point-way-forward-capital-market-growth/

Flour Mills Set For First Tranche Of N110bn Fresh Capital Raising

The board of Flours Mills of Nigeria Plc, on Monday said it is set to raise a total of N110bn by way of rights to existing shareholders and issuance of Medium Term Notes.
A total of N40bn is to be sourced by way of the first tranche of a Rights issue for which approval was secured from the Securities & Exchange Commission (SEC) as part of a registered shelf fund raising programme.
The company in a statement to the Nigerian Stock Exchange (NSE) by Joseph Umolu, its company secretary and director, Legal Services, revealed plans for N70bn through Medium Term Notes for which discussions are ongoing with stakeholders such as financial and legal advisers, as well as issuing houses “to determine the right time and cost for issuing such financial instruments which eventually be duly registered with the proper financial bodies.

http://investdata.com.ng/2017/10/flour-mills-set-first-tranche-n110bn-fresh-capital-raising/#more

HOW TO USE THIRD QUARTER REPORTS

What should investors seek from the third quarter earnings reports that have started hitting the market? How should they position for robust returns? Let me share a few here.
Go back the two previous quarters to review the performance pattern within the current financial year of any company in question. In other words, what has the earnings trend been like in the first and second quarters?
Please note that companies with consistent incremental performances are most suitable for investment purposes as the probability of a better last quarter performances are higher in those. You might choose to dwell on the reasons for the inconsistent performance patterns, including the fact that some companies do have cyclical sales trends for which reason the quarterly performances are bound to vary sharply. Note such stocks and act appropriately.

Add up the three quarter earnings that you now have to see what the average performances would be. Or better still, find the average of the last four quarters, that is, add the three current quarters and the fourth for previous year, the divide your answer by four to get the average. This is important to project what the dividend possibilities are. To do this right, you might now need to consider previous year’s performances to see any similar trend or divergence. Companies with identical trends with previous years’ performance level are easier to project than those with divergent trends. In cases of divergence, seek to know what the issues are so as to take advantages or cut your loss swiftly.

The industry wherein the companies you are researching operate is key. For example, manufacturing concerns tend to release audited reports to the market faster than banks and insurance stocks. Equities like Vitafoam, Forte Oil, United Capital, and Nestle as well as in some cases, Cadbury are known to be among early fliers in the market every year, as their results often hit the market between four to eight weeks after the end of the financial year. But you would agree with me that banking stocks are not so, even as they are still a lot better than their insurance cousins in the release of quarterly and audited reports as reflected particularly in the last three financial years where most insurance companies grappled with new challenges posted by the new international accounting standards.
Summarily, note the period to expect the audited result with the release of the third quarter result and position right.

Please note that quarterly results alone will not determine equity prices even in the very short-term, as a result, learn to keep tab on the prevailing market situation to measure the probable impact of the third quarter performances on stock prices. In other words, positive earnings in an uptrend will most probably lead to further uptrend, while positive earning in a downtrend might not impact much. Negative earning in an uptrend won’t move price up in as much as the decline might not be sharp.
Ten per cent price circuit will propel a fast reaction to earnings report, leading to early equilibrium price level in response to earnings.

The implication of this is that positive results might not experience a bull run for more than a week after which profit takers will besiege the market to slow down price activities, ditto negative earning. The best every investor must learn to do at this point is to be technical-analysis compliant for the best of short term market play in anticipation of quarterly and full year audited reports.
Investors who may not be desirous of technical analysis skill could be shooting themselves in the foot because they might be buying at the end of an initial rally in response to positive earnings as profit takers dump on their head while traders will re-enter when audited report are near in equities where projections on final dividends are positive.

The expected interim dividend companies in third quarter are

INTREIM DIVIDNED
Projected EPS Q3
Q2 2017
Q1 2017
CAP
22nd Oct 2017
1.50
1.00
0.56
NB
21st Oct 2017
2.00
1.54
1.44
Seplet
26th Oct 2017



Nestle
26th Oct 2017
28.00
20.88
10.53
Total
29th Oct 2017
18.56
13.57
7.87

https://investdataltd..com.ng/2017/10/how-to-use-third-quarter-reports.html

INVESTDATA PRICEAND EARNING TRACKING FOR THE WEEK ENDED OCTOBER 6, 2017

https://investdataltd..com.ng/2017/10/investdata-priceand-earning-tracking.html

Aftermath Of $115.8m Divestment: Oando Gas & Power Now Axxela

The management of Oando Gas & Power Limited (OGP), on Sunday announced a change in corporate identity and brand name to Axxela Limited.
This it follows the recent US$115.8m acquisition of a 75% equity stake in the former midstream business subsidiary of Oando PLC by premier Africa-focused private investment firm- Helios Investment Partners LLP (Helios).
Bolaji Osunsanya, Axxela’s Chief Executive Officer described the rebranding initiative as “a reaffirmation of our operational independence as we become sub-Saharan Africa’s preferred and fast growing gas & power portfolio company. It enables us leverage strategic partnerships to deliver value adding energy solutions to our customers, whilst facilitating sustainable economic development in our chosen markets. The change in our corporate identity also gives us the opportunity to re-introduce our business to the market while humanizing the far-reaching impact of our operations.”
In a world of constant re-invention, Axxela, the statement is focused on developing innovative solutions to bridge sub-Saharan Africa’s energy gap. The rebrand illustrates its determination to be an indispensable energy player via its insights-driven approach and inventive team ethos.

http://investdata.com.ng/2017/10/aftermath-115-8m-divestment-oando-gas-power-now-axxela/#more