INVESTORS CONTINUE PORTFOLIO REBALANCING, REPOSITIONING, ALL EYES ON EXPECTED ECONOMIC DATA
Market Update for November 16
Nigeria’s stock market on Thursday
continued its volatility as traders and investors digested effects of the
Moody’s and MSCI Frontier Index review on the economy and market with the
indicators turning from red to pale green as players took advantage of the
pullback to continue their repositioning and rebalancing ahead of year-end
seasonal changes, among others. Despite the weak market technicals, positive
earnings surprising so far in the current financial year is likely to boost the
market again as positive macro-economic indices continue to give direction.
These alone would not however do the magic, as there is need for fiscal reform
stimulus to drive recovery and growth needed to boost confidence and attract
domestic and foreign investors. It is also expected that the quality of
financial sector assets will improved if the government hastens its policies
geared towards driving infrastructure development needed to boost economic
activities thereby helping the banks to reduce their warehouses of
Non-Performing Loans, while boosting customer deposits.
As mentioned in our update yesterday,
that reversal is imminent as selling pressure continued to decline. The index
slid down at opening until midday, moving up and down at first before an
afternoon rebound after touching intraday low of 36,541.90 which is becoming
the NSE’s support level in recent times, as it closed higher at 36,634.89 from
the day’s peak of 36,679.93 basis points.
Buying pressure was high at 67%, to
reverse the selling pressure of 86% in the previous day. Volume index for the
day was 0.85 and sell position- 33% of the total transactions for the day,
bringing an end to the two-day bear transition on higher volume. This is a
signal that market recovery is underway, especially with institutional money
flow indicator still looking up, suggesting that smart money is taking
advantage of the pullback to accumulate.
Meanwhile, the composite NSE All-Share
index gained a sluggish 17.44 basis points to close at 36,634.89 from the
36,617.45 points it opened, which represented a 0.05% marginal growth.
Similarly, market capitalisation was up by N77.05bn to N12.75tr from the
previous N12.67tr as result of the listing of news shares of Unilever Nigeria
and Transnationwide Express, following their successful rights issues that
boosted the market value.
Value gain recorded by medium and high
cap stocks like Unilever, Double one, PZ, 7-Up, Zenith Bank, Guaranty Trust
Bank, Stanbic IBTC and Access Bank, impacted the ASI’s year-to-date return to
36.32%, just as YTD growth in market capitalisation stood at N3.56 trillion,
representing a 38.03% rise above the year’s opening value.
Market breadth remained negative as the
number of decliners outnumbered advancers in the ratio of 25:17 on a low traded
volume that was higher than previous day’s level.
Market activities in terms of volume and
value were up by 18.18% and 252.71% respectively to 217.75 million shares
valued at N11.71bn from the previous day’s 184.25m units, worth N3.32bn.
At the end of Thursday trading session,
BocGas topped the advancers’ chart, gaining 9.88% to close at N4.56 per share,
on market forces, followed by PZ Cussons which notched 5% to close at N21.42 on
low price attraction and market sentiment, just after it was removed from the
MSCI Frontier Market Index list.
On the flipside, Caverton shed a further
8.97% to close at N1.32 on profit taking. It was followed by University Press,
which lost 5% to close at N2.66 each on profit taking.
TODAY’S OUTLOOK
Being the last trading day of the week,
expect volatility to continue due to rebalancing and repositioning of
portfolio. Profit taking to slow down as a result mixed performance so far in
the week. Two crucial economic data are expected next week: There is the
release of Q3 GDP figures by the National Bureau of Statistics (NBS) and the
two-day Monetary Policy Committee (MPC) of the CBN which begins on Monday. The
outcome of the meeting would be released via a communique on Tuesday after,
providing data such as the benchmark Monetary Policy Rate (MPR), Liquidity
Ratio and Cash Reserve Ratio (CRR), among other hints that give an over-view of
economic behaviour going forward.
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 TRADERS & INVESTORS FINANCIAL SUCCESS SUMMIT
Sub Topics
The Pre-election Economy & 2018
Budget: Implementation and Impact On the Recovery Bull Market
In this presentation, Mr Olufemi Awoyemi
the founder/CEO of Proshare Limited, chartered Accountant and seasoned
financial analyst will review the economy and impact of government policies so
far, discussing how the proposed N8.6tr budget will influence the economy in a
pre-election year. He will also take participants through the outlook for the
stock market in 2018, while attempting to answer a question like: Is there
really any reason to cheer from the mere size of the 2018 budget, considering
how those of the past two years have been implemented, especially during this
economic recovery phases?
Comprehensive Earnings Guide for
Investing and Trading in 2018 Earnings Season Profitably
“Equity price movement is a function of
earnings in the short run and long term,” market reaction to earnings in any
market cycles is prolonged by dividend payout, relative to price. It makes a
lot of sense to trade in the direction by knowing the companies that will grow
their payout in 2018… as long as you identify such stocks in their early
stages. Hindsight, as they say, earnings calendar, trend, surprise and quality
of numbers are very useful in making profitable investment decision in 2018 and
beyond, which would be handled by Ambrose Omordion, Chief Research Officer of
InvestData Consulting Ltd
The Secret For Finding Better Trades
& Investment Opportunity
Mr. Abdul-Rasheed Oshoma Momoh, Head,
Capital Market in TRW Stockbrokers Limited will handle: “Discover how to Trade
Smarter, How You Can Stay on the Right Side of the Market Most of the Time,” as
well as specific, high winning probability, chart patterns: “Trading Price
Direction based on Momentum Flows, The current market cycles, how they are used
for trading price direction, in addition to How to set realistic &
achievable profit.”
How to Pick Investable Stocks: Using
working Models/Tactics of Experts and Professionals to improve your Trading
Profit
In this presentation by Engr Mike Ekwueme
Anyadibe, CEO of X-Front Trader Limited, you will learn: How the gurus pick
stocks, depending on their different investment goals, whether for dividend
Income. Or, are you a momentum trader who wants to grow your wealth through the
stock market? Even If you’re a complete beginner – What is model, And Why Was
It the top performing strategy of 2015, 2016 and 2017 so far.
Impact and Implication of NSE New Rules
on your Equity Investment in 2018 and Beyond.
The new strategies to trade and invest in
a transforming market will be revealed to boost players profit and minimized
losses by Alhaji Garba Kurfi, a chartered accountant, Fellow CIS and Managing
Director of APT Securities & Funds Limited. He will also tell participants
about classes of stocks to focus on, in this new market normal value of 1kobo
in 2018.
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! Date Saturday December 9, 2017,
fee N25,000
To register for the coming summit Kindly
visit our site www.investdataonline.com also you can 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 or investor, this is
your opportunity.
Dream it! Wish it! Do it! Enjoy it! Don’t
Miss out
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
Comments
Post a Comment