₦airaland Forum

Indecision Still On NGSE, Transaction Volume Drops, As Investors Await Audited Reports

Market Update for January 29
Nigeria’s equity market at the midweek extended its negative stance for the third consecutive session as investors tread with caution in the midst of selloffs in high cap stocks, amidst reactions to last week’s decision of the Monetary Policy Committee hiking Cash Reserves Requirements to 27.5%. This has expectedly triggered a circular flow of funds in the financial market as a result of portfolio rebalancing among institutional investors and fund managers.

The mixed earnings reports emanating from listed companies in their bid to meet the 30-day statutory deadline for filing the last quarterly numbers of 2019 are yet to impact the market. The reason may not be far-fetched, given that these reports are unaudited, just as there are not yet any proposals of dividend for investors, besides enabling discerning investors and traders to reposition their portfolios ahead of the audited the accounts that will come with corporate action in two weeks’ time.
Already, over 27 companies released their quarterly earnings reports, including both Q3 and Q4 results, on Wednesday, presented from Stanbic IBTC, NPF Microfinance, NASCON Allied, NEM, 11 Plc, BOC Gases, LASACO, and many others. Also, United Capital and Nigerian Breweries notified the NSE and investors of it closed period for the full year 2019 audited accounts.

Technically, the declining volume of trade signals the spate of indecision among traders, suggesting that the ongoing correction or pullback may not last for too long, as more Open Market Operations bills will mature in the coming weeks. Added to this is the fact that audited financial for 2019 is equally expected in the coming weeks as well, thereby presenting investors with the realities of these companies, vis-à-vis the 2019 full-year earnings predictions. In times like this, investors should reassess their expectations and re-position, or exit, where necessary.
Meanwhile, Wednesday’s trading opened on the downside and was sustained throughout the day on continued negative sentiment and selloffs that pushed the benchmark Index to an intraday low of 29,054.23 basis points from its high of 29,381.95bps. It thereafter retraced up slightly, before closing lower at 29,110.90bps on a low traded volume
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Midweek, market technicals were negative and weak, with volume traded lower than the previous session’s, in the midst of negative market breadth and sentiments as revealed by Investdata’s Sentiment Report showing 83% ‘sell’ volume and 17% ‘buy’ position. The day’s total transaction volume index stood at 0.70, while the momentum behind the day’s performance was weak as Money Flow Index read 43.91points, from the previous 53.75ps, an indication that funds left the market and some stocks.

Index and Market Caps
At the end of midweek trading, composite NSE All-Share index lost 267.73bps, closing at 29,110.90bps from an opening figure of 29,378.63bps which represented 0.91% decline, just as market capitalization depreciated by N137.91bn, closing at N14.99tr, from an opening value of N15.13tr, representing a 0.91% value loss in investors portfolios.
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The continued downturn was impacted by profit-taking and selloffs in Unilever Nigeria, MTNN, Guaranty Trust Bank, Ecobank Transnational Incorporated, Access Bank, FBN Holdings, UACN, AXA Mansard, NEM, Honeywell Flour, and Boc Gases, among others, which impacted negatively on the NSE’s Year-to-Date gain, reducing it to 8.45%. Market capitalization, YTD, drop to N2.04tr, representing a 15.72% growth over the year’s opening value.

Mixed Sector Indices
The sectoral performance indexes were bearish, except for the NSE Consumer Goods and Oil/Gas Indexes that closed marginally higher by 0.39% and 0.36% respectively, while the NSE Insurance index led the decliners, after losing 2.79%, followed by Banking and Industrial Goods with 1.26% and 0.18%, respectively.
Market breadth remained negative as decliners outnumbered advancers in the ratio of 18:10, while market activities in terms of volume and value dropped by 3.26% and 4.91% respectively to 242.76m shares worth N4.59bn from the previous day 250.93m units valued at N4.83bn. Volume was driven by transactions in Zenith Bank, Unilever, Guaranty Trust Bank, FCMB and UBA
Lasaco Assurance and Aiico were the best-performing stocks, gaining 7.69% and 6.33% respectively to close at N0.28 and N0.84 per share, on the market forces and earnings expectations. On the flip side, BOC Gases and NEM Insurance lost 9.09% and 8.33% respectively, closing at N4.50 and N2.20 on profit-taking and market forces.

Market Outlook
We expect the mixed trend to continue in the midst of profit-taking and positioning by investors taking advantage of the pullbacks, as the impact of last week’s CRR adjustment, slows down ahead of the full-year earnings reporting season. This is also against the backdrop that capital wave in the financial market may change in the midst of the unstable economic outlook for 2020.
Also, investors and traders are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which had pushed the market out of the bearish zone.
We see investors focusing on the upcoming of the full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.
This was noted in the 10 golden stocks and trading ideas for 2020, as discussed extensively during the Investdata 2020 Traders & Investors Summit held in Lagos last December.
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.

ukay2:
Oga Rebecca. ..how you go recover LOANS you shared with friends. ....key word...shared.

Na to write it off with Biro. ...or use cleaner to clean it.

After FBNH haircut in 2013, I always look at them from far distance

I de pity the shell-holders

sold @7.25
will sell off the remaining 1000 shares tomorrow

My biggest mistake(?) this season was to have bought more UACN @10.5. I thought it had a well established support at this price! Before this, my average price was in the late #6s (and I was holding quite a few). I started buying from #7s down to #5s.

The last poor entry has now taken me to early #8s. I have a very healthy appetite for holding, so no fretting.

I will top up tomorrow.

Why am I disclosing this? When it does 3/4 baggers, I wouldn't want anyone to classify me as a mouth maker. @Owoblow77, pls take note!

Sell off everywhere.
Una still no wan help issues.
Tomorrow,Oso geme na custom street.uzu gatu kwa......

Anyway,I dey 100% on cash now dey look for serious bergain.

bigjay01:
My biggest mistake(?) this season was to have bought more UACN @10.5. I thought it had a well established support at this price! Before this, my average price was in the late #6s (and I was holding quite a few). I started buying from #7s down to #5s.

The last poor entry has now taken me to early #8s. I have a very healthy appetite for holding, so no fretting.

I will top up tomorrow.

Why am I disclosing this? When it does 3/4 baggers, I wouldn't want anyone to classify me as a mouth maker. @Owoblow77, pls take note!

When your top up becomes the opposite.
So you want hand over Kaya tomorrow.
If I tell you the price uacn go sell tomorrow ehhh.

Eeewoooooo
Brent at 56

Agbalowomeri:
Eeewoooooo
Brent at 56

That alone can 'kill' the market..

Agbalowomeri:
Eeewoooooo
Brent at 56

When it rains, it pours...

Let me go and buy another cutlass jaree.

onegentleguy:
NEM:
Accelerating efficiency.
Better combined against loss ratio.
...drive for higher reward against risk.
Improved valuation.

For those looking to key in, be hungry for any pullback.
For those already in, HOLD !!

LASACO:
Not under coverage.
Not my kind of stock.
Refer to a previous guide from the post above.

Salah

I love NEM.
I started buying it in 2009. Total cost less dividends brings my average cost to 3k/share. After the next dividend, I would have recovered all my cost (+jara)

When you get it right, nothing beats long term.

bigjay01:
I love NEM.
I started buying it in 2009. Total cost less dividends brings my average cost to 3k. After the next dividend, I would have recovered all my cost (+jara)

When you get it right, nothing beats long term.

In naira or in dollar?

Agbalowomeri:
In naira or in dollar?

My oga, I don modify am to 3k/share b4 u go misquote me

NEM, can easily do dps of 20k, although they can be stingy a times.

Don't know how much they need to meet the new NAICOM wahalla.

Hajicairo:
http://www.nse.com.ng/Financial_NewsDocs/28876_TRANSNATIONAL_CORPORATION_OF_NIGERIA_PLC_FINANCIAL_STATEMENTS_JANUARY_2020.pdf

This transcorp sef na hopeville ooo.

bigjay01:
This transcorp sef na hopeville ooo.

Why pouring kero on the fire again.
Tomorrow's rain go be non stop

mendes911:
http://www.nse.com.ng/Financial_NewsDocs/28844_HONEYWELL_FLOUR_MILL_PLC_FINANCIAL_STATEMENTS_JANUARY_2020.pdf

Honey don dry for well ooooo.

It’s a stock to watch for potential acquisition this year

mendes911:
When it rains, it pours...

Let me go and buy another cutlass jaree.

Some people planned to ejaculate before release of result in 2 months time only for results to start dropping fast this month.

This business eehhhh.

Even Mcy56 failed to provide live commentary today. It is well.

bigjay01:
This transcorp sef na hopeville ooo.

The TRANS is finally disintegrating from the CORP.....
Can't believe my eyes.

It is well.....

Coolcash1:
It’s a stock to watch for potential acquisition this year

No way. The owner get as e be...

mendes911:
Some people planned to ejaculate before release of result in 2 months time only for results to start dropping fast this month.

This business eehhhh.

Even Mcy56 failed to provide live commentary today. It is well.

Hajicairo:
http://www.nse.com.ng/Financial_NewsDocs/28876_TRANSNATIONAL_CORPORATION_OF_NIGERIA_PLC_FINANCIAL_STATEMENTS_JANUARY_2020.pdf

O bad gan! esp the topline…. Singing

Japa japa, japa lo London
Japa japa ja wo Canada
Japa japa, ja wo Chicago
Japa japa, ja lo si Africa

Buying opportunities re. Q1 - sub 80k. You know Uncle T with market shaking.... Q1 2020 would be v. interesting...

mendes911:
Some people planned to ejaculate before release of result in 2 months time only for results to start dropping fast this month.

This business eehhhh.

Even Mcy56 failed to provide live commentary today. It is well.

Every bodi playing themselves in dis mkt now - participants, mkt makers, brokers, companies' MDs, even d regulator No jonsing, one bit! Chop your own and exit positions japa-ly b4 release of results.

bigjay01:
My biggest mistake(?) this season was to have bought more UACN @10.5. I thought it had a well established support at this price! Before this, my average price was in the late #6s (and I was holding quite a few). I started buying from #7s down to #5s.

The last poor entry has now taken me to early #8s. I have a very healthy appetite for holding, so no fretting.

I will top up tomorrow.

Why am I disclosing this? When it does 3/4 baggers, I wouldn't want anyone to classify me as a mouth maker. @Owoblow77, pls take note!

At full offer today, Uacn shares on offer was about 120million naira, which is about 330,000usd. That amount is small for a "deep pocket", who could've bought everything When a newbie reads a post, and she forms an impression in the mind that a deep pocket got her back, that's not fair. If a newbie has an opportunity to bail out of a position that will hurt her portfolio, but didn't because a 'deep pocket' says don't worry, I've got enuf cash to defend this share price, that's... Anyways I'm not in love with any stock, I just wanna make money. If u like, make a 20 bagger, mmhnn mmhnn... not my biz.

There will be serious bloodshed tomorrow in the market for most of unperformed stocks. All door will be shutdown, no escape route, should in case you are trapped in any of them, use the early market open opportunity to escape.

ukay2:
Ruthless Marfians MD.....no nonsense

But Elephant is too big to do this kind thing ACCESSIBILITY the do

Yes o! Correct Corporate Marlian, this HW guy! Even the first of all bank MDs to pay Naira Marley 8-digit figure for show last dec. O da mo big time! See the way he japa-ed even his own stocks as MD. Mehn! MD yi bad oh! Singing for him now.....

Marlians, Marlians, Marlians, Marlians, Marlians, Marlians, Marlians
Gbese, gbese, gbese, gbese, gbese, gbese
Marlians, Marlians, Marlians, Marlians, Marlians, Marlians, Marlians
MD, MD, MD, MD yi bad oh

Just playing around o...… I can't come and kill myself!

With banking stocks, there is absolutely no need to fret.
...stay put and remain unshakable if u've aligned with the right ones, or look out for healthy bargains if u are yet to key in.

The most likely explanation for the release of unaudited FY result from the likes of STANBIC, FBNH and FCMB is because they are coys with a holding structure.
...so the intention is to beat the deadline with the release of unaudited report before Jan 31st, just in case they fail with the audit and CBN approval before Feb 31st, following the recent guideline from the CMOs(capital mkt operators)
The other banks will likely release an audited FY report.

With the 3, only STANBIC reported a drop in earnings.
FBNH and FCMB witnessed a appreciable growth accross several KEY revenue and earnings line. ...particularly the latter.

It is well.

Chibuking81:
Their will be serious bloodshed tomorrow in the market for most of unperformed stocks.

Ah Ma fo! No shaking! We are waiting...

onegentleguy:
With banking stocks, there is absolutely no need to fret.
...stay put and remain unshakable if u've aligned with the right ones, or look out for healthy bargains if u are yet to key in.

The most likely explanation for the release of unaudited FY result from the likes of STANBIC, FBNH and FCMB is because they are coys with a holding structure.
...so the intention is to beat the deadline with the release of unaudited report before Jan 31st, just in case they fail with the audit and CBN approval before Feb 31st, following the recent guideline from the CMOs(capital mkt operators)
The other banks will likely release an audited FY report.

With the 3, only STANBIC reported a drop in earnings.
FBNH and FCMB witnessed a appreciable growth accross several KEY revenue and earnings line. ...particularly the latter.

It is well.

Probably.... but still more to it than just beating the reporting deadline. With all their experiential knowledge and years of experience re. holdco reporting, there shouldn't be any problem really of meeting the said deadline

[quote author=locodemy post=86242215]When your top up becomes the opposite.
So you want hand over Kaya tomorrow.
If I tell you the price uacn go sell tomorrow ehhh.[/quote

It will be selling for N8.1

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