MARKET UPDATE FOR NOVEMBER 9, 2017

NSE INDICATORS SEEK DIRECTION, AS VOLATILITY, PORTFOLIO REBALANCING, PROFIT TAKING LINGER

The stock market on Thursday was lower on a mixed session that was volatile as traders took profit from short positions in rebalancing their portfolios and positioning.

The mixed sentiments followed the indifference among market players to the N8.6tr 2018 budget estimates submitted to the National Assembly and the downgrade of Nigeria’s sovereign rating by Moody’s. The seemingly weak speculation at this point should not shake you out of position as major factors to force prices to another lower lows are currently absent in the market except for market sentiment to different news or policy statements and action of the government or its agency. The smaller the range, the less the volume, the higher the possibility that the uptrend will continue since the recent strong resistance level have been broken, waiting for more volume for continuation of uptrend. The retention of Nigeria in the MSCI frontier index is expected to boost share prices, just as strong company fundamentals will certainly support higher payout at the end of the financial year.

The market gapped down and dropped sharply lower at the opening bell on its wave 5 extension which lingered till midday before the rally and then got hammered shortly during the afternoon hour where it reached its lows for the day. At that point, the intraday low was 36,932.48 from high of 37,156.28 to close below its opening.

Buying pressure reduced as revealed by volume index of 0.63 with buy position of 53% and sell volume of 47% , while total transactions for the day short lived the two-day bull transition.

Meanwhile, the benchmark index lost 87.43 basis points to close at 37,051.54 from 37,138.97 points it opened, which represented a 0.24% decline. In the same vain, market capitalisation was down by N30.26bn to N12.83tr, representing 0.24% depreciation in value from previous N12.85tr.

Downturn suffered on Thursday was due to value loss by medium and high cap stocks like Dangote Cement, Zenith Bank, Dangote Sugar, UBA, Nigeria Breweries and Guinness Nigeria as traders took profit, a situation that impacted negatively on the ASI’s year-to-date return, which fell to 37.87%, just as YTD growth in market capitalisation stood at N3.58tr, representing a 38.68% rise above the year’s opening value.

Market breadth for the day was negative as the number of decliners also marginally outpaced advancers in the ratio of 22:21 on a low traded volume that was lower than previous day’s level to stop the bull.

Market activities in terms of volume and value were mixed as volume was down by 9.16% to 175.75m shares from the previous day’s 193.48m units, while value for the day was up by 94.91% from N1.81bn on Wednesday to N3.52bn.

Transactions in the shares of Guaranty Trust Bank, FBNH, Fidelity Bank, FCMB and Diamond Bank topped the volume chart.

At the end of the day’s trading session, Caverton topped the advancers’ chart, gaining 9.46% to close at N1.68 per share, on market sentiment and improved Q3 numbers; followed by International Brewery’s 8.38% notch, to close at N48.99 on market forces and merger plan.

On the flipside, Law Union and Rock Inssurance, shed 4.62% to close at N0.62 on market forces; followed by Fidelity Bank’s 4.14% loss, to close at N1.62 per unit on profit taking.

TODAY’S OUTLOOK

Being the last trading day of the week, we expect volatility to continue Friday on the strength of portfolio rebalancing, profit taking and repositioning as the number of traders in the market increases ahead of economic data and year end changes.

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.

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Sub Topics

The Pre-election Economy & 2018 Budget: Implementation and Impact On the Recovery Bull Market

In this presentation, Razaq Abiola, a seasoned analyst will Review the Economy and impact of government policies so far, discussing how the proposed N8.6tr budget will influence the economy in pre-election year. He will also take participants through the outlook for the stock market in 2018. He would attempt to answer a question like: Is there really anything to cheer from the mere size of the 2018 budget, considering how those of the past two years have been implemented, especially during the economic recovery phases?

Our carefully selected team of seasoned market analysts and traders would also take participants through topics such as:

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. 

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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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Impact and Implication of NSE New Rules on your Equity Investment in 2018 and Beyond.

The new strategies to trade and invest in the transforming market will be revealed to boost players profit and minimized losses. Also the 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
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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
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Tel: 08028164085, 08032055467