MARKET UPDATE FOR AUGUST 8, 2017
The nation stock market had a very
volatile session on Tuesday and heightened by afternoon to touch a three-year
high of 38,005.80 psychological line before closing at 37,999.56 point on low
volume of trade to continue six straight days of bullish run. This signals
the increasing entrance of smart money
into Nigeria's stock market with focus on blue chip stocks that posted stronger
Q2 numbers and brighter prospects of higher return based on the improving
fundamentals of companies. The hope is driven by the potential recovery of the
economy supported by the positive macro-economic indices.
The attraction in Nigeria's stock market
remains the low valuation of stocks as a result of currency devaluation
suffered earlier in 2015/2016 that made the prices of stocks cheaper, compared
to other markets of the world. The low market Price to Earnings ratio of 3.68x is
another major factor in favour of the market, helped by the continued
intervention of the Central Bank of Nigeria (CBN) in the interbank foreign
exchange market which has significantly helped by boosting liquidity to a level
that has sustained the Naira's exchange rate. The investors and exporters
window that was created in the market was also of great help, as it assured
foreign investors of hitch-free repatriation of their capital. All that is left
now is for the CBN to do more towards the single rate regime that will further
boost inflow to the country, thereby boosting the confidence of investors in
the medium to long term.
Another attraction is the nation's
relatively robust external reserve at $30.95bn as at last week, despite the
continued CBN intervention and the unstable oil price in the international
market.
Meanwhile, with the failure of the
Vote-of-No-Confidence on President Jacob Zuma on Tuesday at the South African
parliament and the economy struggling with recession, many portfolio investors
in the country are likely to look elsewhere in the short to medium term for
juicy returns. The Nigerian market and economy remains a destination of choice,
especially with its economy on the path of recovery as shown by the GDP that is
gradually coming from a negative terrain; while the infrastructural challenge
that offer investment opportunities particularly for those interested in
public/private sector partnership (PPP); added to the fact that many of the
listed companies are still undervalued. This is not also forgetting that we are
gradually coming close to the November date for the much awaited
reclassification of Nigeria into the Morgan Stanley Index (MSCI). The delay at
the instance of Morgan Stanley, it would be recalled was to test the ability of
the CBN to sustain the robust intervention in the Investors and Exporters FX window
that has guarantee this relative stability experienced so far since April.
Back to the stock market, volume traded
index on Tuesday was 0.68; with buying position of 99% and selling volume, 1%
of total transaction to reveal the rising buying pressure, that has supported
the up market.
The composite NSE All Share Index gained 474.18 basis points to close
at 37,999.56bp, after opening at 37,525.38 points, representing a 1.26% growth
on lower volume traded when compared to the previous sessions. Similarly,
market capitalisation for the day was up
by N163.43bn to close at N13.1tr, from the opening value of N12.93tr,
surpassing the 2008 highest market.
The upturn in the shares of medium and high cap stocks, especially
fast moving consumer goods, banking and agribusiness impacted the ASI's year-to-date
returns to 41.40%. Also, market capitalisation over the same period improved by
N4.06tr, representing a 42% growth on the year’s opening value.
Market breadth for day turned positive as the advancers outweighed
decliners in the ratio of 31:20 on low volume of trades that sustained the six
trading sessions of up market. Trading activities in terms of volume and value
dropped by 14.25% and 12.52% respectively at 218.22m shares, worth N5.07bn,
from the previous day’s 254.49m units, valued at N5.8bn.
Transactions in the shares of FCMB, Zenith Bank, Sterling Bank, Guaranty
Trust Bank and UBA topped the volume chart during the session.
At the end of trading activities also, Guinness Nigeria topped the
advancers’ table, gaining 10.25% to close at N79.35 each on market forces and
sector influenced performance. Dangote Flour followed with a 10.16% gain to
close at N6.39 per share, on market forces, improved numbers and smart money
interest in consumer goods.
On the flipside, Morison Industries led the decliners’ table after
dropping 8.85% to close at N1.03 per share on market forces. Next was Caverton
that lost 8.73%, closing at N1.15 per unit on profit taking.
TODAY’S OUTLOOK
As trading activities opens this morning, expect volatility to
continue as profit taking and portfolio reshuffling on the strength of Q2
numbers released recently to influence market players’ decision with attention
in consumer goods, Financial services, Agribusiness and Healthcare.
However, investors need not panic if any pullback occurs now due to
profit booking if they take position based on strong numbers and future prospects
of any stock.
Again, we advise that investors allow numbers to guide their decisions
while repositioning for the rest of the year’s trading activities, especially
now that prices of stocks are looking up ahead of the improving economic
fundamentals, if the numbers will support the price reversal or continuation.
It is time to use your technical tools to take decision by knowing the
support and resistant level to reposition or exit any position.
Be reminded once more that industry potential, market timing are very
important when picking a stock, because there are factors that are
sector-specific and would naturally impact positively or negatively on
companies operating within such an industry, especially now that the economy is
recovering. Market is in phases know it in order to manage your trading and
investing risk. For stocks that should
be on your shopping list to buy in this oscillating market or pullbacks sign up
to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
Get your home study pack today and
ride with the current recovery on Nigeria’s stock market and economy.
The workshop video can be viewed on
your phone, laptop and television set. The home study pack costs N20,000
including DHL delivery at your door step.
Payment should be made into Investdata Consulting Ltd, Zenith Bank
1013033032. Afterwards, kindly send payment details to 08032055467 or
08111811223.
MR.
OMORDION AMBROSE
CHIEF
RESEARCH OFFICER
INVESTDATA
CONSULTING LIMITED
Tel:
08028164085, 08032055467
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TOP STOCKS THAT ARE CURRENTLY UNDERVALUED
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PRICE
|
S2 Wk High
|
52 Wk Low
|
BVPS
|
P/BV
|
Margin Of Safety
|
|
UNITY BANK PLC
|
0.60
|
1.06
|
0.50
|
7.33
|
0.08
|
1121.37
|
|
DIAMOND BANK PLC
|
1.28
|
1.72
|
0.78
|
10.28
|
0.12
|
703.32
|
|
FCMB GROUP PLC
|
1.22
|
1.55
|
0.92
|
9.03
|
1.34
|
640.16
|
|
FIDELITY BANK PLC
|
1.28
|
1.49
|
0.76
|
6.53
|
1.96
|
410.16
|
|
C & I LEASING
|
0.96
|
0.76
|
0.50
|
4.37
|
0.22
|
355.02
|
|
LEARN AFRICA
|
0.83
|
0.96
|
0.58
|
3.45
|
0.24
|
316.03
|
|
FIRST ALUMINIUM NIG PLC
|
0.58
|
0.61
|
0.50
|
2.37
|
0.25
|
308.14
|
|
LINKAGE ASSURANCE PLC
|
0.72
|
0.70
|
0.50
|
2.38
|
0.30
|
230.68
|
|
UNION BANK PLC
|
5.24
|
6.12
|
3.70
|
16.34
|
0.32
|
211.76
|
|
HONEYFLOUR
|
2.18
|
2.30
|
0.91
|
6.68
|
0.33
|
206.45
|
|
FBN HOLDINGS PLC
|
6.01
|
7.79
|
2.95
|
16.99
|
0.35
|
182.72
|
|
ROYAL EXCHANGE PLC
|
0.50
|
0.50
|
0.50
|
1.28
|
0.39
|
156.40
|
|
WAPIC INSURANCE
|
0.50
|
0.56
|
0.50
|
1.28
|
0.39
|
156.02
|
|
ETERNA PLC
|
3.52
|
4.09
|
2.13
|
8.81
|
0.40
|
150.20
|
|
UNION DIAGONOSTIC
|
0.50
|
0.50
|
0.50
|
1.19
|
0.42
|
138.52
|
|
PRESTIGE ASSURANCE CO.
PLC
|
0.50
|
0.50
|
0.50
|
1.19
|
0.42
|
138.41
|
|
U A C N PLC
|
17.50
|
21.78
|
12.02
|
38.57
|
0.45
|
120.41
|
|
NIGER INS CO PLC
|
0.50
|
0.50
|
0.50
|
1.08
|
0.46
|
116.91
|
|
MUTUAL BENEFITS ASSURANCE
PLC
|
0.50
|
0.50
|
0.50
|
0.96
|
0.52
|
92.94
|
|
NPF MICROFINANCE BANK PLC
|
1.20
|
1.45
|
0.89
|
2.18
|
0.55
|
81.48
|
|
ASSOCIATED BUS COMPANY
PLC
|
0.50
|
0.50
|
0.50
|
0.90
|
0.55
|
80.27
|
|
CHELLARMS PLC
|
3.24
|
3.24
|
3.24
|
5.79
|
0.56
|
78.82
|
|
REGENCY ALLIANCE
INSURANCE
|
0.50
|
0.50
|
0.50
|
0.88
|
0.57
|
76.36
|
|
ACCESS BANK PLC
|
10.00
|
10.89
|
5.13
|
16.15
|
0.62
|
61.54
|
|
CONSOLIDATED HALLMARK INS
PLC
|
0.50
|
0.50
|
0.50
|
0.73
|
0.68
|
46.73
|
|
UNITED BANK FOR AFRICA
PLC
|
9.90
|
10.49
|
4.01
|
14.13
|
0.76
|
42.73
|
|
SEPLAT PETROLEUM DEV CO
LTD
|
470.10
|
488.00
|
240.00
|
656.33
|
0.72
|
39.62
|
|
FIDSON
|
3.38
|
3.53
|
0.89
|
4.66
|
0.73
|
37.87
|
|
SOVEREIGN TRUST INSURANCE
PLC
|
0.50
|
0.50
|
0.50
|
0.68
|
0.73
|
36.65
|
|
FLOUR MILLS PLC
|
30.00
|
30.00
|
16.20
|
40.25
|
0.75
|
34.18
|
|
BERGER PAINTS PLC
|
6.80
|
7.63
|
6.08
|
8.86
|
0.77
|
30.23
|
|
GREAT NIGERIAN INSURANCE
PLC
|
0.50
|
0.50
|
0.50
|
0.62
|
0.81
|
23.78
|
|
N NIG FLOUR MILLS
|
5.50
|
6.32
|
5.48
|
6.75
|
0.81
|
22.81
|
|
ABBEY MORTGAGE PLC
|
1.30
|
1.30
|
1.30
|
1.54
|
0.84
|
18.50
|
|
VITAFOAM
|
2.79
|
3.39
|
1.64
|
3.13
|
0.89
|
12.07
|
|
DANGOTE SUGAR REFINERY
|
14.00
|
10.87
|
5.71
|
15.60
|
2.21
|
11.43
|
|
STANDARD ALLIANCE INS PLC
|
0.50
|
0.50
|
0.50
|
0.44
|
1.13
|
-11.77
|
|
STANDARD TRUST ASSURANCE
|
0.50
|
0.50
|
0.50
|
0.43
|
1.16
|
-13.56
|
|
ZENITH INT BANK PLC
|
25.40
|
26.99
|
13.10
|
21.91
|
1.16
|
-13.75
|
|
EQUITY ASSURANCE PLC
|
0.50
|
0.50
|
0.50
|
0.39
|
1.27
|
-21.12
|
|
UNITED CAPITAL PLC
|
3.10
|
4.06
|
2.14
|
2.44
|
1.27
|
-21.38
|
|
BETA GLASS PLC
|
60.34
|
60.34
|
28.88
|
45.82
|
1.32
|
-24.06
|
|
CHAMS PLC
|
0.50
|
0.50
|
0.50
|
0.37
|
1.34
|
-25.16
|
|
JAIZ BANK PLC
|
0.71
|
1.47
|
0.57
|
0.52
|
1.38
|
-27.44
|
|
NEIMETH INT. PHARM PLC
|
0.84
|
1.07
|
0.51
|
0.55
|
1.51
|
-33.98
|
|
FORTE OIL PLC
|
57.50
|
178.60
|
42.66
|
36.21
|
1.59
|
-37.03
|
|
JULIUS BERGER NIG PLC
|
34.20
|
48.39
|
32.14
|
19.29
|
1.77
|
-43.60
|
|
CADBURY NIG PLC
|
11.51
|
16.53
|
7.04
|
5.61
|
2.05
|
-51.29
|
|
GURANTY TRUST BANK
|
41.00
|
42.00
|
20.33
|
19.08
|
2.15
|
-53.46
|
|
MEDVIEW AIRLINES
|
1.60
|
1.60
|
1.43
|
0.72
|
2.23
|
-55.21
|
|
AFRICAN ALLIANCE
INSURANCE PLC
|
0.50
|
0.50
|
0.50
|
0.21
|
2.38
|
-58.07
|
|
STANBIC IBTC HOLDINGS PLC
|
37.55
|
38.76
|
13.25
|
15.60
|
2.41
|
-58.44
|
|
CHAMPION BREW PLC
|
2.71
|
3.99
|
1.94
|
0.99
|
2.74
|
-63.44
|
|
OKOMUOIL
|
72.23
|
74.41
|
33.66
|
22.87
|
3.16
|
-68.34
|
|
TOTAL NIG PLC
|
261.50
|
345.00
|
181.05
|
75.99
|
3.44
|
-70.94
|
|
MOBIL OIL NIG PLC
|
232.00
|
385.00
|
162.65
|
61.88
|
3.75
|
-73.33
|
|
DANGOTE CEMENT PLC
|
240.00
|
245.17
|
149.26
|
48.28
|
4.97
|
-79.88
|
|
OANDO PLC
|
8.00
|
10.50
|
3.54
|
1.60
|
5.00
|
-80.01
|
|
7 UP BOTTLING COMP PLC
|
90.25
|
159.90
|
74.00
|
16.82
|
5.37
|
-81.36
|
|
NIG BREWERIES PLC
|
172.40
|
180.00
|
112.00
|
22.44
|
7.68
|
-86.98
|
|
CAPITAL OIL PLC
|
0.50
|
0.50
|
0.50
|
0.06
|
7.95
|
-87.42
|
|
CUTIX PLC
|
2.09
|
2.47
|
1.35
|
0.12
|
18.15
|
-94.49
|
|
NESTLE NIG PLC
|
1195.32
|
1195.32
|
570.00
|
49.84
|
20.60
|
-95.83
|
|
GLAXO SMITHKLINE
|
20.00
|
21.59
|
13.54
|
0.70
|
28.63
|
-96.51
|
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