₦airaland Forum

CORPORATE ACTIONS JULY 31, 2017

https://investdataltd..com.ng/2017/07/corporate-actions-july-31-2017.html

MARKET UPDATE FOR WEEK ENDED JULY 28 AND OUTLOOK FOR JULY 31 - AUGUST 4, 2017

PROFIT TAKING, MISSED EXPECTATIONS FROM BANKS, OIL STOCKS CUT SHORT 3-WEEK UPTREND

Trading activities on the Nigeria Stock Exchange last week was seriously bullish being the peak of the second quarter earnings reporting season when quoted companies are statutorily required to submit their quarterly earnings reports to the investing community, which ends on Monday, July 31, 2017.
During Friday’s session, the market expectedly rode on the last minutes momentum of influx of corporate earnings, with over 50 listed companies jostling to make available their scorecards, which came with mixed performance.

The impressive numbers from fast moving consumer goods and industrial sector players supported the positive economic data, confirming the hints of economic recovery that has been propelled largely by the foreign exchange policy slant of the Central Bank of Nigeria (CBN), which has resulted in regular weekly intervention.This has significantly boosted confidence among foreign and domestic investors, as well as consumers. In the financial services sector, the first tier banks are expected to submit their score-cards to the market in August as most of them have announced,because of plans to audit the reports, as well as seek CBN approvals as required.
The three-week uptrend momentum was short lived on the last trading day of the week as end of the month profit taking hit the market, after financials of second tier banks and petroleum marketing stocks missed expectations.The volume index for the period under review was 1.54 with buying position at 78% and 22% selling volume of the total transactions as investors and traders continue to position in blue chips stocks, while seeking to protect their portfolios. In the process, they are building a hedge of safety ahead of end of earnings reporting season portfolio reshuffling on the strength of the recently published Q2 numbers, as well as the future prospects of the companies of which Q3 numbers will be factored in the current market value.

Meanwhile, the composite NSEAll-Share Index for the week gained 2,844.34 points to close at 36,864.71 points, from an opening figure of 34,020.37 points, after hitting intra week high of 37,655.46 and low of 33,999.14, representing 8.40% growth on a huge volume of transactions. The index broke out multiple psychological lines of 35,000, 36,000 and 37,000 to new three-year high that confirm a bullish run which affected all the sectors represented on the exchange.
Similarly, market capitalisation for the period closed higher at N12.71tr from an opening value of N11.73 trillion, representing a 8.36% value gain in investors’ portfolios to wipe out a two-year loss position.

The top performing stocks for the week was dominated by high cap stocks, as investors and traders hedge their risk in defensive stocks that are mainly blue chips with good dividend payment history.
Equities price rally during the week pushed the NSEASI’s year-to-date return to 37.17%, just as market capitalisation appreciated by N3.27tr, representing a 37.76% gain from the year’s opening value.
Market breadth for the period was positive with widen number of advancers outnumbering decliners in the ratio of 51:23 on a huge volume of trades to reflect a buying market despite the pullback on Friday.
Stock markets around the world were mixed to close lower despite the earnings season, irrespective of the unstable oil price and the decision of the Feds to leave interest rate unchanged at its last meeting. Japan’s Nikkei, Britain’s FTSE 100, Germany‘s DAX and U.S market indexes were mixed as expectation for a wind down of the stimulus package any moment from now in US remains a source for concern for investors. The Feds remain optimistic that inflation will improve,a situation that boosted expectations for rate hike to levels that would have a neutral effect on the economy.
In Europe, economic confidence has soared to its highest level in a decade as the region regains momentum. In Asia, China’s confidence among small and medium sized companies posted a strong rebound in July as steel traders and producers expressed confidence in the economy. In Japan, inflation matched expectations as consumer prices rose by 0.4% year-over- year. That however remains well below the BOJ target of 2%.

Back home, the All-Share Index opened the week on a positive note, gaining 1.86%, which was sustained on Tuesday, Wednesday and Thursday when it gained 2.54%, 3.40% and 1.39% respectively. The market suffered a 1.02% pullback on Friday to close the week higher at 8.40% gain.
The ASI and other sectoral indexes for the period closed the week higher, except for NSE ASeM closed flat.
The week’s transaction, measured by aggregate volume and value, were down by 39.12% and 12.18% respectively to 2.21bn shares, down from the previous week’s 3.63bn units, worth N30.64bn, compared to previous week’s N34.89bn.

At the end of last week’s trading, Conoil topped the advancers log with a gain of 21.41% to close at N36.40, driven by market forces and expectation of better Q2 numbers, followed by Presco’s 20% gain to close at N73.20 also on expected Q2 numbers. The decliners’ logon the other hand was led by Cadbury Nigeria and Morison Industries, which lost 18.17% and 17.58% to close at N10.45 and N1.36 respectively, following the unimpressive numbers posted by Cadbury.

Market Outlook
The market is expected to be mixed this week as few companies will release their numbers ahead of the July 31 deadline and profit taking from the current uptrend to watch the next trend after the end of the reporting season.
Bearing all these in mind,investors should position in stages in valued stocks with high upside potentials, despite their current prices on the exchange.
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

Attention!!!! Attention!!!!

In the game of life there are two groups of people - those who focus on short term gains and immediate needs even if it means they struggle to reach their bigger goals, and those who are prepared to make short term sacrifices and invest time improving themselves to get the huge improvements for the rest of their life.

By getting the comprehensive short term trading strategies video and materials to guide you, it will be obvious that you are one of life’s winners-it’s a great decision as you are going to improve your investment with new and world class skill that can really fast track your investing and trading success. Among the topics discussed are understanding market timing to manage trading risk and the mathematics of profitable trading, where trading target of just 1% in a week for a year with principal or capital of N100, 000 will give return of N67, 768.89 which is 67.78% gain, which many superstars and investment houses in the world cannot achieve but with your consistent, commitment and diligent to your trading goals and objective you will get there. In 5 years your N100, 000 will turn to N1.32 million. This is revealed in the workshop video and materials. Grab your copy 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 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.


https://investdataltd..com.ng/2017/07/market-update-for-week-ended-july-28.html

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED JULY 28, 2017

https://investdataltd..com.ng/2017/07/investdata-price-earnings-tracking-for_31.html

Market Update for July 27, 2017

NSE Indices Ride Higher, Despite Mixed Earnings Report, End Of Season Countdown

Trading on the Nigerian Stock Exchange (NSE) on Thursday was extremely volatile even as the bullish rampage continued as buying position increased on daily basis as influx of earnings reports supported the uptrend momentum. This is despite the overbought state of many technical indicators that signaled the onset of profit taking any moment from now to allow the investing community and analysts fully interpret the numbers to reposition their portfolios.

Thursday’s session started out with a little slide down before gapping to the upside, making a new three-year high on the benchmark index, while some of the sectoral indexes also made a new three-year high, reflecting an increased level of investor confidence and liquidity in the market to close higher at the end of the day with huge volume of trade and increased number of advancers. The day’s volume traded index was 1.50; buying position, 98% and selling volume, 2% of the total transaction.
On Thursday, I wrote on money management in equity trading and investing as a key factor, especially as interim dividend is expected from the banking stocks and a positive force for individual stocks and the market if expectations are met. Also on Thursday, over 10 companies released their Q2 earnings reports to the market with surprises and disappointment that should give insight into what investors should expect from others today and Monday when the earnings reporting season officially comes to a close, given that the news is abundant this week, with earnings and revenue growth coming in as good as investors and traders have seen in a long while.

Meanwhile, at the close of trading, composite index NSEAll-Share Index gained 504.40 basis points to break into its three-year psychological line of 37,000, closing at 37,245.77 from an opening figure of 36,740.77 points, which represented a 1.34% growth. Also, volume transacted for the day was higher than previous day’s, even as market capitalisation rose by N173.84bn to close at N12.84tr from the opening value of N12.66tr, representing a 1.34% growth to enhance investors’ positions.
The upturn in the share pricesof Conoil, Nestle, Okomu Oil Palm, Presco, GTBank, Zenith Bank, Total, Nigerian Breweries, Stanbic IBTC, UBA and Seplat that boosted the All-Share index year-to-date returns to 38.59%. Also, market capitalisation over the same period improved by N3.59tr, representing a 38.82% growth on the year’s opening value.
Market breadth for day was positive as the number of advancers outweighed decliners in the ratio of 38:17 on a huge volume of trade to continue the 16-day bullish transition. Trading activities in terms of volume and value were upby 61.87% and 72.50% respectively at 542.8mshares worth N8.01bn, from the previous day’s 335.34m units valued at N4.64bn.
Transactions in the shares of UBA, Zenith Bank, Diamond Bank, FBNHand FCMB topped the volume chart to close the day’s session.
At the end of trading activities, Conoil topped the advancers’ log, gaining 10.17% to close at N36.40 each on the back of its expected Q2 numbers. It was followed by Champion with a 6.74% gain to close at N2.85 per share, on market forces.
On the flipside, Cadbury led the decliners’ log after dropping 9.68% to close at N11.20 on the back of its unimpressive earnings report released yesterday(READ); ahead of UACN Property’s 5.46% decline to close at N2.77 per unit on market forces and profit taking.

TODAY’S OUTLOOK
As trading opens this morning, the market is expected to continue riding on the prospect of more Q2 numbers being released amidst countdown to the end of this earnings season. Already, investors and traders are reacting to the mixed numbers released yesterday, as surprising numbers are receiving positive reactions, while treating disappointing earnings otherwise.
However, it is advisable to expect a blend of surprises and disappointment from the companies reporting their numbers, even as 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. You should therefore fix your gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.

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 is 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. 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 in 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

http://investdataltd..com/2017/07/market-update-for-july-27-2017.html

Photo News: NIPC CEO Visits Nigerian Stock Exchange, Performance Closing Gong Ceremony

From left to right: Oscar Onyema, Chief Executive Officer, The Nigerian Stock Exchange (NSE); Ms. Yewande Sadiku, Executive Secretary/CEO, Nigerian Investment Promotion Commission (NIPC) and Haruna Jalo-Waziri, Executive Director, Capital Market Division, NSE at the Closing Gong Ceremony at the Exchange today.

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From left to right: Oscar Onyema, Chief Executive Officer, The Nigerian Stock Exchange (NSE); Ms. Yewande Sadiku, Executive Secretary/CEO, Nigerian Investment Promotion Commission (NIPC) and Haruna Jalo-Waziri, Executive Director, Capital Market Division, NSE at the Closing Gong Ceremony at the Exchange today.

http://investdata.com.ng/2017/07/photo-news-nipc-ceo-visits-nigerian-stock-exchange-performance-closing-gong-ceremony

Juicier Investment Income, Leaner Tax Provision Lift Afriprud’s Profit By 229.1%

Share registration and investment giant- Africa Prudential Plc, on Wednesday gave investors hope for better profit and dividend at year end with its s...

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Share registration and investment giant- Africa Prudential Plc, on Wednesday gave investors hope for better profit and dividend at year end with its superlative half-year performance, helped by the growth in net investment income and a reduced provision for income tax expense resulting in a three-digit growth in profit after tax.
Gross earnings for the period rose to N1.491bn, an increase of N529.715m or 55.08% increase from previous half year’s N961.678m, helped by net investment income rose N467.498m or 87.26% from N535.742m in the first half of 2016 to N1.003bn. Registrars fee income rose from N412.804m to N464.268m; just as other income increased to N23.885m from N13.132m.
While registrars fees income comprised of fixed periodic administration fees, transaction processing fees, fees for managing corporate actions, professional and IT services and that earned on administration of client funds including value added tax; net investment income was made up of revenue from treasury bills totaling N668.923m, up from N90.99m, interest on term deposit worth N219.953m, down from N284.42m; just as N114.364m came from interest on bonds, down from N160.332m.

Impairment loss on goodwill dropped from N147.46m to N62.5m, arising from the acquisition of the former UAC Registrars which is carried at cost on the date of the acquisition which began on May 30, 2013, ending in October 2015. Personnel expenses rose to N190.691m from N140.322m; other operating expenses rose to N267.653m from N195.413m. Depreciation and amortization was flat at N19.759m, compared to N20.453m.
Profit before tax rose to N950.79m from N605.49m, income tax expense fell sharply to N86.504m, up from N342.865m; leaving profit after tax at N864.286m, representing a N601.661m or 229.09% rise from N262.625m. The net profit increased total comprehensive income for the period jumped to N979.857m or 43 kobo earnings per share, as against the previous N262.625m or 13 kobo.

http://investdata.com.ng/2017/07/juicier-investment-income-leaner-tax-provision-lift-afripruds-profit-229-1/

MARKET UPDATE FOR JULY 26, 2017

Banking stocks by buy for Profitable Interim Dividend Income

Nigeria’s equity market at the end of midweek’s trading had a volatile day, with strong volatility at the opening and end.
The day started out with a pullback to intraday low of 35,504.88 and made a three year new high of 37,794.22 to close higher in continuation of its 15-day bullish run with highly capitalized stocks recording value gain on the strength of increasing demand for blue-chips in expectation of their Q2 numbers. Many investors and traders also used the blue-chips to build hedges in their portfolios.
The day’s volume traded index was 0.94; buying position, 96% and selling volume, 4% of the total transaction. Sectoral indexes were higher as investors and traders took position in different sectors with expectation of their Q2 scorecards.

The increasing inflow of foreign portfolio investors into the market continues to be driven by the flexible exchange policy of the Central Bank of Nigeria (CBN)which has helped to stabilize the rate of the Naira. In particular, the import and export window of the FX market continues to get more liquidity from oil companies, export businesses and banks, while the CBN plays the supervisory role. This is gradually impacting positive on the corporate performance and macro-economic indices.
With the economy or markets of the developed world are headed for crash in no distance time, which will affect U.S., Europe and Japan, many foreign institutional investors are looking at emerging markets, particularly Africa as preferred destination to diversify their portfolios. Many of these investors have over the years identified the infrastructural challenges on the continent and the huge investment opportunities they present, especially with Nigeria the largest economy in Africa in recession and South Africa, the second largest economy going into recession. This makes Nigeria’s stock market a preferred destination for Foreign Portfolio Investments (FPI), at a time transparency in the Nigerian market remains high.

Meanwhile, the benchmark All-Share Index gained 1207.77 basis points to break into its three-year psychological line of 36,000 on above average market traded volume to close at 36.740.77 from an opening figure of 35,533.00 points, representing a 3.40% growth. Also, volume transacted for the day was lower than previous day’s, even as market capitalisation went up by N416.36bn to close at N12.66tr from the opening value of N12.25tr representing a 3.4% growth to enhance investors’ positions.
Price appreciation in low, medium and high cap stocks boosted the All-Share index year-to-date returns to 36.71%. Also, market capitalisation over the same period improved by N3.25tr, representing a 36.94% growth over the year’s opening value.
Market breadth for Wednesday’s session was positive as the number of advancers outnumbered the decliners in the ratio of 31:17 on average volume of trade to continue the 15 day up market. Market activities in terms of volume and value were downby 34.89% and 21.10% respectively at 335.34m shares worth N4.64bn, from the previous day’s 513.45m units valued at N5.9bn.
Transactions in the shares of FBNH, UBA,Access Bank, Zenith Bank and Fidelity Bank topped the volume chart to close the day’s session.

At the end of trading activities, Conoil topped the advancers’ log, gaining 10.21% to close at N33.04 each on the back of its expected Q2 numbers. It was followed by Fidson Healthcare with a 10.06% gain to close at N3.39 per share, on market forces and expected impact of government policy on the health sector to influence its numbers going forward.
On the flipside, Aiico Insurance led the decliners’ log after dropping 5.26% to close at N0.54on profit taking activities, following its unimpressive Q2 numbers, ahead of SCOA’s 4.77% decline to close at N3.09per unit on market forces as this company has been inactive on the exchange.

TODAY’S OUTLOOK
As trading opens this morning, the market is expected to continue riding on the prospect of more Q2 numbers being released amidst countdown to the end of this earnings season. Already, investors and traders have reacted to the mixed numbers released so far, receiving positively to surprises, while treating disappointing earnings otherwise.
However, it is advisable to expect a blend of surprises and disappointment from the companies reporting their numbers, even as 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. You should therefore fix your gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.

Money management in equity trading and investing is very important as picking the right stock at the right time, as the market is expecting Q2 interim dividend from banking, insurance and petroleum marketing stocks. Investment is all about expectations and returns. Look at this simple mathematics of profitable trading/investing, dividend history of the banking stocks shows that GTBank pays interim of 25 kobo, UBA pays 20 kobo, Zenith Bnak pays 25 kobo, AccessBnak pays 25 kobo while Stanbic is inconsistent with its interim payout. N100,000 capital will give you 2564 units of Guaranty, 10,000 units of UBA, 4000 units of Zenith and 9523 units of Access Bank. Your dividend income not excluding holding tax in Guaranty is N641, UBA is N2000, Zenith Bank is N1,000 and Access Bank is N2381, Let this guide you as buy banking stocks for interim dividend.
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 is 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. 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.

Grab your home study pack today 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,

https://investdataltd..com.ng/2017/07/market-update-for-july-26-2017.html

MARKET UPDATE FOR JULY 25, 2017


NSE’S GAIN WIPES OFF TWO-YEAR LOSS, AS CAPITALISATION LEAPS 32.68% YTD

Nigeria’s stock market indices had a strong bull-run Tuesday with a gap up at the opening, as they formed consolidation patterns in the early hours, held support, and then had a strong midday rally. The index made much progress in the last few hours to consolidate with nice gains and moved higher on high demand for stocks with traders and investors taking last minutes positioning as the market continued to react positively to the impressive numbers released so far by quoted companies.
Meanwhile, despite the decision of the Central Bank of Nigeria’s Monetary Policy Committee (MPC) to leave the benchmark Monetary Policy Rate (MPR) unchanged at 14%, at the end of its two-day meeting which ended on Tuesday, the continued appreciation of the Naira and improved liquidity in the foreign exchange market has supported inflow of the greenback into the economy and indeed the equity market. This has so far also impacted positively on economic data, such that the CBN is saying it is early in the day to ease monetary policy on the back of the much expected fiscal reforms, structural changes and delayed implementation of the 2017 budget, which now threatens the much expected economic recovery. The Federal Government must therefore at this point brace up to the nation’s economic challenges and do the needful to sustain the recovery pace. One way of doing this would be to put the right policies in place to drive the administration’s much celebrated Economic Recovery & Growth Plan.

Also, with the proposed Federal Government promissory note to local contractors expected to reduce high debt that is now slowing down execution of many projects across the country because banks are not ready to give these contractors facilities any more. With these notes, contractors will have access to fresh funds, knowing that the government will not disappoint in terms of redemption of the promissory note at maturity.
The day’s volume traded index was 1.41; buying position, 93% and selling volume, 7% of the total transaction. The sectoral indexes were higher as investors and traders took position in different sectors with expectation of their Q2 scorecards.

The composite NSEAll-Share Index gained 880.48 basis points to breakout its two-year psychological line of 35,000 on a huge volume to close at 35,533.00 from an opening figure of 34,652.52 points, representing a 2.54% growth, while volume transacted for the day was higher than previous day’s. Similarly, market capitalisation went up by N303.35bn to close at N12.25 trillion from the opening value of N12.02tr, representing a 2.54% growth to wipe away two-year loss position in investor’s portfolio as the market continue recovery move.

The upturn in share prices of Nestle, UBA, Forte Oil, Okomu Oil, Zenith Bank, Access Bank, Stanbic IBTC, Dangote Cement, Presco,Oando, Lafarge Africa, Flourmils and others boosted the All-Share index year-to-date returns to 32.20%. Also, market capitalisation over the same period improved by N3.01tr, representing a 32.68% growth over the year’s opening value.
Market breadth on Tuesday was positive as the number of advancers outweighed the decliners in the ratio of 27:18 on a huge volume of trade to continue the 14 straight days of bullish trading. Market activities in terms of volume and value were upby 74.79% and 49.32% respectively at 513.45mshares worth N5.90bn, from the previous day’s 293.75m units valued at N3.95bn.
Transactions in the shares of UBA, Access Bank, Zenith Bank, Fidelity Bank and Transcorptopped the volume chart to close the day’s session.

At the end of trading activities, UBA topped the advancers’ log, gaining 10.16% to close at N10.41 each on the back of its expected Q2 numbers and brighter prospects as it consolidates operations in various Africa countries. It was followed by May&Baker with a 10% gain to close at N3.19 per share, on market forces and expected impact of government policy on the health sector to influence its numbers going forward.
On the flipside, Unity Bank led the decliners’ log after dropping 8.96% to close at N0.61 on profit taking activities of investors and traders, ahead of Morison’s 8.92% decline to close at N1.43per unit on market forces as this company has been inactive on the exchange.

TODAY’S OUTLOOK
As trading opens this morning, the market is expected to continue riding on the prospect of more Q2 numbers being released amidst countdown to the end of this earnings season. Already, investors and traders have reacted to the mixed numbers released so far, receiving positively to surprises, while treating disappointing earnings otherwise.
However, it is advisable to expect a blend of surprises and disappointment from the companies reporting their numbers, even as 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. You should therefore fix your gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.

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 is 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. 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.
In the game of life there are two groups of people - those who focus on short term gains and immediate needs even if it means they struggle to reach their bigger goals, and those who are prepared to make short term sacrifices and invest time improving themselves to get the huge improvements for the rest of their life.

By getting the comprehensive short term trading strategies video and materials to guide you, it will be obvious that you are one of life’s winners-it’s a great decision as you are going to improve your investment with new and world class skill that can really fast track your investing and trading success. One of the topics discussed is the mathematics of profitable trading, where trading target of just 1% in a week for a year with principal or capital of N100, 000 will give return of N67, 768.89 which is 67.78% gain, which many superstars and investment houses in the world cannot achieve but with your consistent, commitment and diligent to your trading goals and objective you will get there. In 5 years your N100,000 will turn to N1.32 million. This is revealed in the workshop video and materials. Grab your copy 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,


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

https://investdataltd..com.ng/2017/07/market-update-for-july-25-2017.html

MARKET UPDATE FOR JULY 24, 2017




NSE INDICATORS HIT NEW HIGHS, RETURN 28.94% YTD ON LOW, MEDIUM CAP GAINS
· As N’East Reconstruction Agenda Set To Boost Building Material Stocks

Monday’s trading session was a very good on the Nigerian Stock Exchange (NSE), kick-starting the last full trading week in the Q2 earnings reporting season, as the uptrend momentum continued 13-day bull-run on a higher magnitude of gains, especially as highly capitalized stocks appreciated in value amidst expectations of positive Q2 numbers from quoted companies.
Already, the earnings season has entered high gear with Transnational Corporation of Nigeria (Transcorp) and Nahco presenting half-year unaudited results that beat market expectations during the day’s trading session. Investors and traders, especially participants at INVESTDATA CONSULTING’s Comprehensive Short Term Trading Strategies Workshop a fortnight ago which dwelled on the Fusion of Fundamental & Technical Analysis in picking value stocks for the rest of the year and beyond, are already in value stocks and now recording gains.
Investor’s positive sentiments for banking stocks continued, ahead of their earnings reports as demand for the interim dividend paying bank stocks increased, following which most of them finished Monday’s trading on high bid.

The demand for building material stocks also were in high demand as impressive numbers had started emanating from the sector, which expectation of better numbers in Dangote Cement has pushed its share price to two year high on a strong volume.
In the months to come, stocks in the building materials sector could become the toast of investors, given plans by the Federal Government to begin the reconstruction of the insurgency-ravaged area, particularly Borno, Yobe and Adamawa, after almost a decade of supremacy battle between the Boko Haram insurgents and Federal troops. The plan has been tagged: THE BAMA INITIATIVE.
Back to the NSE, Monday’s volume traded index was 0.80. Buying position was 95% and selling volume, 5% of the total transaction. The NSE banking and Industrial indexes closed in green, while the NSE Consumer and Insurance indexes were red, as traders continue booking profit from the resent rally in these sectors to position in other industries and stocks with possibility of paying interim dividend.

Meanwhile, the composite index NSEASI gained 632.15 basis points yesterday to hit a two-year high, while closing at 34,652.52 from an opening figure of 34,020.37 points, representing a 1.86% growth on low transaction volume that was lower than previous day’s. Similarly, market capitalisation rose by N217.87bn from the opening value of N11.75tr, representing a 1.86% growth in the worth of investor’s portfolio.
The upturn in share prices of low, medium and high cap stocks impacted the All-Share index to boost year-to-date returns to 28.94%. Also, market capitalisation over the same period improved by N2.7tr, representing a 29.16% growth over the year’s opening value.
Market breadth for Monday was flat,as the number of advancers outnumbered decliners in the ratio of 21:20 on a low volume of trade. Market activities in terms of volume and value were down by 22.35% and 22.75% respectively at 293.75m shares worth N3.95bn, from the previous day’s 378.19m units valued at N5.11bn.

Transactions in the shares of Access Bank, UBA, Guaranty Trust Bank, UnityKap and Transcorp topped the volume chart to close the day’s session.
At the end of the trading activities, Transcorp topped the advancers’ log, gaining 8.05% to close at N1.61 each on the back of its impressive Q2 numbers and brighter prospects. It was followed by Dangote Cement with a 5% gain to close at N222.60 per share, on expectation of better Q2 numbers and impact of government infrastructural development on the it sector.
On the flipside, Aiicoled the decliners’ log after dropping 5% to close at N0.57on profit taking activities of investors and traders, ahead of Vitafoam’s 4.85% decline to close at N2.53per unit on market forces.

TODAY’S OUTLOOK
As trading opens this morning, expect mixed performance as market ride on release of more Q2 numbers as the season enter high gear with positive earnings. However, it is advisable to expect a blend of surprises and disappointment from the companies reporting their numbers, even as investors need not panic due to the pullbacks if they have taken position based on strong numbers and future prospects of any stock. You should therefore fix your gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.

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 is 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. 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.

Meanwhile, we say a very big THANK YOU to all participants that made the INVESTDATA workshop a huge success, even as stocks recommended during the workshop continue to rally and activities in the various sectors identified as those to invest in this second half of 2017 are looking up and promising to lead the rest of the year in performance and returns.
To book for the WORKSHOP VIDEO and SOFT COPIES of WORKSHOP MATERIALS send YES to 08028164085 and 08111811223.

MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
Phone 08028164085, 08032055467
https://investdataltd..com.ng/2017/07/market-update-for-july-24-2017.html

FOUR FACTORS TO CONSIDER IN CHOOSING A STOCKBROKER OR STOCK BROKING FIRM

As far as the stock market business is concerned, traders and investors need the services of a broker or stock broking house to buy or sell on their behalf or trade on your own by doing it yourself through the online trading platform or portal at any given time to take advantage of market timing and speedy execution of your buy and sell decision under a house. The assistance of a good

stockbroker can be an essential element in achieving success but doing it yourself with knowledge is faster and more reliable for your financial independent through stock market investment. The role of brokers in trading stocks cannot be overemphasized as the growth of your income depends directly or indirectly on them. Stockbrokers are specially trained individuals whose concerns are to buy and sell shares for investors at a fixed commission. The statutory commission for stock broking firm is below four per cent on both sides of buying and selling. A regular trader with a volume can negotiate lower to boost the returns and enhance funds management. This commission is regulated by the Nigerian Stock Exchange (NSE) and Securities and Exchange Commission (SEC). Stock broking firms have a fixed rate and what accrues to them on any transaction. The factors below would help you choose a reliable stockbroker:

1. LICENSED/REGISTERED
Make sure that the stockbroker or the stock broking firm is fully registered and licensed by the NSE and SEC to carry out the business of stock trading. A registered stock broking firm will usually be a member of the exchange and with the approval of SEC. Whenever you enter into any stock broking firm, at its reception, you will see the certificates of registration and licensee displayed on the wall. But when this is not displayed on the wall, please have a rethink and walk out of that place. While this is important at the first instance, is that you want to deal with the right people. If the stock broking firm is licensed it suggest that the company has met the entire requirements.

2. PROACTIVE HOUSE WITH STRONG RESEARCH BACKGROUND
The objective of stock trading and investing is to make money. You need to be in a house where the people are active and informed through their research-based analysis that guides and directs their decisions on what to do in the market at any time. A stock broking firm knows how to combine different forms of analyses to take advantage of the market before offering a profitable investment advice to their clients. Also, the level of transactions in terms of volume and value to ascertain how forceful the firm is in the market is equally important.

3. RELATIONSHIP
Look for a house that believes in good relationship that drives business, even if it means consulting professionals in the market for a guide to go ahead; a situation where you can have a one-on-one discussion with your broker regardless of the amount you have at that moment. You should feel at ease with your stockbroker since you will be providing personal information about your finances and investment goals. The stockbroker should listen to your expectations and understand your needs. Based on the information provided, the stockbroker can develop an investment strategy tailored to an investor's needs. Make sure you understand the investments recommended to you for purchase. A good stockbroker takes time to explain how any security purchased can fit your investment goals.

4. Online Trading Platform or Portal
That is directly link to the trading floor of the Nigeria stock exchange, were no know third party infer with your order if you have the funds that can cover your transactions. This online trading help you to achieve your investment goal by not waiting or putting your financial destiny in another man hands. In Nigeria market today only 16 brokerage firms have the online portals for their clients to trade on their own, which suggests that new traders or investors should consider this when choosing a stock broking firm. When you do it yourself with skill and knowledge you are ban to win more than loose.
In the game of life there are two groups of people - those who focus on short term gains and immediate needs even if it means they struggle to reach their bigger goals, and those who are prepared to make short term sacrifices and invest time improving themselves to get the huge improvements for the rest of their life.

By getting the comprehensive short term trading strategies video and materials to guide you, it will be obvious that you are one of life’s winners-it’s a great decision as you are going to improve your investment with new and world class skill that can really fast track your investing and trading success. One of the topics discussed is the mathematics of profitable trading, where trading target of just 1% in a week for a year with principal or capital of N100, 000 will give return of N67, 768.89 which is 67.78% gain, which many superstars and investment houses in the world cannot achieve but with your consistent, commitment and diligent to your trading goals and objective you will get there. In 5 years your N100,000 will turn to N1.32 million. This is revealed in the workshop video and materials. Grab your copy 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 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,

How not to lose money in stocks
It is true that your hard-earned income is invested in the stock market and it becomes necessary for you at any given point to protect this money and grow it in the same market by investing knowledgeably. It happens that one Monday afternoon, a friend of mine called to say that his broker has always made him to lose money by buying at the highest price and selling for him at the lowest price. This had always made him to lose money. It is true that brokers would not buy stocks for their clients without a mandate or instruction from the buyer. That means my friend also has his own faults, either by giving instruction to buy stocks for him when prices have gone up, anticipating that they would go higher but go down or reverse down due to profit taking. This may result in selling at a lower price, thus making the buyer to lose money. To avoid this, always ensure you enter and exit a position fairly by buying into a weak market and selling in a strong market as buying or selling pressure will always affect the market price of any stock.

Confidence: Your confidence in the market and the specific stock you are buying is very important, suggesting that you should understand the companies you are putting your money -their business model and other things that are necessary to know that the company is strong. Confidence is just as important in investing as it is in any other aspect of life, whether it is sports, business or a relationship etc. Use numbers to help decide when to buy or sell, and also your learning how to use your instinct in all these will go a long way to help you protect your money. The more confident you are in your decisions, the more likely you will be correct.

Factors for the market
Here, what are the factors that support the market at that particular time, listen to what’s going on around you. Consciously or subconsciously you cannot avoid soaking in external stimuli. The market, in a large part, is dictated by emotions, which are evident everywhere – TV, radio, social media, friends etc. If you can learn to pick up on a consumer sentiment and use this to help predict the direction the economy or the market is heading, you will have a huge advantage. As we always say, the trend is your friend but it’s when you identify it at the right time and ride with it that matters. And that is why you should register with INVESTDATA buy and sell signal setup for weekly stocks to trade with target of 4% after your transaction charges

Trade stocks you understand
Finally, stick to a proven strategy and trade a handful of stocks that you’re familiar with. So often, I see people with 20 – 30 positions in their portfolios. What’s the point? If you’re that worried about diversification, buy bond. Too much work goes into the management of a portfolio of that size. Stick to five – eight stocks that you are very familiar with and that have potential of rallying. Then, you know exactly where the support and resistance points are, when earnings will be announced, what products are in the pipelines and much more pertinent information that will drive price.

https://investdataltd..com.ng/2017/07/four-factors-to-consider-in-choosing.html

HONEYWELL FLOUR: EARNINGS REBOUND ON RISING CAPACITY, RECOVERING ECONOMY

The management of Honeywell Flour Plc recently made its full year earnings report for the period ended March 31, 2017 available to the investing public in line with its post-listing requirement of the Nigerian Stock Exchange (NSE). The numbers came the same time as the release date for the 2016 scorecard which allows investors and traders to plan their investment and forecast the company's pattern.

The company's performance for the period was impressive and did not reflect much of the harsh economic situation, especially with manufacturers coming under more intense pressure from the operating environment that negatively impacted cost and purchasing power at a time Nigeria’s economy was deep in recession, especially for most part of the financial year.


The company recorded a 5% increase in revenue from N50.88bn to N53.23bn; profit after tax grew significantly from a loss of N3.02bn to N4.3bn, a growth of 242% over the preceding year. Shareholders' Funds and Total Assets increased by 219% and 49% to N52.33bn and N113.15bn respectively. Earnings per share rose from loss of 38 kobo in 2016 to 54 kobo.

Honeywell is technically placed at a fair value of N6.00 per share. The growth in its numbers were attributed to continuous investment in expansion of its production capacity to meet market demand and capture new markets. But increase in cost of production as a result of currency devaluation has put serious pressure on the company's operations. This profitability reflected in Honeywell's profit margin that is below international standard of 15%. The impressive full year earnings had further boosted the intrinsic value of the stock to give investors high margin of safety, considering its market value in a recovering stock market and economy.

The marginal growth in revenue was primarily caused by reduction in sales due to weak disposable income of the consumers that kept many products on the shelve but with the little improvement in economic fundamentals and positive data, helped by exchange gains resulting from the Central Bank of Nigeria (CBN) intervention in the foreign exchange market that reduced cost, impacting on the food segment of the company, comprising of flour, pasta, noodles, semolina, sugar, rice edible and snacks.
The food sector contributed 85% of a total revenue of N53.23bn in March 2017 from N50.88bn in March 2016. The marginal increase in sales is a major concern for investors if company with such business model and products that are essential to the body records such lean growth in revenue.


The company’s rebounding earnings power was supported by decreasing cost of sales and other cost elements in its operations, added to other incomes from sales of by-products, exchange gain and sundry income that boosted the year’s bottom line. This was boosted by management's cost cutting efforts and have not impacted much on bottom line, looking at profit margin for the period. With the economic recovery and continued turn around in the company's operation, shareholders should expect a better dividend payout in 2018 financial year.

Valuation/Recommendations

The company's full year Book Value stands at N6.60, with Price/Earnings ratio of 3.24x on the strength of its strong earnings per share of 54 kobo.
Investors with short, medium and long term horizon should look the way of this stock. Traders and investors can take advantage of the low price to position now. We have revalued Honeywell and upgraded it to a BUY.

Technical View
The stock has been trending up for the last four months before pulling back, even as there were attempts to rebound that failed. But now that the stock is side trending with move to breakout the trend line above as the market expect its Q1 financials.The price action had formed a descending triangle chart pattern that revealed continuation of trend or reversal. Traders should watch for the first breakout at N2.00 and second resistance level at N2.12 as the market and analysts continue to interpret the numbers.

Honeywell Flour Mills is a major flour milling company in Nigeria initially registered as Gateway Honeywell Flour Mills Limited in 1985. However, in June 1995, a change ownership structure led to a change of name to Honeywell Flour Mills Limited (HFML). After its initial public offer (IPO) in 2008, the company became a public liability company and listed on the Nigerian Stock Exchange (NSE) in 2009. Honeywell Flour Mills PLC processes and packages flour and livestock feeds from wheat. The company's products are used in the baking and confectionery industries.

Honeywell Flour Mill PLC
Share Holding Structure
Siloam Global Services Ltd
75%
First Bank Nigeria Plc
5%
Other Nigerians/ Institutional Investors
20%
Other Statistics
Shares Outstanding (MN)
7,930,197,658
Opening Price (2017)
1.46
Closing Price (2017)
1.05
Closing Price as at Jul 21, 2017
1.96
Date Listed
20th Oct., 2009
Year End
31st March

Earnings Performance
Honeywell Flour's mixed performance for the past five years has reflected in its sales revenue and profitability level that led to an unstable dividend payout for the period under review. The company’s sales revenue for the period has been on the rise, revealing its penetration into new markets, but as stated earlier, this has reflected on its bottom line, despite the fluctuating cost centres that continue to influence profit.

With the recovering economy and improving output from the manufacturing sector that has reflected on the company's performance to place a fair value that matches the current market price, investor confidence and sentiments for the equity’s price to retain strength.
Nevertheless, other ratios such as the low Price to Earnings (P/E) ratio and high Book Value, when compared to current market price. All these considered, it will be appropriated to place the equity at an intrinsic value of N6 to reflect the recent numbers posted for 2017.

Over the past five years specifically, the company’s turnover grew by 16.45% to N53.23bn from N45.71bn in 2013 after touching a high of N55.08bn in 2014, while within the same period, profit after tax has oscillated to a negative position of N3.02bn in 2016 and low of N1.12bn 2015 from N2.84bn in 2013, representing 51.41% growth to N4.5bn.

The company’s profit level has been unstable in the five-year period and at the beginning of the financial year 2017. In the same vein, dividend payout has been irregular to indicate its earnings power that may result in investors retention of its shares, while the company's current shareholding structure and float are expected to support its share price.



Source: NSE, Company Report &Investdata Research


Profitability Ratios
The company’s rebounding earning power and low P/E ratio of 3.24x as against the 5.61x in 2013, has reduced investors' waiting period to recoup their investment as at 2017 release date. Along with the high estimated Earnings Yield of 30.84% of the price.

Please note that the fluctuations recorded year-on-year in P/E ratio and Earnings Yield in the table below was due to the company’s unstable earnings and price movement. Estimated ratios show that the Book Value of company has not been stable in the last five years. Also, profit margin has been low significantly, due to the increasing cost of operations from a low of 2.28% in 2015 to 8.09% in 2017. Return on Equity for investors have been mixed also for five years as depicted in the table below.
HONEYWELL FOLUR PLC- ESTIAMATED RATIOS

2013
2014
2015
2016
2017
Earnings Per Share
0.36
0.42
0.14
-0.38
0.54
PE Ratio
5.61
10.06
24.78
-4.64
3.24
Earnings Yield
17.84
9.94
4.04
--21.54
30.84
Book Value
2.34
2.60
2.56
2.06
6.60
Price To Book
0.86
1.64
1.37
0.86
0.27
ROE (%)
15.33
16.27
5.51
-18.48
8.23
Profit Margin (%)
6.22
6.08
2.23
-5.94
8.09
Year End
March
March
March
March
March
Source: Company Financial &Investdata Research


https://investdataltd..com.ng/2017/07/honeywell-flour-earnings-rebound-on.html

HOW TO READ FINANCIAL STATEMENTS OF COMPANIES

Before taking an investment decision on a stocks, even if it is a "brand name" with seemingly predictable growth prospects, a solid understanding of its financials always is very necessary for any investor.

You don't have to be an expert or get too far into the weeds. However, if you want to be a savvy stock investor, you should understand the importance of crucial financial concepts, such as Return on Equity and free cash flow. That's particularly true, if you're considering an investment in a company that may become involved in future uncertainties.
Think of financial statements as a company's medical charts, and you the doctor who's using these charts to determine a diagnosis as to the company's financial health.

Here are the "Big Three" pointers in any financial statement:

• The balance sheet of a company gives a snapshot of its financial health condition. The majority of public companies publish an interim balance sheet each quarter and a comprehensive one at the end of their fiscal year.
Typically, the end of the calendar year is defined as the end of a reporting year. The balance sheet reveals a firm's financial resources and obligations at a given moment in time.

• The income statement summarizes a firm's financial transactions over a defined period of time. The balance sheet and income statement match money coming in (revenues) with the expenses tied to generating those revenues.

• The cash flow statement reflects a company's liquidity. Generally expressed, a healthy company will spend and hang onto less money than it takes in. The difference is the profit distributed to the shareholders and owners. This is called a "positive cash flow."

Let's take a closer look at all three elements.

The Balance Sheet

The balance sheet will give you an indication as to the sensitivity of a company's bottom line to market ups and downs—especially important knowledge, for cyclical firms whose fortunes are tied to economic conditions. The balance sheet will reveal the company's risks during hard times and its upside during good times.

What follows is a breakdown of the most important lessons that you can learn from a balance sheet—the meaning of key terms, and how to extract and interpret information that are of most use to investors.

The balance sheet is broken into two sides. Assets are on the left side, while on the right is the company's liabilities and shareholders' equity.
The balance sheet is said to be "balanced" when the value of the assets equals the combined value of the liabilities and shareholders' equity.

The balance sheet is therefore: Assets equal Liabilities, plus Shareholders' Equity.

In other words, it is sectioned into two and according to the assets (the inherent means necessary to keep the company operating). It is "balanced" by: 1) the company's financial obligations, and 2) equity investment and retained earnings.
Scrutinize these aspects:

• Current assets

Current assets can be easily turned into cash, because they have a lifespan of 12 months or less. These assets include accounts receivable, and inventory cash and cash equivalents. Cash includes non-restricted cheques and bank accounts. Cash equivalents include extremely safe assets, such as Treasury Bills that can be easily transformed into cash.

• Non-current assets

Non-current assets are those that can't be easily converted into cash; they have a lifespan of more than a year. This class of asset includes buildings, land, machines, computers, etc. Non-current assets also can be intangible assets, such as patents, copyrights, or other intellectual property.

• Liabilities

Liabilities reside on the other side of the balance sheet. They include a company's financial obligations to outside parties. As with assets, they are classified as either current or long-term.

• Long-term liabilities, these financial obligations are debts as well as non-debts, due after a period of at least one year from the balance sheet's date.

• Current liabilities, these are the company's liabilities that must be paid within 12 months. These include both short-term borrowings, such as accounts payables, and the current payment on long-term borrowing.

• Shareholders' equity, this is the initial amount of money invested into a business. If, at the end of the fiscal year, a company (after taxes) decides to reinvest its net earnings or profit after tax into its operations. This retained earnings will be transferred from the income statement onto the balance sheet and therefrom into it shareholder's equity or funds account. This shareholders' fund account represents a company's total net worth.

The Income Statement

With a greater understanding of the balance sheet and how it is constructed, we can now look at the income statement.

Here's a breakdown of the important aspects for investors:

• Gross profit

Gross profit is the basic difference between the cost of production and/or rendering services and the revenues generated in the process. The selling, general and administrative (SG&A) expenses category entails administrative and marketing cost and overhead involved in operating the business. Another category is expenses for research and development (R&).

• Operating profit

This statistic is calculated as:

Operating Profit = Operating Revenue – Operating Expenses

Operating profits are earned from a company's everyday core business operations. This figure doesn't account for any profit earned from the company's investments and the effects of interest and taxes. Operating profits also are called "Earnings Before Interest and Tax" (EBIT).

The Cash Flow Statement

A cash flow statement shows how changes—the continual ebb and flow, if you like—in balance statement. Simply put, the cash flow statement reflects the flow of cash in and out of the company.
The cash flow statement is an important barometer for investors, because it reveals the short-term viability of a company. Most importantly, it can show you the ability of a company to pay its bills or meet maturing obligations.

The cash flow statement leaves out transactions that don't directly affect cash receipts and payments; it only includes inflows and outflows of cash (or cash equivalents).

The cash flow statement directly applies to activities related to these three areas: financing, operating and investing. As an investment tool, it is the best way for you to determine a company's liquidity and solvency.

• Free cash flow, this indicator is crucial. Here's the formula for determining free cash flow:

Net Income

+ Amortization/Depreciation
- Changes in Working Capital
- Capital Expenditures
= Free Cash Flow

Essentially, free cash flow is operating cash flow minus capital expenditures. It represents the cash that a company is capable of generating after spending all of the money necessary to maintain its asset base.

As an investor, think of free cash flow as "steroids" that boost the growth rate of the company. That's because free cash flow can be used to make acquisitions, repurchase stock, or repay debt, all of which are highly positive actions that enhance earnings per share.

Financial Ratio Analysis, Using the yardsticks conveyed by these financial statements, you can perform interpretive analysis of the company's finances and its operations, to assist you in your efforts to gauge the company's suitability as an investment. This is known as "financial ratio analysis."

When scrutinizing financial statements and extracting certain numbers from them, you can calculate financial ratios that provide you with a clearer understanding of the company's financial condition, as well as the efficiency of its operations.

It's not as complicated as it sounds. Keep in mind, though, that to perform some of these ratios, you'll need to extract information from more than one financial statement.

The main types of ratios that use information from the balance sheet are activity ratios and financial strength ratios.

Activity ratios focus on current accounts to reflect how efficiently the company manages its receivables, inventory and payables, which all come under the heading of "operating cycle." These ratios can provide insight into the company's operational efficiency.

Financial strength ratios, such as the working capital and debt-to-equity ratios, provide information on how well the company can meet its obligations and how they are leveraged.

• Debt-to-equity ratio

The ratio is determined this way: D/E = Debt(liabilities)/equity.

This ratio reveals the company's financial leverage. Debt that has been financed with every Naira of equity would constitute a ratio of 1; scant debt compared to assets would represent a low ratio, such as 0.2. Any ratio above 1 tells you that the company owes more than it's actually worth—surely, not a good sign for investors.

• Working capital (or current) Ratio
Here's the formula for determining this ratio:

Current assets

= Current liabilities

The working capital ratio can give you inklings as to the company's financial stability and the manner in which it finances itself. A declining working capital ratio over a sustained period of time is a very bad sign.

• Return on equity (ROE)

For investors, this ratio is hugely important. It is calculated by dividing the net income by the shareholder's equity. It is a measure of the company's Rate of Return on the money provided by its owners. An ROE of about 12% is roughly the average for public companies.

Now that you're armed with the basics of financial statement analysis, sharpen your pencil and put on your green eyeshades. You're ready to do some financial tracking—if not for fun, then certainly for profit.


https://investdataltd..com.ng/2017/07/how-to-read-financial-statements-of.html

CORPORATE ACTION FOR 14TH JULY TO 7TH AUGUST 2017

https://investdataltd..com.ng/2017/07/corporate-action-for-14th-july-to-7th.html

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED JULY 21, 2017

MARKET UPDATE FOR WEEK ENDED JULY 21 AND OUTLOOK FOR JULY 24-28

INVESTORS BEGIN COUNTDOWN AHEAD OF JULY 31 DEADLINE FOR Q2 EARNINGS REPORTS

Nigeria’s equity market last week closed strong and positive to continue its bullish run that was driven by positive economic data and impressive numbers emanating from the manufacturing sector, especially Unilever’s local arm, Lafarge Africa, Honeywell and Flour Mills,while stocks in the financial services sector that have so far published their results revealed mixed performance. In particular, insurance companies have so far remained dominant among those making their numbers available to the Nigerian Stock Exchange (NSE) earlier this season than before.

Those stocks that have so far presented their half-year score-cards include: NEM, Guinea Insurance, Lasaco and United Capital, Wema Bank. In the past week, Africa Prudential has presented an impressive half year report which beat market expectations.
Another booster of the NSE’s bull-run is news of plans by the Federal Government to listits assets on the exchange to further deepen the market and raise funds needed to support its infrastructural development drive.

Market performance on the last trading day of last week was particularly strong, emerging the highest gain for the period as banking stocks were in high demand ahead of their interim dividend declaration, which does not seem capable of being blighted by last week’s court ruling that United Bank for Africa, Diamond Bank, Skye Bank, First Bank, Fidelity Bank, Keystone Bank and Sterling Bank should return about $793m to the Federal Government’s Treasury Single Account (TSA) with the CBN. The banks have continued to react since the ruling insisting on their innocence. Besides Sterling Bank, United Bank for Africa, on Friday said it “has fully remitted all NNPC/NLNG dollar deposits since August 24, 2016.”

It emphasized in the statement “that none of such funds are currently in the bank’s books,” this, it continued, has been “further corroborated by a clearance memo published by CBN on its website on same date.”
Such news or court ruling, where not properly managed, it is believed, is capable of deflating the confidence that is gradually returning to the economy and stock market.
Also, INVESTDATA believes that if the Federal Government is really ready to achieve its Economic Recovery Growth Plan (ERGP),there must be a change in the style of implementing the budget, especially that of 2017, just as it must manage information among the three arms of government to ensure that the desired rebound of the economy from recession is not truncated by actions or statements from any arm or agency of government.

The recent refund of second tranche of the Paris club deduction to state governments is expected to further boost the economy with many of the state governments using the money to settle backlog of salaries thereby strengthening disposable income among the citizenry.

The volume index for the week under review was 1.14 with buying position at 98% and 2% selling volume of the total transaction as investors and traders continued their repositioning ahead of the statutory deadline for quoted companies to release their Q2 numbers as well as the meeting of the CBN’s Monetary Policy Committee(MPC).

The benchmark Index for the week gained 758.71 points to close at 33,261.66 points, from an opening figure of 33,261.66 points, representing a 2.30% growth on a huge volume of transactions to breakout the psychological line of 34,000 again to confirm a healthy trendy market. With the positive momentum ahead of the last full week of earnings reporting season the possibility of breaking out the recent market high of 34,384.70 is high to continue the recovery move of the market ahead of improving economic fundamentals.

In the same vein, market capitalisation for the period closed higher at N11.73tr from an opening value of N11.46tr, representing a 2.28% appreciation in investors’ position.
The best performing stocks table for the period was dominated by low and medium cap stocks, as investors and traders took advantage of pullbacks in the stocks to position so as to ride with the rallying market, particularly when their Q2 numbers are yet to be released.
The upturn in share prices for the week pushed the NSEASI’s year-to-date return to 26.59%, just as market capitalisation appreciated by N2.57tr, representing a 26.98% gain from the year’s opening value.

Market breadth for the period was positive with the number of advancers outpacing decliners in the ratio of 36:33 on a huge volume of trades to reflect buying a market with expectation.
Stock markets around the world were mixed as crude oil price fluctuation continued, especially on the back of meetings of the Bank of Japan (BOJ) and the European Central Bank (ECB) during the week, with both officially assuming the responsibility of sustaining global liquidity. Given the little progress made on the pro-growth Donald Trump policy front, the offset for rising Fed interest rates has been Quantitative Easing in Europe and Japan.

Japan’s Nikkei and Britain’s FTSE 100 for the period recorded growth, while Germany‘s DAXand U.S market indexes were mixed to close lower. TheU.S. market indexes were mixed despite the good numbers of positive economic indicators that were release within the period, especially housing stars that rebounded to 1.215m in June. Jobless claims came lower than expected at 233,000 last week, while the index leading economic indicators posted better than expected 0.6% gain last month. All these gains and improvement were offset by falling crude oil prices that hurt the energy sector, amidst the rising political risk that threatens lofty valuations.

In Europe, investors are concerned that the zone’s growth may be at risk again after on unexpected decline in consumer confidence. The upshot is that the first quarter deficit fell to a 10 year low which means public finance is improving. In Asia, the Chinese economy is projected to grow 6.6% in 2017which exceeds government’s target despite policy curbs. The Bank of Japan (BOJ) offered its most upbeat assessment of the country in over a decade and plans to maintain its Quantitative Easing as loose monetary policy, until inflation surfaces.

Back home, the All-Share Index opened the week on a positive note, rising 0.12%, which was sustained during the week on the rising magnitude of gains. As Friday trading session had the highest gain of 0.98% to close the week higher with 2.30%.
The All-Share and other sectoral indexes for the period closed the week in green, except for NSE Insurance that was in red with 2.81% due to mark down and profit booking from the sector, while NSE ASeM closed flat.

The week’s activities, measured by aggregate volume and value, were up by 185.83% and 149.39% respectively to 3.63bn from the previous week’s 1.27bn units, worth N34.89bn, compared to previous week’s N13.99bn.
During the week also, 10 quarterly earnings reports and two full year numbers were made available to the market.

At the end of last week’s trading, Skye Bank topped the advancers table with a gain of 19.69% to close at N0.73, driven by market forces, based on news of the extension of the CBN lifeline and recovery of N60bn toxic loans. It was followed by Unilever Nigeria’s 16.12% gain to close at N38.32 on the impressive Q2 numbers released last week. The decliners’ logon the other hand was led by AXA Mansard Insurance and AG Leventis, which lost 8.97% and 7.69% to close at N2.03 and N0.72 each owing to profit taking.

Market Outlook
The market is expected to be mixed this week as more companies release their numbers ahead of the deadline of July 31 and profit taking from the current uptrend. Also,it is the week of the MPC meeting and expectations are that the committee will maintain its policy stance, expecting fiscal authorities to up their games to support the economic recovery and usher in growth by implementing the 2017 budget in the manner that Nigerians will feel the impact.
Bearing all these in mind,investors should position in stages in value stocks with high upside potentials, despite their current prices on the exchange.

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

Attention!!!!!!!!!!!!!! Attention!!!!!!!!!!!!!!!!!!!!!! Attention!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
In the game of life there are two groups of people - those who focus on short term gains and immediate needs even if it means they struggle to reach their bigger goals, and those who are prepared to make short term sacrifices and invest time improving themselves to get the huge improvements for the rest of their life.

This is revealed in the workshop video and materials. Grab your copy now and ride with the recovery stock market and economy.
https://investdataltd..com.ng/2017/07/market-update-for-week-ended-july-21.html

CAUTION, AMIDST WATCH FOR MARKET REACTION TO COURT RULING ON $800M TSA REFUND ON BANKING STOCKS


MARKET UPDATE FOR JULY 20, 2017

Trading on the floor the Nigeria Stock Exchange (NSE) on Thursday recorded a relatively big gain compared to other days since the week began to continue an 11- day uptrend, despite volatile session during which its benchmark All-Share index touched an intraday high of 33,702.61 and then a low of 33,435.98 before closing the session higher at 33,695.83.
The index fell as the market opened and moved up in the mid session strongly,a move that was consolidated again by the afternoon. The market trailed a little, but it was a solid session, although there was low volume of trade.

Sentiments in the market were positive as demand for stocks were high as more impressive Q2 numbers are being released. Earnings reports released during trading included the impressive Q2 numbers of Lafarge Africa which moved from a loss in the corresponding period of 2016 to profit of N19.19bn;and mixed numbers for the same period from Transcorp Hotel.

The volume traded index for the day was 0.50 as buying position had 97%, while selling volume was 3% of the total transaction. The NSE Insurance index closed in red as short-term players took profit as long-term investors who see growth potentials wait for earnings to confirm the sector position.
The banking and petroleum marketing indexes on Thursday remained positive as investors continued to buy into stocks within these sectors likely to pay Q2 interim dividend, even as the board of United Bank for Africa, one of the stocks on investors’ radar, at their meeting approved the earnings report and payment of dividend, while awaiting Central Bank of Nigeria (CBN) approval before notifying the exchange.

Stock markets around the world were mixed to close higher, despite the continued fluctuation of oil price and dwindling value of the U.S$, following the outcome of meetings of the Bank of Japan (BOJ) and the European Central Bank (ECB), both of which have assumed the responsibility of sustaining global liquidity. This as we know, keeps stock and real estate markets on the rise, even as rates drop lower or stable. Given the little progress made on the pro-growth Donald Trump policy front, the offset for rising Fed interest rates has been Quantitative Easing in Europe and Japan.
Meanwhile, the benchmark ASI gained 180.90 basis points on Thursday to close at 33,695.83 after opening at 33,514.93 points, representing a 0.54% growth on low transaction volume that was lower than previous day’s. Similarly, market capitalisation rose by N62.35bn to close at N11.61tr from an opening value of N11.55tr, representing a 0.54% growth in the worth of investor’s portfolio.
Price appreciation in the shares of medium and high cap stocks impacted the All-Share index to boost year-to-date returns to 25.38%. Also, market capitalisation over the same period improved by N2.37tr, representing a 26% growth over the year’s opening value.

Market breadth for the day was positive and strong as the number of advancers outnumbered decliners in the ratio of 29:19 on a low volume of trade to continue the 11-day bull-run. Market transaction in terms of volume and value were down by 42.24% and 32.76% respectively at 191.43 million shares worth N2.18bn, from the previous day’s 331.43m units valued at N3.24bn.
Transactions in the shares of Prestige, Guaranty Trust Bank, FBNH, Zenith Bank and Transcorp topped the volume chart to close the day’s trade.

At the end of the day’s trading activities, Nemeith topped the advancers’ log, gaining 9.52% to close at N0.92 each on expectation of its Q3 numbers and impact of the Federal Government’s policy on the sector.It was followed by Skye Bank with a 9.52% gain to close at N0.69 per share, on market forces and extension CBN guaranty, added to its recovery of N60bn from its pool of toxic loans.
On the flipside, 7-Up led the decliners’ log after dropping 4.99% to close at N90.20 on profit taking activities of investors and traders; ahead of Vitafoam’s 4.99% decline to close at N2.56per unit on market forces.

TODAY’S OUTLOOK
As trading opens this morning, expect mixed performance as market to react to Lagos High Court judgement that banks should return $793m to the Federal Government’s Treasury SingleAccount (TSA) with the CBN. Thereafter, the banks affected: United Bank for Africa, Diamond Bank, Skye Bank, First Bank, Fidelity Bank, Keystone Bank and Sterling Bank are to appear before the court on August 8 to explain why they had withheld the funds.

Before then, the management of Sterling Bank, on Thursday, denied reports alleging that it is hideously keeping huge sums allegedly belonging to the National Petroleum Investment Management Services (NAPIMS) and Nigerian Petroleum Development Company (NPDC).
In a statement by Henry Bassey, its Chief Marketing Officer, Brand Management & Communications Group, denied that it failed to remit the sum of $46.5m to a designated Federal Government Asset Recovery Account with the CBN.The amount supposedly represents undisclosed qualifying funds under the TSA policy illegally kept by NAPIMS and NPDC.

“We wish to state unequivocally that Sterling Bank does not hold any sum in any currency as a deposit from either of these entities.
“We have therefore written formally to the Office of the Accountant General of the Federation (AGF) demanding a clarification of this claim and a correction in the interest of the general public,” the bank added.

Meanwhile, more companies have continued to release their Q2 numbers as the earnings reporting season enters its peak. Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock, but fix their gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.

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 is 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. 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.

Meanwhile, we say a very big THANK YOU to all participants that made the INVESTDATA workshop a huge success, even as stocks recommended during the workshop continue to rally and activities in the various sectors identified as those to invest in this second half of 2017 are looking up and promising to lead the rest of the year in performance and returns.
To book for the WORKSHOP VIDEO and SOFT COPIES of WORKSHOP MATERIALS send YES to 08028164085 and 08111811223.

https://investdataltd..com.ng/2017/07/caution-amidst-watch-for-market.html

NIGERIA’S INDEX SUSTAINS UPTREND AS Q2 SEASON PEAKS, INVESTORS KEEP EYES ON TRANSCORP

Market Update for July 19, 2017

Nigeria’s stock market indices had a good day nonetheless on Wednesday asthe volatility and mixed performance continued even as it sustained its 10th straight dayof uptrend on above average traded volume. The market from the opening hour gapped up to consolidated a continuation chart pattern until almost the close of the day’s trading before pulling back marginally to 33,514.93 after touching an intraday high of 33,658.67 at midday,holding support above the last resistance level.
At the end of the day, the index continued to move higher, amidst expectation of more positive Q2 numbers as the earnings reporting season enters its peak, which is lower than its recent height of 34.384.70.

Africa Prudential Plc’s impressive Q2 scorecard may have given an insight into what investors should expect of some companies this season, considering the impact of investment income on the bottom line of Afriprud and its sister- United Capital, and despite the flat position of Wema Bank financials for second quarter.
The volume traded index at 0.83 as buying position was 35% while selling volume was 65% of the total transaction for the day. The NSE Consumer Goods index closed flat as traders were taking profit while investors are waiting for more earnings reports from the sector. The retracement in the sectoral index of financial services and petroleum marketing on Wednesday shows repositioning by investors in stocks within these sectors to take advantage of the earlier pullbacks ahead of Q2 interim dividend payment, that are historical common to some of the companies in both sectors.

Meanwhile, the composite NSE All Share index gained 78.62 basis points on Wednesday to close at 33,514.93 after opening at 33,436.61 points, representing a 0.23% growth on above average market traded volume that was lower than previous day’s trades. Similarly, market capitalisation was up by N26.99bn to close at N11.55tr from an opening value of N11.52tr, representing a 0.23% value gain for the day.

The upturn in the share price of NB, GTBank, UBA, Zenith Bank, ETI, Stanbic IBTC, FBNH, Okomu Oil, Guinness, Seplat, Oando and PZ impacted the All-Share index to boost year-to-date returns to 24.71%. Also, market capitalisation over the same period improved by N2.29tr, representing a 24.96% notch above the year’s opening value.

Market breadth for Wednesday was slightly positive but weak as the number of advancers outpaced decliners in the ratio of 25:24 on a high volume of trade to continue the 10-day up market in a row. Market transaction in terms of volume and value were down by 86.21% and 84.98% respectively at 331.43m shares worth N3.24bn, from the previous day’s 2.4bn units valued at N21.61bn.
Activities in the shares of Zenith Bank, UBA, FBNH, Custodian and NEM Insurance topped the volume chart to close the day’s trade.

At the end of the day’s trading activities, Transcorp topped the advancers’ log, gaining 8.76% to close at N1.49 each on expectation of its Q2 numbers and impact of government disbursement of N17.6bn to the power sector against the background of the fact that its power distribution subsidiary (Transcorp Power) is now Nigeria’s highest power generator at peak of 530 megawatts, representing 18% of all power in Nigeria last week. The company assured on its twitter handle during the week that the achievement is not happenstance, being the outcome of a planned intervention and investment expected to make investors better off on the medium to long-term. In the words of Tony Elumelu, chairman of Transcorp Plc: “We took over the Ughelli Power plant (now Transcorp Power Ltd) in 2013 and it was generating 160mw of power. Today, after investing over $300m we are at 670Mw.”

Transcorp was followed by Skye Bank with a 5.00% gain to close at N0.63 per share, on market forces and extension CBN guaranty, added to its recovery of N60bn from its pool of toxic loans.
On the flipside, Presco led the decliners’ log after dropping 4.99% to close at N61.32 on profit taking activities of investors and traders. It was followed by MRS Oil’s 4.99% decline to close at N35.44per unit on market forces.

TODAY’S OUTLOOK
As trading opens this morning, expect the uptrend to continue as more companies release their Q2 numbers and the earnings reporting season enters its peak period. Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock, but fix their gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.

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 is 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. 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.

Meanwhile, we say a very big THANK YOU to all participants that made the INVESTDATA workshop a huge success, even as stocks recommended during the workshop continue to rally and activities in the various sectors identified as those to invest in this second half of 2017 are looking up and promising to lead the rest of the year in performance and returns.
To book for the WORKSHOP VIDEO and SOFT COPIES of WORKSHOP MATERIALS send YES to 08028164085 and 08111811223.

MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
Phone 08028164085, 08032055467
https://investdataltd..com.ng/2017/07/nigerias-index-sustains-uptrend-as-q2.html

UPTREND MAY CONTINUE ON NIGERIA’S BOURSE AS MORE COMPANIES PRESENT Q2 NUMBERS

MARKET UPDATE FOR JULY 18, 2017

Tuesday’s was an interesting but mixed and volatile trading session at the Nigerian Stock Exchange (NSE) as its composite NSE All-Share Index caved into pressure initially, sliding down in the morning hours. Thereafter, it rose just as sharply as it went down before managing to maintain an uptrend and in the process confirming a breakout of the first resistant level on a high volume of trade. The moving-average however supported and then rebounded to close the day higher. It retested the highs and made higher highs on the index and rolled over by the afternoon.
Market sentiment and expected numbers on Wednesday will determine a breakout at this level to continue the nine-day rally.

The NSE Consumer Goods index closed higher to continue the recovery move in the sector and market with improved demand for stocks as revealed by the volume traded index at 0.79; just as buying position was 100%, with 0% selling volume of the total for the day.
Investors are looking beyond the inflation figure because most of the economic data are backward looking or historical, while stock markets are forward looking as a leading indicator that points to where the economy is heading. One key data pointing to support the economic recovery is corporate earnings, which is being eagerly expected by all class of investors and traders as such numbers give a hint of where the stock is headed and if indeed it worth holding for the short, medium or long-term, depending on investment horizon and objective, especially with consumer goods stocks looking attractive at this point. Also, the current pullbacks in the financial services and petroleum marketing sectors are creating opportunity for traders and investors to take advantage and position ahead in companies with history of Q2 interim dividend payment, many of which are found in both sectors.
Stock markets around the world were mixed with the global interest rate spreads in the U.S. are narrowing as oil price continued to oscillate on high demand from China and the weakening U.S. Dollar. Among the winners arising from the weakness of U.S. Dollar are the Euro and the European stock markets.

Meanwhile, the All-Share Index gained 135.18 basis points yesterday to close at 33,436.61 after opening at 33,301.43 points, representing a 0.41% growth on huge volume traded that was higher than previous day’s trades. Similarly, market capitalisation went up by N46.59 billion to close at N11.52 trillion from an opening value of N11.48 trillion, representing a 0.41% value appreciation.
Value gained in low, medium and high cap stocks impacted the All-Share index, to boost year-to-date returns to 24.42%. Also, market capitalisation over the same period improved by N2.28 trillion, representing a 24.62% gain above the year’s opening value.

Market breadth for Tuesday was positive as the number of advancers outpaced decliners in the ratio of 25:19 on a huge volume of trade to continue the nine-day bull transition, while transaction volume and value were up by 664.59% and 690% respectively at 2.4bn shares worth N21.61bn, from the previous day’s 322.86m units valued at N2.73bn.
Note that the high amount recorded in the volume and value seen on the market statistic table which differs from that on the price list was because of the special resolution performed by UBA shareholders to cancel shares held under Staff Investment Trust Scheme (SSIT). In order to effect the cancellation, United Bank for Africa (UBA Plc) took to the equities market a cross deal of about 2bn units from the SSIT to the bank (<a href="http://investdata.com.ng/2017/07/uba-buys-back-set-cancel-2-08bn-shares-book/#more">READ</a>). This does not in anyhow affect the bank’s financial position, rather it enhancing shareholders percentage holdings while boosting the earnings position in terms of supporting higher Earnings Per Share and dividend payment that will drive price in the short, medium, or long term.

Transactions in the shares of UBA, CONTINENTAL REINSURANCE, FBNH, OANDO and SKYE BANK topped the volume chart to close the day’s trade on news of the extension of the CBN's lifeline for another year and the management's successful recovery of N60bn of its bad loans in the past one year (<a href="http://investdata.com.ng/2017/07/skye-bank-recovers-n60bn-bad-loans-cbn-extends-guarantees/">Read</a>).

At the end of the day trading, Honeywell Flour topped the advancers’ log, gaining 8.29% to close at N1.96 each on impressive Q4 numbers laced with the dividend of 6kobo. This is besides expectations of an even more impressive Q1 helped by the sustained intervention of the Central Bank of Nigeria (CBN) in the FX market that continues to reflect on numbers from this and other sectors. It was followed by UBN with a 5.00% gain to close at N5.67 per share, on market forces and expectation of its Q2 numbers at a time the bank’s repositioning is likely to better impact on bottom line.
On the flipside, May & Baker led the decliners’ log after dropping 5.02% to close at N2.65 on profit taking activities of investors and traders. It was followed by AXA Mansard, 4.93% decline to close at N2.12 on market forces and profit taking.

TODAY’S OUTLOOK

With the market opening this morning, expect the uptrend to continue as more companies release their Q2 numbers and the earnings reporting season enters its peak period. (Note: The benchmark index was 0.41% up at 10.30am on Wednesday). Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock, but fix their gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.
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 for the repeated time that industry potential is 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. 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.

Meanwhile, we say a very big THANK YOU to all participants that made the INVESTDATA workshop a huge success, even as stocks recommended during the workshop have started rallying and activities in the various sectors identified as those to invest in this second half of 2017 continue to look up and promising to lead the rest of the year in performance and returns.
<strong>To book for the WORKSHOP VIDEO and SOFT COPIES of WORKSHOP MATERIALS send YES to 08028164085 and 08111811223</strong>

https://investdataltd..com.ng/2017/07/uptrend-may-continue-on-nigerias-course.html

INVESTORS EYE ROBUST EARNINGS REPORTS, ECONOMIC DATA FOR SUSTAINED BULL-RUN ON NSE


MARKET UPDATE FOR JULY 17, 2017

The nation’s stock market opened the week on a positive note to continue its up trend, marginally breaking out the first resistance level at 33,261.66 on improved volume of trade to reflect the earnings reporting season sentiments which United Capital and Unilever kicked off, presenting mixed performances.
The increasing demand for consumer goods ahead of their quarterly numbers revealed high hope for better performance as recent numbers emanating from the industry showed strong recovery. This is against the backdrop of the Central Bank of Nigeria’s continued intervention in the foreign exchange market, which is having positive impact on numbers from the sector, even as economic fundamentals continue to improve. Monday’s holding was just above the record levels set on Friday. Reason for the slow start? Earnings. That's right, it is another earnings season and we're kicking off a big week of earnings with impressive and even robust numbers from Unilever.

The two-day pullback in the NSE Banking index is creating opportunities for investors and traders to reposition ahead of expected interim dividend payment from players in the sector. The inflation figure for June released on Monday by the National Bureau of Statistics (NBS)at 16.1% came in line with market expectation of further decline from 16.25% in the month of May to 16.10% resulting in five consecutive months of declines. Many analysts were however somewhat disappointed having expected that the figure would come at below 16%.

Stock markets around the world closed higher as oil prices strengthened on Monday, supported by a slowdown in the growth of rigs looking for crude in the United States and because of strong refinery demand from China. In addition to continued weakening of the US$ against other world currencies as traders exit their forward positions.

Meanwhile, the benchmarkNSEAll-Share Index gained 39.77 basis points on Monday to close at 33,301.43 after opening at 33,261.66 points, representing a 0.12% growth on high volume traded that was marginally higher than previous day’s trades. Similarly, market capitalisation was up by N13.71bn to close at N11.48tr from an opening value of N11.46tr, representing a 0.12% value gain in investors’ portfolios.

The upturn in the share price of Unilever, Nestle, Flourmills, NB, 7UP, FO, Okomu Oil, ETI, Zenith Bank, GTBank and Dangote Cement impacted the All-Share index, to boost year-to-date returns to 23.91%. Also, market capitalisation over the same period improved by N2.23tr, representing a 24.10% gain above the year’s opening value.
Market breadth for the day was negative as the number of decliners outnumbered advancers in the ratio of 27:23 on a high volume of trade to continue the eight-day up market.
Market activities in terms of volume and value were mixed as volume was up marginally by 3.60% to 322.81m shares from the previous day’s 311.61m while value was down by 16.40%to N2.73bn, as against the previous day’s N3.27bn.

Transactions in the shares of Niger Insurance, FBNH, FCMB, UBAand Flourmills topped the volume chart to close the day’s trade.
At the end of the day trading, Forte Oil topped the advancers’ log,gaining 7.71% to close at N60.50 each on expectation of its Q2 numbers with improvement in its power business impacting bottom line. It was followed by 7-Up with a 6.41% gain to close at N94.95 per share, on market forces and expectation of its Q1 numbers to bring hope after a dismal full-year performance.

On the flipside, Oando led the decliners’ log after dropping 9.54% to close at N6.83 on negative market sentiment, following news report of an ongoing investigation by the Securities & Exchange Commission(SEC). It was followed by Nascon’s 5.00% decline to close at N9.03 on market forces and profit taking.

TODAY’S OUTLOOK

With the market opening this morning, expect the uptrend to continue as more companies release their Q2 numbers and the earnings reporting season enters its peak period, in addition to market reactions to the June inflation rate of 16.10%. Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock, but fix their gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.
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.

We must stressed for the repeated time that industry potential is 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. 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/2017/07/investors-eye-robust-earnings-reports.html

INVESTORS EYE ROBUST EARNINGS REPORTS, ECONOMIC DATA FOR SUSTAINED BULL-RUN ON NSE


MARKET UPDATE FOR JULY 17, 2017

The nation’s stock market opened the week on a positive note to continue its up trend, marginally breaking out the first resistance level at 33,261.66 on improved volume of trade to reflect the earnings reporting season sentiments which United Capital and Unilever kicked off, presenting mixed performances.
The increasing demand for consumer goods ahead of their quarterly numbers revealed high hope for better performance as recent numbers emanating from the industry showed strong recovery. This is against the backdrop of the Central Bank of Nigeria’s continued intervention in the foreign exchange market, which is having positive impact on numbers from the sector, even as economic fundamentals continue to improve. Monday’s holding was just above the record levels set on Friday. Reason for the slow start? Earnings. That's right, it is another earnings season and we're kicking off a big week of earnings with impressive and even robust numbers from Unilever.

The two-day pullback in the NSE Banking index is creating opportunities for investors and traders to reposition ahead of expected interim dividend payment from players in the sector. The inflation figure for June released on Monday by the National Bureau of Statistics (NBS)at 16.1% came in line with market expectation of further decline from 16.25% in the month of May to 16.10% resulting in five consecutive months of declines. Many analysts were however somewhat disappointed having expected that the figure would come at below 16%.

Stock markets around the world closed higher as oil prices strengthened on Monday, supported by a slowdown in the growth of rigs looking for crude in the United States and because of strong refinery demand from China. In addition to continued weakening of the US$ against other world currencies as traders exit their forward positions.

Meanwhile, the benchmarkNSEAll-Share Index gained 39.77 basis points on Monday to close at 33,301.43 after opening at 33,261.66 points, representing a 0.12% growth on high volume traded that was marginally higher than previous day’s trades. Similarly, market capitalisation was up by N13.71bn to close at N11.48tr from an opening value of N11.46tr, representing a 0.12% value gain in investors’ portfolios.

The upturn in the share price of Unilever, Nestle, Flourmills, NB, 7UP, FO, Okomu Oil, ETI, Zenith Bank, GTBank and Dangote Cement impacted the All-Share index, to boost year-to-date returns to 23.91%. Also, market capitalisation over the same period improved by N2.23tr, representing a 24.10% gain above the year’s opening value.
Market breadth for the day was negative as the number of decliners outnumbered advancers in the ratio of 27:23 on a high volume of trade to continue the eight-day up market.
Market activities in terms of volume and value were mixed as volume was up marginally by 3.60% to 322.81m shares from the previous day’s 311.61m while value was down by 16.40%to N2.73bn, as against the previous day’s N3.27bn.

Transactions in the shares of Niger Insurance, FBNH, FCMB, UBAand Flourmills topped the volume chart to close the day’s trade.
At the end of the day trading, Forte Oil topped the advancers’ log,gaining 7.71% to close at N60.50 each on expectation of its Q2 numbers with improvement in its power business impacting bottom line. It was followed by 7-Up with a 6.41% gain to close at N94.95 per share, on market forces and expectation of its Q1 numbers to bring hope after a dismal full-year performance.

On the flipside, Oando led the decliners’ log after dropping 9.54% to close at N6.83 on negative market sentiment, following news report of an ongoing investigation by the Securities & Exchange Commission(SEC). It was followed by Nascon’s 5.00% decline to close at N9.03 on market forces and profit taking.

TODAY’S OUTLOOK

With the market opening this morning, expect the uptrend to continue as more companies release their Q2 numbers and the earnings reporting season enters its peak period, in addition to market reactions to the June inflation rate of 16.10%. Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock, but fix their gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.
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.

We must stressed for the repeated time that industry potential is 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. 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.

Meanwhile, we say a very big THANK YOU to all participants that made the INVESTDATA workshop a huge success, even as stocks recommended during the workshop have started rallying and activities in the various sectors identified as those to invest in this second half of 2017 continue to look up and promising to lead the rest of the year in performance and returns.
To book for the WORKSHOP VIDEO and SOFT COPIES of WORKSHOP MATERIALS send YES to 08028164085 and 08111811223

MR. OMORDION AMBROSE
CHIEF RESEARCH OFFICER
INVESTDATA CONSULTING LIMITED
ambroseconsultants@yahoo.com
Phone 08028164085, 08032055467
https://investdataltd..com.ng/2017/07/investors-eye-robust-earnings-reports.html

MARKET UPDATE FOR WEEK ENDED JULY 14 AND OUTLOOK FOR JULY 17-21, 2017

MIXED WEEK AHEAD, AMIDST EXPECTED INFLATION DATA, EARNINGS REPORT, BUDGET HOPES

Nigeria’s equity market was bullish last week, recording five straight days of up-market on the back of increasing demand for stocks, especially banking stocks that largely boosted performance for the period and in the process reversed previous week’s pullback. The index,after a healthy rally within the period, consolidated to form a double top which is the first resistance at 33,261.66 points, the same as the June 29 level of 33,269.84. This is likely to break out if the earnings reporting season beat market expectation to keep the trending momentum up as the index had crossed the psychological line of 33,000 within the week.

The NSE Banking index for the period gained 6.1%, outperforming the composite All Share index through the week. Meanwhile, the sector responded to traders’ profit taking activities on Friday when it surrendered 0.21%. The effect of the move was clear as sentiment around resistant level was obvious while momentum slowed down, waiting for a push which the expected Q2 numbers will do if corporate performance remain impressive to surpass expectation.

The banking sub sector still remains one to watch by traders, since it remains the most active with good volume that provides liquidity, allowing for taking and exiting from positions at any time. In any case, the sector accounts for the highest number of companies that pay interim dividend.If the pull back seen on Friday continues on Monday, the gap will provide another opportunity for positioning, especially if you are in cash, a situation we expect traders to capitalize on. Please understand that one major attraction to this sector is the expected half year financials and consistent dividend payment by majority of stocks in the sector. On the strength of the impressive first quarter performance from the sector, most traders have already heightened their expectations.
The volume index for the week under review was 0.94 with buying position at 95% and 5% selling volume of the total transaction as investors and traders continued their last minutes repositioning ahead of the Q2 numbers and inflation figure for June.

At the close of activities for the week on Friday, the benchmark Index gained 802.49 points to close at 33,261.66 points, from an opening figure of 32,459.17 points, representing a 2.50% growth on a high volume of transactions. The retracement of the market above 33,000 on a weekly time frame supported the daily uptrend that signaled investors’ sentiments for positive numbers.
Similarly, market capitalisation for the week closed higher at N11.46tr from an opening value of N11.19tr, representing a 2.47% value gain that boosted investors’ portfolios for the period.
The week’s top performance table was dominated by mixed class of stocks, rangingfrom low, medium to high cap stocks, reflecting a buy market after forming double bottom earlier.
Within the period, price upturn in shares pushedthe NSEASI’s year-to-date return to 23.77%, just as that of market capitalisation appreciated toN1.22tr, representing a 23.98% gain from the year’s opening value.

Market breadth for the period was positive and strong with the number of advancers outweighing that of decliners in the ratio of 48:27 on a high volume of trades to reflect positive investors sentiment.

Global stock markets also closed higher in the past week, as oil prices in the international market were up while the dollar is weakening against major currencies.
Japan’s Nikkei,Germany‘s DAX, Britain’s FTSE 100 and U.S market indexes were up.TheU.S. indexes moved up on testimony of the chairperson of Fed to the effect that the economy is not in danger of overheating, but that inflation remained stubbornly low and the pace of monetary tightening would remain gradual. Also, economic indicators released during week were mixed with the retail sales declining on unexpected 0.2% and industrial production posting a better-than-expected 0.4% increase, boosted by the mining sector. In Europe, the economic recovery will likely be accelerated during the second quarter according to a business survey. The improvement could spark the European Central Bank to consider reducing stimulus measures, but inflation has remained surprisingly weak.

In Asia, the Chinese economy would maintain steady and improving momentum during the second half of this year despite all hurdles. The Bank of Japan (BOJ) offered its most upbeat assessment of the country in over a decade and plans to maintain a loose monetary policy until inflation surfaces.
Back home, the All-Share Index opened the week on a positive note, rising 0.17%, which was sustained during the week on increasing magnitude of gains. It however declined on Friday due to profit taking to record marginal gain of 0.04%. As the week had a bullish transition to close higher with 2.50%.

The All-Share and other sectoral indexes for the period were up to close the week, except the NSE ASeM closed flat.
The week’s activities, measured by aggregate volume and value were up by 19.81% and 13.74% respectively to 1.27bn from the previous week’s 1.06bn units, worth N13.99bn, compared to previous week’s N12.3bn.
During the week also, the share price of Conoil was adjusted for the dividend recommended by theboard, while Unilever and United Capital Plc released their Q2 results to the market, with many other companies release their closed period.

At the end of last week’s trading, Neimeth and Unity Bank topped the advancers table with a gain of 24.62% and 19.67% respectively,closing at N0.81 and N0.73 respectively, driven by market forces and low price attraction on expectation of their Q2 numbers. The decliners’ log was led by Conoil and University Press, which lost 17.43% and 14.12% of the week’s opening price to close at N29.98 and N2.92 each owing tothe price adjustment/activities of market forces and weak earningsrespectively.

Market Outlook
The market is expected to be mixed this week as more companies release their numbers ahead of the implementation of the 2017 budget which is reportedly still being adjusted. Expectations are thatthe budget would boost economy recovery, even as the Economic Report of the Central Bank of Nigeria (CBN) for the month May, released last weekend, indicated that federally collected revenue has been lagging behind the 2017 budget estimates on a monthly basis, especially non-oil revenue. Also, the National Bureau of Statistics would on Monday (July 17, 2017) release inflation data for the month of June, which analysts expects would follow the trend of a gradual decline for the fifth consecutive month year-to-date.

Bearing all these in mind,investors should position in stages in value stocks with high upside potentials, despite their current prices on the exchange.
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

As the market enters the peak period of earnings reporting season for the half-year financial performance watch out for equities with December financial year end. We believed that, those with second quarter cash dividend history will attract more patronage from intelligent investors. In other words, such equities stand a higher chance of improving your portfolio during the season.
Consequently, we have carefully selected few of such equities for your timely investment guide. Please understand that using the information side-by-side the 2017 three-month financial positions will increase the probability of success.

Let the Table in the attached guide you.
https://investdataltd..com.ng/2017/07/market-update-for-week-ended-july-14.html

MARKET UPDATE FOR JULY 13, 2017



ANALYSTS EXPECT UPTREND, AS PROFIT TAKING, EARNINGS SEASON PEAK, JUNE INFLATION DOMINATE MARKET

It was definitely a better and stronger market on Thursday as the indicators gapped at the opening of trading session, sustaining the tempo till end of the day to close higher on increased volume of trade. The improvement was noticeable among all the sectoral indexes as they recorded gains except for the NSE Consumer Goods that was down marginally by 0.01%. Price appreciation of high cap stocks at the early hours of the day trading triggered a very strong rally that ran into late morning and consolidated to widen the positive market breadth. The index had formed a double top which is a resistant at 33,257.19 the same level with June 29, position of 33,269.84 that is likely to break out if the trending momentum continues, having once more crossed the psychological line of 33,000 yesterday.

This morning, the market may breakout as it opens but being the last trading day of the week profit takers might be cashing out but due to the market entering the peak of its earnings reporting season next week and inflation figure for June is expected today, a situation that may hold the uptrend.

Meanwhile, the composite NSE All-Share Index gained 265.28 basis points on Thursday to close at 33,246.91 after opening at 32,981.63 points, representing a 0.80% growth on a stronger volume traded that was higher than previous day’s trades. Similarly, market capitalisation was up by N91.2bn to close at N11.46tr from an opening value of N11.37tr, representing a 0.80% value gain in investors’ portfolios.

The upturn in the shares of medium and high cap stocks positivelyinfluenced the All-Share index, further boostingits year-to-date return to 23.71%. Also, market capitalisation over the same period improved by N2.21tr, representing a 23.92% gain above the year’s opening value.
Market breadth for the day was positive as the number of advancers outnumbered decliners in the ratio of 33:19 on a high volume of trade to continue the six-day up market.
Market activities in terms of volume and value were up by 6.65% and 37.95% respectively to 288.86m shares from the previous day’s 270.86m and N3.82bn, as against the previous day’s N2.77bn.

Transactions in the shares of UBA, GURANTY TRUST BANK, NIGER INSURANCE, ZENITH BANK and ACCESS BANK topped the volume chart to close the day’s trade.
At the end of the day trading, the top performance in price advancers table was Mobil Nigeria which gained 9.49% to close at N259.00 each on the interplay of market forces, followed by Forte Oil with a 7.00% gain to close at N53.50 per share, on expectation of its Q2 numbers.
On the flipside, Champion Brewery led the decliners’ table after dropping 7.00% to close at N2.39 on market forces. It was followed by First Alum 5.00% to close at N0.57 on market forces.

TODAY’S OUTLOOK

As the market opens this morning, expect mixed performance with more companies expected to release their Q2 numbers in continuation of the earnings reporting season, just as the inflation figure for June 2017. Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock, but fix their gaze on the actual numbers and bail out when expectations are not met, thereby cutting their loss.
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.
Once more, at the risk of repeating oneself, we must reiterate that industry potential is 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. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks. Sign up for investdata buy & sell signal setup by calling 08032055467.


https://investdataltd..com.ng/2017/07/market-update-for-july-13-2017.html

MARKET UPDATE FOR JULY 11, 2017


MIXED PERFORMANCE AHEAD ON NSE AS PEAK OF EARNINGS SEASON BECKONS

Nigeria stock market on Tuesday had an interesting and volatile day as the indices came down at the opening of trading session to hold support at 32,546.08 point before retracing to intraday high of 32,910.31, closing the day’s trading higher on above average market volume before the recent rally that changed the face of the market that made the volume traded low looking at the transaction volumes that supported price appreciation during last two month daily trade. The uptrend has broken out the first resistant level at 32,770.59 since its bottomed out after forming the double bottom chart pattern on the 5TH July 2017 to extend the bull transition that is driven by banking stocks as investors and traders take last minutes position on half year dividend paying stocks with Q2 numbers already underway.

The possibility of the trend continuing today is high with expectation of inflation figure for June to hit 15.46 or lower from analysts and economic watcher, ahead of positive Q2 numbers, despite the mixed performance from investment banking company- United Capital released after trading hours yesterday. Traders in Ucap are likely to bail out this morning which will push the price down after net profit dropped, despite a relative earnings rise.

With the planned meeting of the Senate, management of the Central Bank of Nigeria (CBN) and managing directors of banks to proffer solutions to the high interest rate that will further boost the nation’s economic recovery.If at the end of the day something tangible comes out of the meeting even as the apex bank continues its intervention in the foreign exchange market as to drive the positive economic data and news that will attract local and international investors.
The global stock markets is becoming dicey at this point as the rate environment is widening as rate hike and exit of Quantitative Easing is spreading when US Dollar is weakening with oil price oscillating and looking for direction. Today the world is waiting for the Fed briefing of the congress.

Meanwhile, the benchmark index gained 213.38basis points up to close at 32,827.98 after opening at 32,614.60 points, representing a 0.65% growth on above average volume traded that was higher than previous day’s trades. Similarly, market capitalisation went up by N73.55bnto close at N11.31tr from an opening value of N11.24tr, representing a 0.65% value gained in investors positions.
The upturn in highly capitalised stocks impacted positively on the All-Share index, to further boost its year-to-date return to 22.15%. Also, market capitalisation over the same period improved by N2.07tr, representing a 22.36% gain above the year’s opening value.

Market breadth for the day was positive as the number of advancers outnumbered decliners in the ratio of 25:21 on a better volume of trade to continue the four-day bull-run.
Market activities in terms of volume and value were up by 20.05% and 3.83% respectively to 218.76mshares from the previous day’s 182.07mand N2.11bnfrom N2.47bn.
Transactions in the shares of UBA, NIGER INSURANCE, ZENITH BANK, DIAMOND BANK and FCMB topped the volume chart to close the day’s trade.

At the end of the day’s trading, Neimeth topped the advancers’ table with its share price gaining 9.37% to close at N0.70 each, on market forces, followed by Vitafoam with a 5.45% gain to close at N2.71 per share, on market forces and expectation of Q3 numbers.
On the flipside, UBN led the decliners’ table after dropping 6.27% to close at N5.23 each on profit taking by investors, followed by Presco with 4.99% to close at N64.54on profit taking.

TODAY’S OUTLOOK

As the market opens this morning, expect mixed performance, against the backdrop of the fact that more companies are expected to release their numbers to continue the earnings reporting season. Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock, but fix their gaze on the actual numbers and bail out when expectations are not met, thereby cut loss.

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.

Once more, at the risk of repeating oneself, we must reiterate that industry potential is 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. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks. Sign up for investdata buy & sell signal setup by calling 08032055467.

NSEASI DAILY TIME FRAME


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

Countdown to COMPREHENSIVE SHORT-TERM TRADING STRATGIES FOR REST OF THE YEAR & BEYOND

Sub Topics:
1. The Toolbox of Successful Traders & Technical Analysts- Mr Meshach Ukpoma, FX Analyst/Trader
2. 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
3. A Strategic Outlook; The Fusion of Fundamental & Technical Analysis- Ambrose Omordion, Chief Research Officer Investdata Consulting Ltd
4. Understanding Market Timing to Manage Risk, Using Technical Analysis - Mr. Abdul-Rasheed Momoh, Head, Capital Markets, TRW Stockbrokers Limited

The workshop holds on:
DATE: 15 July 2017
TIME: 9.00am
VENUE: Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.

The fee is N20, 000 per participant. Payment made a week before the date of the event attracts 10% discount. Companies sending more than two representatives would enjoy a 15% discount. Payment should be made into: Zenith Bank; Account Name: InvestData Consulting Limited; Account Number: 1013033032.

For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223
https://investdataltd..com.ng/2017/07/market-update-for-july-11-2017.html

HOW TO PROFIT FROM A BEAR MARKET

When a stock market correction is prolonged, it becomes a bearish or down market as prices continues to nose-dive. In this type of situation, many stocks hit their lower lows while some remain in a range as they oscillate within a set price, waiting for external forces to impact it positively or otherwise.
Whenever the market is in a bearish mood many investors and traders panic and sell even at a loss to cut their loss, while staying away from the market without really sitting down to analyse the factors behind the particular state of the market.

I have since discovered,while reviewing the responses of different classes of investors within this period led me to the conclusion that most of them and even some market players lack the understanding of market dynamics. This is because in the real sense of it, hopelessness and panic are products of the unknown which suggest that most people either did not take time off to analyse the situation that led to the fall or did, but got the strategy wrong.
Hence, there is need to briefly comment on the kinds of bear markets and how to ride with them, which are factors that cannot be overemphasized today, just as always.

Causes and Effects of Bear Market
There is what is called a‘fundamentally-induced’ bear market. It means that the bearishness of the market is traceable to events that have general negative influences on the entire financial or even economic ecosystem within which the market operates. For example, account has to be taken of the global financial crises, as well as country specific political unrest, bad governance, wars or attacks, sanctions against a country by foreign bodies, natural disasters, epidemics and the like.
You will discover that these events are such that could adversely affect the confidence level and reduce the earnings power and capacity of the generality of the population. In many nations, you will agree with me that such events have led to migration and capital flight. This is so because businesses and investments operate best in times of peace. In effect, the fundamentals of listed companies in a country at war will be affected. In other words, there would be low capacity utilisation and consequently, poor earnings reports and, of course, declining share prices.
When you sight a down market brought about by the kinds of occurrences mentioned above, please note that it would take a while for such to ease and if you do panic, it is justified. Under such circumstance, it may be wise to sell off your positions early and hold cash while you study the market.

A system-induced bear market is associated with negative situations arising from changes in the system or style of managing the financial market; or it could be caused by the stock market itself, the government or the regulators.
This could first affect an industry and later spread to the general market. It may also affect the general market at the same time, depending on the kind of changes and their sources.You saw the impact of policy change such as the government’s implementation of the Treasury Single Account (TSA) that moved trillions of Naira in public sector deposits from the vaults of Nigerian banks in 2015. More recently, there was the impact of the economic recession that started in 2016 Q1, before heightening by end of last year, and how it played out on the nation’s economy and financial system. There was also the attendant currency crisis that resulted in the devaluation of the Naira by as much as 60%, reflecting in the stock market for months. This obviously caused panic in the system,though short-lived.

Again, for now,Nigeria is enjoying relative peace. Regardless of the insecurity in the country’s north east, its economic fundamentals are intact. Recall also that the falling price of oil at the international market put enormous pressure on Nigeria’s budget, external reserve and the exchange rate, even as foreign portfolio investors sold their positions ahead of the general election of 2015. The Asset Management Corporation (AMCON) of Nigeria also sold assets under its control to raise a significant N1tr,which further piled serious pressure on the stock market.

A system-induced bear market is a buy opportunity. To benefit from this bear market and correction, it is advised that you target stocks with the following characteristics:

1. Buy stocks with high dividend yield
2. Buy stocks that are down due to the general downward market
3. Buy stocks that have always been defensive in previous down markets and still have strong fundamentals
4. Chart markets and stocks regularly to know the resistance and support
5, Buy high quality dividend stocks with strong earnings and high payout.

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

Workshop on COMPREHENSIVE SHORT-TERM TRADING STRATGIES FOR REST OF THE YEAR & BEYOND

Sub Topics:
1. The Toolbox of Successful Traders & Technical Analysts- Mr Meshach Ukpoma, FX Analyst/Trader
2. Outlook and Implications of the 2017 Budget & Petroleum Industry Governance Bill (PIGB) on Nigeria’s Stock Market and Economy- AbiolaRasaq, Group Head Investor Relations, UBA
3. A Strategic Outlook; The Fusion of Fundamental & Technical Analysis- Ambrose Omordion, Chief Research Officer Investdata Consulting Ltd
4. Understanding Market Timing to Manage Risk, Using Technical Analysis - Mr. Abdul-Rasheed Momoh, Head, Capital Markets, TRW Stockbrokers Limited
The workshop holds on:
DATE: 15 July 2017
TIME: 9.00am
VENUE: Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.


The fee is N20, 000 per participant. Payment made a week before the date of the event attracts 10% discount. Companies sending more than two representatives would enjoy a 15% discount. Payment should be made into: Zenith Bank; Account Name: InvestData Consulting Limited; Account Number: 1013033032.
For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223

https://investdataltd..com.ng/2017/07/how-to-profit-from-bear-market.html

Independent Investor July 10th, 2017

On this episode, Kirk and Ambrose talk about: The feud between Acting President Osinbajo and the Legislature, its effect on the stock market, and the Global oil market.


https://www.youtube.com/watch?v=3qebdmc84yU

HOW TO IDENTIFY BEST STOCKS




Nigeria’s equity markets in the first half of the year did remarkably well, as the NSE All share index returned 20.40%year-to-date gain, which many investors did not enjoy in their investment.
There was no other reason for this than that such investors were in the wrong stocks, because they lacked no clear objective and road map to guide their buying decision. The rising tide of a broad rally, like the one we experienced in the first half of 2017, will produce plenty of green arrows in most portfolios. But that is not enough for any investor to come out ahead of the market’s benchmark index, which should be the goal of every investor.

With the investment environment changing and full of uncertainty, a clear plan of action is needed to navigate the murky and often uncertain waters, by those who desire to make money.
One very important question any investor desirous of robust returns must ask and answer is: How is your portfolio and how do you want to select stocks so as to reposition or balance it for profitability in the rest of the year.

I would like to share the investment process that we rely on here at InvestData, making use of factors below to build a winning portfolio. Each one of these factors will help you pick good stocks. But putting all of them together gives you a significant edge over others in stock market investing.


1) Valuation- There is plenty of practical evidence showing that stocks with low valuations will outperform the market over the long haul. It's not easy to find 'cheap' stocks after the market's impressive run, but we look for companies that are trading with low Price-to-Earnings (P/E) and Price-to-Book (P/B) multiples relative to their peers and history.

2) Management Effectiveness - It is very important to get a sense of how effective the company's management is in utilizing the resources available. This can be done a number of different ways. However, our research shows that Return on Equity (ROE) does a good job of capturing this attribute. So we seek out companies generating ROEs that are superior to their industry peers.

3) Recent Analyst Upgrades - Our research also clearly shows that stocks that have recently received a recommendation upgrade from analysts will continue to outpace the market. Most of that benefit is felt in the short run. However, quite often a stock that receives one upgrade is likely to get more in the future, which keeps pushing the stock higher as the quarterly earnings changes or something happen to the stock positively or negatively that could cause up or down share price adjustment.

4) Best Industries- Even the best looking stock will underperform the market if it is in an out-of-favour industry. That is why we overweight stocks from the best industries and sectors. And there is no better guide to choosing the right groups than to focus on the earnings estimate revisions for all the stocks in the industry.

5) Long-Term Attractiveness- We look for stocks with potentials that can transform the company in the future, the nature of its products or service, is it expanding or acquiring new production lines or companies to boost market share. While our preferred long-term indicator is an 'Outperform' rating, we also consider neutral-rated stocks that stand to get upgraded to our preferred rating. The main ingredient behind the recommendation is positive changes in a company's earnings estimates.

6) Timeliness - There is no better timeliness indicator like the technical analysis tools that signals or tells us that now is a good time to get into the stock, combined with the company’s earnings position. There is always a time to position in stocks no matter how solid the fundamental of the stock is. You cannot be in a stock at all times, because there is a time to be in and time to be out. You buy into position using fundamental and technical analysis while you sell using technical analysis.

https://investdataltd..com.ng/2017/07/how-to-identify-best-stocks.html

MARKET UPDATE FOR WEEK ENDED JULY 7 AND OUTLOOK FOR JULY 10-14, 2017


CAUTION AMID Q2 REPORTS, INFLATION, BUDGET MUSINGS WEIGH DOWN ON NSE INDICATORS

The Nigeria stock market indices were mixed during the past week as struggle for dominance continued between bear and bull on the heels of selling pressure and portfolio repositioning by smart money ahead of the earnings reporting season and release of the inflation data for the month of June by the National Bureau of Statistics (NBS), following which it caved in to pressure to close lower.

The low cap stocks outperformed the high caps in the period as the NSE Insurance appreciated to close higher.
Inflation remains a major determinant of interest rate at any time because no investor likes to invest where returns are less than the rate of inflation, just as the nation’s declining inflation rate supports interest rate cut,supported by the stock market in the short and long term if interest rate is lowered or cut in the nearest future. This will further accelerate the economic recovery that will help to sustain the positive economic data which will attract local and foreign investors to take advantage of this recovery for growth in different sectors of the economy, especially in manufacturing, agriculture, construction, banking and healthcare.

The mixed sentiments in the first trading week of the second half of the year is a reflection of cautiousness by investors as they factor in the expected numbers to the current market prices of equities, realizing that if the numbers beat expectations their valuation would rise again. However, anything short of market forecast will trigger another round of sell off.

The volume index for the period under review was 0.78 with buying position at 31% and 69% selling volume of the total transaction as volatility continued ahead of the Q2 numbers.
The composite NSEAll Share Index for the week shed 658.31 points to close at 32,459.17 points, from an opening figure of 33,117.48 points, representing a 1.99% decline on a low volume of transactions. The pullback by the market to breakdown the psychological line of 33,000 before trying to retrace up is a sign that investors are hungry for numbers and positive information. Similarly, market capitalisation for the week closed lower at N11.19tr from an opening value of N11.45tr, representing a 2.31% value loss, with the huge difference between the percentage drop in the ASI and capitalization accounted for by the voluntary delisting of Ashaka Cement.

The advancers’ log for the week was dominated by low cap stocks after the market had suffered massive sell off in form of profit taking by investors and traders, creating opportunities for repositioning as more Q2 numbers are expected in the market any moment from now.
Price depreciation recorded by listed companies during the period reduced the NSEASI’s year-to-date return to 20.78%, just as that of market capitalisation dropped to N1.91tr, representing 20.98% gain from the year’s opening value.

Market breadth for the period was negative with the number of decliners widening and outnumbering that of advancers in the ratio of 51:16 on a low volume of trades to reflect the cautious trading by investor and traders.
Stock markets around the world were mixed over the past week, as the U.S Dollar continues to be weakened alongside the fluctuating price of oil in the international market. The geopolitical conflicts involving the face-off between Saudi Arabia, Egypt, United Arab Emirates and Bahrain on one side and Qatar accused of sponsoring terrorism at this point is not a threat to OPEC and S&P Global plats and oil producing states. In any case, global oil supply remains vulnerable to geopolitical risks and significant disruption could see price rise to $120 per barrel, especially with output from the U.S, Libya and Nigeria adding around one million barrels daily and undermining the oil cartel.

Japan’s Nikkei was down for the period while Germany‘s DAX, Britain’s FTSE 100 and U.S market indexes were up for the week, despite the holiday that shortened trading days in the U.S. The positive labour market data from the U.S for the month of June indicated that 222,000 new jobs were created,which was higher than expected amidst the stagnated growth of just 2.5% in wages for the period.

In Europe, IHS mark it PMI showed that the regional economy likely accelerated in the three months leading up to June, which prompted speculations that the zone’s central bank would consider reducing its stimulus measures. In Asia, Chinese Premier Li Keqiang expects that his country’s economy would maintain steady and improving momentum during the second half of this year but noted that there were still various hurdles.

Back home, the All-Share Index opened the week on a negative note, losing 1.13%, which was sustained on Tuesday and Wednesday with 1.30% and 0.71% respectively. Neither Thursday’s marginal 0.05% nor the following day’s better 0.32% gain was however insufficient to pull the market out of the red zone. The decline reduced the week’s total loss to 1.99% on mixed position that ushered in bullish transition within the week.

The All-Share index and other sectoral indexes for the period were down to close the week, except for the NSE Insurance and NSE Industrial Goods which closed 1.10% and 0.225% up respectively, while the NSE ASeM closed flat.
The week’s activities, measured by aggregate volume and value were mixed as volume traded for the period was down by 9.40% to 1.06bn from the previous week 1.17bn shares, while value was marginally up by 7.33% to N12.3bn from the previous week of N11.46bn.

During the week also, the share price of Trans-nationwide Express and Presco were adjusted for recommended dividends by their directors, while Northern Nigerian Flour Mills Plc released it full-year result showing that the company closed in the red, following which it was unable, once more, to offer a dividend to shareholders, while remaining on life-support from its Flour Mills of Nigeria Plc, its majority shareholder.

At the end of the week’s trading, Cutix and Continent Reinsurance topped the advancers table with a gain of 10.00% and 9.24% respectively to close at N2.20 and N1.30, driven by market forces and expectation of full year earnings by Cutix and Q2 numbers from Continental Re. The decliners’ side was led by May&Baker and Neimeth, which lost 25.32% and 24.13% of the week’s opening price to close at N2.88 and N0.65 each respectively as a result of profit taking ahead of Q2 numbers.

Market Outlook
The market is expected to be mixed as more companies are expected to release their numbers this week ahead of the inflation figure for June in the amidst of expectations that implementation of the 2017 budget would boost economy recovery. It must be noted that the failure of government to begin full implementation of the capital projects contained in the budget, while Babatunde Fashola, ex-Lagos State Governor and Minister of Power, Works and Housing continues to bicker with the National Assembly over his Ministry’s appropriation remains a source of concern yet, just as the Senate continues to heat the polity with the rumoured plans to impeach ailing President Muhammadu Buhari over the continued retention of the Ibrahim Magu, chairman of the Economic & Financial Crimes Commission (EFCC).

The recurring distractions in the political space continues to send the wrong message to investors, a situation made worse by a terrible and even unholy combination of the fact that there remains a remnant of the Boko Haram insurgency in Nigeria’s north east zone, threat of chaos in the South East from Biafran agitators led by Nnamdi Kanu and the threat that hostilities could resume in the Niger Delta, thereby shattering the fragile peace in the oil bearing region.
This is in addition to the Executive Order on easy of doing business and the sustained intervention of the CBN in the investors/exporters window and retail market of the foreign exchange market.
Investors at this level of the market should position in stages in value stocks with high upside potentials, despite the current prices of stock on the exchange.

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,
To join us at the coming one day workshop by calling 08032055467 and 08111811223.

Also for our webinar every Friday 8pm to 9pm, WhatsApp group and get market updates, SMS web*name*email to 08124050850

https://investdataltd..com.ng/2017/07/market-update-for-week-ended-july-7-and.html

CORPORATE ACTION JULY 3- JULY 10, 2017

INVESTDATA PRICE AND EARNING FOR WEEK ENDING JULY 7, 2017

MARKET UPDATE FOR JULY 6, 2017

Nigeria equity market on Thursday had a very interesting session, even as the volatility witnessed over the past days continued. It gapped down in the early hours of the day’s trading only to rebound at mid-day, closing higher on positive sentiments that reflected on improved demand for stocks after four straight days of pullbacks as a result of profit booking and expectations for Q2 numbers of quoted companies by investors.

The day’s trading volume index stood at 0.36 on a buying position of 100%, while selling volume was 0% of the total volume traded. We can see that the market is resisting breakdown at the support level of 32,000. However,the decline in volume at this point makes the whole things unclear, but then, let see what happens on Friday, being last trading day of the week.

The market uptrend reversal on Thursday was driven by positive sentiments for banking stocks, especially the interim dividend paying ones in expectation of better numbers as second quarter earnings reporting season had gradually kicked off. There is also positive sentiment for petroleum stocks and building material making companies from which positive numbers are expected based on the Q1 numbers posted already by players in both sector on the strength of recovery and improving economic fundamentals.

Meanwhile, the composite NSE All-Share index crawled 52.46 basis points up to close at 32,354.78 after opening at 32,302.32 points, representing a 0.16% growth on a low volume traded that was lower than previous day trade’s. Similarly, market capitalisation limped N18.08bn up to close at N11.15tr from an opening value of N11.13tr, representing 0.16 % value gained in investors’ portfolios after four day of losses.

Price appreciation of high cap stocks like Dangote Cement, Zenith Bank, UBA, Seplat, ETI, Access Bank, 7-Up, Oando, FBNH and Guaranty Trust Bank impacted positivelyon the All-Share index, boosting its year-to-date return to 20.20%, just as market capitalisation over the same period improved by N1.89tr, representing a 20.40% gain above the year’s opening value.
Market breadth for the day was negative as number of decliners outpaced advancers in the ratio of 23:20 on a low volume of trade to halt four day bearish run.

Market activities in terms of volume and value were mixed as volume went down by 45.88% to 168.51m shares from previous day’s 311.38mand value was up by 21.93% to N3.63bn compared to the previous day’s N2.79 billion.

Transactions in the shares of GTBANK, FBNH, ZENITH BANK, TRANSCORP and LIVESTOCK FEEDS topped the volume chart to close the day’s trade.
At the end of the day’s trading, Oando topped the advancers’ log with its share price gaining 4.97% to close at N7.39 each, on market forces; followed by AXA Mansard with 4.91% gain to close at N2.35 per share, on a strong Q2 earnings expectations.
On the flipside, May & Baker led the decliners’ log, after dropping 9.40% to close at N3.18 on profit taking by investors, followed by UACN’s 4.95 % to close at N16.50 each also on profit taking.

TODAY’S OUTLOOK

As the market opens this morning, expect mixed performance, against the backdrop of the fact that more companies are expected release their numbers to continue the earnings reporting season. Investors should not panic on the pullbacks if they have taken position based on strong numbers and future prospects of any stock. But quickly bail out when your expectations are not met when the actual figure hit the market to cut loss.

Again, we advise that investors allow numbers to guide their decisions to reposition for the rest of the year’s trading activities, especially now that prices of stocks are looking up ahead of recovery 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.

Once more, at the risk of repeating oneself, we must reiterate that industry potential is 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. For stocks that should be on your shopping list to buy in this oscillating market or pullbacks. Sign up for investdata buy & sell signal setup by calling 08032055467.

NSEASI DAILY TIME FRAME

y4code:
As a newbie in stock trading what are list of company shares that i can buy for now that will yield me profit either long term or short term profit

Stocks to look at for are Zenith Bank, Ucap and GTBank.

JOIN Me on Sunday on How you can trade for yourself and make profit in Nigeria Stock Exchange. Click below
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To your live success,
Ambroso Omordion CEO of Invest Data Consulting.

JOIN Me on Sunday on How you can trade for yourself and make profit in Nigeria Stock Exchange. Click below

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To your live success,
Ambroso Omordion CEO of Invest Data Consulting.