PRICE RALLY, VOLATILITY MAY LINGER, AMIDST PORTFOLIO RESHUFFLING FOR QUARTERLY, FULL-YEAR REPORTS

Market Update for January 29, 2019

Trading for the week on Nigeria’s stock market started off very strong and positive note on Monday to consolidate last Friday uptrend after recording four trading sessions of down in the previous week as a result of profit booking to form a corrective wave that came to an end, ushering in a motive wave 5 extension that may last longer, due to stock price rally on stronger earnings reports. This is however on the condition that the expected numbers really beat expectations.

The composite NSE All-Share index opened the day trading with upside gaps, rallying to remain green from the mid-morning till midday to breakout the psychological line of 44,000 again after it had tested an intraday support level of 43,773.76 successfully. From there, it rallied back in 5-wave extension move, with the index actually tagging its high from late Friday at about 532.72 basis points.
The day’s technicals were strong but mixed, as buying pressure was 100%. Volume index recorded 0.72 of the day’s total transaction, to reflect positive sentiments, despite the decline in volume traded and stronger breadth that closed in favour of the bulls.

The renewed buying market as a result of positive sentiments was revealed by institutional money flow index that turned up after last Friday’s trading session as foreign investors continued to position in the nation’s equities to balance their portfolios based on the frontier MSCI index as emerging markets remain the attraction of foreign fund managers. This is also due to the current low stock valuations in an economy that has recovered from recession and already on the growth path as reflected in the continued positive economic data.

Added to this is the rising price of crude oil at the international markets, which has also further boosted the nation’s external reserve, which recently hit $40.38bn, just as it continues to support the apex bank’s policy sustaining liquidity in the foreign exchange market, as well as helping to stabilize the Naira against other global currencies, boost economic activities needed to propel Nigeria’s GDP growth in 2018. Foreign inflow into the nation’s stock market through official sources hit about $ibn last year, the first time the market is seeing such magnitude since 2013, according to a report by Bloomberg.

Meanwhile, the All-Share index for the day gained 532.72 points to close at 44,306.48 basis points after opening at 43,773.76, representing a growth of 1.22% on a relatively high traded volume that was however lower than Friday ’s. Similarly, market capitalisation improved by N190.96bn to close at N15.88tr, after opening at N15.69tr, which also represented 1.22% value gain in investors’ positions.

The upturn recorded by low, medium and highly capitalized stocks impacted positively on the NSE’s Year-To-Date returns, which rose to 15.85%, just as market capitalisation gain for the period reduced to N2.24tr, representing 17.64% YTD growth.
Just like the benchmark index, all sectorial indices closed green, except for the NSE Consumer Goods indexes which was lower by 0.67%, while the NSE AseM, which once more remained flat. Market breadth remained positive as advancer outnumbered decliners in the ratio of 41:13, continuing the two bull market.

Market activities in volume and value terms for the day were down by 39.32% and 17.50% respectively to 573.55m shares worth N5.88bn from the previous day’s 945.12m units valued at N7.12bn. Transaction volume for the day was considerably boosted by consumer goods stocks, as well as others in the financial services sector, like FCMB, Access Bank, UBA, Honeywell and Zenith Bank, which continue to witness increased trading volumes to top the activity chart as most traded.

Low cap stocks were the best performing for the day, as Diamond Bank and Transcorp led the advancers’ table with 9.85% and 9.76% respectively to close at N2.90 and N2.25 each, on full year expectations and possibility of dividend payout. Dangote Sugar and Redstar Express topped the decliners’ log, losing 4.56% and 4.55% to close at N21 and N5.25 respectively, on profit taking by traders and investors.
The first Q3 scorecard for March year-end account was released on Monday by Redstar Express showing top and bottom-line growth, to produce Earnings Per Share (EPS) of 49 kobo, up from 46 kobo in the previous year.

TODAY OUTLOOK

With the hope of more Q3 numbers on Tuesday, we expect the rally and volatility to continue, while portfolio reshuffling and repositioning for the expected quarterly and full year reports that are underway remain. It is important to note that the candlestick formation at the close of Tuesday’s trading supports an uptrend.
However, we would like to reiterate that investors should go for equities with intrinsic value, especially during this season that dividend payment is approaching.

We advise investors to allow numbers 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 08028164085.

Get your home study pack on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which includes 15 stocks picks for 2018 are available now to guide your positioning as trading for the year just started.
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

Attention! Attention!! Attention!!!

Investdata Consulting Ltd is organizing another workshop where experts would simplify market jargons with the aim of increasing understanding and increasing the pool of retail investors.

Theme: ABC of Technical Analysis for the Novices and Advance Traders
Have you traded the stock market before and failed? It is a known fact that about 90% of those who trade without knowledge and understanding of the dynamics will end up losing 90% of their capital most of the time. You don’t have to be one of them.

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Consistency is the key to equity trading and investing successfully.
At investdata we have been teaching investors simple and proven strategies which when implemented makes you a successful trader and investor in any market situation, especially when it comes to equipping you well enough to know how to protect their portfolios and profit from market corrections in a recovering economy.

We have also, over time, focused attention on attuning the mindset of investors and traders to managing risk, while eliminating emotions when trading so as to avoid irrational investment decisions.

Attend the Practical Conference on Technical Analysis for the Novices and Advance Traders. We would be taking participants through:
• Understanding the momentum behind current equity movement and when to exit using SIMPLE Technical Indicators and Tools to avoid losing capital and profit.
• Our team of experts and time-tested resource persons will show you how you too can successfully and confidently trade and invest in stocks profitably on your own from your phone, laptop and/or desktop computer.

The workshop is scheduled as follows:
DATE: February 24. 2018
TIME: 10am – 3.00pm
VENUE: Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.

What you will learn at the Technical Analysis Chart Conference
1. The 3 Simple trading secrets that can help anyone succeed at investing
2. The tenets of stock trading and investing Using TA
3. Trading and investing strategies that will help you manage your risk, protect your capital and profit from market oscillation.
4. How to trade on your own online.
5. The psychology of trading and investing and how it will make you successful.

Registration is ongoing
There will be sales of stock trading and investing materials at the end of the conference, Fundamental and Technical Analysis materials, including home study packs you can play and viewed on your phone, laptop and television set. All at 20% discount for attending. You need to prepare yourself and profit from the market and the recovery economy to truly achieve your financial independence and freedom in this New Year.
For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2018/01/price-rally-volatility-may-linger-amidst-portfolio-reshuffling-quarterly-full-year-reports/