Invest Data Consulting Ltd

INDICATORS SLIDE, DESPITE ENHANCED FUNDAMENTALS, RESULTS, AS INVESTORS AWAIT FISCAL EFFORTS Nigeria’s equity market on Tuesday continued its volatility, closing south on a significantly low volume that was below its average traded volume, reflecting investors’ wait-and-see attitude as pullback continued on a selloff ahead of the long holiday declared for Friday and Monday, as well as to pick bills associated with the season. The NSE indicators gapped down sharply after a bashing that started in the early hours into midday, breaking down the support and psychological line of 36,000 to 35,747.97 before bouncing back in the afternoon to reduce the day’s loss, closing slightly above the 36,000 mark. It looked like, perhaps, an intra-day bottom was in view, but important resistance could not be taken out, and consolidated its down trend with Wave 3 corrective motive as it equally formed a double bottom that indicates a reversal. The continued downward trend of the market

INVESTORS WINDOW-DRESS AHEAD OF MONTH-END, RELEASE OF NIGERIA’S Q2 GDP DATA Investors Window-Dress Ahead Of Month-End, Release Of Nigeria’s Q2 GDP Data Market Update for August 28 Trading for the new week on the Nigerian Stock Exchange (NSE) began on a negative note as the composite NSE All Share Index closed lower to reverse the Friday’s up market, to consolidate last week’s loss position. Trading began with a big gap down and bounced back to resistance, but couldn’t get through before pulling back down, even as it couldn’t still get through support. Basically, with a triple test of support, the index tried to rebound by the afternoon session and in the process reduced the losing position. The benchmark index did however attain a new intraday high of 36,651.25 which could not be sustained as a result of selloff by profit takers ahead of the month-end and holiday on Friday and Monday declared by the Federal Government to mark the Islamic festival of Eid-el Kabir.

VOLATILITY MAY LINGER, AS INVESTORS ENGAGE IN MONTH-END PORTFOLIO REBALANCING The nation’s equity market last week was highly volatile to close lower withtechnical indicators mixed, to confirm the trend direction due to wavy behavioral pattern of the market amidstsustained profit taking and positioning for interim dividend, helped by impressive numbers from first-tier banks hitting the market. Last week also, the share price of Zenith Bank and Guaranty Trust Bank were adjusted for dividend offered by their directors, furtherputting pressure on the market. During the week too, the market reacted to the release of half-year audited numbers by Access Bank, Ecobank Transnational Incorporated (ETI) and UBA which came mixed, a situation market players had factored into their share prices along with the dividend by all but ETI. This situation in the market may not last for too long because Q2 financials from these banks are impressive and strong to further drive their prices be

The management of United Bank for Africa released it audited 2017 half year earnings report to the market last week In line with its post-listing requirement, earlier than that of 2016, thereby allowing investors forecast and plan their investment.The bank’s re-engineering and continued expansion across the continent as Africa’s global bank continues to yield bountiful results as revealed by its diversified revenue base, soaring profitability ratios and growing balance sheet all of which have helped to support UBA’s repositioning into an African financial powerhouse. The commitment of its board and management to creating value for its shareholders and banking public through improved service delivery, new products and services that are people oriented to support strong assets quality. All of these translate to improved top and bottom-line, translating to good dividend payout that reflects on its share price  even as it remains toast of Nigeria’s investing community.  UB