₦airaland Forum

INVESTDATA INVESTORS SUMMIT 2020: BEYOND THE UNCERTAIN TIMES

Theme- Life Beyond COVID: Investment Opportunities in Various Assets Classes

Sub-Topics

* Life Beyond the Pandemic: Personal Financial Planning, Investment and Trading Strategies in a Low Yield Environment (AlhajiGarbaKurfi, MD/CEO, APT Securities & Funds Ltd)
* How to Buy and Sell Stocks Profitably in Recession, Recovery and Boom (Mr Abdul-Rasheed Momoh, Head, Capital Market Trw Stockbrokers Ltd)
* Economic Recovery Scenarios, What’s the Fate of Equities and Other Assets Classes (MrOluwasegunAkinwale, Lead Analyst, Nova Merchant Bank)
* The Paradox of Declining Interest Rate and Rising Inflation: Confusion or New Realities for Investors (Mr. AbiolaRasaq, CSCS)
* The New Thinking in Fixed Income Market: Today and Tomorrow (Mr. KayodeTinuoye, Portfolio Manager, United Capital Asset Management)
* Outlook for Alternative Asset Classes: Where are the ETFs, Commodities, REITS and Real Estate Opportunities (MrTaiwo Yusuf Head, Wealth Management, Meristem)
* Portfolio Restructuring and Rebalancing for Positive Returns Ahead of Market Rebound (Engr. EkwuemeMike MD, X-Front Traders ltd
* The Power of Earnings Quality, Value and Dividends in Equity Investment (Mr. Ambrose Omordion CRO Investdata Consulting Ltd)
* The Summit will provide answers to these Seven question among others

* Where exactly are the opportunities in the equity market, fixed income and others?
* Which sectors or markets provide the post COVID-19 investment opportunities?
* How investors and traders can take advantage of the low interest regime to build profitable portfolios
* What are the prevailing market moves and who are the dominant players?
* What are Smart Money and Retail investors doing?
* Where should investors look to enter the market or exit?
* Is it the same every day, season and year?

Date: September 26, 2020

VENUE: ZOOM

For more details, call 08028164085, 08032055467, 08111811223 now.

INVESTDATA INVESTORS SUMMIT 2020: BEYOND THE UNCERTAIN TIMES

Theme- Life Beyond COVID: Investment Opportunities in Various Assets Classes

Sub-Topics

Life Beyond the Pandemic: Personal Financial Planning, Investment and Trading Strategies in a Low Yield Environment (AlhajiGarbaKurfi, MD/CEO, APT Securities & Funds Ltd)
How to Buy and Sell Stocks Profitably in Recession, Recovery and Boom (Mr Abdul-Rasheed Momoh, Head, Capital Market Trw Stockbrokers Ltd)
Economic Recovery Scenarios, What’s the Fate of Equities and Other Assets Classes (MrOluwasegunAkinwale, Lead Analyst, Nova Merchant Bank)
The Paradox of Declining Interest Rate and Rising Inflation: Confusion or New Realities for Investors (Mr. AbiolaRasaq, CSCS)
The New Thinking in Fixed Income Market: Today and Tomorrow (Mr. KayodeTinuoye, Portfolio Manager, United Capital Asset Management)
Outlook for Alternative Asset Classes: Where are the ETFs, Commodities, REITS and Real Estate Opportunities (MrTaiwo Yusuf Head, Wealth Management, Meristem)
Portfolio Restructuring and Rebalancing for Positive Returns Ahead of Market Rebound (Engr. EkwuemeMike MD, X-Front Traders ltd
The Power of Earnings Quality, Value and Dividends in Equity Investment (Mr. Ambrose Omordion CRO Investdata Consulting Ltd)
The Summit will provide answers to these Seven question among others

Where exactly are the opportunities in the equity market, fixed income and others?
Which sectors or markets provide the post COVID-19 investment opportunities?
How investors and traders can take advantage of the low interest regime to build profitable portfolios
What are the prevailing market moves and who are the dominant players?
What are Smart Money and Retail investors doing?
Where should investors look to enter the market or exit?
Is it the same every day, season and year?
Date: September 26, 2020

VENUE: ZOOM

For more details, call 08028164085, 08032055467, 08111811223 now.

Mixed Sessions Ahead, As Investors Reprice Equities To Reflect Realities

Market Update for September 21

The nation’s stock market, on Monday, maintained a mixed and ranging outlook remaining dicey as its technicals and fundamentals seem totally disconnected, extending into the second successive sessions of marginal gains on a low traded volume. The market is in need of positive information or policy statement to trigger buying interests ahead of the Q3 earnings reporting season, at a time of so much negative macroeconomic indices wobbling the nation’s economic fundamentals.

The continued mixed sentiments and volatility will likely be sustained throughout the rest of this year, such that although prices stay high or low, the trend would remain the friend of investors. Following which you must stay alert and cautious, while constantly reviewing your trading strategy, given the rapid change going on in the market, if you must meet your investment objective.

Despite the absence of a positive catalyst, however, the market is likely to benefit from the compelling stock valuations, as investors seek high yield opportunities in the face of negative real returns in the fixed income market.

Meanwhile, Monday’s trading started slightly in the green. This was sustained throughout the session on profit taking and buying interests in MTNN, Guaranty Trust Bank, Presco and UACN, a situation that pushed the NSE All-Share index to an intraday high of 25,592.86bps, from its low of 25,564.366bps, before closing at 25,5574.35bps.

Monday’s market technicals were weak and mixed, with volume marginally higher than the previous session’s in the midst of negative breadth and mixed sentiments as revealed by Investdata’s Sentiment Report showing 35% ‘buy’ volume and sell position of 65%. Total transaction volume index stood at 0.84 points, just as impetus behind the day’s performance remained relatively strong, with Money Flow Index reading 64.26 points, from the previous day’s 63.52 points, an indication that funds enter the market despite profit taking.

Index and Market Caps

The NSEASI closed the day 1.78 basis points better at 25,574.35bps, after opening at 25,572.78bps, representing 0.01% up, just as market capitalization was N1.73bn better, closing at N13.37 trillion, after opening at N13.36tr.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of most revered traders and investors in corporate Nigeria to our watchlist. These stocks are with double potentials to rally considering their current market prices.

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 Q3 earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

Monday’s marginal upturn impacted mildly on the index, reducing Year-To-Date loss to 4.72%, while market capitalization YTD gain stood at N403.85bn, representing 3.06% above the year’s opening value.

Mixed Sector Indices

The seccoral indexes were mixed, with NSE Banking closing 0.09% down, while the NSE Insurance led the advancers, gaining 1.36%, followed by Industrial and Consumer Goods indexes that gained 0.19% and 0.08% respectively..

Market breadth was negative, with decliners outnumbering advancers in the ratio of 16:6, while transaction in volume and value terms were also mixed, after stockbrokers crossed 196.12m shares, up from the previous day’s 193.5m units. Transaction value however dropped by 6.38% to N1.73bn from precious N1.85bn, boosted by trades in FBNH, Charms, UBA, Mutual Benefits and Zenith Bank.

ABC Transport and Wapic Insurance were the best performing stocks, after gaining 10% and 8.11% respectively, closing at N0.33 and N0.40 per share on market forces. On the flip side, Champion Brewery and Redstar Express lost 10% and 9.20% respectively, closing at N0.81 and N2.96 respectively on market forces and markdown.

Market Outlook

We expect pullbacks and repositioning to continue ahead of Q3 corporate earnings and macroeconomic index, given that the August inflation data came worse than expected at 13.22%, thereby deepening the negative returns of many investment windows. Recall that banks have kept the market above its 50-day moving average on a daily time frame, which is equally at overbought zone in the short term.

The mixed intraday movement is likely to persist as the month of September progresses in the midst of profit booking, mismatch of economic policies and negative macroeconomic indices. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation, negative Q2 GDP of 6.1% and unstable economic outlook for the rest of 2020 as government and its economic managers are going front and back with mismatch polices and implementation.

Also, investors and traders are positioning amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.

We see investors focusing on portfolio adjustment and rebalancing by targeting companies with strong potentials to grow their Q3 earnings and dividend on the strength of their earnings capacity as the year last quarter is at the corner.

Again, the current undervalue 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 for the rest of the year.

Meanwhile, the home study packs on Strategies and How to invest profitably in this Changing Market Dynamics/ Recession, Mastering Earnings Season For Profitable Investing and Trading in any market situation/ cycles are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.


Ambrose Omordion

CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/mixed-sessions-ahead-as-investors-reprice-equities-to-reflect-realities/

Investdata Daily Sentiment Report as of 22 September 2020

NSEASI buy 35% sell 65% volume index 0.84 MFI 64.26
Abc buy � volume index 8.44 MFI 44.32
Access buy 0% MFI 55.88
Aiico buy � volume index 1.17 MFI 18.97
Chams buy � volume index 5.91 MFI 39.57
Fbnh buy 0% volume index 2.28 MFI 37.01
Fcmb buy 0% MFI 53.10
Fidelity buy 0% MFI 30.04
Fmn buy � MFI 88.48
GT buy � MFI 75.51
Honyflour buy 0% volume index 1.38 MFI 43.08
Jaiz buy 0% volume index 1.36 MFI 40.82
Japaul buy 0% volume index 1.94 MFI 45.67
Jberger buy 0% volume index 6.71 MFI 2.87
Lasaco buy 0% volume index 0.99 MFI 20.85
Mben buy � volume index 2.66 MFI 42.00
Mtnn buy � volume index 4.09 MFI 64.08
Red buy 0% volume index 0.77 MFI 43.32
Sterling buy 0% MFI 39.40
Transcorp buy � MFI 42.46
Uacn buy � MFI 70.64
Uba buy � volume index 1.02 MFI 40.76
Ucap buy 70% sell 30% volume index 1.10 MFI 35.40
Wapco buy 0% volume index 1.13 MFI 63.44
Wapco buy � MFI 63.93
Zenith buy 25% sell 75% MFI 61.28

https://investdataltd..com/2020/09/investdata-daily-sentiment-report-as-of_22.html

NGSE Outlook Dicey, Time To Diversify Portfolios Long-Term, Protect Capital


Market Update for the Week Ended September 18 and Outlook for Sept 21-25

Transactions on the Nigerian Stock Exchange for the week under review maintained a mixed performance and sentiments, slowing down the bull transition on profit taking and price adjustment for banking stocks that offered interim dividends to their shareholders even in the midst of the lingering economic uncertainty and dwindling investor and consumer confidence.

The current trading patterns and volatility have extended the sideways trending of the benchmark index for the second consecutive week as investors await positive news and policies capable of supporting or pointing to a new direction. Recall that the first tier banks had earlier inspired a rally that pushed the market to breakout the recent resistance level before the latest correction that dragged the composite index slightly lower on an above-average traded volume.

The prevailing trend on the NSE calls for cautious trading with sentiments and momentum remaining mixed on a slightly positive breadth.

Consequently, we advice discerning investors with long-term goals to look the way of stocks with high yields, when compared to those of other investment windows, considering the time-frame, especially as the current pullbacks may not linger.

Looking at companies that have surpassed market expectations in terms of earnings performance and positive sentiment in their last two quarterly results despite the pandemic should be in the interest of every investor and ahead of Q3 earnings reporting season. These expected numbers will give an insight as to companies that will likely pay dividend at the end of the current financial year end.

Market players are advised to tread carefully at this stage of the market rally to avoid a bull trap, because technical tools have earlier signaled the short-term overbought region, but are yet to confirm a deeper price correction or pullback at this time. Is this rally the BULL TRAP we have been warning about?

We wait to see this week and next, whether equity prices will confirm any new trend or direction as oil prices oscillates, even as the outlook for the rest of September remains dicey with the critical resistance level for the NSE index at 26,253.90 basis points. If the index finds resistance at this level, expect continued moderate price increases, which suggest that traders should look forward to moderate price volatility for the rest of the month.

The recent earnings forecasts in the market and actual numbers of the companies in a depressed economy struggling to find direction. Once these fundamentals are used for stock selection to build a watchlist that requires technical tools to tell the appropriate prices to buy and sell.

Movement Of NSEASI

It was a mixed trading week on the NSE, as the composite index recorded two sessions of up markets and three losses, thereby extending the two consecutive weeks of marginal decline that is slowing down market recovery.

The benchmark index started the week trading with slight gain of 0.05%, which was halted on Tuesday when the market shed 0.03% on profit taking in banking stocks. This trend was sustained at the midweek and Thursday when it lost 0.19% and 0.07% respectively on the back of selloffs in medium and high cap stocks. The down trend was reversed on Friday when the market recovered on buying interests in consumer goods stocks and others that had earlier suffered losses. This raised the week’s cumulative loss to 0.08%, as against 0.05% in the previous week.

Market data revealed that the benchmark index shed 19.38 basis points, opening at 25,591.92bps, touching an intra-week low of 25,505.27bps from its high of 25,618.65bps on markdown of share prices of stocks that declared interim dividend and profit taking ahead of this week’s payment dates for the banks. The key performance index closed for the week at 25,572.57bps, while market capitalization gained by N14.3bn, closing at N13.37tr, from the previous weekend’s N13.35tr, representing 0.10% appreciation in value. This followed the listing of additional 601.03m ordinary shares of Stanbic IBTC Holdings.

During the week, the share prices of UBA, Zenith Bank, Guaranty Trust Bank, Access Bank, Stanbic IBTC and Honeywell Flourmills were adjusted for interim and full-year dividends recommended by their respectively boards. Low and medium cap stocks dominated the top gainers’ chat, despite the fact that there were more advancers than decliners in the ratio of 32:31, even as the momentum behind the week’s performance stayed strong. Money Flow Index read 74.74bps, up from 74.65bps in the previous week.

The market’s money flow index at the end of the week formed a multiple top that signaled overbought and that correction is underway with the rate of profit taking slowing down. The candlestick formation and patterns support a continuation and pullback, which is a function of market forces, with the index testing the 50-Day Moving Average on above average traded volume. At the same time, it is trading above the 50% line of Fibonacci retracement that suggests cautious trading in the new week.

However, we envisage a resurgence of profit taking and mixed trend, given that the money flow index on a weekly time frame has formed multiple tops with MACD remaining within a bullish zone. The buy volume for the period stood at 59%, and money flow index at 74.74 points.

Bearish Sectoral Indices

The performance index across the sectors were largely bullish, except for the NSE Oil/Gas and Banking indexes closed 1.03% and 0.67% lower respectively, while the NSE Industrial goods index led the advancers with 0.50%, followed by the NSE Consumers goods and Insurance whichwere up by 0.13% and 0.01% respectively. The general market outlook in recent times remains mixed and dicey in the short-term, following which investors should diversify their portfolio with long-term trades to protect capital. This they can do especially by considering sectors such as agribusiness, healthcare, industrial goods, insurance and telecoms, which have shown the most strength.

Market activities for the week, in terms of volume and value, were mixed as volume was down by 7.32% to 1.14bn shares, compared to 1.23bn units in the previous week, while value climbed 17.07% up to N12.69bn, from the N10.84bn. Volume for the week was driven by trades in financial services, industrial goods and ICT sectors, specifically FBNH Guaranty Trust Bank, Access Bank.

Wapic Insurance and Learn Africa were the best performing stocks in the week under review, gaining 12.12% and 9.62% respectively at N0.37 and N1.14 per unit on market sentiments and forces. On the other hand, ABC Transport and NEM Insurance lost 16.67% and 9.78% respectively, closing at N0.30 and N2.03 per share on market forces and profit taking.

Market Outlook

We expect mixed trends to continue on positioning and profit taking ahead of quarter end and Q3 earnings season expected to kick off with early flier in second week of October. The hike in electricity tariff and fuel price, coupled with proposed strike will further worsen the already negative macroeconomic indices. Recall the nation’s GDP contracted by 6.1%, while inflation remains at 13.22% and PMI at 48.5 points, confirming the contraction in the economy.

Expect a pullback that will support the upside potential, especially with many fundamentally sound stocks remaining underpriced, and the dividend yield of major blue-chips continuing to look attractive in recent weeks, we expect speculative trading to shape the market’s direction, despite the seeming mixed outlook.

To position for the short to long-term, investors should target fundamentally sound, dividend-paying stocks, for possible capital appreciation in the coming months. Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives, and their impact on the economy in the nearest future.


Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/ngse-outlook-dicey-time-to-diversify-portfolios-long-term-protect-capital/

I give up because life is unfair

Ambrose Here Again,

He who has undertaken the sublime task of overcoming himself does not resign to anything that will not help him move forward. Who does not want to subject himself to that which is good?

So, resignation to this current new normal and wait for something somewhere to happen is like saying "I give up; I am defeated; life is unfair and I submit."

Fortunately and under any circumstances, you are framed for victory and joy. So, don't let that negativity in the market rob you off your financial source. However, this can't be achieved by mere wish but through constant studying, training, attending workshops and doing everything to be better than what you were yesterday.

So, due to the change in the dynamics of the economy and different government policies that will affect the market, I will be organizing a seminar LIFE BEYOND COVID-19: INVESTMENT OPPORTUNITIES IN VARIOUS ASSET Classes. 26th September, 2020 10:00am to 2:00pm

Call or Chat Admin on 08032055467 08028164085

Or click on the below link


To decide If you want to be in control of your portfolio or you want external factors to control your finance for you before it closes on 23rd Sept, 2020. The choice is Yours.

Best
Ambrose Omordion
http://workshop.investdataonline.com/covidworkshop

Investdata Weekly Sentiment Report as of 21 September, 2020

NSEASI buy 59% sell 41% volume index 0.85 MFI 75.73
Abc buy 0% volume index 3.06 MFI 31.64
Access buy 11% sell 89% volume index 1.22 MFI 55.97
Afrprud buy 91% sell 9% volume index 0.86 MFI 55.91
Aiico buy � volume index 1.18 MFI 29.25
Ardova buy � MFI 32.80
Berger buy � volume index 8.36 MFI 55.03
Cadbury buy 74% sell 26% volume index 1.10 MFI 36.74
Cap buy � volume index 1.86 MFI 36.41
Caverton buy 89% sell 11% MFI 8.88
Chams buy 50% sell 50% volume index 1.38 MFI 22.96
Cileasing buy 88% sell 12% volume index 2.37 MFI 34.00
Corner buy 0% volume index 5.09 MFI 54.07
Courtville buy � volume index 1.81 MFI 55.86
Custodian buy � volume index 3.65 MFI 56.23
Cutix buy 0% volume index 1.72 MFI 59.15
Dangsugar buy 95% sell 5% volume index 2.73 MFI 21.57
Eti buy 25% sell 75% volume index 1.24 MFI 27.53
Fbnh buy 69% sell 31% volume index 0.96 MFI 33.08
Fcmb buy 21% sell 79% volume index 2.26 MFI 63.14
Fidelity buy 25% sell 75% MFI 45.61
Fmn buy � MFI 32.07
GT buy � MFI 56.45
Honyflour buy 0% volume index 1.08 MFI 60.83
Jaiz buy 75% sell 25% MFI 36.02
Japaul buy � MFI 53.09
Jberger buy 33% sell 67% MFI 18.73
Lasaco buy 0% volume index 0.91 MFI 46.53
Lawunion buy � volume index 0.97 MFI 35.82
Learn buy � volume index 0.72 MFI 38.40
Lvstk buy 0% volume index 0.78 MFI 57.96
Mansard buy � volume index 1.33 MFI 61.89
M&B buy � volume index 0.84 MFI 20.07
Mtnn buy � volume index 2.20 MFI 53.75
Nahco buy 0% volume index 0.95 MFI 10.32
Nascon buy 0% volume index 2.05 MFI 59.14
Neimeth buy � volume index 0.83 MFI 57.76
Nem buy 0% MFI 32.62
Npf buy 56% sell 44% volume index 1.67 MFI 17.24
Oando buy 38% sell 62% MFI 37.87
Prestige buy � volume index 1.13 MFI 45.91
Red buy 39% sell 61% MFI 44.56
Royalex buy 75% sell 25% volume index 2.58 MFI 48.11
Seplat buy 0% volume index 0.71 MFI 35.54
Stanbic buy 75% sell 25% volume index 4.23 MFI 54.48
Sterling buy 80% sell 20% MFI 21.44
Transcorp buy 50% sell 50% MFI 32.53
Uacp buy � MFI 57.55
Uacn buy 50% sell 50% MFI 25.38
Uba buy 40% sell 60% MFI 22.13
Ubn buy � volume index 0.78 MFI 17.79
Ucap buy � volume index 1.01 MFI 61.72
Uniondac buy 0% MFI 71.86
Unity buy � volume index 1.12 MFI 66.02
Upl buy 0% MFI 82.08
Vitafoam buy � MFI 51.44
Wapco buy 25% sell 75% volume index 1.93 MFI 65.56
Wapic buy � MFI 41.12
Wema buy � volume index 1.12 MFI 54.31
Zenith buy 15% sell 85% MFI 49.76

https://investdataltd..com/2020/09/investdata-weekly-sentiment-report-as_21.html

The Profit Point 18th September 2020

Hello Investors and Traders,

Here is another Profit Point video that will guide you in the market.

In addition, click on the subscribe button on my YouTube Channel so that you won't miss out.


https://www.youtube.com/watch?v=TZAWV8Ssfj8

Buy and Sell Signal for the started 21 September 2020

Hello Investors,

The, buy & sell signal for this week have been posted on the membership site for you. Pls click on the long link for this week download.

I have added a further twist to it. This includes.
1. Low Priced Stocks to Watch
2. Stocks to lead recovery
3. Defensive Stocks
4. Dividend Stocks with Strong Yields and Fundamentals
5. Stocks to Benefit from Corona Virus Induced Economic downturn and government Intervention


However, you need to login on the membership site before you can have access to it.

Kindly click on the below link now to login with your username and password

However, if you have not joined the buying and selling signal membership, kindly indicate your interest so that one of our team members will call you immediately on how to get started immediately

To Your Success
Investdata Consulting.
http://investdataonline.com/buy-sell-signal/

P.S. You need to act fast. You know time wait for no one.

Investdata Daily Sentiment Report as of September 15th, 2020

NSEASI buy 71% sell 29% volume index 1.11 MFI 72.52
Access buy 0% volume index 0.93 MFI 71.99
Aiico buy 50% sell 50% volume index 1.55 MFI 27.05
Chams buy � volume index 2.20 MFI 43.10
Eti buy � MFI 20.47
Fbnh buy 50% sell 50% volume index 1.08 MFI 48.95
Fcmb buy 0% MFI 63.74
Fidelity buy 0% MFI 25.93
GT buy 67% sell 33% volume index 1.77 MFI 67.56
Honyflour buy � volume index 1.08 MFI 41.91
Japaul buy 0% volume index 1.19 MFI 50.07
Jberger buy 67% sell 33% volume index 4.67 MFI 0.00
Nahco buy � volume index 0.75 MFI 27.29
Neimeth buy � volume index 1.21 MFI23.32
Royalex buy � MFI 86.94
Sterling buy 0% volume index 0.72 MFI 29.37
Transcorp buy 50% sell 50% MFI 40.78
Uacn buy � MFI 96.88
Uba buy 33% sell 67% volume index 1.19 MFI 35.49
Ucap buy 42% sell 58% volume index 1.02 MFI 29.65
Wapco buy � volume index 5.02 MFI 90.13
Wapic buy 0% MFI 67.23
Wema buy � MFI 77.91
Zenith buy � MFI 67.41

Investdata Daily Sentiment Report as of September 16th, 2020

NSEASI buy 54% sell 46% volume index 1.04 MFI 65.75
Access buy 25% sell 75% volume index 0.79 MFI 73.16
Chams buy � volume index 0.85 MFI 43.73
Dangsugar buy � volume index 4.19 MFI 0.00
Fbnh buy 0% volume index 2.63 MFI 33.95
Fcmb buy 0% MFI 58.66
Fidelity buy 0% volume index 0.81 MFI 30.85
GT buy � volume index 2.57 MFI 77.23
Honyflour buy � volume index 1.23 MFI 48.13
Jaiz buy � volume index 1.51 MFI 36.22
Lasaco buy 0% MFI 13.97
M&B buy � volume index 4.05 MFI 45.90
Nahco buy 0% volume index 1.15 MFI 30.87
Neimeth buy � MFI 27.45
Npf buy 0% volume index 1.99 MFI 1.99 MFI 51.45
Oando buy 0% volume index 1.50 MFI 46.54
Red buy 0% volume index 2.47 MFI 35.59
Transcorp buy � MFI 40.35
Uba buy 0% MFI 37.41
Ucap buy 20% sell 80% MFI 35.51
Wapco buy � MFI 89.89
Zenith buy 75% sell 25% volume index 0.82 MFI 62.14

With NGSE’s Dicey Outlook, Time To Diversify Portfolio Long-term, Protect Capital

Market Update for the Week Ended September 11 and Outlook for Sept 14-18

The Nigerian stock market had a mixed performance in the past week, rebounding on the recovery recorded by banking and manufacturing stocks which had witnessed profit booking in the early sessions of the period. Trading was however volatile, in the midst of mixed sentiments that halted previous week’s gaining momentum, following which the benchmark index closed slightly lower on an above-average traded volume.

Helped by the rekindled buying interests among market players, the NSE All-Share Index closed positive in the final two trading days, despite the wide disconnect between the bull-run of the stock market and the wobbling economic realities that has been made worse by the lockdown occasioned by the outbreak of the Coronavirus (COVID-19) pandemic. The living conditions of Nigerians is bound to worsen in the coming weeks, given the mismatch of the government’s economic policies, especially the recently implemented hike in the price of petroleum motor spirit (PMS) or petrol, and electricity tariff, which could result in low productivity, increased operating costs and further economic contraction.

The recent twin increases, being the major drivers of general price and cost increase, would result in heightened inflation, even when the government’s stimulus packages are yet to reach the majority of beneficiaries.

Technically, the money flow index of the market has formed a triple top that signals a breakout or pullback in the coming week depending on the interplay of market forces, especially considering the fact that all the interim dividend banks have fixed their qualification and markdown dates for the next week.

This trend again calls for cautious trading and investing as sentiments and momentum remains mixed and on a negative breadth. Consequently, discerning investors with long-term investment goals should look the way of stocks with high yields, when compared those of other investment windows, considering the time-frame.

Looking at the companies expected to adjust their share prices next week for dividend, Access Bank looks most attractive, with its relatively high yield and gross earnings, reflecting the gradual impact of its capacity-building efforts.

Traders are advised to tread carefully at this stage of the market rally to avoid a bull trap, because technical tools have earlier signaled the short-term overbought region, but yet to confirm a deeper price correction or pullbacks at this time. Is this rally the BULL TRAP we have been warning about? We wait to see, this week and next, whether equity prices will confirm any new trend or direction as oil prices oscillates, trading below $40, even as the outlook for the rest of September remains dicey with the critical resistance level for the NSE index at 26,253.90 basis points. If the index finds resistance at this level them you can expect continued moderate price increases, which suggest that players should look forward to moderate price volatility for the rest of the month.

Investdata Research has continuously emphasized the charts so as to identify any resistance or weakness related to the increase in volatility over the past 14 trading sessions. Such increasing price volatility has come to stay at least till the end of 2020, meaning that technical traders should expect huge price swings over the next few weeks and months.

Meanwhile, it is noteworthy that the new wave of earnings forecasts in the market is a welcome development, as it would further guide investors when planning and taking investment decisions, especially given the rising economic uncertainty.

Movement Of NSEASI

The market’s performance indexes for the week under the review were mixed, recording three sessions of down markets and two of gain, thereby short-living the seven weeks of bull transitions on profit taking.

The NSE’s composite All-Share index opened for the period recording a marginal 0.07% loss, which was sustained on Tuesday and the midweek, when it increased to 0.38% and 0.28%respectively on the back of selloffs in banking stocks. The negative outlook was reversed on Thursday and Friday when the market recovered on buying interests in banking and manufacturing stocks that had earlier suffered losses. This bought the week’s loss to 0.05%, as against 1.17% it gained in the previous week.

Specifically, the benchmark index shed 13.69 basis points, opening at 25,605.64bps, touching an intra-week low of 25,403.33bps from its high of 25,631.16bps on a mixed sentiment and profit taking ahead of this week’s markdown dates. The key performance index closed the week at 25,591.95bps, just as market capitalization fell by N7.15bn to N13.35 trillion, from the previous weekend’s N13.36 trillion, which also represented 0.05% value loss.

As usual, low priced and medium cap stocks dominated the top advancers’ table, despite the fact that there were more losers than gainers in the ratio of 38:123, even as the momentum behind the week’s performance stayed strong, with Money Flow Index reading 74.65bps, up from 64.79bps in the previous week.


The NSE index’s action and uptrend have slowed down on profit taking to form a candlestick pattern that support a continuation of the uptrend, which is a function of market forces, with the index testing the 50-Day Moving Average on above average traded volume. At the same time, it is trading above the 50% line of Fibonacci retracement that suggests cautious trading in the new week.

However, we envisage profit taking and mixed trend, as the money flow index on a weekly time frame has formed multiple tops with MACD remaining within a bullish zone. The buy volume for the period stood at 83%, and money flow index at 74.65 points.

Bearish Sectoral Indices

The sectorial performance indexes were largely bearish, except for the NSE Industrial goods that closed marginally higher by 0.0.35%, while the NSE Banking index led the decliners with 2.69%, followed by the NSE Oil/Gas’ 1.25%, while the NSE Insurance and consumer goods which lost 0.66% and 0.27% respectively. The general market outlook in recent times remains mixed and dicey in the short-term, following which investors should diversify their portfolio with long-term trades to protect capital, especially by considering sectors such as agribusiness, healthcare, industrial goods, insurance and telecoms, which have shown the most strength.

Market activities for the week, in terms of volume and value, were down by 44.34% and 1.09% respectively to 1.23bn shares worth N10.84bn, from the previous week’s 2.21bn units valued at N10.96bn. Volume for the week was driven by trades in financial services, conglomerates and consumer goods stocks, especially Custodian Investment, Zenith Bank, UBA, Transcorp and FBNH. .

Etena and C & I Leasing were the best performing stocks in the week under review, gaining 28.85% and 11.116% respectively, closing at N2.68 and N4.00 per unit on market sentiment and forces. On the other hand, Royal Exchange Assurance and Consolidated Hallmark Insurance lost 15.15% and 14.71% respectively, closing at N0.28 and N0.29 per share on market forces and profit taking.

Market Outlook

We expect mixed sentiments and trends to continue on position and profit taking ahead of August inflation data release. The hike in electricity tariff and fuel price, coupled with proposed strike will further worsen the already negative macroeconomic indices. Recall the nation’s GDP contracted by 6.1%, while inflation remains at 12.82% and PMI at 48.5 points, confirming the contraction in the economy.

Expect a pullback that will support the upside potential, especially with many fundamentally sound stocks remaining underpriced, and the dividend yield of major blue-chips continuing to look attractive in recent weeks, we expect speculative trading to shape the market’s direction, despite the seeming mixed outlook.

To position for the short to long-term, investors should target fundamentally sound, dividend-paying stocks, for possible capital appreciation in the coming months. Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives, and their impact on the economy in the nearest future..

Ambrose Omordion

CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/with-ngses-dicey-outlook-time-to-diversify-portfolio-long-term-protect-capital/

Investdata Weekly Sentiment Report as of September 13th, 2020

NSEASI buy 83% sell 17% volume index 0.91 MFI 75.64
Abc buy 0% MFI 46.30
Access buy 62% sell 38% volume index 1.11 MFI 61.74
Afrprud buy 53% sell 47% MFI 64.90
Aiico buy 29% sell 71% MFI 32.95
Ardova buy 0% MFI 34.17
Cap buy 0% volume index 4.04 MFI 30.68
Chams buy � volume index 0.83 MFI 24.89
Chiplc buy 0% volume index 1.52 MFI 36.46
Cileasing buy � volume index 1.50 MFI 30.22
Corner buy 80% sell 20% MFI 71.14
Custodian buy 0% volume index 11.75 MFI 62.28
Eterna buy � volume index 2.36 MFI 32.85
Eti buy � volume index 1.15 MFI 30.68
Fbnh buy � MFI 33.98
Fcmb buy 54% sell 46% volume index 0.78 MFI 70.31
Fidelity buy 6% sell 94% volume index 1.50 MFI 49.47
Fidson buy 0% MFI 72.01
Fmn buy � volume index 0.84 MFI 31.71
GT buy 35% sell 65% MFI 53.02
Honyflour buy � volume index 2.28 MFI 54.32
Jaiz buy 20% sell 80% volume index 1.15 MFI 37.46
Japaul buy � volume index 0.83 MFI 43.65
Jberger buy 0% MFI 18.61
Lasaco buy 0% volume index 1.01 MFI 43.09
Linkass buy 0% MFI 22.54
Lvstk buy 0% volume index 1.51 MFI 52.93
Mansard buy � volume index 1.28 MFI 67.92
Mben buy 0% volume index 2.51 MFI 52.24
Mtnn buy � volume index 0.72 MFI 46.95
Nahco buy � MFI 18.12
Neimeth buy 44% sell 56% volume index 2.04 MFI 65.44
Nem buy 0% MFI 28.44
Npf buy � MFI 18.10
Oando buy � volume index 0.71 MFI 34.97
Okomu buy 0% volume index 1.44 MFI 44.22
Pz buy � volume index 0.92 MFI 49.00
Red buy 75% sell 25% MFI 42.36
Regalins buy 0% MFI 74.69
Royalex buy 37% sell 63% volume index 3.79 MFI 54.92
Seplat buy 0% volume index 1.51 MFI 36.95
Stanbic buy � volume index 0.74 MFI 94.24
Sterling buy 0% MFI 20.34
Transcorp buy � volume index 1.04 MFI 31.78
Uacp buy 67% sell 33% volume index 4.17 MFI 69.54
Uacn buy 14% sell 86% MFI 25.92
Uba buy 14% sell 86% volume index 1.07 MFI 29.04
Ubn buy 67% sell 33% volume index 3.53 MFI 13.27
Ucap buy 67% sell 33% volume index 1.09 MFI 60.18
Unilever buy 0% MFI 90.32
Uniondac buy � volume index 1.98 MFI 74.22
Unity buy 20% sell 80% volume index 1.00 MFI 66.63
Vitafoam buy 39% sell 61% volume index 0.88 MFI 55.31
Wapco buy � volume index 0.77 MFI 55.88
Wapic buy 0% MFI 44.35
Wema buy 60% sell 40% volume index 2.41 MFI 48.96
Zenith buy 79% sell 21% volume index 0.77 MFI 51.47

Investdata Daily Sentiment Report as of September 11th, 2020

NSEASI buy 86% sell 14% volume index 1.04 MFI 72.73
Access buy 75% sell 25% MFI 66.33
Afrprud buy 0% volume index 0.75 MFI 33.01
Chams buy � volume index 1.70 MFI 73.17
Chiplc buy 0% volume index 3.99 MFI 63.82
Corner buy 0% volume index 1.16 MFI 85.95
Custodian buy 0% volume index 3.85 MFI 26.26
Fbnh buy � volume index 1.10 MFI 39.52
Fcmb buy 0% MFI 66.30
Fidelity buy 83% sell 17% volume index 3.54 MFI 25.75
GT buy 91% sell 9% MFI 54.22
Honyflour buy � volume index 0.96 MFI43.84
Jaiz buy 80% sell 20% volume index 2.57 MFI 44.27
Japaul buy � volume index 2.57 MFI 60.22
Lasaco buy � MFI 15.41
Mansard buy 0% volume index 2.47 MFI 39.93
Oando buy 33% sell 67% volume index 1.59 MFI 54.63
Royalex buy 0% MFI 80.28
Sterling buy 0% MFI 30.14
Transcorp buy � MFI 22.24
Uba buy 67% sell 33% volume index 1.04 MFI 43.48
Ucap buy 0% MFI 26.52
Unity buy 0% volume index 3.04 MFI 13.58
Wapco buy 0% volume index 0.85 MFI 77.16
Wema buy � volume index 4.30 MFI 66.87

Investdata Daily Sentiment Report as of September 9th, 2020

NSEASI buy 7% sell 93% volume index 1.15 MFI 79.80
Access buy 20% sell 80% volume index 1.47 MFI 72.08
Aiico buy 71% sell 29% volume index 0.96 MFI 38.04
Cap buy � volume index 0.75 MFI 57.24
Chams buy 0% MFI 77.66
Custodian buy 0% volume index 9.08 MFI 32.97
Eti buy 0% volume index 1.41 MFI 22.17
Fbnh buy � volume index 1.63 MFI 51.40
Fcmb buy 54% sell 46% volume index 2.67 MFI 68.38
Fidelity buy 25% sell 75% volume index 1.46 MFI 39.81
GT buy 0% MFI 73.80
Mben buy 0% MFI 82.68
Mtnn buy � MFI 100.00
Neimeth buy 69% sell 31% volume index 5.51 MFI 24.77
Oando buy 0% volume index 1.86 MFI 59.54
Sterling buy 0% volume index 0.83 MFI 27.75
Transcorp buy � volume index 0.93 MFI 18.07
Uacp buy � MFI 70.50
Uba buy 25% sell 75% volume index 1.59 MFI 45.96
Ucap buy 0% volume index 1.64 MFI 33.95
Wapic buy 50% sell 50% MFI 68.63
Zenith buy 0% volume index 1.29 MFI 71.39

Cautious Trading Continues, Ahead Of Markdown Dates For Interim Dividends

Market Update for September 8

Equity prices on the Nigerian Stock Exchange on Tuesday closed lower for the second consecutive day, continuing its mixed and volatile session as the benchmark index extended its negative stance on a very high transaction volume and selling sentiment. This was on the back of accelerated selloff and profit booking in banking stocks, offering dividend to investors, for which markdown dates are slated for next week.

Tuesday’s losing momentum increased to signal imminent price correction and pullback as investors digest the implication of government policies like the recent hike in electricity tariff and pump price of fuel without considering the multiplier effects such as the price increases, and living standard of Nigerians.

This is also at a time consumer confidence continues to decline due to impact of the coronavirus pandemic outbreak that has affected the purchasing power of the households, in addition to the decline in oil price below $40 on fresh warnings of demand weakness despite the seeming relaxation of lockdown across the globe.

Technically, the Nigerian equity market has extended its weakness for two sessions, suggesting that players should tread cautiously at this stage of correction to avoid falling in a bull trap, because technical tools have signaled short-term overbought region, but are yet to confirm a deeper price correction or pullbacks at this time. Is this rally the BULL TRAP we have been warning about? We wait to see, as the week comedy on a pullback, whether equity prices will confirm any new trend or direction.

Tuesday’s, trading started marginally on the downside, and stained throughout the session on profit taking in medium and high cap stocks, which pushed the NSE index to an intraday low of 25,490.014bps, from its high of 25,596.216bps. Thereafter, it closed the day lower at 25,497.323bps on a negative market breadth.

Market technicals were negative and weak, as traded volume was lower than the previous session in the midst of breadth that favoured the bears and strong selling pressure, as revealed by Investdata’s Sentiment Report showing 93% ‘sell’ volume and buy position of 7%. Total transaction volume index stood at 1.15points, just as the impetus behind the day’s performance remained relatively strong, with Money Flow Index reading 79.80points, from the previous day’s 87.48points, an indication that the entry of funds into the market is declining, despite the down market.

Index and Market Caps

The key performance index at the end of the trading, shed 84.91bps, closing at 25,497.32bps, having opened at 25,582.23bps, representing 0.33% decline, just as, market capitalization fell by N44.3bn to N13.3tr, after opening at N13.35tr, also representing a 0.33%depreciation in value.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of most revered traders and investors in corporate Nigeria to our watchlist. These stocks are with double potentials to rally considering their current market prices.

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 Q3 earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

The day’s downturn was due to selloffs in medium and high cap stocks like in Guaranty Trust Bank, Zenith Bank, UBA, UBN, Guinness, ETI, and Access Bank, which impacted negatively on the index, increasing Year-To-Date loss to 5.01%. Market capitalization YTD gain dropped to N343.2bn, representing 2.66% above the year’s opening value.

Bullish Sector Indices

Performance across the sectors were largely bullish, except for the NSE Banking that closed southward at 3.42% down, while the NSE Consumer goods index led the advancers, gaining 0.43%, followed by Insurance, Oil/Gas and Industrial goods that were up by 0.26%, 0.19% and 0.01% respectively.

Market breadth was negative as decliners outnumbered advancers in the ratio of 19:10, as market activities in term of volume and value were mixed with volume 1.18% down to 251.96m shares from the 254.97m units on Monday, while value increased by 2.2% to N2.04bn from N2bn, This was driven by trades in Custodian Investment, FBNH, Zenith Bank, Access Bank and Transcorp.

The best performing stocks of the day, were Honeywell Flour and Transcorp after gaining 4.4% and 3.4% respectively to close at N0.94 and N0.60per share on market forces. On the flip side, Arbico and Royal Exchange lost 9.6% and 9.1% respectively, closing at N1.03 and N0.30 respectively on market forces.

Market Outlook

We expect a mixed trend on profit taking ahead of qualification and markdown dates of dividend paying banks as investors reposition their portfolios, looking forward to market corrections ahead of the Q3 earnings season. Recall that banks have kept the market above its 50-day moving average on a daily time frame.

The mixed intraday movement is likely to persist as the month of September progresses in the midst of profit booking and negative macroeconomic indices. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation, negative Q2 GDP of 6.1% and unstable economic outlook for 2020 as government and its economic managers are going front and back with mismatch polices and action.

Also, investors and traders are positioning amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.

We see investors focusing on portfolio adjustment and rebalancing by targeting companies with strong potentials to grow their dividend on the strength of their earnings capacity.

Again, the current undervalue 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 for the rest of the year.

Meanwhile, the home study packs on Strategies and How to invest profitably in this Changing Market Dynamics/ Recession, Mastering Earnings Season For Profitable Investing and Trading in any market situation/ cycles are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

INVESTDATA INVESTORS SUMMIT 2020: BEYOND THE UNCERTAIN TIMES

Theme- Life Beyond COVID: Investment Opportunities in Various Assets Classes

Sub-Topics

Life Beyond the Pandemic: Personal Financial Planning, Investment and Trading Strategies in a Low Yield Environment (AlhajiGarbaKurfi, MD/CEO, APT Securities & Funds Ltd)
How to Buy and Sell Stocks Profitably in Recession, Recovery and Boom (Mr Abdul-Rasheed Momoh, Head, Capital Market Trw Stockbrokers Ltd)
Economic Recovery Scenarios, What’s the Fate of Equities and Other Assets Classes (MrOluwasegunAkinwale, Lead Analyst, Nova Merchant Bank)
The Paradox of Declining Interest Rate and Rising Inflation: Confusion or New Realities for Investors (Mr. AbiolaRasaq, CSCS)
The New Thinking in Fixed Income Market: Today and Tomorrow (Mr. KayodeTinuoye, Portfolio Manager, United Capital Asset Management)
Outlook for Alternative Asset Classes: Where are the ETFs, Commodities, REITS and Real Estate Opportunities (MrTaiwo Yusuf Head, Wealth Management, Meristem)
Portfolio Restructuring and Rebalancing for Positive Returns Ahead of Market Rebound (Engr. Mike Ekwueme X-Front Traders
The Power of Earnings Quality, Value and Dividends in Equity Investment (Mr. Ambrose Omordion CRO Investdata Consulting Ltd)
The Summit will provide answers to these Seven question among others

Where exactly are the opportunities in the equity market, fixed income and others?
Which sectors or markets provide the post COVID-19 investment opportunities?
How investors and traders can take advantage of the low interest regime to build profitable portfolios
What are the prevailing market moves and who are the dominant players?
What are Smart Money and Retail investors doing?
Where should investors look to enter the market or exit?
Is it the same every day, season and year?
Date: September 26, 2020

VENUE: ZOOM

For more details, call 08028164085, 08032055467, 08111811223 now.

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

https://investdata.com.ng/cautious-trading-continues-ahead-of-markdown-dates-for-interim-dividends/

We Took Extraordinary Steps To Stabilize Economy, CBN Replies NESG

Explains Reduction In Deposit Rate

The Central Bank of Nigeria (CBN), on Tuesday said it has done all that it could possibly do to help mitigate the impact of the coronavirus pandemic since March, on the economy, as shown by the 6.1% 2020Q2 GDP contraction, an improvement over the 7.4% dropped initially anticipated.

This, the apex bank said in a rejoinder to a statement “Matters of Urgent Attention” earlier that day by the Nigerian Economic Summit Group (NESG), what the result of actions it took just like other central banks across the globe, was to “stabilize the economy from an extraordinary shock.”

In the case of Nigeria, the better than anticipated economic contraction, the CBN argued, was despite “the over 65% drop in commodity prices; disruptions in global supply chains and the unprecedented outflow of over $100bn of debt and equity funds from emerging markets between March and May 2020; in addition to the impact of the lockdown on economic activities.”

These activities, it continued, “resulted in an over 60% reduction in revenues due to the Federation Account, a significant drop in foreign currency inflows, which led to downward adjustments in the naira/dollar exchange rate and a rise in inflation due to the exchange rate pass through effect of imported inflation.”

This decline, it said, was less severe than of other economies like the United States, South Africa, and India at 32%, 52% and 23% respectively, expressed hope that the phase out of the lockdown measures would result in far better GDP growth in the 3rd quarter, “due to the impact of the measures being implemented by the Monetary and Fiscal Authorities.”

The statement by Isaac Okorafor, Director, Corporate Communication of the CBN, said the extraordinary steps were taken “to increase the flow of credit to critical sectors of the economy, in order to enable faster recovery of the economy.

“We also sought to prevent the economic crisis from spilling into a major financial crisis,” by offering a one-year extension of a moratorium on principal repayments for its intervention facilities; and strengthening the Loan to Deposit ratio policy, which significantly boosting the loan books of financial institutions to banking customers.

This, Okorafor said, increased loans to the private sector by over 21% over the past year; just as the creation of N50bn target credit facility for affected households and small and medium enterprises through the NIRSAL Microfinance Bank; and creation of a N100bn intervention fund in loans to pharmaceutical companies and healthcare practitioners planning to expand and strengthen the capacity of Nigeria’s healthcare institutions, among others.

“The effect of these measures which included provision of palliatives to individuals affected by the pandemic, increase in access to credit to critical sectors of the economy that are either high employers of labor or have the ability to create jobs at a fast pace, helped to contain a significant decline in GDP growth in the 2nd quarter of the year.

On why it engaged in development finance, the statement said it was “to address the credit needs of the sectors critical to improving livelihoods, reducing poverty, and promoting inclusive growth.

“These goals have become doubly important in light of the significant shocks to the economy following the ongoing COVID-19 pandemic,” and that for transparency, it usually publishes disbursements under these activities in its Economic Reports.

As contained in its most recent monthly economic report published on its website, the CBN recalled that “a total of N38.11bn was disbursed as loans to 44,458 beneficiaries through the NIRSAL Microfinance Bank (NMFB).”

This number, it continued, rose to N59.12bn; supporting to 103,189 beneficiaries as of August 2020.

The statement drew the attention of the NESG to the fact that due to the COVID-19 pandemic, “Vietnam, Cambodia, India, and Thailand placed export restrictions on the exports of critical food items, including rice and eggs. With these disruptions, the Nigerian economy could have faced a major food crisis, but for the government’s intervention programmes in the agriculture sector.”

On the allegation that the CBN’s “lending process is devoid of a proper framework, it is important to note that recipients of intervention funds from CBN go through an expansive due diligence process through participating financial institutions (PFI), following which an additional assessment process is embarked upon by the CBN before disbursements are provided.

“The PFIs expend extensive due diligence on these intervention loans as the risk of default lies with them.

Reduction Of Deposit Rate

The CBN statement also explained reasons behind the recent crash in Naira deposit rate, which it blamed on the noticeable mismatch and increasing gap between total deposits and total banking sector credit to the economy over the past several months.

“While total deposits stood at about N25tr in January 2020, total loans stood at N17tr. As of August 2020, while total deposits have increased to N29.7tr, total loans were only N19tr.

“Many rich cooperates have simply been content with saving their cash balances and collecting huge interest payments, rather than expanding their investment, which should lead to hiring more people and producing more goods. In other to forestall a continuation of this trend, the CBN had to act to discourage these practices for the good of the economy.

“In other words, the rationale for moving to reduce the saving rates by banks is actually to encourage more lending. We also need to note in light of COVID-19 and to encourage more investments; many Central Banks have cut their saving rates to nearly zero.

“In fact, some Central Banks, including the European Central Bank, the Bank of Japan, Denmark’s Central Bank and the Swiss National Bank, are now operating “negative interest rates”, which means customers pay banks to keep their deposits,” Okorafor added.

https://investdata.com.ng/we-took-extraordinary-steps-to-stabilize-economy-cbn-replies-nesg/

Cheekers Inn Hotel

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Cheekers Inn Hotel

We will continue to be a part of the family, by providing you the best hospitality services in a serene environment with convenient accommodation, the best of African rich, and delicious meals. All to your comfort as you rest for the night and prepare for the day-to-day task.

Stay with us, and feel like home
Open 24 hours!

Contact us @
08033011791
08087216257

Address:
45B, Marine Road, Apapa GRA, 2nd Badagry
Apapa, Lagos
Nigeria.

Be Safe!
https:cheekersinn.com

OVARA KONSTANT FOR FUMIGATION FOR PEST CONTROL AND DISINFECTANT

Ovara Konstant Business Ltd is a licensed pest control company, serving the Milling and Allied Companies for over 20 years. Pest control and Disinfectant management are what we do! We live and work here, just as you do. Our number one priority is keeping your organization happy by protecting its staff and property from pests looking to invade our office and warehouse.

SERVICES
Ovara Konstant Business Ltd offers custom pest control plans to suit your organization. We specialize in the removal and prevention of infestations by insects and rodents, including cockroaches, fleas, ticks, ants, bees, mice, and a host of other irritating invasive species.

APPLICABLE SCENE:
Disinfect and kill insects in hotels, guesthouses, shopping malls, restaurants, residential quarters, etc.

Sterilization and disinfection of entertainment places such as food factories, supermarkets, hospitals, schools, military camps, parking lots, prisons, and theatres. Disinfection and disinfection of cars, trucks, trains, ships, airplanes, warehouse greenhouses, livestock farms, etc.

LAGOS ADDRESS: 33 Adele Road, Apapa, Lagos.
TEL: 08057933767, 07038524258, 08023129971,
E-MAIL: akan.u@ovarakonstant.com
WEBSITE: https:///dhqZNSR

OVARA KONSTANT FOR FUMIGATION FOR PEST CONTROL AND DISINFECTANT

Ovara Konstant Business Ltd is a licensed pest control company, serving the Milling and Allied Companies for over 20 years. Pest control and Disinfectant management are what we do! We live and work here, just as you do. Our number one priority is keeping your organization happy by protecting its staff and property from pests looking to invade our office and warehouse.

SERVICES
Ovara Konstant Business Ltd offers custom pest control plans to suit your organization. We specialize in the removal and prevention of infestations by insects and rodents, including cockroaches, fleas, ticks, ants, bees, mice, and a host of other irritating invasive species.

APPLICABLE SCENE:
Disinfect and kill insects in hotels, guesthouses, shopping malls, restaurants, residential quarters, etc.

Sterilization and disinfection of entertainment places such as food factories, supermarkets, hospitals, schools, military camps, parking lots, prisons, and theatres. Disinfection and disinfection of cars, trucks, trains, ships, airplanes, warehouse greenhouses, livestock farms, etc.

LAGOS ADDRESS: 33 Adele Road, Apapa, Lagos.
TEL: 08057933767, 07038524258, 08023129971,
E-MAIL: akan.u@ovarakonstant.com
WEBSITE: https:///dhqZNSR

Ovara Konstant Business is the first indigenous leading organization in Nigeria involved in the sale of Flour Milling Machines, Spares, and offering excellent Fumigation services in Nigeria and other African Countries Milling and Allied industries.

Ovara Konstant Business Ltd is a licensed pest control company, serving the Milling and Allied Companies for over 20 years. Pest control and Disinfectant management are what we do! We live and work here, just as you do. Our number one priority is keeping your organization happy by protecting its staff and property from pests looking to invade our office and warehouse.
Our fumigation services have been acclaimed as the best considering our modern equipment, promoting insects and antinodes free environment.

Our Team
At Ovara Konstant Business Ltd, we are a tight-knit family, dedicated to serving our customers. We each pledge to uphold the highest of quality standards at all times, and thoroughly meet our customer’s needs.
Our technicians are passionate about pest control management. Each of them is professionally licensed and experienced serving the needs of our clients.
SERVICES
Ovara Konstant Business Ltd offers custom pest control plans to suit your organization. We specialize in the removal and prevention of infestations by insects and rodents, including cockroaches, fleas, ticks, ants, bees, mice, and a host of other irritating invasive species. We offer monthly, bi-monthly, and quarterly service intervals, with no long-term contracts. We are always available between visits should you need us.


INSPECTIONS
We begin our relationship with each Client with a thorough inspection of your premises. We believe every home or organization is different, and this inspection helps us develop a pest control plan to meet your specific needs. We use pesticides following local and international regulations standards.

APPLICABLE SCENE:
Disinfect and kill insects in hotels, guesthouses, shopping malls, restaurants, residential quarters, etc.

Sterilization and disinfection of entertainment places such as food factories, supermarkets, hospitals, schools, military camps, parking lots, prisons, and theatres. Disinfection and disinfection of cars, trucks, trains, ships, airplanes, warehouse greenhouses, livestock farms, etc.

YOUR PEST CONTROL PLAN
The following pest control plan is designed to provide you with safety and peace of mind. We used the results of your initial inspection to come up with a plan that addresses your needs in a way that is affordable and reliable.

Frequency
Based on our inspection, we will notify you of the service frequency that will best meet your needs. We will contact you via email or phone call one week before the scheduled service, and confirm via phone the day before. We schedule your service visits in one-hour windows, so you will always know when to expect us. You can always call or email us should you need our assistance in between scheduled pest control services.

PRICING
We pride ourselves on providing pricing that is extremely fair and affordable. We do not require any long-term contracts. You will receive a 10% discount for each service you agree to pay up-front for, and any subsequent services will be invoiced within 24 hours of services being rendered. Select the number of service visits you would like to pay for today to lock in your discount!
OUR CLIENTS
1. Flour Mills of Nigeria Plc
2. Crown Flour Mills Ltd
3. Honeywell Flour Mills Plc
4. Dangote Flour Mills Ltd
5. Nigeria Eagle Flour Mills Ltd
6. Niger Mills Company Ltd
7. Mix & Bake Flour Mills
8. Standard Flour Mills Ltd
9. Dufil Flour Mills Ltd
10. Valumbra Flour Mills
11. Premier Feeds
12. Eastern Premier Feeds
13. Unilever Nigeria Plc
14. Rom Oil Mills Ltd
15. Livestock Feeds Ltd
16. Notre Fertilizer
17. Golden Penny Sugar
18. Golden Penny Fertilizer
19. Bua Sugar Refinery
20. Dangote Sugar Refinery

LAGOS ADDRESS: 33 Adele Road, Apapa, Lagos.
TEL: 08057933767, 07038524258, 08023129971,
E-MAIL: akan.u@ovarakonstant.com
WEBSITE: http://www.ovarakonstant.com/

10 Things You Need To Know Before The Opening Bell On NSE Trading Floor


Hello Trader & Investor, what you need to know before the market opens for the week

https://investdata.com.ng/mixed-outlook-on-ngse-investors-should-diversify-portfolios-protect-capital/

https://investdata.com.ng/zenith-bank-2020-half-year-earnings-profit-growth-despite-ravaging-pandemic/

https://investdata.com.ng/investdata-virtual-summit-on-life-beyond-covid-19/

https://investdata.com.ng/investdata-price-earnings-tracking-for-week-ended-september-4-2020/

https://investdata.com.ng/covid-19-nigerian-banks-make-n157-15bn-loan-loss-provisions-for-2020-half-year/

https://investdata.com.ng/corporate-actions-on-ngse-as-of-friday-august-4-2020/

https://investdata.com.ng/gtbank-2020h1-time-to-grow-earnings-boost-loan-book-enhance-profit-further/

https://investdata.com.ng/access-bank-nets-n61-034bn-profit-as-impairment-charge-rises-237-4-up/

https://investdata.com.ng/morning-data-zenith-bank-plc-half-year-eps-from-2006-2020/

https://investdata.com.ng/analysts-upbeat-as-investors-digest-half-year-reports-of-interim-div-paying-banks/


Omordion Ambrose
Chief Research Officer

InvestData Consulting Limited
Phone:08028164085, 08032055467
email: ambrose.o@investdata.com.ng
ambrose.o@investdataonline.com

Core Investor Raises Stake, Buys 55.1m Shares Of UACN For N312.968m


UAC of Nigeria Plc, the nation’s oldest conglomerate, on Monday, notified stakeholders that AM&P Advisory Services, a company with an indirect relationship with Folasope Babatunde Aiyesimoju, its chief executive officer, raised its stake in the company, with the acquisition of 54,030,858 shares at N5.75 per share.

According to the notification, the transaction occurred all on August 31, 2020 at an average price N5.68 each, bringing total cost to N312.968m.

A breakdown of the transaction showed that 54,030,858 shares changed hands at N5.75 per share; followed by another 200,542 units traded at N5.70 per share; while the remaining 868,600 shares crossed at N5.60 each also on the Nigerian Stock Exchange (NSE).

The transaction is coming at a time when another majority investor in the group- Blakeney LLP has sold most of its stake in the company.

Aiyesimoju is the founder of Themis Capital Management, which emerged as the largest single shareholder with an 8% equity stake consisting of 232.35m ordinary shares in the conglomerate.

https://investdata.com.ng/core-investor-raises-stake-buys-55-1m-shares-of-uacn-for-n312-968m/

AUDA-NEPAD Partners Ecobank Group To Launch MSME Academy

With the micro, small and medium enterprises (MSMEs) subsector being the most impacted by the Coronavirus (COVID-19) pandemic, and given its strategic importance to the economy and the need to revamp it, Ecobank Nigeria has pledged support for the subsector.

Speaking during the virtual launch of the first Pan-African MSME Academy in Lagos on Thursday, Patrick Akinwuntan, Managing Director of the bank maintained that MSMEs are the drivers of post COVID-19 economic recovery of Nigeria.

He spoke of the need for the sub sector to take advantage of technology, financial services, and support from the government to drive the survival and growth of their businesses.

Akinwuntan explained that the MSME Academy, an initiative of the African Union Development Agency – AUDA-NEPAD, in partnership with the Ecobank Group, provides easy access to practical training and resources on financing opportunities in various countries.

Continuing, he said, “as an MSME friendly bank, we have been helping them with capacity building; providing simple and easy access to loans in various sectors including agriculture, creative industry, healthcare and commerce amongst others; access to markets via our e-commerce solutions and simple but robust digital platforms for collections and payments.

“We have also provided a channel to enable MSMEs open various accounts via self-service on our webpage. I encourage all MSMEs in the country to avail themselves of this opportunity to grow their business. ”

Also speaking, Amine Idriss Adoum, Director, Programme Delivery & Coordination, AUDA-NEPAD explained that the Academy aims to build the capacities of MSMEs across Africa through a combination of relevant content library, a network of institutions specialized in MSME support such as incubators and accelerators, and a community of peers, mentors, and advisors.

The key objectives of the academy, he stressed, include the need to radically expand access to finance by aggregating smaller financial institutions such as micro-credit institutions and credit unions that have access to micro-enterprises, standardising their processes, and building trust in their capabilities.

“The MSME Digital Platform is a one-stop-shop for all MSMEs across Africa to access all these three programmes which jointly address MSMEs’ challenges with access to capacity building, markets, and capital,” he stressed further.

In a presentation on “How MSMEs can access funding – opportunities from financial Institutions/banking sector,” Managing Director, Development Bank of Nigeria (DBN), Tony Okpanachi, said MSMEs must have accurate financial statement, collaterals, good credit history, viable business model and sound corporate governance, to be bankable.

He listed funding sources for MSMEs to include equity, grants and credit, emphasizing that, “the AUDA- NEPAD and Ecobank partnership must be lauded as the entrepreneurial potential and critical role of MSMEs in economic growth and development in Nigeria is clear. We will continue to collaborate with other financial institutions to assist them with all necessary support to play their role to the economy.”

Also speaking, Director of Development Finance, Central Bank of Nigeria (CBN), Yusuf Philip Yila, said the apex bank had put in place several funding support initiatives to enhance the survival of the sub-sector during an beyond the pandemic.

For this important sub sector to survive the current COVID-19 pandemic and beyond, the CBN and the Bankers Committee have put in place various stimulus packages to support MSMEs in the country.

He noted that the CBN’s N50bn Target Credit Facility (TCF) has been raised to N100bn with the interest rate slashed to 5% from 9% to keep them in business, while encouraging players in the subsector to take advantage of the various CBN funding windows to meet the demands of their businesses, as government is striving to revamp the economy as soon as possible through their efforts.

The academy, the bank said in a statement, provides easy access to practical training and resources on financing opportunities in various countries in Africa, how to build a digital presence for businesses and how to adapt business operations in the era of the COVID-19 pandemic. It also offers free access to market intelligence, mentors with diverse experience, and assisting with access to funding opportunities.

https://investdata.com.ng/auda-nepad-partners-ecobank-group-to-launch-msme-academy/

NGSE Index Slip, As Investors Position In Dividend Paying Bank Stocks

Market Update for September 7

Monday’s trading on the Nigerian Stock Exchange (NSE) was volatile and mixed, closing negative as profit taking hit banking and consumer goods stocks, following which the benchmark All-Share index closed marginally lower with a very high traded volume on a mixed sectorial performance.

The recent chart pattern formation of the NSEASI since it entered the short term overbought zone and broke out the double top with huge volume of trades, suggests that the party is over. It could also be sign that end of the rally is here, allowing for a slight price correction or pullback now that the much anticipated half-year results of the dividend paying banks have been released to the market with markdown dates coming slated for next week.

We however note that Access Bank’s interim dividend yield at 3.67% remains better than the 3.34% for the 364-day Treasury Bills as of the close of Monday’s trading, less than 10 days of releasing its audited half-year results, despite the seeming market correction ahead.

Technically, Monday’s market slowed down after six sessions of a back-to-back rally on a high traded volume, a situation that call for careful trading at this stage of the rally to avoid a bull trap. This is because technical tools have signaled short-term overbought region, but are yet to confirm a deeper price correction or pullbacks at this time. Is this rally the BULL TRAP we have been warning about? We wait to see, as the week started on a pullback, whether equity prices will confirm any new trend or direction.

Meanwhile, trading opened slightly in the green in the early hours and was maintained till midday, before oscillating in the afternoon on profit booking and position taking in medium and high cap stocks, which pushed the NSE index to an intraday low of 25,573.24bps, from its high of 25,631.16bps. Thereafter, close the session lower at 25,582.23bps.

Monday’s market technicals were weak and mixed, as traded volume was lower than the previous session in the midst of breadth favoring the bulls and high selling pressure, as revealed by Investdata’s Sentiment Report showing 84% ‘sell’ volume and buy position of 16%. Total transaction volume index stood at 1.17points, just as momentum behind the day’s performance remained relatively strong, with Money Flow Index reading 87.49points, from the previous day’s 87.58points, an indication that the entry of funds into the market is declining, despite the down market.

Index and Market Caps

At the close of trading, the NSEASI dropped 23.41bps, closing at 25,582.23bps, having opened at 25,605.64bps, representing 0.09% drop, just as, market capitalization fell by N12.22bn to N13.35tr, after opening at N13.36tr, also representing a 0.09% value loss.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just added another risk management feature and new stocks of most revered traders and investors in corporate Nigeria to our watchlist. These stocks are with double potentials to rally considering their current market prices.

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 Q3 earnings reporting season portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

Monday’s downturn resulted from price depreciation and profit taking in Guaranty Trust Bank, Zenith Bank, UBA, FBNH, Dangote Sugar, Guinness and Honeywell Flour, which impacted mildly on the index, increasing Year-To-Date loss to 4.69%. Market capitalization YTD gain stood at N387.5bn, representing 2.99% above the year’s opening value.

Mixed Sector Indices

The sectorial performance indexes were largely bullish, except for the NSE Banking and Consumer goods that closed 0.70% and 0.36% lower respectively, while the NSE Insurance index led the advancers, gaining 0.69%, followed by Oil/Gas which notched 0.19%, and NSE Industrial Goods, 0.03%.

Market breadth was slightly positive as advancers outnumbered decliners in the ratio of 16:15, market transaction in term of volume and value were down by 39.24% and 47.23% respectively, as investors exchanged 254.97m shares worth N2bn, as against the previous day’s 419.66m units valued at N3.79bn. This was driven by trades in UBA, Zenith Bank, Access Bank, Custodian Investment and FBNH.

Eterna and NEM Insurance were the best performing stocks of the day, gaining 9.10% and 8.7% respectively to close at N2.27 and N2.25 per share on their low price attraction and market forces. On the flip side, Honeywell Flour and Chams lost 6.3% and 4.5% respectively, closing at N0.90 and N0.21 respectively on profit taking and market forces.

Market Outlook

We expect a mixed trend on profit taking ahead of qualification and markdown dates of dividend paying banks as investors reposition their portfolios, looking forward to market correction ahead of the Q3 earnings season. Recall that the banks have kept the market above its 50-day moving average on a daily time frame.

The mixed intraday movement is likely to persist as the month of September progresses in the midst ofprofit booking and negative macroeconomic indices. This is also against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation, negative Q2 GDP of 6.1% and unstable economic outlook for 2020 as government and its economic managers are going front and back with mismatch polices and action.

Also, investors and traders are positioning amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend.

We see investors focusing on portfolio adjustment and rebalancing by targeting companies with strong potentials to grow their dividend on the strength of their earnings capacity.

Again, the current undervalue 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 for the rest of the year.

Meanwhile, the home study packs on Strategies and How to invest profitably in this Changing Market Dynamics/ Recession, Mastering Earnings Season For Profitable Investing and Trading in any market situation/ cycles are available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

INVESTDATA INVESTORS SUMMIT 2020: BEYOND THE UNCERTAIN TIMES

Theme- Life Beyond COVID: Investment Opportunities in Various Assets Classes

Sub-Topics

Life Beyond the Pandemic: Personal Financial Planning, Investment and Trading Strategies in a Low Yield Environment (AlhajiGarbaKurfi, MD/CEO, APT Securities & Funds Ltd)
How to Buy and Sell Stocks Profitably in Recession, Recovery and Boom (Mr Abdul-Rasheed Momoh, Head, Capital Market Trw Stockbrokers Ltd)
Economic Recovery Scenarios, What’s the Fate of Equities and Other Assets Classes (MrOluwasegunAkinwale, Lead Analyst, Nova Merchant Bank)
The Paradox of Declining Interest Rate and Rising Inflation: Confusion or New Realities for Investors (Mr. AbiolaRasaq, CSCS)
The New Thinking in Fixed Income Market: Today and Tomorrow (Mr. KayodeTinuoye, Portfolio Manager, United Capital Asset Management)
Outlook for Alternative Asset Classes: Where are the ETFs, Commodities, REITS and Real Estate Opportunities (MrTaiwo Yusuf Head, Wealth Management, Meristem)
Portfolio Restructuring and Rebalancing for Positive Returns Ahead of Market Rebound (Engr. Mike Ekwueme X-Front Traders
The Power of Earnings Quality, Value and Dividends in Equity Investment (Mr. Ambrose Omordion CRO Investdata Consulting Ltd)
The Summit will provide answers to these Seven question among others

Where exactly are the opportunities in the equity market, fixed income and others?
Which sectors or markets provide the post COVID-19 investment opportunities?
How investors and traders can take advantage of the low interest regime to build profitable portfolios
What are the prevailing market moves and who are the dominant players?
What are Smart Money and Retail investors doing?
Where should investors look to enter the market or exit?
Is it the same every day, season and year?
Date: September 26, 2020

VENUE: ZOOM

For more details, call 08028164085, 08032055467, 08111811223 now.

Ambrose Omordion

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

https://investdata.com.ng/ngse-index-slip-as-investors-position-in-dividend-paying-bank-stocks/

Investdata Daily Market Update as of 8 September 2020

NSEASI buy 16% sell 84% volume index 1.17 MFI 87.49
Access buy 80% sell 20% volume index 1.76 MFI 75.44
Custodian buy � volume index 8.52 MFI 61.20
Eterna buy � volume index 1.15 MFI 100.00
Fbnh buy 0% volume index 1.15 MFI 41.08
Fcmb buy � volume index 1.16 MFI 82.56
Fidelity buy 55% sell 45% volume index 1.52 MFI 49.57
GT buy 0% MFI 79.04
Honyflour buy 0% volume index 1.69 MFI 47.61
Mben buy 0% volume index 3.07 MFI 83.49
Neimeth buy 0% volume index 1.44 MFI 50.41
Nem buy 0% volume index 2.36 MFI 85.70
Oando buy � volume index 1.46 MFI 46.54
Red buy 0% volume index 1.29 MFI 50.67
Transcorp buy 0% MFI 17.51
Uacp buy � volume index 6.70 MFI 69.89
Uba buy 0% volume index 4.02 MFI 52.89
Ubn buy � volume index 12.95 MFI 3.11
Ucap buy � volume index 0.76 MFI 43.64
Zenith buy 20% sell 80% volume index 1.50 MFI 81.28

https://investdataltd..com/2020/09/investdata-daily-market-update-as-of-8.html

Mixed Outlook On NGSE, Investors Should Diversify Portfolios, Protect Capital

Market Update for the Week Ended September 4 and Outlook for Sept 7-11

The nation’s equity market extended its positive narrative for the seventh successive week on a stronger momentum, driven by dividend information and inflow of funds from other investment windows, owing to the increased negative real rate of returns due to rising inflation. This triggered selloffs in the bond market by foreign and institutional investors in the midst of mismatch policies of the government and its economic managers, even as the continued disconnection of the market rally from economic realities should be a serious concern to investors.

Foreign inflow remains on the decline, even as government’s planned intervention in the wobbling economic situation by injecting N3.3tr to mitigate the impact covid 19 seems mere sloganeering to hoodwink Nigerians. This conclusion is unavoidable, considering the Federal Government’s recent actions particularly the twin hike in electricity tariff and pump price of premium motor spirit (petrol)- major drivers of general price and cost increase, while labour is still slumbering.

Investors have remained on a seemingly wild swing of extreme fear to being greedy over the past five months, a situation that has reflected in the key performance index, calling for cautious trading. One factor that have kept the market upbeat over the past weeks was the expectation of audited half-year reports of banks that audit numbers. These were submitted last week, after the banks had obtained approvals to further delay the release of their result for which they blamed their primary regulator- the Central Bank of Nigeria (CBN). All of the banks that presented their scorecards proposed interim dividend payments, with the exception of Fidelity Bank, which has never paid interim dividend, although it paid it audited the half-year numbers for period end June 30, 2020. Interim dividend payment by all the banks are slated for this month, following which markdown dates begin next week.

The expectation of profit booking and more volatility in the weeks and months ahead are linked to price corrections and repositioning for the expected Q3 earnings season and last quarter of the year, when economic activities are likely to improve amidst increased easing of the lockdown.

Technically, the market trended up on a strong momentum and huge traded volume in the week under review, suggesting a likely continuation of the trend, or that the party is over. Consequently, urge traders to tread carefully at this stage of market rally to avoid a bull trap. This is because technical tools have only signaled short-term overbought region, but are yet to confirm a deeper price correction or pullbacks at this time. Is this rally the BULL TRAP we have been warning about? We wait to see, this week and next, whether equity prices will confirm any new trend or direction.

Finally, volatility is likely to continue, but at a decrease rate, if this is just a short price movement.

Movement Of NSEASI

It was a bullish week of up run for all five trading sessions, extending from the previous week’s bull transition that were propelled by the impressive earnings and positive sentiments for interim dividend payouts by the banks.

The composite NSE All-Share index opened during the period with a slight 0.07% gain, which was sustained on Tuesday and Wednesday as it closed 0.34% and 0.18% up respectively on the back of the earnings and dividend news from UBA and Guaranty Trust Bank. The positive sentiment and buying interest were extended to Thursday and Friday when the NSE index closed 0.20% and 0.37% higher, rounding off the week with cumulative gain of 1.17%, as against the previous week’s 0.33%.

The NSEASI recorded 296.27 basis points gain, after opening at 25,309.37bps, touching an intra-week high of 25,618.48bps from its low of 25,289.10bps on a bull-run and mixed sentiment as first-tier banks submitted their half-year earnings reports. The benchmark index closed the week higher on a recovery path at 25,605.64bps, just as market capitalization rose by N154bn to N13.36tr, from the previous weekend’s N13.2tr, which also represented 1.17% appreciation in value.

During the week, seven companies released their audited quarterly and year-end financials. They include UBA, GTBank, Zenith Bank, Stanbic IBTC, Access Bank, Fidelity Bank, Union Diagnostic, Golden Guinea Brewery, and others. For their corporate action kindly see Investdata Earnings & Price Tracking and corporate actions table for details

The low priced and medium cap stocks dominated the top gainers’ table, reflecting more advancers than decliners in the ratio of 41:19, even as energy behind the week’s performance was relatively strong, the Money Flow Index has started to look down after touching a high of 67.98 points in July 17 to read 64.79bps from 64.77bps in the previous week. Seller and profit takers remained at the corner, as buying pressure persisted on portfolio adjustments and qualification dates ahead.


The NSE index action has finally broken out the first resistance level of 25,600bps to form a symmetrical triangle chart pattern on a weekly time frame, that supports trend continuation or pullback, depending market forces, as major recovery and rally will start when the index breaks out the first green line at 26,253.90bps, with the market touching the 50-Day Moving Average on a huge transaction volume. At the same time, it is trading above the 50% line of Fibonacci retracement that suggests cautious trading, as the earnings reporting season comes to a close with the banks submitting their results last week.

However, we envisage profit taking and mixed trend, as daily and weekly time frame Money flow index have formed multiple and double tops with MACD almost crossing the signal line to bearish zone. The buy volume for the period stood at 96%, and money flow index at 64.79 points.

Bullish Sectoral Indices

Performance indexes across various sectors were bullish, led by the NSE Oil/Gas which gained 3.65%, followed by the Banking index with 2.76%; ahead of the NSE Insurance, consumer and industrial Goods with 1.96%, 1.49% and 0.44% respectively. The general market outlook in recent times remained mixed and bullish in the short-term, following which investors should diversify their portfolio with long-term trades to protect capital, especially by considering sectors such as agribusiness, healthcare, industrial goods, insurance and telecoms, which have shown the most strength.

Transactions for the week, in terms of volume and value, were up by 106.54% and 48.51% respectively to 2.21bn shares worth N10.96bn, from the previous week’s 1.07bn units valued at N7.38bn. Volume for the week was driven by trades in Construction/Real Estate, financial services and conglomerates stocks, especially UACN Property, Zenith Bank, Guaranty Trust Bank, Lasaco Assurance and Transcorp.

Royal Exchange Assurance and Cornerstone Insurance were the best performing stocks for the week, gaining 26.92% and 17.86% respectively, and closing at N0.33 and N0.66 per unit on market forces. Conversely, The Initiates and Lasaco lost 18.57% and 16.13% respectively, closing at N0.57 and N0.26 per share on market forces and price adjustments for the five and three kobo dividends.

Market Outlook

We expect mixed sentiments and trends to continue as investors digest the recently submitted bank earnings and dividend payout to reposition and take profit on the strength of the actual numbers and nation’s GDP contraction and low PMI at 48.5, further confirming the contraction in the economy.

We cannot also rule out investors pricing in government’s policy inconsistencies and weak macroeconomic data, including the latest labour report, hike in electricity tariff and pump price of fuel. Already, inflation has risen above the CBN’s benchmark Monetary Policy Rate (MPR) at 12.5%, even as the declining industrial productivity points to the reality of a recession.

Expect a pullback that will support the upside potential, especially with many fundamentally sound stocks remaining underpriced, and the dividend yield of major blue-chips continuing to look attractive in recent weeks, we expect speculative trading to shape the market’s direction, despite the seeming mixed outlook.

To position for the short to long-term, investors should target fundamentally sound, dividend-paying stocks, for possible capital appreciation in the coming months. Also, traders and investors need to change their strategies, because of the NSE’s pricing methodology, the CBN directives, and their impact on the economy in the nearest future.

Meanwhile, the home study packs of Strategies and How to Invest Profitably in This Changing Market Dynamics: Mastering Earnings Season for Profitable Trading and Investing in any market situation/Cycleare available. To obtain your copy send ‘Yes’ or ‘Stock’ to 08028164085, 08032055467, 08111811223 now.

INVESTDATA INVESTORS SUMMIT 2020: BEYOND THE UNCERTAIN TIMES

Theme- Life Beyond COVID: Investment Opportunities in Various Assets Classes

Sub-Topics

Life Beyond the Pandemic: Personal Financial Planning, Investment and Trading Strategies in a Low Yield Environment (AlhajiGarbaKurfi, MD/CEO, APT Securities & Funds Ltd)
How to Buy and Sell Stocks Profitably in Recession, Recovery and Boom (Mr Abdul-Rasheed Momoh, Head, Capital Market Trw Stockbrokers Ltd)
Economic Recovery Scenarios, What’s the Fate of Equities and Other Assets Classes (MrOluwasegunAkinwale, Lead Analyst, Nova Merchant Bank)
The Paradox of Declining Interest Rate and Rising Inflation: Confusion or New Realities for Investors (Mr. AbiolaRasaq, CSCS)
The New Thinking in Fixed Income Market: Today and Tomorrow (Mr. KayodeTinuoye, Portfolio Manager, United Capital Asset Management)
Outlook for Alternative Asset Classes: Where are the ETFs, Commodities, REITS and Real Estate Opportunities (MrTaiwo Yusuf Head, Wealth Management, Meristem)
Portfolio Restructuring and Rebalancing for Positive Returns Ahead of Market Rebound (Engr. Mike Ekwueme X-Front
The Power of Earnings Quality, Value and Dividends in Equity Investment (Mr. Ambrose Omordion CRO Investdata Consulting Ltd)
The Summit will provide answers to these Seven question among others

Where exactly are the opportunities in the equity market, fixed income and others?
Which sectors or markets provide the post COVID-19 investment opportunities?
How investors and traders can take advantage of the low interest regime to build profitable portfolios
What are the prevailing market moves and who are the dominant players?
What are Smart Money and Retail investors doing?
Where should investors look to enter the market or exit?
Is it the same every day, season and year?
Date: September 26, 2020

VENUE: ZOOM

For more details, call 08028164085, 08032055467, 08111811223 now.

Ambrose Omordion

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

https://investdata.com.ng/mixed-outlook-on-ngse-investors-should-diversify-portfolios-protect-capital/

COVID-19: Nigerian Banks Make N157.15bn Loan Loss Provisions For 2020 Half-Year


Thirteen Nigerian banks listed on the Nigerian Stock Exchange (NSE) made a total of N157.15bn provisions for bad loans in their operations for the first six months of the 2020 financial year.

The amount, according to Investdata checks at the weekend represented a significant N41.83bn or 36.29% spike when compared to the N115.275bn impairment charge made by the same banks in the corresponding period of 2019.

Some analysts and bank managements have blamed the growth on the impact of the Coronavirus (COVID-19) pandemic that seriously impacted the ability of obligors to repay or service their loan obligations.

For example, Kennedy Uzoka, Group Managing Director of the United Bank for Africa, alluded to the 150% growth in its half-year provisions which he blamed on “short-term challenges to various economic sectors occasioned by the Covid-19 pandemic.”

That is why, he continued in a statement by the bank, UBA Group is now “adjusting (its) operating model in response to the ‘new normal’ and will continue to optimise the way we work and serve customers in the days ahead.”

Explaining further, UBA’s Group Chief Financial Officer, Ugo Nwaghodoh, said the decision to make the N7.807bn impairment charge for credit losses on financial assets was a proactive move to make reserves “for loan impairments in recognition of potential losses on the portfolio.”

Data mined by Investdata Research from half-year 2020 reports presented by the banks to the Nigerian Stock Exchange (NSE) showed that the 13 banks reported N2217tr in total loan book, up by N1.55tr, or 7.52% from the N20.622tr in the corresponding period of last year.

Ecobank Transnational Incorporated Plc reported the biggest impairment charge at N49.852bn, a marginal decline from N49.637bn; followed by FBN Holdings’ N30.651bn from N22.107bn in the prior half-year; while Zenith Bank made N23.923bn provisions, from N13.735bn.

The biggest percentage jumps in impairment charge were seen in Access Bank’s N16.465bn from N4.879bn; Guaranty Trust Bank’s N6.769bn, as against the previous N2.186bn; while Stanbic IBTC Holdings’ charge galloped from just N557m to N6.404bn.

That of UBA climbed from N3.12bn; Sterling Bank, from N2.429bn to N6.457bn; even as Unity Bank’s impairment charge fell from N491.137m in the 2019 half-year to N313.963m.

https://investdata.com.ng/covid-19-nigerian-banks-make-n157-15bn-loan-loss-provisions-for-2020-half-year/

Investdata Virtual Summit On Life Beyond COVID-19

Ambrose Omordion

CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/investdata-virtual-summit-on-life-beyond-covid-19/