MARKET UPDATE FOR OCTOBER 30, 2017

NSE INDEX SET TO CLOSE POSITIVE IN OCTOBER AMIDST STRONG Q3 NUMBERS

Nigeria’s equity market had a very narrow up on Monday to start the week on mixed despite the increasing number of companies that released their quarterly earnings to the market during the trading session, with their numbers revealing mixed performance, as some companies posted positively surprising earnings that offered insights into the transformation activities going within these companies. These, more or less, also reflected the fact of the larger economy coming farther out of the woods, just as they confirm that the economic fundamentals being portrayed are not just on paper, but real, particularly the Nigeria’s exit from recession with its Q2 GDP growth of 0.55% after five consecutive quarters of being negative.

Nonetheless, the slow reaction to these numbers is evidence that liquidity in the market is low even at the end month that coincides with the official end of earnings reporting season.

The day started out with sell-offs in continuation of three sessions of profit taking by traders that sharply plunged the market into red at the early hours of Monday, until midday before sharply rolling over in the last minutes  to marginally close green, as the index bounced back, resisting intraday pullback as the market side trend.  

The CBN reviewed foreign exchange policy which led to intervention and creation of new products has beat expectations in different quarters as the impact of the Investors and exporters window of the forex market continued to reflect on every facet of the economy to drive the recovery in the system. The continued positive macro-economic data are evidence of growing national output which the recent corporate earnings are also confirming, giving insight of what the Purchasing Managers’ Index (PMI) for the month of October and Q3 GDP will look like, besides confirming the true state of the economy.

The market technicals for the day were mixed as bullish sentiments hit 97% as  revealed by the  buying pressure, while volume index was 0.78 for the day, and buying position at 97% and 3% selling volume of total transaction, to halt the two-day down market on a negative market breadth.

Meanwhile, the composite NSE ASI gained 22.04 basis points to close at 36,484.30 from 36,462.26 points, which represented a 0.06% growth. In the same direction, market capitalisation for the day inched up by N7.63bn to N12.63bn, representing 0.06% value gain from previous session’s N12.62tr.

The marginal upturn recorded resulted from value gain by  medium and high cap stocks like  UBA, Forte Oil, Dangote Cement, Zenith Bank, Guinness Nigeria, Total, ETI and Dangote Flour that  impacted positively  on the ASI’s year-to-date return to 35.76%, just as market capitalisation growth stood at N3.38 trillion YTD, representing a 36.55% rise above the year’s opening value.

Market breadth for the day turned negative as the number of decliners outnumbered advancers in the ratio of 21:18 on a low traded volume that was lower than previous day’s level to halt the bear transition.

Market activities, in terms of volume and value were down by 39.36% and 30.27% respectively to 174.96 million shares valued at N1.82 billion from the previous day 250.90 million units valued at N3.01bn.
Transactions in the shares of FBNH, Diamond Bank, UBA, Zenith Bank and Transcorp topped the volume chart.
At the close of Monday’s trading session, Dangote Flour Mills topped the advancers’ table, gaining 10.19%, to close at N9.08 per share, on the back of its impressive Q3 numbers; followed by Forte Oil with 7.05%, on its low price attraction and market forces.

On the flipside, Morrison Industry, shed 4.76% to close at N0.60 on market forces; followed by Livestock Feeds which lost 4.49% to close at N0.85per unit on profit taking and the fact that its Q3 numbers came below expectation.

During the trading session, 44 companies release their quarterly earnings reports, including Honeywell Flour Mill, Diamond Bank, Flour Mills Nigeria and Others.

TODAY’S OUTLOOK

As the market opens this morning,  being the last trading day of the month  expect volatility to  continue as the last set of companies rush to release their numbers in their bid to meet the regulatory deadline. There is also the effect of the month-end window dressing of trading accounts by stockbrokers and fund managers, ahead of economic data and trading cycle.  

Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are moving up and down amidst improving company, economic and market fundamentals.

It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases know the cycles in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this seasonality changes as the year winds down, 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. By investing and trading knowledgeable
The training materials on stock Trading and Investing for Financial Independence series are Available, you can play on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467 or 08111811223.

Attention! Attention!! Attention!!!

INVEST 2018 FINANCIAL SUCCESS

If you are still asking yourself why Trade Stock? We have all the answers for you in this upcoming summit! INVEST 2018 TRADERS & INVESTORS FINANCIAL SUCCESS
Are you a Bitcoin, Forex Trader or Real Estate Investor?
You need to see the advantages of trading STOCKs – Daily or weekly compared to any other market.
Have you ever traded Stocks?

In the coming INVEST 2018 you will learn:
• How to generate a consistent income trading stocks on your own via phone and laptop
• The power of trading quarterly and full year earnings reporting season
• Our rules-based approach to trading stocks.
• How our buy & sell signal setup works
• How to take advantage of best market timing strategies to positon before Major market earnings reporting season.
• How to quickly and accurately “predict” the next market reaction and move
• Learn why trading less is making more
• Learn how to make use of trend identification, resistant and support to double your returns
• Learn how to follow the institutional money flow and much more

Also, it is an opportunity to know you can identify opportunities in different sectors, especially with the Federal Government’s plan to spend almost N8 trillion for 2018, which if implemented will quicken ongoing economic recovery.
Discover how you can unleash your Income Potential Trading stocks.
You will also discover why trading and investing in stock is the way to go.
Trading or investing is no Rocket science – it just requires a blend of discipline, patience and knowledge of market and economic fundamental and technical analysis to pick the right stock and sell at the right time.

Is this the summit that will pays for your vacation trip, puts your kids through college and some income in your pocket?
Maybe or Maybe not…but you will be kicking yourself everyday on the way to that work place everyday if you miss this!
“70% of success in life is SHOWING UP and taking steps”

We’ll take care of the rest if the 30%….
This summit is the perfect opportunity to learn from the best industry experts and to get the personal attention in the exclusive Q&A session after presentations!
Saturday December 9, 2017

To register for the coming summit Kindly call or send yes to 08032055467 or 08111811223.

N.B: At this event you’ll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.
If you are looking for a way to make money in the market as a Full-time or Part-time trader, this is your opportunity.

Dream it! Wish it! Do it! Enjoy it!

Best regards

Ambrose Omordion

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