MARKET UPDATE FOR NOVEMBER 27, 2017

AMIDST PORTFOLIO ADJUSTMENTS, INVESTORS, TRADERS TAKE PROFIT AHEAD OF SANTA CLAUS, YEAR-END RALLY

Trading on the Nigerian Stock Exchange on Monday was an interesting, but mixed session after three straight day of a seeming bull transition as the week started on a negative note due to high selling pressure and low demand for stocks that was evident in the general financial market, with bonds closing on sell side and pushing yields marginally higher, while money market instruments like Treasury Billswere slightly bearish, due to tight liquidity amidst the sustained foreign exchange market intervention and sale of OMO by the Central Bank of Nigeria (CBN). 

This circular flow of money is expected to continue in the financial market as capital looks for opportunity for better returns without losing sight of safety, with no major trigger for the equities’ market at a time the Q3 numbers are already available and the direction each company is tilted is known. More so, investors have also taken into account the major positive economic data made available. The major factor investors could be watching to take advantage of now is the expected Santa Claus and year-end rally that comes in the weeks leading to Christmas and towards the end of December which suggests that oscillation of trend and volatility will continue till another earnings reporting season kicks off in February, ahead of the release of audited numbers by companies with December year end.  

The market’s technicals were lousy and mixed on huge volume and negative market breadth that reflected a pullback in all sectoral indexes, except the NSE Insurance and Oil/Gas which closed up. The day started out on a margin down slide that was sustained till the midday but had a little up movement to an intraday high of 37,393.29, before closing the day lower at 37,250.78, while forming a double top that supports pullback.

The high volume in the market for the day was driven by Wapic Insurance and quick service restaurant chain- Tantalizer which may likely approach the market soon for primary activities, especially as they made no impact on the market indicators with their prices remaining unchanged irrespective of the high volume traded.Volume index for the day stood at 2.70 with selling position of 88%, while buying volume was 12% of the total day transaction to halt the up market. 

Meanwhile, at the close of trading, the composite NSEAll-Share Index shed 115.13 basis points to close at 37,250.78, from the 37,365.91 points it opened, representing a 0.31% decline, just as market capitalisation slipped N36.49bn to close at N12.97trfrom the previous N13.01tr, representing a 0.28% value loss.The slower percentage fall in market cap was due to the admission of the 800m ordinary shares of oil servicing company- Global Spectrum for listing on the NSE by way of introduction at N5.00 each, adding N4bn to the market’s value.

The downturn in the market resulted from losses suffered bymedium and high cap stocks like Zenith Bank, Access Bank, UBA, Flourmills Unilever, Guinness, Double One,Stanbic IBTC and Ecobank Transnational Incorporated, as investors and traders took profit, a situation that negatively impacted the ASI’s year-to-date returns, dragging it down to 38.61%, just as YTD growth in market capitalisation stood at N3.73tr, representing a 40.29% rise over the year’s opening value.

Market breadth was negative as the number of decliners outnumbered advancers in the ratio of 24:18on a huge traded volume that was higher than Friday level.

Market activities in terms of volume and value were mixed as volume was up by 8.29% to 942.72m shares from previous day’s 870.58munits,while value dropped by 5.17% to N4.78bn,from N5.04bn. Other heavy transaction drivers during the day were Fidelity Bank, Zenith Bank and Transcorp Plc, which topped volume chart.

Law Union & Rock Insurance recovered from its string of losses, topping the advancers’ table with its 4.92% gain to close at N0.64 per shareon market forces, followed by NahcoAviance, which notched 4.87% to close at N4.09 on market forces and strong Q3 numbers.

On the flipside, Newrest ASL shed a further 4.88% to close at N5.85 each on market forces and unimpressive Q3 numbers, ahead of Portland Paints,which lost 4.76% to close at N2.00 each, also on  market forces.

TODAY’S OUTLOOK

With just three days to end the month of November, expect volatility to continue as traders take profit and balance their trading positions, which might influence price positively or negatively, depending on market momentum on the strength of liquidity and ahead of the year-end season, since the price of oil in the international market remains relatively high, ahead of the Organisation of Petroleum Exporting Countries (OPEC) meeting on Thursday that would determine whether there would be an extension in production cut beyond Q1 2018, or a further supply cut to  boost price.

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 stock prices remain volatile 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.
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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?

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.

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.”

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“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

How to Pick Investable Securities: Using Econometric Models and Other Strategies Of Successful Traders To Improve Your Trading Margin.

In this presentation by Engr Mike Ekwueme Anyadibe, CEO of X-Front Trader Limited, you will learn how financial engineering can be applied on NGSE market data: How the gurus pick securities, depending on their client’s different investment goals, whether for dividend Income. Or, are you a momentum or trend following 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 profitable strategy between 2009 - 2017 so far.

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!

The summit holds on December 9, 2017 at Ostra Hall & Hotel, Behind M.K.O Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Time is 9:00am. The fee is N25,000 per participant. Payment made on or before December 1, 2017 attracts 10% discount. Companies sending more than two representatives would enjoy 15% discount. Those who have participated in our previous seminars and workshops will enjoy 15% discount.  Payment should be made into Investdata Consulting Limited; Zenith Bank Acct. No: 1013033032 or UBA, Acct. No: 1020288683.

To register for the coming summit Kindly visit our site www.investdataonline.com OR www.investdata.com.ng also you can call or send yes to 08032055467, 08111811223 or 08179547605

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.

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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