₦airaland Forum

Understanding the Big Picture

Hello Investors and Traders,

I just posted Understanding the Big Picture. This was a Zoom Meeting that was held with Investors. I decided to share it with you because there was some vital information that was discussed and I am so sure that it will be relevant for your investment decision.

Please share with me what you think about the video and don't forget to click on subscribe button so that you can be among the first to get the latest update.


https://www.youtube.com/watch?v=EhjDl5tveAc

Ambrose Omordion

Questions and Answers with Ambrose Omordion as at 6th March, 2021

Hello Investors and Traders,

I just posted Questions and Answers with Ambrose Omordion as at 06/03/2021

Share with me what you think about the video and don't forget to click on subscribe button so that you can be among the first to get the latest update.


https://www.youtube.com/watch?v=7vQ-StsTRHE

Ambrose Omordion

NGSE Index Goes South Again, Ignores Earnings Reports, Awaits Major Economic Trigger

Market Update for March 2

The downward oscillating trend continued on the Nigerian Stock Exchange (NSE) on Tuesday as price corrections and pullbacks persist, exposing the level of risk associated with trade at this point that Treasury Bills’ yield is making that segment of the financial markets compete for scarce funds with equity assets despite the ongoing earnings season.

Note that the market has not reacted yet to the relatively impressive corporate numbers and payouts announced by companies listed on the NSE, a situation that seemingly suggests funds are not entering the market at this moment. Such changing patterns in trades requires that players should review their investment objectives, as well as their ‘buy’ and ‘sell’ strategies to protect capital, while also reviewing sector rotations to take advantage of these pullbacks for repositioning this year.

We note that the composite All-Share index’s action has broken down the 40,000-support level, it is now moving towards the next one sported around 38,700.00bps, and should the index break this point, its next visible support is far down 34,396.30 points.

Technically, therefore, the ongoing negative move is best described as a market correction, and the consistent downtrend could be linked to the consistency with which it gained during the bull-run that lingered until January.

Also, bear in mind that the full-year earnings season may not be strong enough to end the correction, except it is supported by favorable and positive economic indices, which the positive news of Nigeria exiting recession may be a part of, if the recovery or growth is sustained and the nation’s security challenges addressed by government as quickly as possible. We are also seeing pointers already to a further spike in the inflation rate, given the blockade of farm produce from the north to southern Nigeria, leading to the destruction of such perishable items on one side, and the huge impact of artificial scarcity on the opposite side. A segment of farmers in the north has estimated their loss alone, from the incidence at over N10bn, an amount that could significantly increase when the impact down the value-chain, including revenue loss on both sides is considered.

In the midst of all of these, Investdata is of the opinion that playing dividend stocks on the NSE will reduce investment risks around the market at this stage.

In that way, should the full-year earnings reports and dividend news fail to impact and support the current trend, a big rotation in sector trends would also guide you, going into the future. This is especially given that the NSE’s All-Share index action is trading below its 50-Day Moving Average on a daily time frame, which suggests that all is not well with the market at this point.

Tuesday’s trading started on the downside and was sustained throughout the day, despite the seeming oscillation on selloffs and buying interests in dividend stocks that had announced their payout. This situation pushed the NSE’s index to an intraday low of 39,668.22 basis points from its 39,939.18bps high, before closing below its opening point at 39,697.62bps on a low traded volume.

The day’s market technicals were negative and weak, with volume traded lower than the previous days in the midst of breadth favoring the bears and negative sentiment as revealed by Investdata’s Sentiments Report showing 11% ‘buy’ volume and 89% ‘sell’ position. Total transaction volume index stood at 0.46 points, just as the impetus behind the day’s performance remained weak, with Money Flow Index looking up slightly at 26.62pts, from the previous day’s 25.95pts, indicating funds entered the market, despite the selloffs.

Index and Market Caps

The benchmark Index, at the end of Tuesday’s trading, shed 234.07bps, after opening at 39,931,63bps, closing at 39,697.67points which represented a 0.59% decline. Similarly, market capitalization lost N122.43bn, closing at N20.77tr from the previous day’s N20.89tr which also represented 0.59% depreciation in value.

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Tuesday’s downturn was driven by selloffs and profit-taking in high and medium cap stocks like Nestle Nigeria, Lafarge Africa, Flour Mills, Unilever Nigeria, Ardova, UACN, Access Bank, and Zenith Bank, among others. This impacted negatively on the Year-To-Date loss which increased to 1.42%, just as the drop in market capitalization stood at N286.77bn, or 1.36% below its opening value.

Bearish Sector Indices

Performance indexes across various sectors closed negative, except for the NSE Insurance that closed 0.21% higher, while the NSE Consumer Goods index led the decliners, after losing 3.86%, followed by Energy, Industrial Goods and Banking with 0.88%, 0.41% and 0.12% respectively lower.

Market breadth remained negative, as decliners outpaced advancers in the ratio of 25:17; just as transactions in volume and value terms were mixed, with volume traded dropping by 59.09% as stockbrokers traded 222.57 m shares, down from the previous day’s 543.99m units. Transaction value however rose by 185.19% at N5.39bn, when compared to Monday’s N1.89bn. Volume was boosted by trades in Zenith Bank, United Capital, Mutual Benefits Assurance, Japaul Gold and Mansard Insurance.

The best performing stocks of the session were Academy Press and PZ Cussons, as they gained 9.76% and 9.38%, closing at N0.45 and N5.25 per share respectively, on market forces and their low-price attraction. On the flip side, Mutual Benefits Assurance and Ardova lost 10% and 9.97%, closing at N0.36 and N16.25 per share, on profit taking and market forces

Market Outlook

We expect the mixed trend and momentum to continue, allowing bargain hunters take advantage of pullbacks to position as more companies release their full-year numbers to support the ongoing recovery in the midst of the rising fixed income yields. Consequently, there is the improvement in dividend yields occasioned by price corrections that had created entry opportunities for discerning investors ahead of earnings expectations. We expect that this will attract more funds to the market in the short-term, as Nigeria’s industrial output improved, according to a report by FBNQuest, the merchant banking arm of the FBN Holdings group which showed that February Purchasing Managers’ Index stood at 53.00 points, up from 44.5 points in January 2021. This is a good new for the market and economy at large.

Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the rising oil prices that have so far supported the economy and equity market, despite the seeming improvement in the fixed income yield which had remained at negative real rate of return due to the subsisting high inflation.

However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by expected 2020 full earnings reports, until the next MPC meeting in March.

The NSE’s index action and indicators are in divergence on a low traded volume and positive buying sentiments.

Also, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the new year.

https://investdata.com.ng/ngse-index-goes-south-again-ignores-earnings-reports-awaits-major-economic-trigger/

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WORDS TO TRADE BY

"Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it."

- Lou Holtz

You can have ability and motivation, but the wrong attitude can foil even the greatest plans.
Having the correct attitude is the single greatest aspect of being a successful person. Without the right attitude, you're doomed to failure.
It doesn't matter if you're highly motivated, educated, and skilled. A bad attitude will ruin your ability to accomplish your goals.
Keep your attitude in check and stay focused on following through. The more positive you're thinking, the more stress you can handle. And you'll accomplish so much more!

Trading psychology refers to the emotions and mental state that help to dictate success or failure in trading securities. Trading psychology represents various aspects of an individual’s character and behaviors that influence their trading actions.
Trading psychology is characterized primarily as the influence of both greed and fear. While greed drives decisions that appear to accept too much risk, fear drives decisions that appear to avoid risk and generate too little return.

4 Allies of the Fear of failure...

Ambrose Here Again,

Fear of failure (also called "atychiphobia" is when we allow that fear to stop us from doing the things that can move us forward to achieve our goals.

Written with his permission, 5 months ago, I received a call from Ibrahim about his failure after one attempt at investing in the NGSE. He quitted at the first attempt because it was not really easy at all. After a careful examination, I observed that what he experienced was not really new. I too went through such.

Frankly, he was having the fear of failure; fear of losing his hard-earned money which once lost cannot be found again, and the following were the 4 causes of his failure.

1. Lack of a well-defined Goal: he was living as a garbage-in, garbage-out investor. He never sat down to strategize and draw a daily plan of achieving financial goals whether he wants to be a trader or a long-term investor. Strategies may change but the goal still remains.

2. Insufficiently applied education: He thinks he knows it all hence, there was no need to attend my training or invest in the Home Study Packs just like you think you know it all whereas no man is an island on his own.

3.Procrastination: This is definitely one of the biggest causes of failure. It’s actually one of those I struggled with the most when I was starting out.

4. Emotional Attachment: instead of using facts, he was emotionally attached to some stocks, and at the end of the day, he lost a lot before selling off.

Education is not only restricted to school which is why most of the professors in our universities are not rich because what they know is general knowledge. Whereas to rise above mediocrity, you need to get applied knowledge. So invest in your Financial power, invest in your

1.Mastering Earnings Season for profitable trading and investing Training Videos + plus PDF
2. Your Strategies for Profitable Investment in Changing Market Dynamics and Recession Training Videos + PDF
3. Buy and Sell Premium Membership for Maximum Profit in either Bull or Bear Market.
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5. INVEST 2021 Summit Replay ➕ 10 Golden Stocks guaranteed to give you the best ROI in 2021

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Happy new month of Prosperity and Success.

Dedicated to Your Financial Success,
Ambrose Omordion

Sentiment Report for Match 1, 2021
NSEASI buy 72% sell 28% volume index 1.07 MFI 25.95
Access buy 0% MFI 50.21
Aiico buy �volume index 3.45 MFI 48.24
Corner buy 0% volume index 2.77 MFI 62.79
Dangsugar buy 0% MFI 28.30
Eti buy � MFI 62.28
Fbnh buy 20% sell 80% MFI 40.80
Fcmb buy 0% MFI 35.74
Fidelity buy 23% sell 77% MFI 45.14
Glaxo buy 0% volume index 0.76 MFI 34.67
GT buy � MFI 52.57
Jaiz buy 0% MFI 46.91
Jagold buy � MFI 42.83
Lasaco buy 0% MFI 38.90
Mansard buy 0% volume index 0.76 MFI 22.98
Mben buy � MFI 45.72
Oando buy 0% MFI 81.83
Pz buy 0% volume index 3.22 MFI 21.04
Regalins buy 0% volume index 1.97 MFI 25.61
Sterling buy � MFI 30.68
Transcorp buy 75% sell 25% MFI 23.40
Uba buy � MFI 48.26
Ubn buy 0% MFI 25.95
Ucap buy 33% sell 67% volume index 0.82 MFI 59.68
Wapco buy � MFI 44.78
Wapic buy 0% volume index 0.90 MFI 47.51
Wema buy 17% sell 83% volume index 15.07 MFI 55.08
Zenith buy 87% sell 13% MFI 67.45

Investdata Daily Sentiment Report
https://investdataltd..com/2021/03/sentiment-report-for-match-1-2021.html

Despite Pandemic, Zenith Bank Sustains Earnings, Profit, Dividend Growth

On Tuesday, February 23, 2020, Zenith Bank published its audited financials for the full-year ended December 31, 2020, becoming the third quoted company to do so through the Nigerian Stock Exchange (NSE) ahead of the 60-day deadline.

The report confirms, among others, that it has grown its earnings on yearly basis, while sustaining its risk management efforts, as shown in the management’s ability to contain impairment charges over the years, thereby enhancing profit. This is in addition to maintaining assets of high quality, and a robust balance sheet that supports its outstanding performance, despite the challenging operating environment, leading to high dividend payout.


Source: Company financials, NSE, Investdata Research
The management’s ability to create value for stakeholders is evident in its earnings power and investment ratios, and the deposits with which it has grown the loan book, as well as Loan-Deposit Ratio to 67.22%, from 54.09% in the corresponding period of 2019, surpassing the Central Bank of Nigeria’s 65% regulatory threshold.

According to the bank’s numbers, Gross Earnings grew of 5.2% to ₦696.45 billion, 60.4% of which was the Interest Income (NI) of ₦420.81 billion, up by 1.3%, as well as the 39.6% increase in non-interest income (NIC) at ₦275.64 billion.

Notwithstanding the low-interest rate environment necessitated by the CBN’s 200bps tweak in Monetary Policy Rate in the year, returns on Loans and Advances to Customers (LAC) rose by 7.7% y/y, compared with a contraction of 14.7% y/y in 2019. Markedly, LAC dominated the total NI by 59.6%, which is commendable considering the challenging macroeconomic environment exacerbated by the COVID-19 pandemic in the year.

Cost line items were relatively mixed in the year.

While interest expenses got compressed by 18.5%, due to the lower interest rate environment, OPEX (inclusive of personal, depreciation and amortization costs) rose by 10.4% to ₦256.03 billion amid the upsurge in information technology and fuel & maintenance costs by 107.6%and 23.2% respectively. The spike in information technology was driven by the new business norm – social distancing and the nationwide lockdown imposed to check the spread of the virus across the globe, especially in Q2’20, such that the bank like others, effectively utilized digital technology to service its business. As such, OPEX margin increased by 1.76% y/y.

Meanwhile, loan impairment expenses rose by 64.5% to₦39.53 billion, much in line with the industry trend, following which it the management made additional provision to cover for the last quarter of the year.

With the upside in the income heads, coupled with relatively subdued OPEX, pre-tax profit rose 5.2% to ₦255.86 billion y/y; total tax liability dropped by 26.6% compensated for by the absence of dividend tax liability. while profit after tax rose by 10.4% to ₦230.57 billion.

At this income level, earnings per share (EPS) moved up to734 kobo, 10.4% higher than the 665 kobo achieved in the corresponding period of 2019, giving a Price/Earnings Ratio (PE) of 3.58x at its market price of ₦26.30 posted on Wednesday, February 24, 2021.

Capital Adequacy Ratio (CAR) closed the period at 23%, a big buffer when compared to the regulatory minimum of 15% for the industry. Although loan book expanded by 20.5% to ₦2.78 trillion y/y, however Loan-Deposit-Ratio (LDR) increased to 67.22% (vs 54.09% in 2019). The bank’s short-term liquidity ratio is healthy at current 1.41x, indicating its ability to fulfill debt obligations as they fall due.


Source: NSE, Company Report and Investdata Research

Much in line with observation amongst peers, the bank’s cash and balances with the CBN jumped by 70.1% to ₦1.59 trillion, of which over ₦1.49 trillion or 93.5% represents mandatory and special reserves deposits. This is not surprising, as most operators continue to insist that effective CRR ranges from 50% to +75% amid the apex banks heterodox policy mix and stringent LDR control. The bank’s Total Asset grew by 33.6% to ₦8.48 trillion, while Total Liabilities jumped 36.2% up to ₦7.36 trillion, pushing debt ratio to 0.87x (vs 0.85x in 2019). Importantly, shareholders’ equity improved by 18.6% to ₦1.12 trillion, just as Book Value Per Share (BVPS) moved up to ₦35.59 (vs ₦30.00 in 2019).

Valuation

The bank’s current share price is considered very attractive at 3.58x earnings, being an income stock trading above industry average by 6.23%. On the strength of the 2020 financials, we have upgraded guidance, indicative of the stronger performance from the board, especially as the numbers remain impressive.

Consequently, at N35.59 each, Zenith Bank’s Book Value reveals its undervalued status following which, the bank is fairly priced at N40per share, which is a 51.17% discount to the current market value.

Analysts Opinion/Recommendations

Also, we expect earnings from interest income, trading and fee income to continue driving and supporting profit, going forward.

We therefore project positive quarterly and full year numbers for 2021, following which traders and investors desirous of preserving capital, no matter the investment goals, should look the way of this stock, given that its full year performance confirms our earlier forecast, and guidance.

Investment in the stock for the next 90 days will beat any form of returns from other windows whether Treasury Bills, Bonds, or fixed deposit. On this note, we place a BUY rating on Zenith Bank

Technical View


Source: Company financials, NSE, Investdata Research
Zenith Bank’s price action has remained bullish since April, after rebounding from a low of N10.85 on positive sentiment, improved liquidity and impressive financials that has formed a saucer chart pattern that supports an uptrend. The pullback has stayed within the channel as the market reacts to the full year dividend news.

RSI is reading 49.13 and money flow index is looking down, a sign that profit takers are still selling ahead of markdown, owing to the rising yields in the fixed income market. It is worthy of note that the bank’s Money Flow Index is above 60.


Four-Year Performance (2017-2020)

An analysis of the bank’s performance over the past four years shows a consistent improvement in the top and bottom lines, except for 2018 when there was a slowdown in the investment and profitability ratios. The high and low performance is revealed by the numbers in the tables below.

Specifically, gross earnings for the period oscillated to reflect changes in the economy, moving down to N630.34 billion in 2018 from N745.19 billion in 2017, which has since been followed by a sustained uptrend to N696.45 billion in 2020.

Profit has also constantly been on the uptrend within the period, translating to a 30% growth at N230.57 billion, from N177.61 billion in 2017, following which Earnings Per Share remained strong and steady at N7.34 each, despite the heightened regulation in the industry and unfriendly operating environment.

Earnings capacity rose from 566 kobo in 2017 to 616 kobo in 2018, and then 665 kobo and 734 kobo in 2019 and 2020 respectively, despite the various headwinds in the banking industry during the year under review.


The bank’s risk management efforts are paying off as shown in the Non-Performing Loans ratio and improved profit margin that has supported the steady growth in profit, dividend payout and impact on the economy.

Also, the bank has demonstrated some measure of doggedness in growing its retail banking business, as well as other factors that continually support and drive profitability.

Investors, on the other hand, have followed the bank’s outstanding performances over time, taking strategic positions especially given the inherent value, while creating wealth as investors smile to the banks on a bi-annual basis. Similarly, over the years, Book Value has grown in the same direction, after a little slide to N25.98 in 2018 from N26.15 in 2017, before the trend was reversed following which it grew by N30.00 in 2019, maintaining the trend in 2020, when it posted N35.59 each on consistent earnings growth. This has also translated to improved Investor confidence, which is expected to support the price, especially as valuation tools place the bank’s stock at N40per share.


https://investdata.com.ng/despite-pandemic-zenith-bank-sustains-earnings-profit-dividend-growth/

Corporate Actions On NGSE As Of Friday, February 26, 2021

https://investdata.com.ng/corporate-actions-on-ngse-as-of-friday-february-26-2021/

Corporate Actions On NGSE As Of Friday, February 26, 2021

Seplat Driving Sustainability With Gas Business, Says MD

Roger Brown, Chief Executive Officer of SEPLAT Petroleum Development Company Plc, a leading indigenous energy company, says the company’s fast-growing gas business is a strong catalyst for sustainable development.

Speaking at the Nigerian Gas Association (NGA) Industry Multilogues 2, its 12th biennial International Conference themed “Powering Forward: Enabling Nigeria’s Industrialisation Via Gas” held virtually, he described it as a revolution, that is laudable and highly rewarding to the Nigerian people and the economy at large.

Seplat, according to a statement by the company, has numerous opportunities to scale up and diversify, some at relatively low cost. The company has significant opportunity to lead Nigeria’s strategic dash to gas, replacing inefficient diesel and petrol generation, benefiting economy with multiplier effects on gas demand.

According to Brown, gas offers higher profitability and cash drop-through than oil owing to lower royalties, taxes and costs; of which gas revenues are independent of oil price volatility, with 10+ year contracts offering long-term visibility.

He explained: “ANOH could increase gas production by 300MMscfd, with potential for further expansion. There is the potential to increase production at existing Oben and Sapele plants; and to service industrial gas needs at prices higher than fixed-price Domestic Supply Obligation.

Commenting on the company’s contributions to the Nigerian Gas industry, Brown said: “Our new Sapele Gas Plant processing capacity (PC) is 75MMscfd, increasing PC in the West to 540MMscfd (Oben and Sapele).

“SEPLAT currently contributes about 30% of gas to power generation in Nigeria. Its ANOH Project is to add 300MMscfd capacity and unlock over 1,200MW of gas constrained power generation capacity.”

He, however, stressed the need to build institutional capacity to drive and sustain the transition, which is critical to attaining value and wealth advancement.

The SEPLAT CEO also spoke of the need to drive investments through liquidity pools such as the capital markets, bonds and PFAs as well as exploring a myriad of financing options to provide funding for gas infrastructure projects.

“The potential to end flaring and monetise gas by-products and develop LPG products for local market to replace biomass as cooking fuel abounds.”

Contributing to a panel session dubbed “Nigeria’s Decade of Gas: The Industry Leadership Outlook”, Brown said SEPLAT is strategically positioned to access Nigeria’s main demand centers, with its current well stock delivering 300 – 350MMscfd (Gross).

With respect to the company’s industry strides, it was, at the event, also honoured with the NGA Special Recognition Award for SEPLAT’s strong and outstanding support in its service to the Nigerian Gas Industry and the Nigerian Gas Association.

Commenting on some of the challenges bedeviling the gas-to-power drive, the SEPLAT CEO said capital intensity; under-investment; delayed delivery of planned gas infrastructure; poor pipeline network; lack of cost reflective tariffs and huge debts in the power sector; lack of clear gas fiscal terms for PSCs and delay in passage of the Petroleum Industry Bill (PIB), amongst others, were issues to be addressed.

Commending SEPLAT and other players for their dedication to the growth of the sector, Audrey Joe-Ezigbo, President, NGA, noted the need to continuously project and leverage the potentials of gas towards enabling and reinvigorating Nigeria’s industrial sector.

According to him, “Riding on the declaration by the Honourable Minister of state, Petroleum Resources, Timipre Sylva, to dedicate the new decade to the promotion and adoption of Natural Gas as the fuel of choice for national growth, it has become imperative for us to reinforce this paradigm, leveraging its benefits across diverse key sectors in Nigeria and across Africa.”

The Nigerian National Petroleum Corporation’s Group Managing Director, Mallam Mele Kyari, in his address, said the Corporation was committed to fulfilling President Muhammadu Buhari’s directive to boost domestic gas supply.

Represented by the Chief Operating Officer, Gas and Power, Yusuf Usman, Kyari stated that progress was being made on several of the projects, including the NLNG Train 7, with a foreign direct investment of between $3bn and $5bn; and the ANOH gas project, with a fully completed financing arrangement.

He listed others as the AKK, which he described as one the largest and most aggressive gas infrastructure that has ever been embarked upon in Nigeria, stretching 614 km from Ajaokuta, Abuja, Kaduna and Kano, and Lot B of the OB3 gas project, which is already producing 125 mmscfd of gas.

Also speaking, the Lagos State Governor, Babajide Sanwo-Olu, harped on the need for a cleaner, more liveable environment, noting that he is planning well for the state’s huge population, guaranteeing green jobs, reducing carbon emissions and working towards a healthy environment.

Sanwo-Olu maintained that there was the need to boost domestic utilisation of gas, adding that Lagos set up the Ibile Oil and Gas, privately driven, to transition the state to a low carbon economy by taking out firewood, kerosene and all the dirty fuels.

https://investdata.com.ng/seplat-driving-sustainability-with-gas-business-says-md/

Questions and Answers with Ambrose Omordion as of 27th Feb 2021

Hello Investors and Traders,

I just posted Questions and Answers with Ambrose Omordion replay as of 27/02/2021. Click on the below link to watch Now.

Don't forget to share with me what you think about the analysis. Also, click on subscribe button so that you can be among the first to get the latest update.

Ambrose Omordion


https://www.youtube.com/watch?v=bDon3mAtrTM&feature=youtu.be

Sentiment Report for the month of February 2021

NSEASI buy 0% volume index 1.33 MFI 69.45
Abc buy 67% sell 33% MFI 75.20
Access buy 29% sell 71% volume index 0.72 MFI 66.80
Afrins buy 57% sell 43% volume index 0.70 MFI 85.90
Afrprud buy 0% volume index 1.59 MFI 64.88
Aiico buy 39% sell 61% MFI 87.13
Beta buy 0% volume index 1.71 MFI 73.25
Berger buy 0% volume index 0.83 MFI 73.48
Cadbury buy 0% MFI 51.75
Cap buy 75% sell 25% volume index volume 1.39 MFI 31.18
Caverton buy 22% sell 78% volume index 0.78 MFI 51.97
Chams buy 60% sell 40% MFI 41.34
Chiplc buy 0% MFI 29.24
Cileasing buy � volume index 1.63 MFI 56.20
Conoil buy 0% volume index 0.86 MFI 61.32
Corner buy 40% sell 60% volume index 1.79 MFI 54.31
Courtville buy 50% sell 50% volume index 2.39 MFI 51.68
Custodian buy 50% sell 50% MFI 27.09
Cutix buy 0% volume index 0.82 MFI 54.37
Dangcem buy 36% sell 64% MFI 76.26
Dangsugar buy 0% volume index 4.01 MFI 55.66
Eterna buy 71% sell 29% MFI 90.14
Eti buy 11% sell 89% volume index 1.06 MFI 63.09
Fbnh buy 64% sell 36% volume index 1.90 MFI 49.43
Fcmb buy 4% sell 96% volume index 0.84 MFI 71.02
Fidelity buy 38% sell 62% volume index 1.01 MFI 65.35
Fidson buy 5% sell 95% volume index 1.09 MFI 67.00
Fmn buy 8% sell 92% volume index 0.94 MFI 55.49
Ftn buy 29% sell 71% volume index 2.24 MFI 90.92
Glaxo buy 63% sell 37% volume index 0.86 MFI 64.80
GT buy 17% sell 83% volume index 1.01 MFI 52.23
Honyflour buy 0% volume index 2.99 MFI 81.17
Jaiz buy 25% sell 75% MFI 41.04
Jberger buy 77% sell 23% volume index 0.81 MFI 66.97
Lasaco buy 38% sell 62% MFI 75.38
Lawunion buy 0% MFI 76.59
Learn buy 80% sell 20% volume index 0.92 MFI 56.05
Linkass buy 17% sell 83% volume index 2.47 MFI 59.81
Lvstk buy 50% sell 50% volume index 3.12 MFI 77.18
Mansard buy 5% sell 95% volume index 3.19 MFI 58.83
Maybaker buy 23% sell 77% volume index 2.16 MFI 81.08
Mben buy 50% sell 50% volume index 2.00 MFI 81.16
Mtnn buy 0% MFI 92.30
M/verse buy 0% volume index 5.93 MFI 100.00
Nahco buy 87% sell 13% MFI 66.88
Nascon buy 17% sell 83% volume index 1.24 MFI 74.78
Neimeth buy 24% sell 76% volume index 1.07 MFI 69.51
Nem buy 0% MFI 56.33
Npf buy 33% sell 67% volume index 1.17 MFI 63.85
Oando buy 72% sell 28% volume index 1.42 MFI 51.08
Presco buy 30% sell 70% volume index 2.82 MFI 80.56
Prestige buy 60% sell 40% volume index 2.62 MFI 60.50
Red buy 67% sell 33% MFI 37.18
Regalins buy 25% sell 75% MFI 45.81
Royalex buy 31% sell 69% volume index 1.03 MFI 58.91
Seplat buy 65% sell 35% volume index 2.79 MFI 33.06
Sovrenins buy 56% sell 44% volume index 2.12 MFI 41.53
Stanbic buy 21% sell 79% volume index 0.96 MFI 54.25
Sterling buy 18% sell 82% MFI 55.50
Total buy 0% volume index 1.02 MFI 62.58
Transcorp buy 18% sell 82% volume index 1.82 MFI 64.57
Uacp buy 61% sell 39% volume index 3.53 MFI 55.23
Uacn buy 0% volume index 0.98 MFI 49.79
Uba buy 34% sell 66% volume index 0.90 MFI 55.79
Ubn buy 22% sell 78% volume index 9.86 MFI 42.20
Ucap buy 72% sell 28% volume index 2.88 MFI 92.80
Unilever buy 23% sell 77% MFI 37.54
Uniondac buy 50% sell 50% MFI 23.99
Unity buy 25% sell 75% MFI 75.31
Upl buy 0% MFI 47.56
Veritas buy 0% volume index 1.27 MFI 45.53
Vitafoam buy 10% sell 90% volume index 2.73 MFI 77.71
Wapco buy 1% sell 99% volume index 1.05 MFI 75.46
Wapic buy 9% sell 91% volume index 0.80 MFI 47.43
Wema buy 0% volume index 0.89 MFI 51.14
Zenith buy 58% sell 42% volume index 1.02 MFI 56.19

Investdata Monthly Sentiment Report

https://investdataltd..com/2021/03/sentiment-report-for-month-of-february.html

NGSE Poised For Fresh Inflows With Div Yield, As Oil Forecast To Hit $100/b In Cycle


Market Update for February 24

It was a mixed and very volatile session at midweek’s trading, as stock prices sustained the seeming rebound for the second consecutive session on an above average traded volume, signalling the gradual return of investors to the market. This was revealed by the money flow index reading 17.64 points from the previous session 9.35points, indicating that funds entered the market, even as rising yields in the fixed income market remain a threat to the equity segment.

Rates in that segment of the financial market, as shown in the just concluded Treasury Bills primary market auction at the midweek, which sustained upward momentum across all tenors. Rates of one-year bills increased to 5.5% from the previous auction rate of 4%, even as there was no redemption of maturing bills at the end of the auction.

This should guide you to target stocks with dividend yield of 7.5% and above for short period, since the equity market remains the best window for hedging against the nation’s spiralling inflation.

The renewed buying interest in banking, industrial and energy stocks during the session, as the dividend yields get better ahead of the month-end, when the market enters the peak month of its earnings reporting season for companies with December year-end.

With the mixed macro-economic indices emanating from the National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN), in the face of changing market trends and trading patterns, that is now of concern to retail and institutional investors, players in the equity market should invest wisely. One way of navigating the murky waters is to be guided by your set investment objectives, particularly entry and exit strategies, to survive and profit from the expected new trend.

In that way, should the full-year earnings reports and dividend news fail to impact and support the current trend, a big rotation in sector trends would also guide you, going into the future, especially as the NSE All-Share index action is trading currently in 50-Day Moving Average, after it had broken down the 14 and 20DMA on a daily time frame.

Midweek’s, trading started slightly in the green, before oscillating for the rest of the session, on profit taking and repositioning of portfolios ahead of month-end and dividend news. These pushed the benchmark index to an intraday high of 40.304.02 basis points from its lows of 40,149.18bps, before closing above its opening level at 40, 221.30bps.

Market technicals were positive and mixed, with volume traded higher than previous day’s in the midst of a flat breadth and mixed sentiment as revealed by Investdata’s Sentiments Report showing 47% buy volume and 53% sell position. Total transaction volume index stood at 0.85 points, just as energy behind the day’s performance remained weak, with Money flow index looking up to 17.64pts, from the previous day’s 9.35pts, indicating funds enter the market, despite the mixed sentiment.

Index and Market Caps

At the end of Wednesday’s trading, the All Share Index lost 56.44bps, closing at 40,221.30bps, after opening at 40,164.86bps representing 0.14% up. Market capitalization similarly rose by N29.53bn to close at N21.04tr from N21.01tr, also representing 0.14% value gain.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added 20 STOCKS TO WATCH THAT ARE BUILDING NEW BULLISH BASE to our watchlist. These stocks are with double potentials to rally considering their current market value.

To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current oscillating market ahead of earnings season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

The day’s uptrend was driven by demand for stocks like Lafarge Africa, Oando, UBA, Access Bank, FBNH, Dangote Sugar, Zenith Bank, Guaranty Trust Bank, Transcorp, and Japaul Gold, among others. This impacted mildly on the Year-To-Date loss position by reducing it to 0.12%, just as market capitalization stood at N12.78bn or 0.06% below its opening value. The rush by investors to take position in Oando Plc, followed news on Tuesday of an Abuja High Court judgment against the suspension of the company’s Annual General Meeting almost two years ago. But the Securities & Exchange Commission SEC, in a statement on Wednesday, likened it to a Jankara judgment. (READ MORE).

Mixed Sector Indices

Performance indexes across the sector were mixed, as the NSE Oil/Gas, Banking and Industrial Goods closed 0.79%, 0.77% and 0.22% higher respectively, while the NSE Insurance led the decliners, after losing 1.87%, followed by Consumer goods with 0.32%.

Market breadth was at equilibrium, as decliners equal advancers in the ratio of 20:20; just as activities in volume and value terms were up by 18.82% and 97.33% respectively, after stockbrokers transacted 469.56m shares worth N7.08bn, as against previous day’s 356.92m units valued at N3.67bn. Volume for the session was driven by trades in Zenith Bank, Guaranty Trust Bank, FBNH, Transcorp and United Capital.

Oando and ABC Transport were the best performing, gaining 10% and 9.38% to close at N3.41and N0.35 per share respectively, on news of the court judgment. On the flip side, Lasaco Assurance and Consolidated Hallmark Insurance lost 9.49% and 8.33%, closing at N1.24 and N0.33 per share, on free fall after share reconstruction without earnings and fundamental to support the new price and profit taking.

Market Outlook

We expect the mixed trend and momentum to continue as renew buying interest by the bargain hunters support recovery move as more audited numbers are expected to roll in, with big global banks forecasting oil at $100 per barrel in the new oil supercycle that just started. Consequently, better dividend yield occasioned by price corrections that had created entry opportunities for discerning investors ahead of earnings expectations, will attract more funds to the market in a short term.

Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the rising oil prices that have so far supported the economy and equity market, despite the seeming improvement in the fixed income yield which had remained at negative real rate of return due to the subsisting high inflation.

However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by expected 2020 full earnings reports, until the next MPC meeting in March.

The NSE’s index action and indicators are in divergence on a low traded volume and positive buying sentiments.

Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the new year.

https://investdata.com.ng/ngse-poised-for-fresh-inflows-with-div-yield-as-oil-forecast-to-hit-100-b-in-cycle/

Mixed Trend May Linger Yet, As Bargain Hunters Position On Sustained Pullbacks

Market Update for February 25

Profit taking resurfaced on the Nigerian Stock Exchange, Thursday, halting two successive sessions of bull transition on settlements for the improved rates at this week’s Treasury Bills primary auction which competed for investible funds. These happened in the midst of earnings expectations and portfolio realignments on the equities’ side for end-of the month as the market enters the peak of its earnings reporting season.

Players should therefore be on the lookout, as more companies expectedly roll in their 2020 financials, giving the market an upward push or downward pull, depending on the strength of these numbers.

With the pullbacks impacting positively on dividend yields, income investors should target ‘stocks with dividend yield of 7.5% and above in the short term, since the equity market remains the best window for hedging against the nation’s spiralling inflation.

Despite, the seeming profit booking across many of the sectors, these corrections are creating ‘buy’ opportunities for players that understand the dynamics of the market,’’’ irrespective of what is happening on the fixed income side, especially with oil price selling now above $65 per barrel and breakthroughs in vaccines will help to drive global and domestic economic recovery.

With the mixed macro-economic indices emanating from the National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN), in the face of changing market trends and trading pattern, that is now of concern to retail and institutional investors, players in the equity market should invest wisely. One way of navigating the murky waters is to be guided by your set investment objectives, particularly entry and exit strategies, to survive and profit from the expected new trend.

In that way, should the full-year earnings reports and dividend news fail to impact and support the current trend, a big rotation in sector trends would also guide you, going into the future, especially as the NSE All-Share index action is trading below in 50-Day Moving Average, after it had broken down the 14 and 20DMA on a daily time frame.

Thursday’s trading opened on the downside and oscillated throughout, on profit taking and portfolio rebalancing ahead of month-end and dividend news. These pushed the NSE index to an intraday low of 40, 088.05 basis points from its highs of 40,221.41bps, before closing below its opening figure at 40,095.49bps on a low traded volume.

Market technicals were negative and mixed, with volume traded lower than previous day’s in the midst of a negative breadth andsentiment as revealed by Investdata’s Sentiments Report showing 6% buy volume and 94% sell position. Total transaction volume index stood at 0.61 points, just as momentum behind the day’s performance remained weak, with Money flow index looking up to 18.18pts, from the previous day’s 17.64pts, indicating funds enter the market, despite profit booking.

Index and Market Caps

The key performance index, at the end of the day trading, shed 125.81bps, from its 40,221.30bps opening point, representing a 0.31% decline. Market capitalization similarly lost N65.82bn to close at N20.98tr from N21.04tr, also representing 0.31% depreciation in value.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added 20 STOCKS TO WATCH THAT ARE BUILDING NEW BULLISH BASE to our watchlist. These stocks are with double potentials to rally considering their current market value.

To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current oscillating market ahead of earnings season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

Thursday’s downtrend was impacted byselloffs and profit taking in stocks like, Ecobank Transnational Incorporated, UACN, Nigerian Breweries, Oando, UBA, Access Bank, Zenith Bank, and Sterling Bank, among others. This impacted negatively on Year-To-Date loss position increased to 0.44%, just as market capitalization stood at N88.60 billion, or 0.37% below its opening value. In the case of Oando, investors moved to get out of position in the aftermath of the statement of the Securities & Exchange Commission stressing that its management was not served court papers to enable it put up appearance in the case instituted by one of Oando’s shareholders based on which judgment was passed.

Bearish Sector Indices

Performance indexes across the sector were down, except for the NSE Insurance that closed 0.49% higher, while the NSE Banking led the decliners, after losing 5.61%, followed by Consumer goods, Energy and Industrial goods with 4.52%, 0.40% and 0.07% respectively.

Market breadth turned negative, as decliners outnumbered advancers in the ratio of 24:16; just as transactions in volume and value terms were down by 26.12% and 46% respectively, after players had exchanged 326.04m shares worth N3.71bn, as against previous day’s 469.56m units valued at N7.08bn. Volume for the day was driven by trades in Transcorp, Dangote Sugar, UBA, Zenith Bank and United Capital.

The best performing stocks for the session were Chams and Royal Exchange Assurance, which notched 9.09% and 8% respectively, closing at N0.24 and N0.27 per share, on market forces. On the flip side, Lasaco Assurance and Fidson Healthcare lost 9.68% and 8.41%, closing at N1.12 and N4.90 per share, on free fall after share reconstruction without earnings and fundamental to support the new price and profit booking.

Market Outlook

We expect the mixed trend and momentum to continue as bargain hunters take advantage of the pullbacks, as more audited numbers are expected to roll in, with the expectation of the current divergent of oil price rallying and NSE index action looking down to correct any moment from now. Consequently, better dividend yield occasioned by price corrections that had created entry opportunities for discerning investors ahead of earnings expectations, will attract more funds to the market in a short term.

Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the rising oil prices that have so far supported the economy and equity market, despite the seeming improvement in the fixed income yield which had remained at negative real rate of return due to the subsisting high inflation.

However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by expected 2020 full earnings reports, until the next MPC meeting in March.

The NSE’s index action and indicators are in divergence on a low traded volume and positive buying sentiments.

Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the new year.

https://investdata.com.ng/mixed-trend-may-linger-yet-as-bargain-hunters-position-on-sustained-pullbacks/

Sentiment Report for February 24, 2021

NSEASI buy 47% sell 53% volume index 0.86 MFI 17.64
Access buy 80% sell 20% volume index 1.07 MFI 41.68
Afrprud buy 0% volume index 2.18 MFI 30.22
Aiico buy � volume index 0.85 MFI 37.32
Chams buy 0% volume index 0.74 MFI 33.07
Dangsugar buy 50% sell 50% volume index 0.87 MFI 32.48
Fbnh buy � MFI 54.27
Fidelity buy 0% MFI 42.91
Fmn buy 77% sell 23% volume index 1.44 MFI 27.16
GT buy 12% sell 88% volume index 1.71 MFI 58.87
Honyflour buy � MFI 45.29
Jagold buy � MFI 56.87
Lvstk buy 88% sell 12% volume index 0.93 MFI 62.82
Mansard buy 50% sell 50% volume index 0.76 MFI 22.73
Mben buy 67% sell 33% volume index 1.17 MFI 60.26
Nem buy 0% volume index 1.05 MFI 21.15
Oando buy � volume index 2.82 MFI 72.48
Regalins buy � MFI 38.79
Royalex buy � MFI 28.75
Sovrenins buy � volume index 2.75 MFI 72.43
Sterling buy � MFI 47.19
Transcorp buy � MFI 29.36
Uacp buy 0% volume index 1.09 MFI 75.62
Uba buy 80% sell 20% MFI 53.24
Ubn buy 0% MFI 49.63
Ucap buy � volume index 1.69 MFI 58.47
Wapco buy 27% sell 73% MFI 47.11
Wapic buy 50% sell 50% MFI 47.42
Wema buy 0% MFI 33.94
Zenith buy 31% sell 69% volume index 4.32 MFI 61.32

Investdata Daily Sentiment Report
https://investdataltd..com/2021/02/sentiment-report-for-february-24-2021.html

The Profit Point by OGTV as at 25th Feb 2021

Hello Investors and Traders,

I just posted The Profit Point by OGTV as of 25/02/2021.

Share with me what you think about the video and don't forget to click on subscribe button so that you can be among the first to get the latest update.


https://www.youtube.com/watch?v=DZq0-os1ZpA

Ambrose Omordion

JOIN OUR LIVE COMPREHENSIVE HD VIDEO MEETING FOR INVESTORS AND TRADERS


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Questions and Answers with Ambrose Omordion

will hold Saturday 20/02/2021. Time: 12:00noon

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Ambrose Omordion

COVID-19: NBPlc Nets N7.56bn Profit, Offers Share-For-Dividend Swap


As expected, Nigerian Breweries Plc, on Friday, became one of the first companies to present its audited financials for the year ended December 31, 2020, bearing the tell-tale signs of the negative impacts of the Coronavirus pandemic on the entire economy and disposable income, besides foretelling what other companies operating in the consumer goods sector could have faced in the period under review.

The summary of the numbers presented through the Nigerian Stock Exchange NSE include a marginal growth in net revenue, but 53.3% drop in profit for the year, following which dividend declared was cut by 24.5%. A breakdown of the dividend showed that the board has proposed N1.76 in total dividend, more than the 94 kobo earned per unit, out of which 69 kobo is being proposed as final dividend per share, “subject to approval by the shareholders at the Annual General Meeting fixed for April 22, 2021,” as against the previous N1.51 each. Recall that 25 kobo had already been paid as interim dividend, as against the previous 50 kobo per unit. In the corresponding period of previous year, Earnings Per Share stood at N2.01, as against the N2.33 paid out.

The board is also recommending for the approval of shareholders at the forthcoming AGM, the right “to receive new ordinary shares in the company instead of the final dividend in cash” on or before April 10, 2021 at a price representing its 10-day trading average share price on the NSE, starting on March 11, 2021.

Details of the result showed net revenue of N337.046bn, up from N323.007bn, out of which cost of sales increased by N26.598bn or 13.87%; following which gross profit stood at N118.69bn, down from N131.25bn in the prior full year.

Other income dropped to N828.055m from N1.005bn, the lion’s share of which came from sale of scrap valued at N720.443m, down from N793.649m; followed by incme from management services amounting to N49.609m, a decline from N60m. The biggest drop was recorded in the income from insurance claim, which dropped from N134.832m in the previous year to N47.84m. Marketing and distribution expenses was reduced from N77.695bn to N70.701bn; just as administrative expenses was also cut marginally to N18.959bn, compared to the previous N19.355bn; as a result of which operating profit fell to N29.817bn from N35.205bn

Finance income (interest income earned on bank deposits) reduced to N246.283m from N260.7m; but finance costs jumped to N18.356bn from N12.114bn in the 2019 full-year; leaving net finance cost at N18.028bn, up from N11.853bn.

Profit before tax therefore fell from N23.351bn in the corresponding period of 2019, to N11.576bn; while the 41.92% in income tax expense left net profit for the year at N7.368bn, as against N16.105bn in the preceding year.

Of this amount, the directors have proposed a total dividend of N7.517bn, with N1.999bn earlier paid, and a final dividend of N5.517bn, which will be payable on April 23, 2021, “to shareholders whose names appear on the company’s register of members at the close of business on the 10th of March, 2021.”

The share-dividend swap will enable the company retain its much needed cash, thereby reduce its reliance on bank borrowing for operational purposes. Recall that the directors and core investors have in the year under review reinvested their previous dividends on the company’s shares, in what analysts sale was due to their inability to repatriate the funds through the official Investors and Exporters window of the Central Bank of Nigeria.

As a result, the shareholding of Heineken Brouwerijen B.V. rose to 37.94% at the end of the period under review, compared to its 37.76% as of December 31, 2019; while those of Distilled Trading International B.V., another member of the Heineken N.V. Group, and Stanbic Nominees Nigeria Limited, the two other significant shareholders remained at 15.47% and 11.37 % respectively.

Also within the year, Chief Kolawole Jamodu, the board chairman of NB Plc raised his stake to 796,704 shares, from 766,704 units at the end of the prior year.

https://investdathttps://investdata.com.ng/covid-19-nbplc-nets-n7-56bn-profit-offers-share-for-dividend-swap/a.com.ng/covid-19-nbplc-nets-n7-56bn-profit-offers-share-for-dividend-swap/

Investdata Price, Earnings Tracking For Week Ended February 19, 2021

https://investdata.com.ng/investdata-price-earnings-tracking-for-week-ended-february-19-2021/

Corporate Actions As Of Friday, February 19, 2021

Returns On NGSE Turn Negative YTD, As Yields, Become More Attractive

Market Update for February 18
The nation’s stock market had mixed session and dipped further in the red on Thursday, for the third consecutive day as selling pressure persisted on profit-taking and selloffs across all sectors due to concern among the investing public on the rising insecurity in the country. This seems to have overwhelmed the lure of increasing dividend yields, and mixed economic data as seen in the latest data from the National Bureau of Statistics (NBS) showing that the Nigerian economy surprisingly recorded a marginal 0.11% growth in 2020 Q4 GDP halting the two quarters of negative 6.10% and 3.62% (READ MORE). This followed Wednesday’s release of the Consumer Price Index that the nation’s inflation spike further, touching a 17-month high at 16.46% in January, as against 15.78% in December (READ MORE).

The mild GDP growth appears to signal an exit from the second recession in the life of the Muhammadu Buhari administration, as earlier indicated by the mixed performance of unaudited Q4 and 2020 full-year corporate earnings released in January. These economic data are coming ahead of the major earnings reporting season of the Nigerian Stock Exchange (NSE), which just kicked off with early filers like United Capital announcing a corporate action of 0.70 kobo dividend, with qualification date slated of March 5, 2021. The proposed dividend translates to a Dividend Yield of 11.70% (using Thursday’s closing price, being the date it was declared), beat market expectation. Payout also grew by 40%, a situation expected to influence the company’s share price positively, depending however on market reaction, which can be quite unpredictable given that it can be overshadowed by other issues.

Looking at the filing rules of the Exchange and option chosen by companies for end of year submission of results or financials within 60 and 90 days, companies that published their Q4 and unaudited full-year within 30 days after their year-end have till end of March to release their audited numbers. On the other hand, companies that do not make their results available within the 30-day window after their year-end, have another 60 days to release their audited accounts. This suggests that companies with December year-end that did not submit Q4 unaudited result have this month to make available their audited full year reports to the market, except for those that have the approval of their regulators to delay their score-card for any reason.

While chart watchers and market participants await a trigger to drive the anticipated reversal of trend, these pullbacks are creating buy opportunities ahead of earnings expectation. However, let your investment plans and objectives: entry and exit strategies, guide you to survive and profit from the expected new trend. In that way, should the full-year earnings reports and dividend news fail to impact and reverse the current trend, a big rotation in sector trends should also guide you, going into the future.

Meanwhile, Thursday’s, trading opened on the downside, before oscillating throughout the day on a mixed sentiment and selloffs ahead of corporate earnings season. This situation pushed NSE index to an intraday low of 40,196.50 basis points, from its highs of 40,473.43bps, before finally closing the session below its opening figure at 40,212.19bps on a less than average traded volume.

Market technicals were negative and mixed, with volume traded higher than previous day’s in the midst of breadth favouring the bears on a high selling pressure as revealed by Investdata’s Sentiments Report showing 94% sell volume and 6% buy position. Total transaction volume index stood at 0.74 points, just as momentum behind the day’s performance remained weak, with Money flow index dropping sharply to17.28pts, from the previous day’s 26.48pts, indicating funds left the market on profit taking.

Index and Market Caps

The composite NSEASI at the end of Thursday’s trading lost 253.13bps, closing at 40,212.19bps, from its opening level of 40,465.32bps, representing 0.63% decline. Similarly, market capitalization fell by N132.42bn, closing at N21.04tr from the N21.17tr it opened, also representing 0.63% depreciation in value.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added 20 STOCKS TO WATCH THAT ARE BUILDING NEW BULLISH BASE to our watchlist. These stocks are with double potentials to rally considering their current market value.

To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current market recovery ahead of portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

Thursday’s downtrend was impacted by profit taking in MTNN, Guaranty Trust Bank, Zenith Bank, Flour Mill, Lafarge Africa, United Capital, Dangote Sugar, UBA, Access Bank, and Vitafoam, among others. This impacted Year-To-Date performance which turned negative at 0.15%, while at the same time pushing market capitalization into red at N19.98 billion, or 0.06%.

Bearish Sector Indices

All the sectorial performance indexes were down, as NSE Banking led the decliners after losing 2.60%, followed by Insurance, Consumer goods, Oil/Gas and Industrial good with 1.54%, 0.51%, 0.20% and 0.13% respectively

Market breadth remained negative, as decliners outnumbered advancers in the ratio of 30:10; just as transactions in volume and value terms rose by 74.56% and 79.5% respectively, after investors exchanged 426.27m shares worth N4.75bn, as against previous day’s 244.2m units valued at N2.65bn. Volume was driven by trades in FBNH, Zenith Bank, Dangote Sugar, Guaranty Trust Bank and Transcorp.

RT Briscoe and Cornerstone Insurance were the best performing, gaining 10% and 8.47% to close at N0.22 and N0.64 per share respectively, on market forces. On the flip side, University Press and Chams lost 9.09% and 8.33%, closing at N1.20 and N0.22 per share, on profit taking and market forces.

Market Outlook

We expect a mixed trend and less losing momentum as bargain hunters increase their positions ahead of better dividend yield occasioned by price corrections that had created entry opportunities for discerning investors ahead of earnings expectations.

Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the rising oil prices that have so far supported the Nigerian economy and equity market, despite the seeming improvement in the fixed income yield which had remained at negative real rate of return due to the subsisting high inflation.

However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by expected 2020 full earnings reports and exit from recessionary economy until the next MPC meeting in March.

The NSE’s index action and indicators are in divergence on a low traded volume and positive buying sentiments.

Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the new year.

https://investdata.com.ng/returns-on-ngse-turn-negative-ytd-as-yields-become-more-attractive/

WORDS TO TRADE BY

"Given a 10% chance of a 100 times payoff, you should take that bet every time."

- Jeff Bezos

Most people dismiss many of the best and most profitable investment ideas simply because they probably won't work. These investors never stop to consider how much they could make if unlikely outcomes actually occur. Jeff Bezos took those bets and became the richest person in the world.
While you're unlikely to become as wealthy as Bezos, you can blaze your own path toward major success if you work hard enough and take some risks!

Sentiment Report for February 18, 2021

NSEASI buy 6% sell 94% volume index 0.74 MFI 17.28
Access buy 20% sell 80% volume index 0.74 MFI 24.45
Aiico buy 0% MFI 34.04
Chiplc buy 0% volume index 0.75 MFI 13.93
Corner buy � volume index 1.21 MFI 83.21
Custodian buy 0% volume index 1.01 MFI 39.28
Dangsugar buy 17% sell 83% volume index 4.08 MFI 34.01
Fbnh buy � volume index 3.57 MFI 62.30
Fcmb buy 0% volume index 1.01 MFI 80.40
Fidelity buy 25% sell 75% volume index 0.97 MFI 30.61
GT buy 32% sell 68% volume index 1.31 MFI 44.28
Honyflour buy � MFI 81.63
Jaiz buy � MFI 71.96
Jagold buy 0% MFI 22.21
Lvstk buy 0% MFI 40.86
Mansard buy 29% sell 71% MFI 40.35
Mben buy � MFI 60.55
Nahco buy � volume index 2.23 MFI 61.02
Sterling buy 0% MFI 42.95
Transcorp buy 0% MFI 28.28
Uacp buy 33% sell 67% MFI 65.71
Uba buy 0% volume index 0.73 MFI 34.72
Ucap buy 95% sell 5% volume index 0.89 MFI 25.41
Wapic buy 33% sell 67% volume index 0.80 MFI 64.46
Zenith buy 18% sell 82% volume index 1.22 MFI 29.08

Investdata Daily Sentiment Report
https://investdataltd..com/2021/02/sentiment-report-for-february-18-2021.html