₦airaland Forum

Why You Should Invest In Gold Now

Having had a steep rally from $1200 per ounce to a year-high of $1295.25, the precious metal has thus seen a correction trend downwards to $1263 (resistance now turned support).
Trend analysis:
Using Fibonacci extension to project the profit taking level for the uptrend 1122.62 low reached on 15/12/2016 and high of 1263.63 reached on 27/02/2017 at 1287.10 which was reached and slightly breached to reaching an high of 1295.28 per ounce.
Gold
We expected profit taking to drive a corrective move downward to 1263 a resistance now turned support and also testing the Moving Averages now acting as dynamic support trendline (see chart below)
Currently the price of Gold is hovering around 1265 after it reached 1263 projected end of the corrective wave.
Gold2

Expectations
Buying Gold around 1263 – 1265 zone with stop placed at 1250 and take profit level at 1301
Happy Trading day
Trade Idea: Going Short on USD/JPY could be good right now
USD/JPY has thus seen 250 pips rally in the week, the currency pair reached a week high of 111.77 after having opened with a strong gap on the upside. Price momentum failed to close above 111.60 (support now turned resistance).
A bearish Doji candle formed at yesterday’s trading session to also close around the 61.8% Fibonacci retracement level at 111.05
Gold3

Short at this level with stop placed above 50% Fibonacci retracement level at 112, while TP with 107.15

Adeshina Adetunji, CFTe
Technical Analyst/Strategist
+2349092133294, +23480-3227-6111
Skype: adeshina.adetunji

http://investdata.com.ng/2017/04/invest-gold-now/

Equities Investment Leads, As Nigeria’s Q2 Capital Import Grows 95% To $1.792bn

At 14.2%, Nigeria Has One Of World’s Highest Jobless Rate- NBS
When FG’s Savings Bond Becomes New Normal For Equity Traders
2016 Recap and 2017 Market Outlook
Data by the National Bureau of Statistics (NBS), on Tuesday, showed that capital imported into Nigeria in the form of Foreign Direct Investment (FDI), Other Investments and Portfolio Investment in the second quarter of this year stood at $1.792bn, almost double that of the preceding quarter.

In a document titled the NBS Q2 2017 Capital Importation Report, the bureau said the Q2 figure was $884.1m or 95.02% more than the $1.042bn reported in the corresponding second quarter of 2016, helped by the rise in share capital investment, which is closely related to Equity Investment (FDI and Portfolio) that was largely responsible for the huge growth in capital importation for the period.

The highest amount of capital for the period stood at $616.5m recorded in May, followed by the $612.6m in the following month; and $4563.3m in May.
“The main driver of the quarterly growth in capital importation in the second quarter was Portfolio Investments, which increased by 145.7%, followed by Other Investments, which grew by 95.02%, and then Foreign Direct Investment (FDI), which increased by 29.8% over the previous quarter,” the NBS noted.
Specifically, Portfolio Investment stood at $770.5m during the three month period, accounting for 43% of total; followed by Other Investments at $747.5m, or 41.7%; and the $274.4m FDI, which accounted for the remaining 15.3% during the quarter.

Year-on-year, Portfolio Investments increased by 128.4% from $337.3m in the corresponding period of 2016; just as Other Investments climbed 43.6% up from $520.6m; while FDI grew by 48.9% from $184.3m
A further breakdown revealed that Equity investments accounted for the lion’s share of total FDI, as it accounted for 99.9% or $274.1m of the total, Just as it rose 30.5% over the preceding quarter, while Other Capital accounted for the remaining $300,000 or 0.1%, after falling by 76.6% within the period.
Equities also accounted for $614.05m or 79.7%, the largest chunk of Portfolio Investments; while Money Market Instruments gulped $98.6m or 12.8%; and Bonds, the remaining $57.9m or 7.5%.
For Other Investments, loans remained the sole inflow as in previous quarters, accounting for 100% as the other components did not report any figures for the period.

During the period also, share capital imported stood at $932.58m, representing a rise of 548.5% over the previous quarter, just as it climbed 168% above the second quarter of 2016.
The amount, the highest since 2015 Q3, according to the NBS, represented a significant increase relative to recent quarters.
The sector that attracted the second highest value of capital imported was the oil and gas, which accounted for $19.39m or 10.6% of total, representing 88.4% over preceding quarter, but 5% down from the corresponding second quarter of 2016. It was followed by the services sector’ $145.56 or 8.1%; and production/manufacturing sector, $141.42m or 7.9%.

Lagos continued to account for the bulk of capital importation in the review period with 97.07% or $1.739bn related to its being home of the Nigerian Stock Exchange (NSE), apart from its position as the nation’s commercial and financial capital. Akwa Ibom followed as in previous quarter with $34.08m or 1.92% of total, representing an 85.6% increase over the amount recorded in the preceding quarter; ahead of Abuja’s $16.64m or 0.93%; while Oyo State trailed with $1.83m or 0.1%.

The NBS report further revealed that the bulk of the imported capital in the review period flowed from the United Kingdom, which accounted for $696.7m or 38.87% of the total, just as it represented 107.9% rise over the 2016 Q2 figure.
“Since 2010, the UK has accounted for the highest value of capital importation in all but two quarters (both in the second half of 2015),”the report added.
Inflow from the United States placed it second, accounted for $287.82m, representing 16.06% of total; followed by Belgium with 15.7%; and Singapore, 8.67%.
Banks through which the highest share of capital was imported were those with foreign parentage namely, Stanbic IBTC, Citi Bank and Standard Chartered Bank, which accounted for $1.267bn or 70.7% of total capital imported during the period, while the other 22 banks in the country were left with the balance.
Stanbic IBTC accounted for $589.84m or 32.91% of the total, most of which came in June ($302.949m) and May ($243.997m) a significant increase over the previous quarter’s $342.7 or 9.12% share. It was followed by Citi Bank Nigeria’s $342.7m or 19.12% attracted in April ($228.688m) and May ($114.049m), which also represented an improvement over the previous 5.12% in 2017Q1; while Standard Chartered Bank pooled 18.7%, the bulk ($220.851m) of which was in June, which was down from the previous 25.4% of total, even as it represented $103.7m more than what it imported in the preceding quarter.

Among Nigerian institutions, Zenith Bank took the lead, accounting for a total of $170.231m or 9.5% of total; Ecobank Nigeria (subsidiary of Lome, Togo based Ecobank Transnational Incorporated) recorded a total of $173.036m or 9.65%; while Access Bank followed from afar with $47.549m or 2.65%; among others.
Besides equity investments and oil and gas, telecommunications sector followed with $174.18m; ahead of the servicing sector’s $145.56m; production, $141.42m; the banking sector attracted $89.8m; financing, $57.31m; while agriculture pooled $23.71m.

http://investdata.com.ng/2017/08/equities-investment-leads-nigerias-q2-capital-import-grows-95-1-792bn/#more

BUHARI’S RETURN FAILS TO INSPIRE INVESTORS AS NSE INDICATORS CONTINUE SOUTH

MARKET UPDATE FOR AUGUST 21, 2017

The week started with a volatile Monday on the Nigeria Stock Exchange (NSE) as the benchmark index witnessed some upside down actions, starting out with a side range, after which there was a slight drop in the morning hours, before a mid-day reversal when it started to rally. That was however before the NSE’s most capitalized equity- Dangote Cement (accounting for over 30% of market capitalisation) suffered a set-back, pulling back the index and thereafter came on again by afternoon to finish lower at the close of the day’s trading.

For some, the setback suffered by the indicators is a sign that investors and traders are not enthusiastic and have therefore not factored last Saturday’s return of President Muhammadu Buhari to the country after almost 105 days medical leave which began on May 7, 2017 into the mix. Reason, it was learnt, is that many are simply not expecting any significant changes in the fundamentals of an economy that continues to stand on a single leg- the monetary side or Central Bank of Nigeria (CBN) initiatives (particularly the foreign exchange market interventions). Issues that require urgent attention are by no means worrisome, beginning with a budget whose implementation remains a cause for concern to many, at a time when the Nigeria Extractive Industry Transparency Initiative (NEITI) says the nation’s three tiers of government are struggling to keep pace with implementation of the year’s spending plan, based on data it made provided in a new report on Monday. Also, given that the 2017 budget is expected to flag off implementation of the Economic Recovery and Growth Plan (ERGP) launched by this administration some months ago begins with this year’s budget, the government’s medium to long-term economic strategy may have been plunged into troubled waters.

The intraday market range broke out the psychological line of 37,000 to touch an intra-day high of 37,050 and low of 36,550.28 points before resting at 36,584.44 on a high volume with improved market breadth. The market came under high selling pressure as revealed by the day’s volume traded index of 1.09. Buying position stood at 93% selling volume of total transaction which was a reversal of previous day’s positive sentiments that supported the buy market.
Trading statistic on Monday revealed that foreign players transacted 3.5m units of Dangote Cement at N215 per share and Guaranty Trust Bank’s 29m units at N40.65 each. This suggest that foreign exchange is still flowing into the market on the strength of half-year corporate earnings that beat market and analyst expectations. This is seen as a signal to what is ahead if the government changes its poor implementation style and in the process supports the much desired economic recovery that is now being propelled by the monetary authority.

Ahead of the meeting of the Organisation of Petroleum Exporting Countries (OPEC) and as energy firms cut drilling rigs the most since January, U.S inventories fell about 13% from March highs to 466.5m barrels recently. Reduction in rig counts and falling inventory suggest that the market may be tightening, a situation that may also further support Friday’s oil rebound.

Meanwhile, the composite NSE All-Share index shed 336.12 basis points to close on Monday at 36,584.44 point, compared to the 36,920.56 points opening level, representing a 0.91% decline on a high volume traded, when compared to previous sessions. Similarly, market capitalisation went down by N115.85bn to close at N12.61tr, from an opening value of N12.73tr, representing a 0.91% value loss in investors’ portfolio.

The downturn in the share prices of Dangote Cement, Zenith Bank, UBA, Lafarge Africa, Dangote Sugar, FBNH, Nestle, CCNN and Stanbic IBTC, on Monday pulled back the ASI’s year-to-date returns to 36.13%, just as market capitalisation stood at N3.37tr within the period, representing 36.43% above the year’s opening value.

Market breadth for the day remained positive with the number of advancers outweighing decliners in the ratio of 27:16 on a high volume of trades to halt the two-day bull transition.
Trading activities in terms of volume and value were up by 55.68% and 30.35% respectively at 368.38m shares, worth N6.27bn, as against previous day’s 236.62m units, valued at N4.81bn.
Also, transactions in the shares of AIICO, Guaranty Trust Bank, Zenith Bank, UnityCapital and UBA topped the volume chart during the day, just as Flour Mills topped the advancers’ log, gaining 8.73% to close at N31.00 each on market forces. It was followed by Transcorp with a 5.97% gain at N1.42 per share, as investors continue reacting to its impressive 2017 Q2 numbers and the prospects of government becoming more serious in the ongoing power reforms.
On the flipside, Vitafoam lost 5% to close at N2.66 per share on profit taking; ahead of the 4.88% slide in the price of AXA Mansard Insurance to close at N1.95 per unit on profit taking and failure of its directors to pay interim dividend.

TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue amidst profit taking and accumulation of interim dividend paying stocks ahead of their half year results, especially with the two first tier banks numbers giving insights into what should be expected. As investors also take advantage of correction to position for the rest of the year, if the much desired economic recovery becomes a reality despite the slow and unclear implementation of the 2017 budget by the government. Even so, the July inflation figures and Nigeria’s second quarter GDP data are being awaited from the Nigeria’s National Bureau of Statistics (NBS) to officially confirm economic state and direction.

However, investors need not panic if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of the improving economic 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.
Be reminded once more that industry potential, market timing are very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. 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.

https://investdataltd..com.ng/2017/08/buharis-return-fails-to-inspire.html

Labour Minister Applauds Elumelu’s Job Creation Initiatives

Photo Caption: Chairman, Transcorp Hotels Plc Olorogun O’tega Emerhor, Minister of Labour and Employment, Chris Ngige and Chairman, Transnationa...

Dr. Chris Ngige, former Governor of Anambra State, now Minister of Labour and Employment, was full of praise for Tony Elumelu, former group managing director of United Bank for Africa, now chairman of the banking group, as well as Transnational Corporation of Nigeria (Transcorp), among others, for his various ventures and initiatives that have continued to create jobs as a strategy for poverty alleviation in Nigeria and across Africa.

Ngige, who spoke during the 30th Anniversary celebration of Transcorp Hilton Hotel Abuja, explained: “I am here because Tony Elumelu creates jobs. I take interest in those who create jobs and Tony is one of them.”
According to the minister, the Labour statistics show that between 1500 and 2000 people are employed at the Transcorp Hilton alone, stressing that “social intervention is about attending to those who are vulnerable, those who can’t afford to eat three, two or even one square meal a day. Social intervention is what Tony Elumelu does.”



He also praised Elumelu’s continued investment in power generation through Transcorp Power Limited, as well as the steps he took at UBA to retain employees through the recession when other companies chose to retrench.
At a time when other institutions were laying off, UBA promoted 3000 staff in one day, he added, just as he acknowledged Elumelu’s efforts at doing a lot to create jobs, calling for more of such.

Reacting, Elumelu urged the Minister to: “Help us create the right enabling environment and we will.”
He also added that improving lives and transforming Africa was the motivating factor when Heirs Holdings acquired controlling stake in Transcorp Plc, just as job creation remains one of many ways he continues to push this agenda. The conglomerate’s subsidiary, Transcorp Power Limited is now Nigeria’s largest power generator, in line with its commitment to power Nigeria’s industries, hospitals, schools and create a truly enabling environment for Nigeria’s entrepreneurs to thrive. 


A statement by the group explained that Elumelu’s commitment to poverty alleviation is perfectly expressed in his theory of called Africapitalism, which he continues to champion based on the belief that Africa’s private sector can, and must play a leading role in the continents development.
The statement added that Africapitalism is visible through the entities under Tony Elumelu’s Heirs Holdings Group, including Transcorp which currently has over 3,000 Nigerian’s in its employ, UBA with over 14,000 Nigerian staff and the Tony Elumelu Foundation that has so far empowered 3000 Africans through its flagship entrepreneurship Programme.



http://investdata.com.ng/2017/07/labour-minister-applauds-elumelus-job-creation-initiatives/

MARKET UPDATE FOR WEEK ENDED AUGUST 18 AND OUTLOOK FOR AUGUST 21-25, 2017



VOLATILITY STILL, AS PROFIT TAKING, FOR Q3, MONTH-END PORTFOLIO REBALANCING, ECONOMIC DATA


Trading on the floor of the Nigerian Stock Exchange last week was mixed, halting five consecutive weeks of bull-run to close lower on the strength of intense profit booking and portfolio rebalancing by market players in three straight days. So intense was the volatility and profit taking that the market did not react to the positive earnings from two first tier banks Zenith Bank and Guaranty Trust Bank, both of which had rallied since April after the Q2 numbers have been factored into their share prices.
At the same time the market was under selling pressure until the last two trading days of the week when investors took advantage of the correction to reposition in interim dividend stocks that reversed the downward trend.

Volume index on the local bourse for the week was 0.93, with buying position at 44% and 56% selling volume of the total transactions as mixed sentiment as the market witnessed improving demand for banking stocks, while Industrial and Consumer Goods suffered losses duty to profit taking in the subsectors. The recent pullback is one of dynamism in a recovering market after weeks of price rally that was supported by strong half-year corporate earnings, strong liquidity in the import and export window of the foreign exchange market that had attracted inflow into the economy at a time most stocks on the exchange remained undervalued as revealed by the NSE’s Price Earnings Ratio of 9.37x, which is also another driving factor that is attracting inflow as the exchange rate remains relatively stable.

The fear of whether there would be sustained inflow of U.S Dollar into the Nigerian stock market is gradually fading, which would be complemented by inflows from other players like the banks, oil companies and exporters will help to keep the naira stable, just as fear over President Muhammadu Buhari’s health seems to have abated following his return to the country on Saturday from London. Expectation is that the Central Bank of Nigeria (CBN) would intensify efforts to stabilize and thereafter work towards a single exchange rate regime to attract more direct and foreign portfolio investors. Data by Bloomberg reveals a net inflow of $22m to Exchange Traded Fund (ETF) between January and August 4, 2017.

Meanwhile, the composite NSE All-Share Index for the week shed 1278.04 points to close at 36,920.56 points, from 38,198.60 points, with strong resistant above the psychological line of 36,000 after touching low of 35,871.31 within the week. This represented a 3.35% decline on high transaction volume.
Similarly, market capitalisation for the period closed lower at N12.73trfrom an opening value of N13.17tr, representing a 3.35% value loss in investors’ portfolio.

Top performing stocks for the week were a mix of low, medium and high cap stocks, as market players cashed out gains from weeks of rallying by the market to rebalance their portfolios ahead of month end and onset of the Q3 earnings season.

Despite the mixed performance during the week, market breadth remained negative as the downturn in share prices reducedyear-to-date return of the NSE All-Share-Index (ASI)to 37.38%, just as market capitalisation stood at N3.48tr, representing a 37.62% gain from the year’s opening value.
Market breadth for the period was negative with number of decliners outpacing advancers in the ratio of 43:28 on a high volume of trades to short-live the five-week period of bull transition, despite the reversal on Thursday and Friday of the week under review.

International markets were mixed over the past week despite the eased tension after North Korea yielded to pressure to prevent its missile testing near the U.S boundary, even as equity prices rebounded on impressive economic data, while oil price continued to oscillate.

Germany‘s DAX and Britain’s FTSE 100 were higher for the period, while Japan’s Nikkei and U.S market indexes droppedlower, despite the positive economic data, as Conference Board’s leading index increased by 0.3% in July, after a 0.6% increase in June which suggests that the economy may experience further improvement in the second half of the year. The news comes despite growing turmoil in the white house, where President Donald Trump’s political isolation puts at risk his agenda to invest in infrastructure and reform the nation’s banking sector, among other things.
In Europe, the Eurozone’s economy reported 2.2% growth in Q2, beating economist and analysts’ expectations, which showed that the recovery was on track. In Asia, Japan’s economy extended its longest streak of uninterrupted growth in over a decade, although economists are still waiting for inflation to reach the BOJ’s 2% target rate.

Back home, the All-Share Index opened the week on a negative note, losing 0.65% as investors and traders took profit from the gains recorded in earlier weeks, a trend that was maintained in three trading sessions when the bourse posted 2.25% and 2.68% losses respectively, before Thursday’s rebound that was sustained on Friday when the market gained 0.59% and 1.66% respectively to reduce the week loss to 3.35%.

The NSE’s benchmark and sectoral indexes closed lower during the week, with the NSE Industrial Good and Consumer Goods recording the highest setbacks of 6.02% and 2.47% respectively, even as the NSE ASeM closed flat.
The week’s transaction, measured by aggregate volume and value, were down by 33.09% and 23.78% respectively as 1.39bn shares changed hands for N25.04bn, as against previous week’s 1.52bn units, valued at N28.9bn.

At the end of last week’s trading, Fidson Healthcaretopped the advancers’ table, chalking 9.70% to close at N3.28 per share on the back of market forces and impressive Q2 numbers; followed by Continental Reinsurance’s 6.56% gain at N1.30each also on impressive Q2 numbers. The decliners’ table on the other hand was led by Cement Company of Northern Nigeria (CCNN), which lost 13.71% to close at N9.22 on market forces, ahead of the 12.73% slideby NEM Insurance, which closed at N0.96 per share, due to profit taking.

Market Outlook
The market this week is expected to continue its volatility due to profit taking and portfolio rebalancing on the strength of the Q2 numbers ahead of end the month that usher in the last month of Q3 especially as inflation data for July and second quarter GDP figures are being awaited. As one of the emerging markets, INVESTDATA expects the Nigerian economy and equities market to continue attracting inflow of funds as factors, given the undervalued nature of stocks and helped by the nation’s improving macroeconomic fundamentals.

Bearing all these in mind,investors should position in stages in valued stocks with high upside potentials, despite their current prices on the exchange as many are still undervalued.
Again, the time to combine company fundamental data and chart pattern for your trading and investing decisions is now, to enable you know the support and the resistance levels.

Train yourself and study to know the new approach to adopt at this point and going forward,
Join our WEBINAR every Friday 8pm to 9pm and for our WhatsApp group/to get market updates, SMS web*name*email to 08124050850. To register for Investdata Buy and Sell Signal Setup call 08032055467

https://investdataltd..com.ng/2017/08/market-update-for-week-ended-august-18.html

LAFARGE AFRICA REBOUNDS IN Q2, MOVES TO SUSTAIN 2017 POSITIVE PERFORMANCE

A few weeks ago, cement manufacturer giant, Lafarge Africa Plc presented an un-audited score card, which revealed yet another inconsistence in performance, a situation that has so far reflected on its share price over the years, especially against the backdrop of Nigeria’s economic situation, which in line with the decision of its major competition led to the merger of its sister companies in Nigeria, as well as the South African operation of its parent company. All of these have kept investors thinking: What is next.

It must however be noted that the company, in all of these, the company has remained consistent in releasing the timely release of its earnings reports, in line with the post-listing requirements of the Nigerian Stock Exchange (NSE), while keeping to its high level of good corporate governance.
The management of Lafarge Africa in the half year financial performance statistics under consideration swam above waters as it announced positive figures as against the negative earnings reported in the corresponding period of 2016.

Total revenue from sales increased by 44.23% from N107.36bnin the first half of 2016 to N154.84bn, while profit before tax stood at N18.16bn, compared with the loss before tax of N30.18bn in 2016, with net profit of N19.73bnas against the N30.246bnloss in 2016. Judging by the comparison as shown in the table below, it will be safe to conclude that the company largely improved on its profitability in the first half of 2017
Assets elements grew across board, beginning with the Non-Current Assets valued at N465.67bn, which was higher than the N409.606bn reported in 2016; just as Current Assets improved to N141.82bn from N82.93bn.

Looking at the company efficiency ratio, the management in the first six months of 2017 has done well, judging from the Total Assets turnover for the period at 25.49%, which is 16.93% above the 21.80% turnover estimated in 2016. At similar rate, the total sales for the period were 81.53% of the total equity appreciably above the 76.72% yielded in 2016. At 3.2x, equity multiplier implies that 31.2% of the company’s assets is financed by shareholders’ equity, while 48.8% is financed by debt. See the table below for other key financial statistics.
LAFARGE AFRICA PLC
HALF-YEAR REPORT
COY
2016
2017

(N)
(N)
% Chg
Date Released
July 20, 2016
July 20, 2017

Price As At Released Date
62.94
52.00
-17.36
Turnover
107,364,799,000
4,839,943,000
44.23
Profit After Tax
-30,248,243,000
19,732,391,000
165.24
Shareholders' Fund
39,948,574,000
189,917,453,000
35.71
ESTIMATED RATIOS
Earnings Per Share
-6.64
3.60
154.22
PE Ratio
-2.37
3.61
252.32
Earnings Yield
-10.55
6.92
165.92
Book Value
30.72
34.65
12.79
Price To Book
2.05
1.50
-26.83
ROE (%)
-21.61
10.39
148.08
Profit Margin
-28.17
12.74
145.23
Year End
December
December

All investment ratios above are good when compared with those of the same period of 2016, especially given that the comparison is done between positive and negative figures. Meanwhile, the current earnings is N3.60 per share of Lafarge. Total Comprehensive Income per share doubled to N6.34. The estimated earnings per share is 6.58% of the current market price at release date. Conversely, the price is 3.80% of the earnings, in other words, the P/E-Ratio is 3.61x, which is lower than the N52 per share market valuation of Lafarge as at the time the result was unveiled. We have estimated the Book Value of every unit of its shares at N34.65.
In conclusion, profit margin for the period is still below international standard of 15% at 12.74% despite moving from negative 28.17% last year.

Price action for Lafarge in the last one year has continued to trend downwards, making lower lows to a strong support level of N34.16 in March 2017 before rebounding on positive sentiments for the full year 2016 financials. This momentum has remained as it continues to trend up by forming a rising channel.

Lafarge Africa closed below the upper band by 16.9%. Bollinger Bands are 20% narrower than normal. The narrow width of the bands suggests low volatility as compared to Wapco’s normal range. Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. However, a short-term retracement inside the bands is likely, as other indicators like RSI current value is at 61.13, while MACD has been bullish in the last 33 trading days. CCI and OS are indicating sell, while RSI and MACD are signaling buy.

Findings/Recommendations
The company seems to be going through a growth period, given the above figures and ratio interpretations. Competition in the sector looks tight and the company may not be healthy, going by its unnecessarily debt element. We are of the opinion that the company stands reasonable chances of posting impressive figures when its nine-month results are released. If this becomes a reality, investors will definitely revalue its share price. We therefore expect such moves to balloon the company’s share price to three digits region.

The management of Lafarge Africa must however struggle hard for more market share in its operational regions with competition and an operating environment that is not ready yet to drive down cost pressure. Efforts should be made to reduce all costs,even as heightened cautiousness should be adopted while assessing debt instruments. Investors on the other hand should hold the equity’s shares with expectation that the management will unveil more positive financials at the end of both the nine-month and full year.

The need for government at all levels to close the infrastructure gap necessary to support development of the agric, manufacturing and housing sectors are even more pertinent today than at any points in our national history. This demand will drive market share and profit, especially if there is a change in the poor implementation so far witnessed in the 2017 budget, especially now that President Muhammadu Buhari returned to the country on Saturday, August 19, 2017, after 105 days on medical vacation in London for an undisclosed ailment.

We have recommended a HOLD before now, but on the strength of the company's latest numbers we upgrade to BUY position for new entrants, particularly given that the stock is still undervalued.
Lafarge Africa PLC
Share Holding Structure
Foreign
70.00%
Odua Group of Companies
5.14%
Nigerian Citizens & Associations
24.86%
Other Statistics
Shares Outstanding (MN)
5,480,734,000
Opening Price (2016)
N96.80
Closing Price (2016)
N40.95
Closing Price as at August 18, 2017
N59.00
Date Listed
16/02/1979
Year End
Dec 31st

2016 Performances Analysis
The year 2016 was a bad year for the company as it struggled with loss positions on quarterly basis to reflect the impact of huge debt that was complicated by combination of Nigeria’s economy that was deep in recession and is only now just emerging from the woods, shortage of foreign exchange that negatively impacted cost of operation during the period. These reflected in its share price which it declined by more than 100% as negative sentiments hit the stock.

Despite, the losses witness on quarterly basis, the full year earnings came in positive on the strength of tax credits, following which the company was able to reward shareholders with dividend, regardless of the decline in payout which is an indication of the declined profitlevel for the year.
Please note that the N1.08 dividend reward stands relatively strong, when compared to the selling price and the company’s position, which largely accounted for the renewed investor confidence and sentiments for the equity.

Five-Year Financial Analysis.
Looking at the company's scorecard, performance had been mixed and inconsistent in growing its numbers for the years under review. The regular release of its financials in compliance with the post-listing requirement made the company's corporate governance strong such that investors could forecast and plan their investment.

Sales revenue of the company for the period under review grew consistently from N87.97bn in the 2012financial year to peak at N267.23bnthree years later in 2015, before declining to N219.71bn by last year to reflect the company’s struggles amidst the harsh economic environment as a result of the recession, representing an increase of 149.76%. Also, bottom-line for the period wasunstable, rising by 14.89% to N16.9bn from N14.71bn in 2012 after hittinga profit level in excess of N60bnin 2013.
Shareholder’s fund for the period was up by 264.17% from N68.36bnin 2012 to N248.95bn in 2016 to reflect the company’s investment in expansion and power infrastructure to boost production.
In the past five year, Lafarge Africa has consistently rewarded shareholders with dividend, despite the undulating numbers posted. A total dividend of N12.18 per share, was distributed excluding the bonus of one new ordinary share for 10 in 2015


Estimated Performance Ratios
The company’s earnings power for the five-year period declined by 37.17% to N3.08 from N4.90 in 2012, after the said earnings per share had recorded all high of N20.31 in 2013 on N3.30 dividend. The company’s earnings trend had been up and down before sliding to lower low in 2016, due to increased investment in its capacity building and harsh business environment.

The company recorded a Price Earnings ratio of 12.26x in 2016, reducing investors’ waiting period from a high of 13.58x (times) in 2015to a low of 5.37x in 2013. On the other hand, the said earnings per share was same as 8.16% of its price at the released date.

Book Value as at 2016 financial was N45.42, the second highest so far in the company's existence after N56.98 in 2013. This is however relatively fair, compared to its market value. The growing Net Asset and robust retained earnings would further boost the company's business to earn more.
The estimated ratio also reveals that Lafarge Africa’s profit margin for the last three years have been inconsistent at below the internationally accepted 15% benchmark. This is not too healthy, as management is expected to reduce cost and in the process support profitability.


LARFARGE AFRICA PLC- ESTIAMATED RATIOS

2012
2013
2014
2015
2016
Earnings Per Share
4.90
20.31
7.68
5.90
3.08
PE Ratio
8.28
5.37
11.59
13.58
12.26
Earnings Yield
12.07
18.61
8.63
7.36
8.16
Book Value
22.77
56.98
39,87
38.67
45.42
Price To Book
1.78
1.91
2.23
2.09
0.83
ROE
21.52
35.64
19.26
15.42
6.79
Profit Margin
16.72
29.58
12.97
10.16
7.69
Year End
Dec
Dec
Dec
Dec
Dec
https://investdataltd..com.ng/2017/08/lafarge-africa-rebounds-in-q2-moves-to.html

HIGH POWER SHORT TERM TRADING STRATEGY WORKSHOP

At our last Investdata Training workshop tagged “High Power Short Term Trading Strategy Workshop“ that was held on July 15th, 2017 at the Ostra Hall & Hotel, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.
Experts gathered to share common interest in promoting investment portfolio profitable to investors. Some of the sub topics addressed in the workshop are;

• The Toolbox of Successful Traders & Technical Analysis- Mr Meshach Ukpoma, FX Analyst/Trader

• Outlook and Implications of the 2017 Budget & Petroleum Industry Governance Bill (PIGB) on Nigeria’s Stock Market and Economy- Abiola Rasaq, Group Head Investor Relations, UBA

• A Strategic Outlook; The Fusion of Fundamental & Technical Analysis- Ambrose Omordion, Chief Research Officer Investdata Consulting Ltd

• Understanding Market Timing to Manage Risk, Using Technical Analysis - Mr. Abdul-Rasheed Momoh, Head, Capital Markets, TRW Stockbrokers Limited

• Taiwo Steven… Took us through the Mathematics of Investing Profitably in the Stock Market.

At the end of the section, attendees were given copies of the home study pack to equip them with technical knowhow when it comes to investing in the Nigeria Stock Market and understanding the trends relating to investment in a bear or bullish economy.

Be reminded once more that industry potential, market timing are very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. 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 +2348032055467.

Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy.



https://www.youtube.com/watch?v=Gw7WQDrjP8o

MARKET UPDATE FOR AUGUST 17, 2017

AS MARKET AWAITS ACCESS BANK, UBA RESULTS, INVESTORS’ REPOSITIONING SUSTAIN VOLATILITY

Nigeria’s equity market had a fairly narrow trading session on Thursday to continue its volatility, opening the day’s session down in the morning hours, before rising after the index tested support below the psychological line of 36,000, following which it bounced, and then meandered most of the day back and forth into the afternoon session, holding support. In all of this, the index was not able to get through resistance, even as it made a great new afternoon intraday high, to reverse the three day pullback on Dangote Cement’s value gain to close the day. This was backed up in the last ten minutes to put a support for the session, closing the session with the index 214.20 points in positive territory. After recording a high of 36,364.81 and low of 35,871.31 in the course of the day’s trading.

A notable situation during the session was that selling pressure resulting from profit booking is beginning to subside as revealed by the volume traded index of 0.68; while buying position stood at 90% and selling volume, 10% of total transaction which supported the up market, depending on sentiments on Friday to continue previous day’sreversal.
Also, the recent price correction in first tier banks have started to attract buying positions as mark down date draws near, considering the impressive numbers which show that there is an element of correction in the recent rally.

Efforts of the Central Bank of Nigeria (CBN) to support the current economic recovery, especially the sustained intervention in the foreign exchange segment of the inter-bank market that has significantly impacted positively on the economy. The intervention in the power and aviation sectorsbegins to yieldresults, with the Nigeria’s power generation rose above 6000 megawatts recently.
Meanwhile, the benchmark NSEAll-Share Indexnotched 214.20 basis points to close at 36,316.58, compared to the 36,102.38 pointsopening level, representing a 0.59% growth on a low volume traded,even while being marginally higher when compared to the previous sessions. Similarly, market capitalisation was up by N73.85bnto close at N12.52tr, from an opening value of N12.4tr, representing 0.59% value gain in investors’ portfolio after three days of losses.
Thursday’s upturn in the share prices of Dangote Cement, Flourmills, Zenith Bank, Total Nigeria, National Salt, Dangote Sugar, FBNH and Fidson Healthcare boosted the ASI's year-to-date returns to 35.13%, just as market capitalisationnotched N3.27trwithin the period, representing 35.37% above the year’s opening value.

Market breadth for the day remained negative with the number of decliners outweighing advancers in the ratio of 28:15 on a lowvolume of trades to halt the three-day down market.
Trading activities in terms of volume and value were up marginally by 0.16% and 7.66% respectively at 225.14mshares, worth N5.48bn, as against previous day’s 224.77munits, valued at N5.09bn.
Also, transactions in the shares of Custodian Allied Insurance, Zenith Bank, Guaranty Trust Bank, FBNH and FCMB topped the volume chart during the session.

At the close of trading activities for the day, Fidson Healthcaretopped the advancers’ log, gaining 5.00% to close at N3.15 each on market forces; followed by sub-sector peer- May & Baker with a 4.98% gain at N2.95 per share, on expectations.
On the flipside, Eterna lost 6.01% to close at N3.44 per share on profit taking; ahead of Double One’s (Mobil Oil) 5% drop, closing at N225.06per unit on profit taking and weak earnings report.
Note: Today (Friday) is the last date to qualify for Zenith Bank and Custodian Allied Insurance interim dividend of 25 kobo and 10 Kobo respectively.

TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue amidst profit taking and repositioning in some stocks on the strength of Q2 numbers, especially with the impressive numbers emanating from the nation’s first tier banks which are giving insights into what should be expected at the end of the year if the much desired economic recovery becomes a reality despite the slow and unclear implementation of the 2017 budget by the government. Evenso, the July inflation figures and Nigeria’s second quarter GDP data are being awaited from the Nigeria's National Bureau of Statistics (NBS).

However, investors need not panic if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of the improving economic 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.

Be reminded once more that industry potential, market timing are very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. Market is in phases know it in order to manage your trading and investing risk.

https://investdataltd..com.ng/2017/08/market-update-for-august-17-2017.html

MARKET UPDATE FOR AUGUST 16, 2017

INDICATORS DIP FURTHER, AMIDST HOPEFOR POSITIVE ECONOMIC DATA, FINANCIALS

Trading activities on the floor of the Nigeria Stock Exchange on Wednesday maintained its volatility and negative slant for the third straight session this week as profit taking by traders continued, as panic selling set, resulting in the decline suffered by the indicators week-to-date.
This is even as the global markets continued its rebound on positive economic data and reduced tension in the North Korea missile test threats.

The market opened lower in the early hour of the session, falling sharply by midday before trying to retrace up in afternoon. The intra-day movement broke out the two support levels at 37,000 and 36,458.13. An important resistance could not be taken out, as the day closed lower at 36,102.38 on a low volume traded.
The selling pressure remained high as revealed by the volume traded index of 0.69; with buying position of 9% and selling volume of 91% of total transaction to support the down market. Also, the negative sentiments on first tier banks impressive numbers shows there is an element of correction in the recent rally as at this moment waiting for another trigger in form of positive news from government and the economy to reverse this trend.

Meanwhile, the composite NSE All-Share Index shed 994.22 basis points to close at 36,102.38, as against the 37,950.96 points it opened, representing a 2.68% decline on a low volume traded when compared to the previous sessions. Similarly, market capitalisation was down by N342.68bn to close at N12.4tr, from an opening value of N12.90tr, representing 2.68% value loss in investors’ position.
The downturn in the share prices of medium and high cap stocks during the day further reduced the ASI's year-to-date returns to 34.34%, just as market capitalisation gain stood at N3.2tr, representing 34.57% rise above the year’s opening value.

Market breadth for the day remained negative with the number of decliners outnumbering advancers in the ratio of 31:10 on a lowvolume of trades that continued a three-day bear transition.
Trading activities in terms of volume and value were down by 42.61% and 6.43% respectively at 224.77m shares, worth N5.09bn, as against previous day’s 391.63m units, valued at N5.44bn.
Also, transactions in the shares of FBNH, Access Bank, Guaranty Trust Bank, Jaiz Bank and Zenith Bank topped the volume chart during the session.

Atthe close of trading activities for the day, C & I Leasing topped the advancers’ table, gaining 5.15% to close at N1.02 each on market forces.Vitafoamfollowed with a 4.43% gain at N2.83 per share, on impressive Q3 numbers ahead of it September full year end.
On the flipside, Jaiz Bank lost 5% to close at N0.76 per share on profit taking; ahead of Access Bank's 4.93% drop, closing at N9.93 per unit on profit taking despite the expected half year earnings report.

TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue amidst profit taking and portfolio reshuffling on the strength of Q2 numbers, especially with the impressive numbers emanating from the nation’s first tier banks which are giving insights into what should be expected at the end of the year if the much desired economic recovery becomes a reality despite the slow and unclear implementation of the 2017 budget by the government. Evenso, the July inflation figures and Nigeria’s second quarter GDP data are being awaited from the Nigeria's National Bureau of Statistics (NBS).

However, investors need not panic following yesterday's pullback due to profit booking if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of the improving economic 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.

Be reminded once more that industry potential, market timing are very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. 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.

MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
http://investdataltd..com/2017/08/market-update-for-august-16-2017.html

NESTLE PLC: CONSUMER LOYALTY, ECONOMICcRECOVERY, MANAGEMENT DRIVE PROFIT

The management of Nigerian Stock Exchange’s highest priced equity and leading player in the fast moving consumer goods segment of the economy, recently released its half-year earnings report in keeping to corporate governance best practice.

The company's strong numbers and improved profitability ratios in the preceding quarter were sustained in the earnings report under consideration, a situation that has been linked to improved consumer purchasing power,following the decline in inflation rate, helped by the sustained intervention by the Central Bank of Nigeria (CBN) in the foreign exchange market which continues to impact positively on the economic fundamentals that has boosted production capacity in many manufacturing companies, which now has better access to imported raw materials.

The commitment of Nestle's management to deliver value to consumers, customers and other stakeholders, while expanding its market within and outside Nigeria with products innovation, added to effective cost management,all of which have supported performance, as numbers posted were impressive and above market expectation. This however, had influenced the company’s shares price positively due to its shareholding structure and foreign investors’ interest in the stock.
The company’s multiple lines of nutritional products that target a wide range of the market segments from infancy to old age have boosted performance as revealed by the half-year numbers, as well as its risk management strategy in recent years.The company's Q2 earnings report is the basis for valuation in the market, compared to the 2016 numbers which revealed that the market price had moved to N955.50 from N850 in the same period.

Nestle Nigeria recorded a 2988.41% growth in earnings to N16.55bn from N535.82min the corresponding second quarter of 2016, as it reclaimed the market along the country’s northern axis, helped by the gradual return of peace to the troubled region and neighbouring countries across the borders. These have also impacted sales revenue, lifting it to N121.92bn from N80.44bn in 2016.Profitfor the period was seriously influenced by finance income from fixed deposit and decline inforeign exchange loss from N13.13bn in 2016 to N5.17bn. This reduced finance cost from N14.13bn in 2016 to N2.24bn. On the other hand, Net Assets improved by 9.44% to N39.5bn, from N35.18bn in 2016
NESTLE NIGERIA
Unaudited Half Year Result For June 30, 2017
COY
2016
2017
% Chg
(N)
(N)
Date Released
29-July 16
28-July-2017

Price at Released Date
852.13
955.50
12.13
Turnover
80,442,697,000
121,919,736,000
51.57
Profit After Tax
535,809,000
16,547,986,000
2988.41
Shareholders' Fund
35,180,463,000
39,503,479,000
9.44
Dividend
nil
nil

ESTIMATED RATIOS
Earnings Per Share
0.68
20.88
2970.59
PE Ratio(x)
315.15
11.44
-96.37
Earnings Yield
0.08
2.18
2625
Book Value
44.38
49.84
12.30
Price to Book
19.20
19.17
-0.16
ROE
1.52
41.89
2655.92
Profit Margin
0.67
13.57
1925.37
Year End
Dec
Dec

Source: NSE,Company Financial &Investdata Research
Recommendations
The company’s shareholding structure and relatively small number of shares outstanding, as well as the leadership role it plays in its industry and consistent reward to investors on improving performance have remained very strong factors in the sustenance of its share price. Nestle Nigeria's strong performance came at a time its sector’s performance had attracted market attention due to impressive numbers posted by many companies in the industry and general market. The recovery of the nation's economy has impacted the manufacturing sector and indeed others positively as investment in the sector had hit its three year high with over N34 trillion.
Meanwhile, as projected in Q1, the company's Q2 2017 scorecard beat market expectation with better than envisaged performance as profit improved exceptionally, regardless of the prevailing higher operating cost, but the recovery in the macro-economic environment supported the impressive numbers that might equally support interim dividend at the end of Q3.

Summary and valuation
Nestle Nigeria’s 2017 full year earnings projection is revisedto N25.12 billion from the early estimate of N18.56 billion, representing a 217.17% increase from the 2016 N7.92billion.
Its Q2 trailing Price/Earnings Ratio at 11.44, down from 314.36x in 2016 as a result of growth in earnings, is expected to decline to 8.69x at the end of 2017 financial year despite the galloping of its share price to five year high of N1216 on Q2 strong numbers. Thehalf year profit margin still weak at 13.57%, compared to 0.67% in 2016, since is still below the minimum global standard of 15%.
We recommend HOLD for long term investment horizon, and the only buying now is to hedge against risk as foreign and institutional investors are accumulate the company shares. Not too long, one of the major shareholders increased its stake by 2.58% when the recession in 2016 push its share price to as low as N560.

Technical View
Nestle price action breakout of it four years falling channel after various attempts to rebound within the channel that fail before broke down the major strong support level of N615 to a lower low of N570 and retrace up on a positive sentiment for its financials that beat market expectation and rally up to breakout of the channel in early May 2017 still on positive sentiment on the recent numbers. The stock is currently trading above its 100 and 200-Day moving average at N1208. Currently, MACD is bullish for the last 19 trading sessions. RSI is reading 82.86 lofty overbought region and at the same signaling sell for traders that enter lower, while other technical indicators like OS and MACD are signaling buy, while RSI and CCI are saying sell.
The trending momentum and direction is strong as ADX is above 20 at 33.34 and money flow index is looking up, indicating that funds are entering the stock. Watch trend.


Nestle Nigeria PLC
Share Holding Structure
Nigerians/Others
26.60%
Nestle S.A., Switzerland
66.06%
Stanbic IBTC Nominees
7.34
Other Statistics

Shares Outstanding (MN)
792,656,252
Open Price (2017)
N810
Current Price as at (August 11 2017)
N1208
Date Listed
20th April, 1979
Year End
31st December

Source: NSE, Company Financial &Investdata Research

Management
The impact of strategic plans of the board and management are yielding results already as internal cost management is reducing the impact of the operational cost and FX market-afflicted cost pressure. This is despite the cost of expansion and production drive of the management to deliver value to all stakeholders.

Five-Year Financial Analysis
The company's consistent release of its financials over the years has helped the market and analysts to predict and forecast its performance and release dates. This has added to its valuation status as it is sure in portfolio management effectiveness. The market price as at release date on the other hand is experiencing decline after two years of trending up in the five years under consideration. The price moved from N981.00 in 2012 to an all-time high of N1,071.00 in 2013, closing at N570 per share when the 2016 audited result hit the market recently from N820 in 2014 to N680 in 2015.

Looking at the company’s performance critically for the last five years, it is evident that there has been a stable up-trend performance with positive numbers that reveal the competence of the successive management, regardless of challenging business environment but was hard hit in 2016.
The company's top line for the period was up by 55.86% to N181.91bn from N116.71bn in 2012; while profit level for the same period was down 62.54% to N7.92bn, from N21.14bn recorded in 2012. This was after recording a high of N23.74bn in 2015 where the highest reward was given to shareholders in the form of the N29 dividend per share. This is just as earnings remained almost flat in three of those years under consideration before the decline in 2016 that reduced it to N10 each. Within the same period, the economy has experienced mixed movement of progress and retrogression to the current situation.

Meanwhile, shareholders’ fund stands at N30.88bn from the N34.19bn posted in 2012 after recording a high of N40.59bn in 2013. Dividend grew through the period from N20 per share in 2012 to N29 per share in 2015 before it dropped to N10 in 2016. Note that dividend reward grew more than the revenue and earnings for that same period which is not too good. Such high payout ratio does not support future payments and expansion.
NESTLE NIGERIA

FIVE YEARS FINANCIAL PERFORMANCE

YEAR
2012
2013
2014
2015
2016
Ticker
000(N)
000(N)
000(N)
000(N)
000(N)
Date Released
20-Feb-13
26-Feb-14
25-Feb-15
16-Mar-16
2-Mar-17
Price At Released
981.00
1071.00
820.00
680.00
570.00
Turnover
116,707,394
133,084,076
143,329,000
151,271,526
181,910,977
PAT
21,137,275
22,238,279
22,236,000
23,736,777
7,924,968
Net Assets
34,185,562
40,594,801
35,939,640
38,007,074
30,878,075
DIVIDEND
20.00
24.00
27.50.
29.00
10.00
BONUS

Source: Company Financial &Investdata Research
Five-Year Estimated Ratios
Earnings power of Nestle within (2012 to 2016) seems to be strong enough to have supported its share price for that same period with the help of its shareholding structure and relatively small number of shares in issue. The drop in earnings from N26.67 in 2012 and N29.95 in 2015 to N10.00 in 2016 has increased investors waiting periods over the years as PE ratio stood at 57.01x from low of 22.71x in 2015 and previous years from 2012.

As observed, this is because of the sharp drop in earnings while market price relatively remained high. The Book Value of the equity over the years revealed a very high premium on the stock as a result of consistent dividend and strong numbers with that of 2016 at N38.95 as against the market price of N570 when the report was released. Long term investors have over the years recouped their investment, and they continue to enjoy relative capital protection in this stock.
NESTLE NIGERIA

FIVE YEARS ESTIMATED RATIOS

YEAR
2012

2013
2014
2015
2016
EPS(N)
26.67
28.06
28.05
29.95
10.00
PE Ratio
36.79
38.17
35.49
22.71
57.01
Earnings Yield
2.72
2.62
3.68
4.40
1.75
Book Value
43.13
51.21
45.34
47.95
38.95
Return on Equity (%)
62.00
55.00
48.00
62.00
25.67
Profit Margin (%)
18.11
16.71
15.51
15.69
4.36
Year End
Dec
Dec
Dec
Dec
Dec
Source: NSE,Company Financial &Investdata Research

https://investdataltd..com.ng/2017/08/nestle-plc-consumer-loyalty.html

INVESTDATA PRICE AND EARNINGS TRACKING FOR THE WEEK ENDED AUGUST 11, 2017

https://investdataltd..com.ng/2017/08/investdata-price-and-earnings-tracking.html

MARKET UPDATE FOR AUGUST 15, 2017

VOLATILITY LINGERS, AMID PROFIT TAKING, PORTFOLIO REALIGNMENT ON Q2 NUMBERS, ECONOMIC DATA

Nigeria’s stock market got a hit on Tuesday to continue its volatility with all the indices gapping down sharply as investorsintensified profit booking and late reaction to the global political tensions with North Korea withdrawing its threat to drop missile inUS territory.
The market was up slightly in the first hour, but came down sharply by midday and afternoon, looking likean intra-day bottom was in view. An important resistance could not be taken out, while the intraday pullback was held near the trading session lows to close the day lower on high volume. The intraday high and low of the index were 37,954.43 and 37,007.13 respectively.
Going by these realities, INVESTDATA Research believes investors and traders should play the market with knowledge to protect funds and maximize profit, even as we note that doing this entails good money management when trading and investing.

However, cutting loss in good time is necessary, but different from panicking. As we continue to stress, every investment or position taking in a stock is against expectation. If the factors that attracted you into a position are intact, just as the positive drivers of the general market, you don’t need to panic. But where the factors or fundamentals are disintegrating or vanishing,beat a hasty retreat immediately to protect your capital, while you study the situation.

However, Tuesday’s selling pressure was high as revealed by the volume traded index of 1.18; with buying position of 9% and selling volume of 91% of total transaction, thereby supporting the down market, even as we note some accumulation in few stocks by smart money.

The closing numbers on the Nigerian bourse was the direct opposite of what happened in markets around the world which closed higher to sustain the recovery from last week’s panic caused by North Korea’s withdrawal of its threat to drop missile in the US.Despite cautious trading as earnings reporting season remain light.

Meanwhile, theNigeria’s benchmark All-Share index fell 854.36 basis points to close at 37,950.96, as against the 37,950.96 points it opened, representing a 2.25% decline on high volume traded when compared to the previous sessions. Similarly, market capitalisation was down by N294.48bn to close at N12.9tr, from an opening value of N13.13tr, representing 2.25% value loss in investors’ portfolio.
The ASI was depressed following profit taking leading to a fall in the share prices of Guaranty Trust Bank, which incidentally presented its audited half-year financials to the Exchange after trading (READ Stanbic IBTC, UBA, Dangote Cement, Lafarge Africa, Dangote sugar, Guinness Nigeria, National Salt, Zenith Bank and Access Bank.

The audited financials for half-year are expected anytime soon from the trio of Stanbic IBTC, UBA and Access Bank. Losses sustained by these stocks helped to reduce the ASI's year-to-date returns to 38.04%, just as market capitalisation growth dropped to N3.54 trillion, representing a 38.28% improvement on the year’s opening value.

Market breadth for day remained negative with the number of decliners increasing to outweigh advancers in the ratio of 35:11 on high volume of trades that continued a two-day down market. Trading activities in terms of volume and value were however up by 23.88% and 28.69% respectively at 391.63mshares, worth N5.44bn,as against previous day’s 316.12m units, valued at N4.22bn.
Also, transactions in the shares of Access Bank, Zenith Bank, UBA, FBNH and Guaranty Trust Banktopped the volume chart during the session.

According to the result presented by Guaranty Trust Bank after the close of the market, the directors proposed an interim dividend of 30 kobo, a situation the market would expectedly react to from this morning.
Meanwhile, at the close of trading activities for the day, GSKtopped the advancers’ table, gaining 5% to close at N21.00 each on market forces.Berger Paintsfollowed with a 5% gain at N7.14% per share, on market forces.
On the flipside, Morison Industries fell the most after dropping 8.16% to close at N0.90 per share on market forces; ahead of PZ that lost 5.00%, closing at N25.65 per unit on profit taking despite the expected full earnings report.

TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue amidst profit taking and portfolio reshuffling on the strength of Q2 numbers, especially with the impressive numbers emanating from the nation’s first tier banks which are giving insightsinto what should be expected at the end of the year if the economic recovery becomes a reality despite the slow and unclear implementation of the 2017 budget by the government. Evenso, the July inflation figures are expected today ahead of Nigeria’s second quarter GDP data.

However, investors need not panic of yesterday pullback due to profit booking if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of the improving economic 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.

Be reminded once more that industry potential, market timing are very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. 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 video can be viewed on your phone, laptop and television set. The home study pack costs N20,000 including DHL delivery at your door step. Payment should be made into Investdata Consulting Ltd, Zenith Bank 1013033032. Afterwards, kindly send payment details to 08032055467 or 08111811223.


MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467


Technical Position of Banking Stocks as at August 15, 2017
Bank
Buying Position (%)Pressure
Selling Volume (%)Pressure
Access Bank
100
0
Zenith Bank
53
47
UBA
44
56
Stanbic IBTC
0
100
FCMB
100
0
Guaranty Trust Bank
56
44
FBNH
6
94
ETI
100
0
Fidelity Bank
0
100

To make real money in the stock market you do not necessarily need to know why share prices rise or fall. All that is important to know are two basic things: When to buy and when to sell.
If you can quantitatively measure the buying and selling pressure of a stock then you will know in advance whether the price is likely to move north or south, up or down. That would tell you whether to take a buy or sell position.

In other words, if you get a reading on the buying pressure and selling pressure for a stock, you can successfully assess whether a stock is likely to go up or go down in price. There are numerous ways to measure the buying and selling pressure of a stock.
The table above presents the buying and selling position of banking stocks on the Nigerian Stock Exchange (NSE) on Tuesday.

https://investdataltd..com.ng/2017/08/market-update-for-august-15-2017.html

CORPORATE ACTIONS FOR JULY 14 - AUGUST 25, 2017

https://investdataltd..com.ng/2017/08/corporate-actions-for-july-14-august-25.html

MARKET VOLATILITY, PORTFOLIO REBALANCING CONTINUE, AS INVESTORS AWAIT MORE ECONOMIC DATA


Nigeria’s stock market kicked off the week with continuation of its volatility by gapping up in the early hours of Monday’s trading session to touch another high of 38.241.67 before yielding to selling pressure in the afternoon, following which the benchmark All-Share Index dropped to 37,949.49 on profit booking by traders to close the day lower on high volume of trade, which brought the indicator below the psychological line of 38,000. It therefore formed a new resistant level around the 38,241.67 point.

Any likely breakout of this level will usher in another rally. However, it would depend on market sentiments or,release of more positive economic news, going by the fact that Monday’s selling pressure was high as revealed by the volume traded index of 0.97; with buying position of 1% and selling volume of 99% of total transaction, this supports the down market.
While Monday’s cash out of gains from the recent bull rally across all classes of stocks on the exchange, losses suffered by medium and high cap equities impacted negatively on the benchmark index as portfolio reshuffling and rebalancing continued in the absence of any bad news in the market to set investors on panic mode.

Meanwhile, the international markets Monday recovered from last week panic that sent many stock exchanges down, even as they continued cautious trading.
Back home, at the close of trading the composite NSEASI shed 247.64 basis points to close at 37,950.96, after opening at 38,198.60 points, representing a 0.65% decline on high volume traded when compared to the previous sessions. Similarly, market capitalisation was down by N85.36bn to close at N13.08tr, from the opening value of N13.17tr, representing 0.65% value loss in investors’ portfolio.

The downturn in the share price of Total Nigeria, Flour Mills,Oando, UBA, Dangote Cement, Dangote sugar, Guinness Nigeria, National Salt, Zenith Bank and Guaranty Trust Bank reduced the ASI's year-to-date returns to 41.21%. Market capitalisationimproved by N3.92tr, representing a 41.63% growth on the year’s opening value.
Market breadth for day was negative as the decliners outweighed advancers in the ratio of 27:18 on high volume of trades to reverse last Friday gain. Trading activities in terms of volume and value dropped by 10.61% and 32.96% respectively at 316.12m shares, worth N4.22bn, from the previous day’s 353.65m units, valued at N6.3bn.

Transactions in the shares of Access Bank, Guaranty Trust Bank, FBNH, Fidelity Bank and Zenith Bank topped the volume chart during the session.
At the end of trading activities for the day, Fidson Healthcare topped the advancers’ table, gaining 4.67% to close at N3.13 each on market forces, sector influence and improving company fundamentals. AG Leventies followed with a 4.35% gain to close at N0.72 per share, on market forces.
On the flipside, C & I Leasing fell the most after dropping 9.26% to close at N0.98 per share on profiting taking; ahead of Med-view Airline that lost 5.00%, closing at N1.52 per unit on market forces.

TODAY’S OUTLOOK
As trading activities opens this morning, expect volatility to continue amidst profit taking and portfolio reshuffling on the strength of Q2 numbers, even as July inflation figures are expected today ahead of Nigeria’s second quarter GDP data.

However, investors need not panic of yesterday pullback due to profit booking if they take position based on strong numbers and future prospects of any stock. Since there is no bad news in the market.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of the improving economic 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.

Be reminded once more that industry potential, market timing are very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. 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.

https://investdataltd..com.ng/2017/08/market-update-for-august-14-2017.html

AGAIN, ZENITH BANK BEATS EXPECTATION ON STRONG EARNINGS POWER

Zenith Bank, on Friday, released its half-year audited result, which once again demonstratedits high level of corporate governance byconsistently making its numbers available to the investing community earlier than the 2016 numbers to enable investors plan their investment, while equally keeping to the post-listing obligation of the Nigerian Stock Exchange (NSE).
The bankhas consistently grown its quarterly and yearly earnings over a decade in its bid to create value for stakeholders with a dividend policy of growth to reward investors. In the last three years, it has regularly paid interim dividend supported by the growth in profit over the period. It had declared an interim dividend of 25 kobo in line with market expectations, despite the growth in Interest Expense, Impairment Charge and Operating expenses that weighed down its earnings.
The bank’s profitability for the period were boosted by growth in fee and commission income on the back its bouquet of electronic products, collection services and mainly foreign exchange trading Income and, to a smaller extent, Treasury Bills' trading income. This suggest that the improvement in FX liquidity brought about by Central Bank of Nigeria’s intervention may have accounted for the growth in the FX income line, given that most of the gains were earned in Q2.

Its half year position after huge provision for bad loans shows the solid state of the bank with profitability and investment ratios looking up, pointers to what should be expected at the end of the current financial year. The loan loss provision increased by 198% to N42.4bn, from N14.23bn in 2016, while Cost of Risk (CoR) increased significantly to 3.6%, compared to our 1.5% estimate for FY 2016. The management would likely provide answer to this at the conference call with investors soon. It may however not be unconnected with its exposure to domestic operators in the oil and gas companies like Seplat, as well as telecommunications operator- Etisalat. We expect that this will boost the bank's bottom line when recovered, helped by Nigeria's improving economic fundamentals, declining inflation rate and expected increase in oil demand which will help in enhance loan recovery.
In absolute numbers, Zenith Bank posted robust 77.1% increase in Gross EarningstoN380.44bn, from N214.81bn in the corresponding half-year of 2016. Profit after tax growth was even more significant, soaring by 112.4% to N75.32bn, from the restated 2016 profit position of N35.47 billion.

Despite the high operational cost and impairment charge for credit losses, the profit margin remained above 15% international standard at 19.30% for Q2. Net assets jumped to N703.50 billion from N620.74 billion last year. Consequently, Earnings Per Share for the period went north to 240 kobo from 113 kobo in 2016, representing a 112.39% growth and was a replica of the price in 2.50x, which lower than the 3.54x recorded last year. The second quarter book value for the period stood at N22.91.
Operating Expenses grew significantly, up 33% y/y. A higher growth in total operating Income however brought about by significant growth in FX income, resulted in a reduction in Cost to Income ratio which fell to 47.7% relative to 57.5% in H1 2016.Overall, PBT was 71% higherto N92.18 billion from N53.91 billion in 2016. The bank’s annualised Return on Equity (ROE) of 21.2% compares with our estimate of 18.40% for FY 2016

AUDITED HALF YEAR
COY
2016
2017

(N)
(N)
% Chg
Date Released
August 11, 2016
August 10, 2017

Price as@ Released Date
15.60
24.00
53.84
Gross Earnings
214,812,000,000
380,440,000,000
77.1

Profit After Tax
35,467,000,000
75,317,000,000
112.4

Shareholders' Fund
620,739,000,000
719,333,000,000
15.88

ESTIMATED RATIOS
Earnings Per Share
1.13
2.40
112.4

PE Ratio
3.54
2.50
16.17

Earnings Yield
7.06'
10.00
-13.8

Book Value
19.77
22.91
13.62

Price To Book Value
1.24
0.95
-23.39

ROE (%)
5.71
10.47
-30.0

Dividend( Interim )
0.25
0.25

Profit Margin
16.51
19.80
19.93
Year End
Dec
Dec





Source: NSE, Company Report and Investdata Research
Valuation

We are optimistic about the bank’s performance in the rest of the year and expect earnings from the corporate and Investment Banking business to continue to support profit.
Consequently, we project an EPS of N5.20 for full year and a final dividend of N1.95. Thus,Zenith Bank is fairly priced at N32, with a trailing P/E: 3.10x and Q2 price to book value of 0.95.

Investors with medium and long-term goal, who desire to preserve capital, should look the way of this stock. Its Q2 result had confirmed our earlier upgraded guidance after studying the first quarter scorecards that indicative of strong performance that continues to deliver on expectations. As the bank’s Book Value reveal a fair value situation at it trades slightly above its book value of N22.91. On dividend equalization policy of the bank with growth in payout, we expect a much higher dividend at the end of the year and put a Buy rating on Zenith Bank despite the profit taking after the release of impressive numbers as many traders had factored in 25 kobo dividend before it announced.


Technical View


The bank’s price action for one year has formed a symmetrical triangle that supports continuation or reversal of the current trend; it is trending up within the triangle on a positive sentiment for Q1 impressive numbers. RSI is reading 50.63 and money flow index is looking up to signal that funds are still entering the bank.
The bank’s price action for two years had formed a bullish chart pattern called invert head and shoulder that supports continuation of uptrend, meaning that reversal of the current pullback is imminent, it is trending ability above ADX of 20 at 48. RSI is reading 66.28 and money flow index is looking DOWN to signal that funds are leaving.

ZENITH INT'L PLC
Share Holding Structure
Jim Ovia
9.38%
Stanbic Nominees Nig. Ltd
16.28%
Nigerian Citizens & Associations
74.34%


Other Statistics
Shares Outstanding (MN)
31,396,493,786
Opening Price (2017)
N14.75
Closing Price at August 11, 2017
N23.74
Date Listed
21/10/2004
Year End
31st Dec.

Source: NSE, Company Report and Investdata Research
The bank’s conservative nature and prudence is paying off in its efforts to build a world-class bank with steady growth in terms of profitability, dividend payout and impacting the economy through its social responsibilities. Also, the bank has demonstrated its doggedness at all levels of operations that have continually supported and driven profit to keep it among the top banks in Africa and in Nigerian, in terms of market capitalisation, earnings, deposit, total assets and net assets. The bank’s branch networks within and outside the country with professionalism in service delivery at all level have shown in the released financials for the last Four years. Its innovations through the bank ICT platforms have contributed to making all the figures in green. Investors, on the other hand, have equally followed the outstanding performances of the bank over time, taking strategic positions which continue to reveal value in the bank’s stock in creating wealth as investors smile to the banks on biannual bases.
Similarly, over the years, its Book Value has grown in the same direction from N16.22 in 2013 to N22.44, investor confidence supported its price as valuation tools placed the bank's stock at N30.

ZENITH BANK FOUR YEARS FINANCIAL PERFORMANCE
2013
2014
2015
2016
Date Released
March 11, 2014
March 05, 2015
March 15, 2016
Feb 27, 2017
Price @ Released Date
21.40
19.00
13.30
14.73
Gross Earnings
351,470,000,000
403,536,000,000
432,343,000,000
507,997,000,000
Profit After Tax
95,318,000,000
99,455,000,000
105,663,000,000
129,652,000,000
Shareholders' Fund
509,251,000,000
552,638,000,000
594,353,000,000
704,465,000,000
Dividend
1.75
1.75
1.80
2.02


Zenith Bank Performance (2013-2016)

Looking at the bank’s performance in the past four years as revealed by the numbers in the table above and below, the figures showed that the bank has consistently, during the period under review, heightened its performance as reflected in its profitability and investment ratios for the period.
Its gross income during the period grew by 44.54% from N351.47bn in 2013 to N507bn, while the earnings power rose by 36.02% to N129.65bn from N95.32bn posted in 2013. Zenith Bank’s performance within the period has supported its share price. Profitability level has remained in an uptrend direction as surprises continue to hit the market, being the first Nigerian bank to record N100bn profit mark. It also ranked number one in net assets and among the top two in terms of profit margin, service delivery and risk management in its industry today.

Within this period, the risk and cost management of the bank have improved tremendously, leading to enhanced value creation to all its shareholders and other stakeholders. The nature and complexity of the risks in its business requires strong and robust risk management structure to provide adequate oversight at all levels. Earnings per share remained strong and steady at 415 kobo regardless of over regulation in the industry and the unfriendly economic situation till date with high Monetary Policy Rate (MPR), tight liquidity, ascending inflation rate, dwindling discretionary income and falling naira value at the exchange market.

The EPS rose from 304 kobo in 2013 to 317 kobo in the following year which was sustained in 2015 and 2016, despite the industry headwinds during the years.
As we have mentioned earlier in this piece, the bank’s 2016 full-year EPS of N4.13 beat analysts and market expectations as rating agencies continued to downgrade Nigerian banks due to the inherent countryrisk , as a result of contraction in the economy. The improvement in bank’s Earnings Yield from 14.19% in 2013 to 28.03% attests to its quarterly and yearly earnings growth.

ZENITH BANK- ESTIMATED RATIOS
2013
2014
2015
2016
Earnings Per Share
3.04
3.17
3.37
4.13
PE Ratio
7.05
6.00
3.95
3.57
Earnings Yield (%)
14.19
16.67
25.30
28.03
Book Value
16.22
17.60
18.93
22.44
ROE (%)
19.00
18.00
17.78
18.40
Profit Margin (%)
27.12
24.66
24.43
25.52
Year End
Dec
Dec
Dec
Dec

https://investdataltd..com.ng/2017/08/again-zenith-bank-beats-expectation-on.html

Naira Exchange Rate Liberalization Key To Nigeria’s Growth Outlook- UBS

Despite the improvement in its creditworthiness on the back of higher commodity prices, stronger economic outlook, Michael Bolliger, Head of Emerging Market Asset Allocation at UBS Wealth Management’s Chief Investment Office says Nigeria’s growth outlook would be determined by “a successful continuation of the Naira’s exchange rate liberalization.”
“We expect Nigeria, Africa’s largest economy, to recover from recession this year although it is unlikely that growth rates will return to previous highs,” he noted.
According to a new report by UBS Wealth Management’s Chief Investment Office, on Africa’s sovereign credit prospects, which is an important benchmark used to evaluate the risk of investing in a country, Nigeria has seen several credit rating downgrades in recent quarters. The recent recovery in energy prices and the potential for further moderate upside, it noted, should bode well for the sovereign’s creditworthiness.

Meanwhile, the report noted that Africa’s encouraging economic prospects is expected to end years of deteriorating credit ratings on the continent.
The report concludes that after years of deterioration, the credit outlook of many African sovereign issuers is stabilizing or improving.
African nations have been hit by a range of issues in recent years, including the end of the commodity super cycle, depreciating exchange rates and mounting public debt ratios. This situation particularly affected energy exporters, such as Nigeria.

According to the report’s findings, macroeconomic prospects in the region are beginning to improve, following which the International Monetary Fund (IMF) forecasts real GDP growth to almost double this year in Sub-Saharan Africa, reaching 2.6% percent, while fiscal and current account deficits are expected to have peaked at 4.5 percent and 4 percent last year, respectively. Key drivers supporting the outlook include rising global growth and trade, a modest recovery in energy and base metal prices, more competitive exchange rates for African currencies, and structural reforms in a range of countries.
For Ali Janoudi, Head of Central and Eastern Europe, Middle East and Africa, France and Belgium International at UBS Wealth Management: “The modest energy price recovery over the past 18 months has supported the growth potential of many African economies, but especially Nigeria. The more optimistic outlook for sub-Saharan Africa should also affect Nigeria’s economy going forward as the region embarks on a new phase of development.”

http://investdata.com.ng/2017/08/naira-exchange-rate-liberalization-key-nigerias-growth-outlook-ubs/#more

CBN Licences 150 New Bureaux De Change

In line with its determination to sustain interventions in the foreign exchange segment of the nation’s inter-bank market, the Central Bank of Nigeria (CBN), on Wednesday released a list of 3,389 approved Bureaux De Change (BDCs) operators as at August 8th, 2017.
This represents an increase by 150, the number of those allowed to trade in forex within the country, since April 24 this year when the CBN last released the updated list of BDCs.
About two years ago, the number stood at 1,400 which is expected to put more pressure on Nigeria’s foreign reserves, considering the total amount of dollars that the CBN sells to BDCs will significantly increase at $40,000 per week.
Despite concerns in some quarters over the pressure that this will put on the nation’s foreign reserves, the apex bank has defended its decision to continue to approve BDCs that are ready to comply with regulations, contending that this was necessary in order to increase liquidity in the foreign exchange market as well as ensure naira stability.
The decision by the CBN to stop dollar sales to BDCs in January 2016 proved a costly mistake as the Naira took a plunge from N265/$1 to N283/$1 on the parallel market at the time.

http://investdata.com.ng/2017/08/cbn-licences-150-new-bureaux-de-change/

MARKET UPDATE FOR AUGUST 10, 2017



VOLATILITY CONTINUES ON NIGERIAN BOURSE AS INVESTORS TAKE PROFIT, RESHUFFLE PORTFOLIO


The Nigerian stock market on Thursday succumbed to selling pressure as profit takers cashed out their gains from the recent bull-run to halt the month-to-date seven-day rally. This is expected in any recovering market, because profit booking is is an integral part of equities trading.
During the session, the benchmark Nigerian Stock Exchange (NSE) All-Share index and other sectorial indexes gapped down slightly in the early hour of the session and then struggled to rebound. It however came down again at midday, before finishing the day lower on a high volume traded as banking and petroleum marketing stocks suffered pullbacks, a situation that has made these sectors more attractive for taking position as portfolio reshuffling continues. This is especially the situation, considering that results of interim dividend paying banking stocks started hitting the market, beginning with Zenith Bank's half-year audited scorecard which beat market and analysts' expectations.

Also the likely rebound of crude oil may impact the oil companies that are into crude lifting business.
As the market looks forward to more positive economic data like the inflation figure for July, which likely to follow the five-month trend of gradual but steady decline. There is also the second quarter GDP that will confirm the real health status of the Nigerian economy as regard the recovery so far from recession which started last year. This data are expected to add impetus to the positive sentiment for the market and the economy at large.

Back to the stock market, volume traded index for yesterday was 1.03; with buying position of 45% and selling volume, 55% of total transaction that supported selling pressure as mentioned in our review on Thursday that profit takers are gradually cashing out. But reversal is imminent as more earnings reports from the interim dividend paying stocks are expected.
Meanwhile, the composite NSE All-Share index shed 41.17basis points to close at 38,102.85, after opening at 37,144.02 points, representing a 0.11% drop on higher volume traded when compared to that of previous session. In the same vain, market capitalisation for the day fell by N14.19bn to close at N13.13bn, from the opening value of N13.15bn, representing a 0.11% value loss as investors’ took profit.

The downturn was impacted by losses suffered by medium and high cap stocks like Forte Oil, National Salt, Total Nigeria, Oando, Dangote Sugar,Zenith Bank, Ecobank Transnational Incorporated, Access Bank and Gauranty Trust Bank. The drop expectedly influenced the ASI's year-to-date return negatively, reducing it to 41.78%, just as market capitalisation over the same period improved by N3.9bn, representing a 42.07% growth on the year’s opening value.
Market breadth for the day remained negative with the decliners outnumbering advancers in the ratio of 27:20 on a high volume to halt the seven-day up market. Trading activities in terms of volume and value were mixed. While volume was up by 10.53% to 362.67m shares, from the previous day’s 328.65m units,value was marginally down by 8.2% to N5.6bn from the previous day's N6.1bn.
Transactions in the shares of Access Bank, Zenith Bank, FCMB, Diamond Bank and Guaranty Trust Bank topped the volume chart during the session.

At the end of trading activities, Unilever Nigeria topped the advancers’ table, gaining 5% to close at N43.05 each on market forces and impressive Q2 numbers. BOC Gas followed with a 4.94% gain to close at N3.61 per share on market forces.
On the flipside, Forte Oil led the decliners’ table after dropping 9.71% to close at N53.76 per share on profit taking; ahead of petroleum products marketing sector peer- Oandowhich lost 5%, closing at N7.22 per unit on profit booking.

TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue as profit taking and portfolio reshuffling on the strength of Q2 numbers released recently. Dangote Sugar's share price will be adjusted today for the 50 kobo interim dividend, while market reaction to Zenith Bank's impressive numbers, particularly the offer of 25 kobo interim dividend from its N2.40 earnings per share is expected to continue.

However, investors need not panic if any pullback occurs now due to profit booking if they take position based on strong numbers and future prospects of any stock as improving economic fundamentals will have positive impact on the companies’ scorecards if the recovery move to growth.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of the improving economic fundamentals, if the numbers will support the price reversal or continuation.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.

Be reminded once more that industry potential, market timing are very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. 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.


https://investdataltd..com.ng/2017/08/market-update-for-august-10-2017.html

MARKET UPDATE FOR AUGUST 9, 2017

NIGERIA’S EQUITY MARKET SURGES FURTHER, AMIDST PERSISTING VOLATILITY

The benchmark index of Nigeria's equity market at mid-week's trading session continued its volatility moving slightly down at the opening session. The index later gapped up sharply to finally breakout the 38,000 psychological line to 38,144.02 after an intra-day high of 38,186.79 and low of 37,961.43. The sharp rally is a continuation of a 4-wave motive on seven straight days of up market with improving volume to support the rally.

The continued interest of domestic and international investors in the consumer goods sector reflected on the volume of trade among the players, as their improving fundamentals has become point of attraction. The increasing transactions in Guinness Nigeria, Nestle and Nigerian Breweries that involved foreign investors since the beginning of the week revealed rising participation of smart money in the market. This is just as the nation's foreign exchange reserve hit a two-year high of $31.22bn, helped by rising in oil prices and the increasing foreign exchange inflows with the Naira appreciating on the back of a relatively stable exchange rate. The nation's economy also continues to attract direct and portfolio foreign investors arising from the Central Bank of Nigeria (CBN) sustained intervention in the foreign exchange market which is now awash with liquidity. This has been helped by inflows from oil companies, banks, commodity exporters, supporting the investors and exporters' window of the forex market.

It is noteworthy that the Federal Government approved the medium-term framework for 2018-2020 on Wednesday based on its forecast for next year and beyond for easy planning and early presentation of budget for approvals. Also there is the plan to refinance the nation's domestic debt with borrowing from abroad to lower cost serving it, thereby further quickening the recovery of Nigeria's economy from recession.

Back to the stock market, volume traded index for yesterday was 1.02; with buying position of 81% and selling volume, 19% of total transaction that supported high buying pressure. Nevertheless, profit takers are gradually cashing out.
This notwithstanding, the composite NSE All-Share index gained 144.46 basis points to close at 38,144.02, after opening at 37,999.56 points, representing a 0.38% growth on higher volume traded when compared to that of previous session. In the same vain, market capitalisation for the day went up by N49.79bn to close at N13.15tr, from the opening value of N13.1tr, representing a 0.38% value gain in investors' positions.

Price appreciation in the shares of Gunness, Nestle, 7-Up, National Salt, Dangote Flour, Access Bank, GTBank, PZ, Nahco and Vitafoam, positively impacted the ASI's year-to-date returns on investment, lifting it to 41.93%. Market capitalisation over the same period improved by N4tr, representing a 42.18% growth on the year’s opening value.
It was not all positive during the day, as market breadth turned negative with the decliners outnumbering advancers in the ratio of 23:21 on above-average traded volume to sustain the seven days of bull run. Trading activities in terms of volume and value were up by 50.61% and 20.32% respectively at 328.65m shares, worth N6.1bn, from the previous day’s 218.22m units, valued at N5.07bn.

Transactions in the shares of Jaiz Bank, FCMB, FBNH, Dangote Flour and Access Bank topped the volume chart during the session.
At the end of trading activities also, Guinness Nigeria topped the advancers’ table, gaining 10.23% to close at N87.95 each on market forces and sector influenced performance. Jaiz Bank followed with a 10% gain to close at N0.88 per share, on market forcesand improved numbers.
On the flipside, Champion Brewery led the decliners’ table after dropping 9.97% to close at N2.53 per share on market forces. Next was Livestock that lost 5%, closing at N0.95 per unit on profit booking.

TODAY’S OUTLOOK
As trading activities opens this morning, expect volatility to continue as profit taking and portfolio reshuffling on the strength of Q2 numbers released recently to influence market players’ decision with attention in consumer goods, Financial services, Agribusiness and Healthcare.
However, investors need not panic if any pullback occurs now due to profit booking if they take position based on strong numbers and future prospects of any stock as improving economic. fundamentals will have positive impact on the companies scorecards if the recovery move to growth.

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

Be reminded once more that industry potential, market timing are very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. 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.
The workshop video can be viewed on your phone, laptop and television set. The home study pack costs N20,000 including DHL delivery at your door step. Payment should be made into Investdata Consulting Ltd, Zenith Bank 1013033032. Afterwards, kindly send payment details to 08032055467 or 08111811223.


MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

http://investdataltd..com/2017/08/market-update-for-august-9-2017.html

FG LIST 27 INDUSTRIES TO ENJOY TAX HOLIDAY



The federal government has announced a list of 27 new industries that is going enjoy tax holiday.
This was able to take effect after lifting the administrative suspension on processing Pioneer Status Incentives (PSI) applications.
Dr. Okechukwu Enelamah, The Minister of Industry, Trade and Investment, told journalists in Abuja doing the week that the pioneer status initiative seeks to help beneficiary companies.
The industries that will benefit from this are: Mining and processing of coal; Processing and preservation of meat/poultry and production of meat/poultry products; Manufacture of starches and starch products; Processing of cocoa; Manufacture of animal feeds; Tanning and dressing of Leather; Manufacture of leather footwear, luggage and handbags; Manufacture of household and personal hygiene paper products.
Others are: Manufacture of paints, vanishes and printing ink; Manufacture of plastic products (builders’ plastic ware) and moulds; Manufacture of batteries and accumulators; Manufacture of steam generators; Manufacture of railway locomotives, wagons and rolling stock; Manufacture of metal-forming machinery and machine tools; Manufacture of machinery for metallurgy; Manufacture of machinery for food and beverage processing; Manufacture of machinery for textile, apparel and leather production.
Also included are: Manufacture of machinery for paper and paperboard production; Manufacture of plastics and rubber machinery; Waste treatment, disposal and material recovery; E-commerce services; Software development and publishing; Motion picture, video and television programme production, distribution, exhibition and photography; Music production, publishing and distribution; Real estate investment vehicles under the Investments and Securities Act; Mortgage backed securities under the Investments and Securities Act; and Business process outsourcing.

The Executive Secretary of the Nigerian Investment Promotion Council (NIPC) Ms Yewande Sadiku, said in quote.. “The reforms have brought further clarity, predictability and process efficiency to the PSI regime. We will continue the reform process as we plan to take the PSI application process online. We will also engage with relevant stakeholders with a view to updating the existing legislations,”
The suspension was placed on the processing of PSI applications in September 2015.


http://investdataltd..com/2017/08/fg-list-27-industries-to-enjoy-tax.html

MARKET UPDATE FOR AUGUST 8, 2017



ALL EYES ON FMCGS, BANKING, AGRIBIZ STOCKS AS SMART MONEY INTENSIFIES ENTRY

The nation stock market had a very volatile session on Tuesday and heightened by afternoon to touch a three-year high of 38,005.80 psychological line before closing at 37,999.56 point on low volume of trade to continue six straight days of bullish run. This signals the increasing entrance of smart money into Nigeria's stock market with focus on blue chip stocks that posted stronger Q2 numbers and brighter prospects of higher return based on the improving fundamentals of companies. The hope is driven by the potential recovery of the economy supported by the positive macro-economic indices.
The attraction in Nigeria's stock market remains the low valuation of stocks as a result of currency devaluation suffered earlier in 2015/2016 that made the prices of stocks cheaper, compared to other markets of the world. The low market Price to Earnings ratio of 3.68x is another major factor in favour of the market, helped by the continued intervention of the Central Bank of Nigeria (CBN) in the interbank foreign exchange market which has significantly helped by boosting liquidity to a level that has sustained the Naira's exchange rate. The investors and exporters window that was created in the market was also of great help, as it assured foreign investors of hitch-free repatriation of their capital. All that is left now is for the CBN to do more towards the single rate regime that will further boost inflow to the country, thereby boosting the confidence of investors in the medium to long term.
Another attraction is the nation's relatively robust external reserve at $30.95bn as at last week, despite the continued CBN intervention and the unstable oil price in the international market.

Meanwhile, with the failure of the Vote-of-No-Confidence on President Jacob Zuma on Tuesday at the South African parliament and the economy struggling with recession, many portfolio investors in the country are likely to look elsewhere in the short to medium term for juicy returns. The Nigerian market and economy remains a destination of choice, especially with its economy on the path of recovery as shown by the GDP that is gradually coming from a negative terrain; while the infrastructural challenge that offer investment opportunities particularly for those interested in public/private sector partnership (PPP); added to the fact that many of the listed companies are still undervalued. This is not also forgetting that we are gradually coming close to the November date for the much awaited reclassification of Nigeria into the Morgan Stanley Index (MSCI). The delay at the instance of Morgan Stanley, it would be recalled was to test the ability of the CBN to sustain the robust intervention in the Investors and Exporters FX window that has guarantee this relative stability experienced so far since April.
Back to the stock market, volume traded index on Tuesday was 0.68; with buying position of 99% and selling volume, 1% of total transaction to reveal the rising buying pressure, that has supported the up market.

The composite NSE All Share Index gained 474.18 basis points to close at 37,999.56bp, after opening at 37,525.38 points, representing a 1.26% growth on lower volume traded when compared to the previous sessions. Similarly, market capitalisation for the day was up by N163.43bn to close at N13.1tr, from the opening value of N12.93tr, surpassing the 2008 highest market.
The upturn in the shares of medium and high cap stocks, especially fast moving consumer goods, banking and agribusiness impacted the ASI's year-to-date returns to 41.40%. Also, market capitalisation over the same period improved by N4.06tr, representing a 42% growth on the year’s opening value.

Market breadth for day turned positive as the advancers outweighed decliners in the ratio of 31:20 on low volume of trades that sustained the six trading sessions of up market. Trading activities in terms of volume and value dropped by 14.25% and 12.52% respectively at 218.22m shares, worth N5.07bn, from the previous day’s 254.49m units, valued at N5.8bn.
Transactions in the shares of FCMB, Zenith Bank, Sterling Bank, Guaranty Trust Bank and UBA topped the volume chart during the session.

At the end of trading activities also, Guinness Nigeria topped the advancers’ table, gaining 10.25% to close at N79.35 each on market forces and sector influenced performance. Dangote Flour followed with a 10.16% gain to close at N6.39 per share, on market forces, improved numbers and smart money interest in consumer goods.
On the flipside, Morison Industries led the decliners’ table after dropping 8.85% to close at N1.03 per share on market forces. Next was Caverton that lost 8.73%, closing at N1.15 per unit on profit taking.

TODAY’S OUTLOOK
As trading activities opens this morning, expect volatility to continue as profit taking and portfolio reshuffling on the strength of Q2 numbers released recently to influence market players’ decision with attention in consumer goods, Financial services, Agribusiness and Healthcare.
However, investors need not panic if any pullback occurs now due to profit booking if they take position based on strong numbers and future prospects of any stock.

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

Be reminded once more that industry potential, market timing are very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. 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.

http://investdataltd..com.ng/2017/08/market-update-for-august-8-2017.html

EIGHT THINGS YOU DO WITH FACEBOOK MESSENGER





For a lot of people, Messenger was that app that you downloaded because Facebook stopped allowing you to send messages in-app (much to the chagrin of many users).
Thankfully, Messenger has come a long way since then and now has some really cool features. According to TechRadar, here’s a list of some of the great things available for you to try on Messenger that you probably don’t know about.

REACTIONS ON YOUR FACE
You know those little reaction emojis that you can put on Facebook posts if a ‘Like’ just doesn’t quite cut it? Now you can put those on your face during a video call. Of course, you do already have your face there doing the reaction for you but the added giant tear drops are a fun feature.
Once in a video chat, you’ll have the options at the bottom of the screen to add filters, masks, and reactions. Tap on the ‘Like’ button and it’ll bring up the different reactions. Try tapping them both with the camera pointed at you and away from you for extra fun.

BOOK A RESTAURANT TOGETHER
Making group plans can be a real pain. But now you can have a chat about where you want to go and when, then in the same app book a table and share the booking with the group, taking all the pain out of the ‘who’s going to ring them?’ conversation.
Simply tap the blue plus symbol in the bottom left of the screen and then open the OpenTable app. What’s even better is that you can share the restaurant info with the group so it’s really easy to suggest places and come to a conclusion that everyone is happy with.

HAVE A SECRET CONVERSATION
If you have sensitive information that you want to share with someone, this is the feature for you. Not only are the messages encrypted from device to device, making it totally secure, you can also set your message to delete itself within a certain time of being seen.
You can enter a secret conversation one of two ways: you either go to start a new message and then toggle the symbol with a padlock (the app will change to a darker color) or if you are already in a chat with the person you want a secret conversation with, you can tap on the i logo in the top right corner of the screen and then ‘Go to Secret Conversation’.

CREATE A SPOTIFY PLAYLIST TOGETHER
The pressure of being passed the AUX cable on a car journey is soon to be a thing of the past. And not just because phone manufacturers are dropping headphone jacks like they’re going out of fashion. You can now create a group playlist on Spotify in Messenger, meaning everyone gets their say in what ends up on the playlist.
In order to start a group playlist, just create a group that contains all of the people you want to have control over the playlist, tap on the blue ‘plus’ logo in the bottom left corner of the screen, then create a playlist and share it with the group. You only get the ability to add one track at a time in the Messenger extension of Spotify. But as long as all the group follow the playlist, they will now all be able to play with the playlist in the Spotify app.

PLAY GAMES
Phone games are fun but arguably more fun when you can play with friends. Well, good news: Messenger has games native within the app. And good games too. You can play Pac-Man, and your friends can play to beat your high score. Or if you want the real interactive experience, you can play Words with Friends.
To start a game, tap on the controller icon in the bottom right hand corner of the app, and then choose which game you want to play. Depending on which game, there will be options for selecting which friends you want to compete against, then away you go.

SHARE A MESSENGER CODE
Getting someone to find you on Facebook is getting more complicated nowadays, with many people sharing the same name. Thankfully, Messenger has a really simple way to find new contacts and start new chats. Each user has his or her own unique Messenger Code that you can scan to start a new chat.
To display or scan a Messenger Code, click on the blue square icon on the bottom of the screen, then click on scan messenger code. You’ll then have the option to either take a picture of a code or display your own. Just point your phone’s camera at the code and you’re in a chat. Perfect if you have an incredibly common name, an incredibly complicated name, or you’re somewhere very loud.

PLAN A HOLIDAY
Deciding on flights, hotels and car hire can be taxing when it’s just you making the decisions. When you have to make a decision with a group of people, it can become a truly excruciating experience.
The KAYAK extension won’t make a decision for you, but it is an incredibly easy way of suggesting ideas to your group. You can search for flights or hotels individually, or even cooler you can use Travel Planner to create a poll of possible destinations and dates, and share with the group so they can all vote on it.
In a chat, just tap on the blue plus icon in the bottom left corner, then tap on the KAYAK logo.

REACT TO THINGS PEOPLE HAVE SAID
Sometimes, people say things in messages that require a reaction, but there are only so many ‘yeah’, ‘cool’ and ‘lol’ responses you can type before you start losing your mind. Thankfully, you can use the same reactions that you can use in Facebook in Messenger.
Next to a speech bubble that someone has typed, there will be a smaller bubble with a little emoticon next to a plus symbol. If you tap on that, you’ll see a range of different reactions that you can apply to that specific comment.
Also, if you just want to show someone that you really like what they said, try holding down the blue ‘Like” button and watch it grow.

TAKEAWAY
Impact of technology on future of urban mobility

As the world increasingly moves towards finding alternative ways to solve some of its most urgent and pressing socio-economic challenges such as health, education, water, transport and shelter, it is clear that technology and innovation are key elements in ensuring these changes are sustainable and scalable.
The General Manager for Uber, Sub-Saharan Africa, Alon Lits, said, “Technology is a crucial element in creating a society that is more efficient and sustainable. Our focus at Uber is on how we can cut congestion, pollution, and parking, as well as provide access to seamless transportation by using private cars for public good. How are we able to achieve this? By using new technology and today’s infrastructure.”
Sharing some global figures, Alon added, “Today, ride-sharing accounts for under four per cent of the miles driven globally. By 2030, that number is estimated to go up to 25 per cent – so imagine the possibilities that lie ahead for mobility.
“In Lagos for example, technology and collaboration between the private and public sector is vital in building transport systems that work. We are pleased about the plans the Lagos State Governor, Mr. Akinwunmi Ambode, has to restructure public transportation in the state. With these sorts of plans in place, it means that there will be less congestion, increased productivity and more efficient modes of mobility.”

Copyright PUNCH.

http://investdataltd..com/2017/08/eight-things-you-do-with-facebook.html

MARKET UPDATE FOR AUGUST 7, 2017



CONTINUED VOLATILITY ON NSE, AMIDST PROFIT TAKING,PORTFOLIO REBALANCING ON Q2 NUMBERS

The Nigerian equity market had a strong start on Monday to continue its intra-day volatility with a gap up, a little bit of a pullback, and then the index rallied again to close the day higher. The composite index went into a bit of consolidation by midday, before closing not far off from the session’s high to continue the five-day bull transition in August tore main a topper forming African and global market. The problem for the market on Monday was that traded volume was low and market breadth closed in the negative.
The Naira continued to appreciate against other major world currencies as a result of the enhanced liquidity in the investor and exporter’s window of the foreign exchange market which had relatively helped to stabilize its value, thereby helping to achieve the much need rate convergence desired by the Central Bank of Nigeria (CBN). This is necessary to further attract FX inflow into the country at a time positive economic data continues to confirm recovery and improving economic and market fundamentals.

The positive Q2 numbers posted by players in the consumer goods sector and the expected interim dividend in the banking sector have attracted high patronage to stocks in both sectors as the investing community continues to interpret and digest the numbers.
Monday’s volume traded index was 0.63; with buying position of 56% and selling volume, 44% of total transaction that revealed selling pressure is rising, despite the positive buying position in the up market.
Meanwhile, the benchmark NSE All-Share Index gained 100.23 basis points to close at 37,525.38bp, after opening at 37,425.15 points which represented a 0.27% growth on a lower volume traded when compared to the previous sessions, even as market capitalisation rose by N34.55 billion to close at N12.93tr, from the opening value of N12.9tr that represented a 0.27% value gain in investors trading portfolio.

Price appreciation in the shares of medium and high cap stocks, especially the fast moving consumer goods impacted the All-Share index year-to-date returns to 39.63%. Also, market capitalisation over the same period improved by N3.81tr, representing a 40% growth on the year’s opening value.
Market breadth for day was negative as the decliners outnumbered advancers in the ratio of 27:23 on a low volume of trades to extend the five-day bull rally. Trading activities in terms of volume and value dropped by 50.63% and 8.02% respectively at 254.49m shares worth N5.8bn, from the previous day’s 515.48m units, valued at N6.3bn.

Transactions in the shares of Access Bank, Zenith Bank,Guaranty Trust Bank, UBA and FBNH topped the volume chart during the session.
At the end of trading activities also, CCNN topped the advancers’ log, gaining 10.16% to close at N10.84 each on market forces and impressive Q2 numbers as the market expect faithful implementation of the 2017 budget and proposed reconstruction of the book haram insurgency ravaged north east geo-political zone to influence performance. CCNN was followed by C & I Leasing with a 10.00% gain to close at N1.10 per share, on market forces and improved numbers.
On the flipside, AXA Mansard Insurance led the decliners’ log after dropping 4.61% to close at N2.07 per share on market forces and profit taking; ahead of sub-sector peer- Continental Reinsurance, which lost 4.32%, closing at N1.33 per unit also on profit taking as traders exit for interim dividend paying stocks.

TODAY’S OUTLOOK
As trading activities open this morning, expect volatility to continue as profit taking and portfolio reshuffling on the strength of Q2 numbers released recently to influence market players’ decision.
However, investors need not panic if any pullback occurs now due to profit booking if they take position based on strong numbers and future prospects of any stock.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of the improving economic fundamentals, if the numbers will support the price reversal or continuation.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.

Be reminded once more that industry potential, market timing are very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. Market is in phases know it in order to manage your trading and investing risk.

http://investdataltd..com/2017/08/market-update-for-august-7-2017.html

DANGOTE CEMENT BEATS EXPECTATIONS, AS PAN-AFRICAN EXPANSION IMPACTS NUMBERS
Image result for DANGOTE CEMENT BEATS EXPECTATIONS



The management of Dangote Cement Plc recently presented its half year earnings report to the investing public, same date it was released a year ago to demonstrate its high level of corporate governance, as seen in the consistent provision of quarterly and full-year results to enable investors forecast and plan their investment.
The company consolidated its strong footing in Q1’17 by growing revenue and profit, helped by the continued market expansion and investments across the continent where Dangote Cement is fast turning into Africa’s cement hub. This has been particularly helped by capacity expansion and widening of its distribution network across the continent and beyond to support infrastructural development that will drive economic development and growth.
The recent sale of 412.2m shares, representing 2.3% stake of Dangote Industries Limited in the company was sold to foreign investors, that an indication that the company's capacity building efforts and investment in many Africa countries remains an attraction, especially with its earnings power looking up to drive future price action.

The impressive Q2 numbers was equally supported by the improvement in the nation FX market, its independent power project to sustain optimal production on coal and the integrated power, especially as gas supply has improved relatively with the seeming peace in the Niger Delta region. In all of these, the company’s market dominance and low price regime helped to sustain patronage despite the upward adjustment in price during the period under review as the company sought to factor in the increasing cost of production as reflected in the profit margin for the quarter. There is hope that the increasing consumption of cement locally will continue in this current financial year till 2018 and beyond.
The top and bottom line for the period under review were up to reflect the improving business environment in the country and region, as sales revenue was up by 41% to N412.68bn from N292.19bn in the corresponding period of 2016. Also half year profitability grew of 39% from N103.42bn in 2016 to N144.04bn.

Shareholders fund for the period was up by 20.94% to N822.06bn from N680.24bn in 2016, reflecting the inflow of investment as well as the growing profitability resulting from earlier investments and expanding market share. Earnings Per Share for the period moved to N8.45 from N6.07 in the corresponding year, a replica of price at 7.25x, which has reduced investors’ waiting period due to the improving earnings, especially when you consider the fact that it is lower than the 7.42x recorded in 2016. The Book Value Per Share for half year stood at N48.28 from N39.92 in 2016, just as Net Profit Margin of 34.90% is an indication of management’s efficiency and cost cutting measures.
DANGOTE CEMENT PLC
SIX MONTHS REPORT
COY
2016
2017

(N)
(N)
% Chg
Date Released
July 28, 2016
July 28, 2017

Price As At Released Date
180.06
244.99
36.06
Turnover
292,191,000,000
412,676,000,000
41.24
Profit After Tax
103,420,000,000
144,044,000,000
39.28
Shareholders' Fund
680,235,000,000
822,688,000,000
20.91
ESTIMATED RATIOS
Earnings Per Share
6.07
8.45
39.21
PE Ratio
7.42
7.25
-2.29
Earnings Yield
3.37
3.45
2.37
Book Value
39.92
48.28
20.94
Price To Book
4.51
5.07
12.42
ROE (%)
15.20
17.51
15.20
Profit Margin
35.39
34.90
-1.38
Year End
Dec
Dec





Source: Company Financial &Investdata Research

The faithful implementation of the 2017 budget, especially the juicy capital expenditure of N2.3tr would necessarily create higher demand for cement, in addition to the private sector as macro-economic indices improving to confirm the recovery of the nation's economy, while influencing production.
Dangote Cement's forex earnings from its operation in 25 countries across Africa will further strengthen earnings and balance sheet over the coming years.

Technical View
The company's price action on a weekly time frame had formed a saucer chart pattern that supports continuation trend that is already on a bullish channel with strong resistant at N250. However,we have noticed that the stock price is pulling back after touching high of N245 declining with the first support level to be N220.




MACD is bullish while MFI is looking up to indicate that funds are entering the stock while RSI is reading 81.43 to show that Dangote Cement is at its overbought region, pointing to an imminent pullback.However, a breakdown of support level will be a good opportunity for new entrants.

Recommendation /Analyst Opinion
The company's operating cash flow for the period is still looking up in the same direction as earnings, an indication that it can sustain earnings growth in subsequent quarters of this year, and in the process drive price during this current financial year.
Short and long term outlook on cement consumption remains strong, in spite of the recession the economy witnessed in 2016, Nigeria’s cement consumption was at the highest (about 24 million tonnes) and looks poised for further growth in 2017 this year. We maintain that the sector will sustain its bullish momentum through 2018 as the Federal Government's determination to develop infrastructure that will quicken the economic recovery on CAPEX gains.
We recommended HOLD for investors with long term horizon, while traders should book profit from the recent rally and wait to reposition at a pullback.



DANGOTE CEMENT
Share Holding Structure
Alhaji Aliko Dangote
0.16%
Dangote Industries Ltd
90.93%
Other Nigerian Citizens & Ass.
8.91%
Other Statistics
Shares Outstanding (MN)
17,040,507,405
Opening Price (2016)
N170
Closing Price (2016)
N173.99
Closing Price as @ August,3 2017
N240.00
Date Listed
26TH October, 2010
Year End
December 31st
Source: Company Financial &Investdata Research
Five-Year Financial Analysis

Looking at the company's financials over the past five years, its continued investment in capacity building to meet the growing cement demand for development of infrastructure has further helped to turn Nigeria into a cement exporter.
Today, its deep penetration into the African market has helped the company significantly boost revenue as a result of the increase in metric tons of cement produced per annum. The company’s good corporate governance remains the driver, helping to sustain performance that creates value for shareholders thereby supporting its: share price. In the process, investors are better able to forecast with improved measure of accuracy for enhanced returns on their investment.

Over the five-year period, sales revenue grew consistently from N298.45bn in 2012 to N615.1bn, representing an increase of 106.1%. Also, profitability level was up by 29% from N145.02bn in 2012 to N186.62bn after hitting a profit level in excess of N200bn in 2013.
Net Asset for the period was up by 97% to N797.35bn from N404.54bn in 2012.
Over the period also, the company has consistently rewarded shareholders with dividend, supported by the improving numbers.

In the period, Dangote Cement distributed a total dividend of N32.50 per share to shareholders.

DANGOTE CEMENT PLC FIVE-YEAR FINANCIAL POSITIONS


2012
2013
2014
2015
2016

Date Released
April 22,2013
March 26, 2014
March 26, 2015
March 1, 2016
Feb 28, 2016

Price @ Released
116.50
230
151.00
148.34
168.99

Turnover
298,454,068,000
386,177,220,000
391,687,060,000
491,725,000,000
615,103,000,000

Profit After Tax
145,024,234,000
201,198,088,000
159,501,493,000
181,323,000,000
186,624,000,000

Total Equity
404,536,401,000
550,093,270,000
591,885,155,000
644.720,000,000
797,345,000,000

Dividend
3
7
6
8
8.50

Bonus
Nil
Nil
Nil
NIL
NIL


Estimated Performance Ratios
Earnings Per Share for the five-year period grew by 17% to N10.95 from N9.36 in 2012, after it had recorded an all-time high of N12.99 in 2013, when a dividend of N7 was paid them. The company went through an up and down trend in earnings for the period, due to the increased investment in capacity building and the harsh business environment.
Price Earnings Ratio for the period moved from 12.45x in 2012 to 15.43x in 2016 to elongate investors waiting after dropping from an all-time high of 17.71x in 2013 and 16.30x in 2014 respectively. This was attributed to different prices as at the released date.
The Book Value as at the last financial year was N46.79, the highest so far in the company's history, representing a 79.2% rise from N26.11 in 2012. However, this is relatively low, compared to its share price. The growing net assets and robust retained earnings would further boost the Dangote Cement’s ability to earn more and grow shareholders’ funds.

The estimated ratio also reveals that Dangote Cement's profit margin for the period has consistently been above the benchmark internationally, even while it has been on a downtrend in the past four years from 52.10% in 2013 to 30.34%. This is healthy and shows the commitment of management to reduce cost and support the profit line, while creating better value.
On the strength of the numbers posted and expectation of better financials in 2017, the stock is fairly priced at N245 per share, considering fund managers and investor’s preference for consistent dividend and competent management to drive profitability and clear business model.
DANGOTE CEMENT PLC- ESTIAMATED RATIOS

2012
2013
2014
2015
2016
Earnings Per Share
9.36
12.99
9.36
10.64
10.95
PE Ratio
12.45
17.71
16.30
13.94
15.43
Earnings Yield
8.03
5.65
6.13
7.51
6.48
Book Value
26.11
32.28
34.73
37.83
46.79
ROE (%)
36.00
37.00
27.00
28.12
23.41
Profit Margin (%)
48.59
52.10
40.73
36.87
30.34
Year End
Dec
Dec
Dec
Dec
Dec

Source: Company Financial & Investdata Research

https://investdataltd..com.ng/2017/08/dangote-cement-beats-expectations-as.html

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED AUGUST 4, 2017

INVESTORS DIGEST Q2 NUMBERS MARKET UPDATE FOR WEEK ENDED AUGUST FOR AND OUTLOOK FOR AUGUST 7-11

EXPECT MIXED WEEK, WITH PROFIT TAKING, PORTFOLIO RESHUFFLING

As at the end of the first four trading days of the month of August, nation’s equity market closed up to continue four straight weeks of bull run, following which the Nigerian Stock Exchange (NSE) year-to-date gain increased to 39.26%.
Looking at the sectoral indices for the period, three sectors are outperforming the general market, while others still closed in the green, leaving only the second tier market’s NSE ASeMalone in the red. Year-To-Date market breadth across sectors remains strong and healthy.
Banking and Industrial sectors are leading, although the consumer goods sector has bounced back significantly since mid-July as revealed and supported by scorecards emanating from the sector.
Since July 31, 2017 was the statutory deadline for the submission of quarterly earnings reports by quoted companies that was within the period under review, were 37 listed companies made available their numbers. Indeed, the numbers to which the market reacted appropriately came mixed to the investing public, as some beat expectations, while others were disappointing, helping to keep the uptrend throughout the week after pulling back at the beginning of the week.

The volume index over the past week was 1.32 with buying position at 97% and 3% selling volume of the total transactions as consumer goods, low priced and high cap stocks remained the toast of investors and traders. This followed the continued reshuffling of portfolios by such investors and traders ahead of subsequent quarterly numbers and more positive economic data, especially amidst expectations that fiscal and monetary authorities will intensify efforts to sustain Nigeria’s recovery to boost economic and market fundamentals that will continue to attract more inflows into the system.

Meanwhile, the composite NSE All-Share Index for period gained 560.44 points to close at 37,425.15 points, from 36,864.71 points, after crossing the psychological line of 37,000 to a high of 37,476.69 and low of 35,444.00, representing 1.52% growth on a huge transaction volume. Similarly, market capitalisation for the period closed higher at N12.9tr from an opening value of N12.71tr, representing a 1.53% appreciation in investors’ portfolios position.

The top performing stocks table for the week was dominated by low and medium cap stocks, as investors, analysts and traders continue to digest the recently released company quarterly earnings reports, following which that are either disposing due to disappointing numbers, or taking position in companies with up-trending earnings that will support future rally and dividend at the end of the day.
Despite the slowdown in the weekly market breadth, upturn in the share prices of low and medium cap stocks pushed the NSEASI’s year-to-date return to 39.26%, just as market capitalisation appreciated by N3.78 trillion, representing a 39.75% gain from the year’s opening value.
Market breadth for the period was positive with number of advancers outweighing decliners in the ratio of 38:28 on a huge volume of trades to remain bullish in the four-day week, with Friday gain increasing the trending momentum thereby strengthening the up market.
International markets were mixed as oil commodity traders are exiting their future position as price continue to dwindle amidst political tension in developed economies and market due to comments by U.S President Donald Trump on world trade, North-Koen missile testing, Brexit as well as mixed corporate earnings.

Britain’s FTSE 100 and Germany‘s DAX closed up over the past week while Japan’s Nikkei and U.S market indexes were mixed despite the positive labour market data that shows 209,000 jobs were created in July, better than what economists expected, just as unemployment rate fell to 4.3%, while average hourly earnings increased by just 2.5%, compared to the amount a year ago,an indication that inflation can be contained.
In Europe, retail sales unexpectedly jumped 0.5% in June which was well above analyst expectations of 0.1%, even as preparations for the eventual exit of Britain from the zone continues to exact pressure on that countries economy, which is not unexpected. A pointer to this is the contraction in the British economy as shown in its Purchasing Managers’ Index which remains below 50 point. In Asia, China is expected to report strong growth in July, although a high trade surplus could spark problem with the U.S., given President Trump’s stance.

Back home, the All-Share Index opened the week on a negative note, losing 2.76% as investors took profit, while engaging in month-end portfolio rebalancing activities. This was reversed in the second trading day, when the NSE All-Share index notched 2.54%, beginning another uptrend that was sustained till Friday. In the four-days, the NSEASI gained 0.50%, 0.62% and 0.78% respectively to close the period higher at 1.52% gain.
The benchmark index and other sectoral indexes for the period closed the week in green, except for NSE Banking and NSE Industrial which were in red, after shedding 1.64% and 3.05% respectively, even as the NSE ASeM closed flat.

The week’s transaction, measured by aggregate volume and value, were up by 16.74% and 272.45% respectively to 2.58bn shares, from the previous week’s 2.21bn units, worth N114.12bn, as against previous week’s N30.64bn.
At the end of last week’s trading, C & I Leasing topped the advancers log with a gain of 44.93% to close at N1.00, driven by market forces; followed by Dangote Sugar’s 37.27% gain to close at N14.91 on impressive Q2 numbers, especially with plans by the directors to pay an interim dividend of 50 kobo per share. The decliners’ logon the other hand was led by Morison Industries, which lost 16.91% to close at N1.13 on market forces, ahead of the 12.4% slide by Red Star Express, which closed at N4.38 per share, following adjustment of its price for the 40 dividend proposed by its board at the end of its last financial year.

Market Outlook
The market is expected to be mixed this week due to profit taking and portfolio reshuffling on the strength of the Q2 numbers released recently as analyst, investors and traders study the numbers to take trading and investing decision.
Bearing all these in mind,investors should position in stages in valued stocks with high upside potentials, despite their current prices on the exchange as many are still undervalued.
Again, the time to combine company fundamental data and chart pattern for your trading and investing decisions is now, to enable you know the support and the resistance levels.
Train yourself and study to know the new approach to adopt at this point and going forward,
Join our WEBINAR every Friday 8pm to 9pm and for our WhatsApp group/to get market updates, SMS web*name*email to 08124050850. To register for Investdata Buy and Sell Signal Setup call 08032055467

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MARKET UPDATE FOR AUGUST 3, 2017

INDICATORS CLIMB HIGHER AS ALL EYES ON INTERIM DIVIDEND PAYING STOCKS

The equity market on Thursday had another mixed session, as it extended its gaining momentum to consolidate a three-day rally on high transaction volume.
The session started out with the indicators moving slightly downward and thereafter the index had a strong surge back by afternoon to cross another 1000 point threshold to 37,135.23 basis points. The gain came on the back the rebound in some equity prices to their three-year new highs on the strength of improvements in their recently released Q2 numbers that surpassed market and analysts’ estimates.

Interim dividend expectations in banking stocks that are yet to release their half year scorecards have kept transactions in these stocks high, with investors and traders positioning ahead of announcement of their numbers. The statement interest is fueled by the fact that all of the banks with history of interim dividend payment have sent their Q2 audited accounts for approval by the Central Bank of Nigeria (CBN) before they are presented to the investing community through the Nigerian Stock Exchange (NSE).
Meanwhile, in a bid to further boost the import and export window of the FX market, the CBN has introduced screen display of exchange rates to attract more green back, while the phone trading is still in use. This is to further compliment the apex bank's effort at exchange rate convergence in the nation to a single exchange rate. Already, the gap between the black market and official exchange rate is close.

Meanwhile, investors and analysts are expecting government to fashion complimentary fiscal policy
measures that will quicken economic recovery and further attract foreign exchange inflows in the form of direct or portfolio investments.
Thursday’s volume traded index was 1.05; with buying position of 100% and selling volume, 0% of total transaction that revealed more buying pressure which support the lingering up market. This is especially as portfolio rebalancing continues based on companies improving fundamentals as shown in their earnings reports so far in this current financial year.

Meanwhile, the composite NSE All-Share Index gained 230.17 basis points to close at 37,135.23bp, breakout the psychological line of 37,000 after opening at 36,905.06 points. This represented a 0.62% growth on a higher volume traded when compared to the previous sessions, even as market capitalisation rose by N79.33bn to close at N12.8tr, from the opening value of N12.72tr that represented a 0.62% appreciation in investors trading positions.

The upturn in the share prices of medium and high cap stocks impacted the All-Share index year-to-date returns to 38.18%. Also, market capitalisation over the same period improved by N3.52tr, representing a 38.58% growth on the year’s opening value.
Market breadth for day still remained positive as the number of advancers outnumbered decliners in the ratio of 25:17 on a high volume of trades to extend the three-day bull rally. Trading activities in terms of volume and value were up by 64.18% and 25% respectively at 412.12m shares worth N4.72bn, from the previous day’s 251.01m units, valued at N3.78bn.
Transactions in the shares of Livestock Feeds, Access Bank,Guaranty Trust Bank, Transcorp and Zenith Bank topped the volume chart during the session.

At the end of trading activities also, Dangote Sugar topped the advancers’ table, gaining 9.80% to close at N14.00 each on impressive Q2 numbers and the 50 kobo interim dividend. It was followed by C & I Leasing with a 9.09% gain to close at N0.98 per share, on market forces.
On the flipside, Cutix led the decliners’ table after dropping 5.00% to close at N2.09 per share on market forces and profit taking, followed by NPF Microfinance that lost 4.76% at N1.20 per unit also on profit taking.

TODAY’S OUTLOOK
As trading opens this morning, expect profit taking by traders being the last trading day of the week as the mixed reaction to the Q2 numbers released recently continues.
However, investors need not panic if any pullback occurs now due to profit booking, after taking position based on strong numbers and future prospects of any stock.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of the improving economic fundamentals, if the numbers will support the price reversal or continuation.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.

Be reminded once more that industry potential, market timing are very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. 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.

https://investdataltd..com.ng/2017/08/market-update-for-august-3-2017.html

MARKET UPDATE FOR AUGUST 2, 2017

NSE INDICATORS CLIMB HIGHER, AS INVESTORS REVALUE STOCKS ON Q2 NUMBERS


Nigeria's stock market indices had an interesting midweek trading session to continue its volatility after opening to the downside, coming up strongly by the afternoon to an intraday high of 36,905.06bp From that point they had a nice and long serve back, taking back the majority of the pullback, following which the session ended positive to consolidate gains recorded beginning from the first trading day of the month, as value investing on the strength of the Q2 numbers remains one of the factors to drive market in August.
The manufacturing sector's Purchasing Managers' Index (PMI) for the past four months has been stable in its expansion trend to close July at 56.3, from 55.9 in previous month, indicating improvements in the nation's production capacity. Nigeria was not alone, as global manufacturing activities grew for a 17th consecutive month in July, up 0.10 point to 52.7, according to JP Morgan-IHS manufacturing purchasing managers' index. This means that Nigerian has joined the world's improving manufacturing sector again to support the positive economic data that further confirms that the economy is fast recovering from recession.
Back home, Wednesday’s volume traded index was 0.73; with buying position of 100% and selling volume, 0% of total transaction.

The demand pattern for blue-chip stocks during the earnings reporting season and after indicates value positioning among market players as the recent corporate earnings, which has supported the bright picture of economic growth. This is provided that the government judiciously implements the 2017 budget to hasten the economic recovery process and then move it to growth stage. In the process, it will support the economy and market fundamentals to drive consumer confidence and stock prices, especially given that many of the stocks traded on the exchange are still undervalued. While few others are entering the overpriced region, they continue to ride on the recent bull-run, even asthey still have strong intrinsic fundamentals.

Meanwhile, at the close of trading, the benchmark NSE All-Share Index gained 184.44 basis points to close at 36,905.06 after touching a low of 36,252.17 from an opening figure of 36,720.62 points, which represented a 0.50% growth. Volume traded for the day was lower than previous sessions, even as market capitalisation went up by N64.38bn to close at N12.72tr, from the opening value of N12.66tr, also representing a 0.50% value gain in investors portfolios.

Price appreciation in the share prices of Lafarge Africa, Guinness, Flour Mills, NB, Stanbic IBTC, Zenith Bank, Dangote Sugar, UBA, Forte Oil, Oando, Nestle and Guaranty Trust Bank boosted the All-Share index year-to-date returns to 37.32%. Also, market capitalisation over the same period improved by N3.47tr, representing a 37.56% growth on the year’s opening value.
Market breadth for day remained positive as the number of advancers outpaced decliners in the ratio of 31:17 on a low volume of trades to extend the two-day up market. Trading activities in terms of volume and value were downby 70.46% and 95.98% respectively at 251.01m shares worth N3.78bn, from the previous day’s 874.61m units valued at N94.05bn.

Transactions in the shares of Transcorp, Fidelity Bank, FBNH, Zenith Bank and Guaranty Trust Bank topped the volume chart to close the session.
At the end of trading activities also, C & I Leasing topped the advancers’ log, gaining 10.00% to close at N0.88 each on market forces. It was followed by Lafarge Africa with a 5.00% gain to close at N57.75 per share, on impressive Q2 numbers and the prospect of increased spending on infrastructure development by the government in the coming months.
On the flipside, Okomu Oil led the decliners’ log after dropping 5.00% to close at N72.25 per share on market forces and profit taking, ahead of Continental Reinsurance, which lost 4.93% at N1.35 per unit on profit taking.

TODAY’S OUTLOOK
As trading opens this morning, the market is expected to continue it mixed reaction to the Q2 numbers released recently, as surprising numbers are receiving positive reactions, while treating disappointing earnings otherwise, as interpretation of the umbers in relation to market value continues.
However, investors need not panic if any pullback occurs now due to profit booking, if they have taken position based on strong numbers and future prospects of any stock.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of the improving economic fundamentals, if the numbers will support the price reversal or continuation.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.
Be reminded once more that industry potential, market timing are very important when picking a stock, because there are factors that are sector-specific and would naturally impact positively or negatively on companies operating within such an industry, especially now that the economy is recovering. 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.
The workshop video can be viewed on your phone, laptop and television set. The home study pack costs N20,000 including DHL delivery at your door step. Payment should be made into Investdata Consulting Ltd, Zenith Bank 1013033032. Afterwards, kindly send payment details to 08032055467.


MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2017/08/market-update-for-august-2-2017.html

ECONOMIC RECOVERY,STRONG MARKET FUNDAMENTALS SUPPORT PRICES AS Q2 NUMBERS INSPIRE INVESTORS

All over the world, the stock market is acknowledged as a leading indicator and a discounting machine, which points to future expectations from any economy because almost all major sectors of that economy are represented.
In the same way, it equally factors the expected future of the economy into prices of equities listed, which means that 50 to 80% of the economic and market fundamentals influences equity prices. While the performance of a company has 20 to 30% impact on its share price since the industries and sectors are integral parts of the economy at any time.

Contrary to fears some investors may be entertaining at the moment, if any, the current rally of Nigeria’s stock market is not artificial,given that the bourse has suffered three consecutive years of negative growth. This resulted from the effects of an unholy combination of multiple evils such as: Low consumer confidence, low oil price at almost $28 in January 2016, low national output that resulted in economic recession, as well as a seeming lack of focus and direction by the Federal Government on the economy at the beginning of the Muhammadu Buhari administration.
As if these were not enough damage already, and due to the impact of the above, the Naira came under severe attack from official and unofficial devaluation, made worse by the import dependent nature of the Nigerian economy and high interest and inflation rate, all of which affected the economic and market fundamentals, with disposable income among many Nigerians seriously hampered.

As a result, many state governments and private companies owed workers’salaries, which also affected purchasing power, resulting in many company products being left to gather dust on shelves of many stops, following which warehouses were filled with unsold inventories.
With the poor sales came a drop in earnings capacity of companies, even as operating costs of companies continued to bloat helplessly, as a result of which many of them started posting losses. With these manufacturers unable to repay their loans to banks, non-performing loans of the industry soared further, following which many of the banks were unable to pay dividend to their shareholders at year-end, because they had to make the huge loan loss provisions in line with regulatory requirements.

But since the Central Bank of Nigeria (CBN) began tackling the supply side of the nation’s foreign exchange market which was identified as the major problem, the story of Nigeria’s economy has been reversed to what we are seeing today that is attracting inflow of foreign exchange in form of direct and portfolio investment. This also equally rekindled domestic investor confidence due to positive data in the last five months pointing to economic recovery,which is currently being driven solely by monetary policy. Expectations are that the fiscal authorities will brace up and begin to do the needful, a situation that would further fast-track recovery, knowing that without a thriving economy, there is no politics.
Performance of the domestic equity market, when compared to the global markets is relatively in order, because improving economic fundamentals have started impacting positively on the listed companies as revealed by their first quarter numbers and reinforced in Q2 figures now being released that support the current prices of stocks on exchange.

Even then, the share prices of many companies on Nigeria’s stock exchange are still undervalued. Only a few companies are overpriced due to market sentiment for those particular stocks.
Price to earnings ratios of quoted companies are below 15x, dividend yields of majority are above 4%, economic growth is expanding, unemployment rate as at December 2016 was 14.2%,industrial production growth is equally expanding as revealed by the Purchasing Managers’ Index(PMI) remained above 50 points in the past three months, inflation figure is on the decline in the last five month, FX market performance remains strong with improving liquidity and 10-year Federal Government bond yields and interest rates at 16.18%.

This review is intended as a tool for both reference and ideas generation at a time many people have expressed palpable fears that the market is set for a huge correction. You may however choose to take profit and still keep your eyes on the market with the earnings reporting season at its peak, boosted by strong investor confidence, positive economic data and strong liquidity in the import/export window of the FX market.

This is first stop for basic background info on how the economy is performing, and what issues are driving the economy. This will help you get up to speed on and keep track of the basics for the most important sectors and industries in the economy, informing starting points for further research and risk management. As you keep your eyes on the CBN intervention that is driving the economy and market, get INVESTDATA home study pack to understand market timing and the four phase of the market to protect your capital and manage trading/investing risk.

Grab your pack now and ride with the recovery stock market and economy.
The workshop video can be view in your phone, laptop and television. The cost of the home study pack is N20, 000 including DHL delivery at your door step. Payment should be made into Investdata Consulting Ltd, Zenith Bank 1013033032. When payment is made, kindly send details to 08032055467,


Money Management: Banking Stocks To Buy For Juicy Interim Dividend Income

Money management in equity trading and investing is very important, particularly when it comes to picking the right stock at the right time, especially now that the market is eagerly expecting the Q2 financials of banks, insurance and petroleum marketing stocks with a history of interim dividend payment.
Investment is all about expectations and returns.
Consider this simple mathematics of profitable trading/investing: Dividend history of banking stocks in Nigeria shows that Guaranty Trust Bank pays interim cash dividend of 25 kobo; United Bank for Africa, 20 kobo; Zenith Bank, 25 kobo; and Access Bank, 25 kobo; while Stanbic IBTC has over the years been inconsistent with its interim dividend payout.

Simple investment analysis for beginners is that in today’s market, while you can with the sum of N100,000 as seed capital purchase 2564 units of GTBank; the same amount would fetch you 10,000 units of UBA; or 4000 units of Zenith; and 9523 units of Access Bank.

Now, while your dividend income, not excluding holding tax in Guaranty, is: N641, UBA, N2000; Zenith Bank, N1000 and Access Bank, N2381. While you should decide for yourself which of the stocks gives you the greatest happiness, let the above analysis guide you as buy banking stocks for interim dividend in this earnings season and beyond.

Simple Mathematics of Profitable Equity Trading Return of 1% in a Week for one years, is shown on the table below. Where 67% is attained at the end of the year with diligent, consistent and discipline in trading your plan. For stocks that should be on your shopping list to buy in this oscillating or recovery market to achieved 4% in week, sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.

https://investdataltd..com.ng/2017/07/economic-recoverystrong-market.html

UNION DIAGNOSTIC: IMPROVING PROFITABILITY CUTS ACCRUED LOSSES TO PAVE WAY FOR DIVIDEND


Union Diagnostic & Clinical Services Plc, last week made its half-year earnings report available to the investing community, earlier than the release date in for the 2016 scorecard, further whetting the appetite of shareholders even as its track record continues to reveal improvement on quarterly and yearly basis, despite the harsh economic conditions militating against its growth.
The company’s high Net Profit Margin of 19.85% shows improved efficiency in managing its operational costs, supported by the earnings capacity over the past three years which has helped to reduce the accumulated losses, thereby paving way for payment of dividend to shareholders. Already, the accumulated loss position dropped by 66.06% to N179.19m, thereby shortening investors’waiting period for reward, such that price starts responding to the company’s impressive performance. Added to this is the company’s plan to expand into providing hospital services for the good of Nigerians; with government policy in the health sector to encourage local content.
The company’s technology-driven operational processes and its increasing network of operating offices have supported top and bottom-lines that continue to point northward. The Q2 numbers consolidate its first quarter position to point to where the company will be at the end of this financial year.

The 2017 half-year revenue rose by 9.1%from N654.95min 2016 to N714.36m, driven by improvements as shown in the innovations, effective service delivery and cost management that helped to eliminate waste.
This improved earnings report confirms management's strong determination to build and preserve value for shareholders, as the company moves to wipe off the accumulated losses as quickly as possible to enable it begin paying dividend.
The cost of financing the company's borrowing inched marginally by 3.45% to N3.48m from N3.36m in 2016, which when added to the hike in expenses recorded for the period did not impact its profit level negatively. The profit for the period was N141.8m, up from N123.19m in the corresponding period of 2016.

With Union Diagnostic's financials trending up, we foresee higher earnings at the end of current financial year that would sufficiently clean up the accumulated losses and enhance dividend payment along with share price appreciation on the floor of the exchange soon.
The stock is currently selling at a par value of 50 kobo with low risk that indicates value for discerning investors, especially with Book Value currently at N1.19 and Price to Book Value of 0.42, which means investors are paying less for the company's net assets.
Moreover, the second quarter Price to Earnings Ratio of 3.13x, indicates that Investors’ waiting period has reduced, as a result of the improved earnings, from 3.58x in 2016.

UNION DIAGNOSTIC PLC
SIX MONTHS REPORT FOR 2017
COY
2016
2017
% Chg
(N)
(N)
Date Released
August 1, 2016
July 27, 2017

Price as@Rel.Date
0.50
0.50

Gross Earnings
654,952,772
714,364,863
9.07
Profit After Tax
123,954,522
141,797,456
14.40
Shareholders' Fund
3,864,759,595
4,213,553,890
9.07

Earnings Per Share
0.03
0.04
33.33
PE Ratio
3.58
3.13
-12.6
Earnings Yield
6.98
7.98
14.33
Book Value
1.09
1.19
9.17
Price/Book
0.46
0.42
-8.70
ROE (%)
3.21
3.37
4.98
Profit Margin
18.90
19.85
5.03

Dec
Dec

SOURCES: COMPANY DATA & INVESTDATA RESEARCH

Valuation/Recommendations
The continued improvement in the company's earnings is a major source of attraction for all stakeholders; regardless of the ongoing economic situation as investment risk in Union Diagnostics is almost zero. With the progress recorded so far on quarterly basis, there are indications that the company would beat earnings forecast for 2017, based on the fact that government at the federal and state levels are eager to concentrate efforts on improving the nation's health care system.
The current Book Value of N1.19 per share and profit margin of 19.85% signifies that the stock is now undervalued at the current market price, on the strength of its Q2 Price-Earnings ratio and Price to Book, while being okay for the market is low in its sector.
The share price of Union Diagnostic is fairly and technically placed at N1.00 as future earnings performance will determine any further review.
The continued repositioning of its operations and services to deliver satisfactory services has started yielding results and ready to begin dividend payment soon.

History
The company was incorporated in 1994 and listed on the Nigerian Stock Exchange in May 2007 and has the capacity to provide services ranging from Sonology, Colour Doppler imaging, X-ray imaging, to Electrocardiography and Endoscopy. Others include: Computed Tomography (CT) Scan, Magnetic Resonance Imaging (MRI), Echocardiography (ECG), Electroencephalography (EEG), Electromyography (EMG), Cytology and Toxicology. The company is also able to undertake DNA testing (thereby saving the nation huge foreign exchange), to laboratory services, including Immuno Assay, among others.

UDCS Plc currently has presence in 16 states,operating from 21 branches, which makes it the largest diagnostic firm in West Africa. This is besides having the most extensive workload as per its 2014 reported statistics of more than 300,000 clients per year, mainly referrals from hospitals, clinics and other laboratories as a result of its technology and new equipments for effective and efficient services. Its relationship with state governments and health authorities has boosted revenue and clientele base.
Share Holding Structure
Dr. A.O. Akinniyi
8.10%
Senior Design Ltd.
12.80%
Mr.E.A. Akingunoye
9.80%
Foyin Chemist & Stores Ltd.
9.80%
Merrybome Investments Ltd
7.70%
Rosel Communications Ltd
9.20%
LifeCare Partners
14.10%
Others Nigerians
28.5%
Other Statistics
Shares Outstanding
3,553,138,530
Opening Price (2017)
N0.50
Closing Price as at July 28, 2017
N0.50
Date Listed
May, 2007
Year End
December 31


The company’s earning capacity in Q1 and Q2 ’17 were up to its comparable period’s figure to maintain uptrend, investors are yet to react to the numbers when compared to the selling price of the company's stock, knowing that the quarterly earnings are better and looking up. This is a pointer to the fact that the company will start paying dividend, going forward. The price movement of the equity in the current financial year has been weak, remaining static at 50 kobo per share, regardless of the small float due to its shareholding structure.

Management

From the foregoing, there is need for management to continue its proactive plans of capturing more market share, especially the recent expansion into more states to support the building of top and bottom lines.

Five-Year Performance Analysis

Looking at the numbers posted over a five-year period, it is obvious that the business environment has remained very challenging for the company in the face of decaying and inadequate infrastructure, particularly in the power and transport sectors. Repairs and other costs impacted performance negatively, just as increasing competition from the cottage industries in the same laboratory business.
But then, a cursory look at the company's five-year (2012 to 2016) financials reveals two years of loss position and three years of sustained profitability that today gives investors hope of receiving dividend after about six years. The profit of the last three years in the period is now being used to wipe off the accumulated loss.
Union Diagnostic's turnover for the period was up from N904.21m in 2012 to N1.55bn, representing 71.36% growth.

Meanwhile, the company experienced a mixed profit performance, recording a loss for two straight years before returning to profit in 2014, a situation that has been sustained till date.
Specifically, the loss level soared from N5.55m in 2012, to N995.90m in 2013, before recovering the following year with aN111.18m profit, which rose to N316.89m in the 2016 full-year. This is a good signal that the company has come to stay in the path of profit and to reward its shareholders in no distant time.
Shareholders' fund on the other hand currently stands at N4.07bn from N4.45bn recorded in 2012. The non-payment of dividend by the company is a function of its loss for a long time, but with the recent year's improvement in earnings power, investors should anticipate dividend payment very soon.

Estimated Performance Ratios
The company's financial ratios for the period under review shows that the amount earned by investors and management were better at N0.09 in 2016 from a loss per share of N0.23 in 2013, while 2012 recorded mild loss per share of -0.00, a reflection of the company's unstable earning power. P/E ratio is relatively okay at the current estimate of 5.61x from the negative high of 320.09x in 2012. The last full year EPS is a yield of just 17.84% of the market price as of the release date. This simply signifies an improvement on the stock valuation by the market as against the posted numbers.

This is further shown in the Book Value that ranges between the low of N0.97 and high of N1.28. Putting the ratios and the market price of the stock side-by-side signals opportunities for medium and long term investors. The profit margin of the company has returned to positive with improvement in its cost management as revealed by the scorecards to remain above the international average of 15% profit margin.

https://investdataltd..com.ng/2017/07/union-diagnostic-improving.html

MARKET ROUNDUP FOR JULY 2017


At the end of July on Monday, the Nigerian Stock Exchange (NSE) recorded its third best month in 2017 to continue five consecutive months of up market that was sustained by the increasing confidence of foreign and domestic investors on the strength of improving economic and market fundamentals that were majorly driven by the sustained intervention of the Central Bank of Nigeria (CBN)in the nation’s foreign exchange market. In particular, was the creation of FX products such as the import and export, Small and Medium-scale Enterprises windows, among others that had helped to relatively support the continued appreciation of the Naira, while ensuring a stable exchange rate.

The nation’s external reserve also benefited from an inflow of foreign direct or portfolios investments in the process, while driving positive macro-economic data, improving corporate earnings and consumer confidence all of which now point to real economic recovery. They also provide pointers showing that the nation is gradually coming out of recession even when the fiscal authorities are yet to do the needful to hasten the recovery process. A change in fiscal policy reforms, structural adjustment, early disbursement of capital project funds and real change in implementation style of the government will further boost the recovery, productivity and the nation output that support growth.

The bull rampage during the period under review was obvious in the 21 trading sessions of the month, during which the market was up for 16 trading sessions and down in just five, wiping away two-year loss position, resulting a year-to-date gain of 33.40%,attributed to factors mentioned above, to make the Nigerian Stock Exchange (NSE) closed the month higher and rank number one in terms of YTD return in Africa and among the best performing in the globe, despite other challenges. The unprecedented improvement in the listed companies’ fundamentals and the economic recovery made the equities attractive even as many remain undervalued with high margin of safety.
Meanwhile, the benchmark NSEAll-Share Index for the month of July gained 2,730.27 points to close at 35,847.75 after touching high of 37,655.46 and low of 32,149.69 within the month from the 33,117.48 it opened, representing a 8.24% growth over the period on a strong buy-market position that impacted on stock prices to hit a new three-year high within the month.

The buying volume of total transactions for the month was 67%, while selling position was 33% to continue the five months of bull-run,while volume index for the period was 1.00. Market capitalisation for the month gained N990bn to close higher at N12.35tr, from an opening value of N11.45tr, representing a 7.86% appreciation in value. The market sustained a bullish sentiment for stocks, especially with the export and import window of the CBN foreign exchange stabilizing, helped by the improving liquidity, added to inflows from oil companies and financial institutions which matched the market’s supply side, supporting the Naira’s appreciation against other currencies.
Traded volume for the month was down by 37.0% to 6.58bn shares from 10.45bn in the preceding month.

The ASI’s year-to-date gain stood at 9.76%, just as market capitalisation for the same period adjusted up to N950.7bn, representing a 10.21% gain YTD from the opening value.
Market breadth for the month waspositive with the advancers outnumbering the decliners in the ratio of 44:37 to continue the bull transition despite the pullback on the last two trading session of the period due to profit booking.
The sectoral performance chart below shows that NSE Banking and Industrial indices drove the market the most in the month under review. While the banking index gained 11.50%, its industrial counterpart notched 11.49%. as they outperformed the composite index NSEASI during the period, followed by the NSE Premium which rose by 9.66% to reflect the high tempo of activities in Zenith, FBNH and Dangote Cement. This was followed by the NSE Lotus index, which moved 9.07% up, to reveal investors’ interest in blue-chip stocks, amidst their low Price-To-Earnings attraction in the sector. Other sectors that closed up during the month were: the NSE Consumer Goods, NSE Main Board, NSE 30, NSE 50, NSE Insurance and NSE Oil/Gas. The NSE Asem, was the only sector that closed in the red, shedding 1.09% to reflect investors and traders low confidence in small listed companies.




The month’s best performing stocks were Okomu Oil, which rallied on the strength of strong numbers and general bull market, gaining 36.83% of its opening price; followed by Dangote Sugar, which appreciated by 33%; while insurance company- NEM chalked all of 27.62%; and Honeywell Flour, 25%.
Low, medium and high cap stocks among the top gainers for the month included: Forte Oil with 23.23%; C&I Leasing, 20.57%, Continental Reinsurance, 20.17%, ETI, 18.11% and Zenith Bank, 17.81%; among others.

Best Performing Stocks in July
Securities
Sector
Open
Close
% Change
Okomu Oil
Agribusiness
58.49
80.03
36.83
Dangote Sugar
Consumer Goods
9.00
11.97
33.00
NEM
Insurance
1.05
1.34
27.62
Honeywell Flour
Consumer Goods
1.76
2.20
25.00
Forte Oil
Oil/Gas
50.07
61.70
23.23
C& I Leasing
Services
0.62
0.74
20.57
Continental Reinsurance
Insurance
1.19
1.43
20.17
ETI
Financial
13.57
16.50
18.11
Zenith Bank
Financial
20.89
24.61
17.81
Airservices
Services
4.50
5.26
16.89
Fidson Healthcare
Healthcare
2.78
3.02
15.83
BetaGlass
Industrial Goods
52.17
60.34
15.66
Cutix
Industrial Goods
2.00
2.31
15.50
Lafarge Africa
Industrial Goods
50.00
57.72
15.44
Avoncrown
Industrial Goods
1.04
1.18
13.46
Skye Bank
Financial
0.60
0.86
13.33
Source; Investdata Research

The worst performing stocks for the period were led by University Press, which lost 22.69%, linked to the company’s unimpressive full-year and Q1 numbers released recently; Cadbury Nigeria lost 21.64%as a result of its weak performance; just asMorison Industries declined by 21.21%; May & Baker, 20.88%; and Conoil,18.31% on the back of profit taking by investors.

Worst Performing Stocks in July 2017
Securities
Sector
Open
Close
% Change
University Press
Service
3.57
2.76
22.69
Cadbury
ConsumerGoods
14.00
10.57
21.64
Morison
Healthcare
1.65
1.30
21.21
May & Baker
Healthcare
3.88
3.07
20.88
Conoil
Oil/Gas
44.56
36.40
18.31
Livestock
Agribusiness
0.95
0.78
17.89
AG Leventics
Conglomerates
0.86
0.72
16.28
UBN
Financial
6.12
5.24
14.38
CCNN
Industrial Goods
71.50
65.05
9.02
Guinness Nigeria
Consumer Goods
0.83
0.81
2.41
Source: Investdata Research Chart view of July market.


NSEASI MONTHLY TIME FRAME




Where To Invest And Expectations For August & September
The global economy has remained unstable despite the gradual recovery. In Europe and the U.S, the near-term growth outlook remains unpredictable, as political and economic uncertainties threaten the moderate recovery in investment and better labour market conditions. At the same time, economic activity in several large emerging economies has strengthened, amid a rebound in international trade and relatively higher global commodity prices that had remain unstable anyway.
There are equally concerns over North Korea’s continuous testing of missiles at a time of political risk, even as oil prices continue to fluctuate in the international markets. All these factors have kept the level of global uncertainty high. There are also the unstable fiscal and monetary policies around the world, as stimulus is gradually being withdrawn.

Back home, the seeming positive economic data that supported the recovery move in the system for the past five months is likely to continue if urgent steps are taken to start implementing the 2017 budget to bring the Economic Recovery and Growth Plan (ERGP) into action to complement the CBN’s effort at boosting productivity that will create employment and sustain the ongoing recovery. Reasons for this are not far-fetched, given the relative peace and security that have since returned to the nation’s troubled Niger Delta region and stability in oil output, all of which would impacted the nation’s revenue positively in the coming months.
In August, we expect inflation figure for July to be released by the NBS and continue to nosedive further; just as Purchasing Managers Index (PMI) is expected to improve again in order to support the seeming recovery in Nigeria’s manufacturing sector as Q2 numbers from the sector surpassed market expectation.

The May year-end accounts that are expected in the month are few so it would not impact much on the market but with investors and analysts interpreting the recent scorecards to reposition and balance their portfolios ahead of Q3 will keep the market oscillating in the new month. The recent Q2 numbers are expected to strengthen market fundamentals as business environment continue to look up. The low valuation in the market despite the recent rally in many stocks still remain undervalued on the strength of the intrinsic value that should guide the investing public to know where to look while seeking to invest profitably for the rest of the year.
Traders and investors who understand the importance of combining fundaments and technical analysis in making investment decisions in the stock market should take this opportunity of pullback to position in some sectors for short, medium and long term gains, especially in the fast moving consumer goods, banking, agribusiness, building material, oil and gas after carefully study of the recent price pattern and fundamental data available in the market.

What to expect in August and September
Release of May full year earnings as August is the end of the statutory 90-day for audited results. This numbers from blue-chip companies may strengthen market fundamentals, if positive.
The oscillating trend of equity prices as a result of repositioning of portfolio along the line of positive numbers and profit taking.
Market outlook for the new month remain mixed as less quarterly and full year are expected. But with the positive sentiment and strong momentum as the market expect, the economic recovery to be strengthened with the implementation of 2017 budget and CBN sustaining its intervention in the FX market that had boosted liquidity and confidence in the economy and market which has impacted business activity as revealed by recent corporate earnings.
The relative low price to earnings in market may further attract demand for stocks, but invest wisely, using bids, offers and volume when taking decisions as a trader.
Managing risk and protecting capital at this point is very important, so you will be able to determine when to buy or sell, by watching the stocks and the market, using technical analysis.
Let numbers released by companies guide you decision and time to stay in that position.

To learn how to manage trading risk, get INVESTDATA comprehensive stock market trading and investing home study pack where short trading strategies and how to identify quality companies to invest before the market look toward ii were discuss.


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