Low Money Market Rates, Bond Sell-Offs May Boost Inflow Into Stock Market Ahead Earnings Season

Market Update for February 20

Nigeria’s stock market on Tuesday had a very volatile session but closed on a positive note, thereby halting the previous day’s down market, after opening sharp down in the early morning which continue in the mid-morning till midday before retracing up in the afternoon to wipe out some of previous day’s loss on the strength of value appreciation in the shares of Nestle Nigeria, Dangote Cement and PZ Cussons Nigeria.
As we have seen in recent correction that followed the January rally, the market has been struggling to find direction as foreign and institutional inflow slowed down ahead of actual full-year numbers from the December year-end companies.

As it is today, it is still unclear where the market could be at the close of the second month of the year, even as the NSE index over the past two weeks have been struggling to recover on pre-earnings season positioning after suffering huge losses resulting from the market correction.
What is however clear is that the current changed pattern in the market is posing a lot of challenges to investors, because the market had not experienced this pattern in the past decade. This is becoming worrisome to investors because of their conventional way of trading the market. The changing market at this point calls for new strategies, even as the combination of fundamentals and technical analysis will help trade profitably and protect capital.

Tuesday’s market volatility was strong as the NSE’s composite All-Share index dropped on top of its 50 day moving average after touch intraday low of 41,497.82 basis points, before retracing higher to 42,265.53bp. It was a session where highly capitalized stocks appreciated in value to close the day higher, after an earlier emotional selling.
Market technicals for the day were strong but mixed, with high buying pressure of 85% on huge volume traded, while selling position stood at 15%. Volume index was 0.57 with money flow index at 26.33 point.

The All-Share index gained 160.66 points to close at 42,148.40 basis points after opening at 41,987.74bp, representing a growth of 0.38% on high traded volume higher than the previous day’s. Similarly, market capitalisation for the day was up by N57.49bn to close at N15.13tr, after opening at N15.07tr which also represented 0.38% value gain in investors’ position.
The upturn in the share value of the medium and high cap stocks like Dangote Cement, UBA, FBNH, Dangote Flour, PZ and Guinness Nigeria impacted positively on the NSE’s Year-To-Date returns, which bounced to 10.12%, just as market capitalisation gain for the period dropped to N1.46tr, representing 11.05% YTD growth.

The benchmark index and all other sectorial indexes were mixed, as market breadth remained negative with decliners outnumbering advancers in the ratio of 37:18. Market activities in volume and value terms were up by 77.69% and 102.59% to 510.28m shares worth N4.63bn from previous day’s 287.18m units valued at N2.29bn.
Transaction volume for the day was considerably boosted by financial services and others stocks like FBNH, Diamond Bank, Jaiz Bank Transcorp and FCMB which witnessed increased trading to top the activity chart as most traded.

The best performing stocks for the day were PZ and Cadbury with 5.00% and 4.97% gain to close at N24.5 and N15.85 respectively, on expectation of full-year earnings, while Conoil and Unity Bank topped the worst performing stock with 9.69% and 9.20% respectively to close at N35.5 and N1.48, on serious profit booking.

TODAY’S OUTLOOK
The changing pattern in the market calls for changes in investors/traders strategies to play the earnings season, also expect short term positioning for Q4 earnings reports and volatility to continue as traders jump into the market on low price attraction ahead of dividend declaration. The relatively low interest rates in the money market and sell-off in the bond market will boost inflow into stock market as fund managers play earnings season for quick returns target high dividend yield stocks,
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.

Chart Summit! Chart Summit!! Chart Summit!!!

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.
Therefore, when you attend this Practical ABC Technical Analysis conference, you would learn how to trade such that you become one of the lucky 10%, who manage to consistently play the market profitable by themselves through our SIMPLE trading strategies and buy & sell signal setup.

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.
• Know what the smart money are doing
• Know what they are buying
• How you should buy what they are buying.

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.

This chart summit is designed specifically for those who:
• Jump out of profit position in fear of giving profits back?
• Indecision in pulling the trigger because you fear the prospects of a loss?
• Holding on to losing positions because you fear taking the loss?
• Trading often leads into unplanned trades because you fear leaving money on the table?
• Small trade size or investing small amount because you’ve just had a large loss?
• Increasing you position size to try and make up for past losses?

This practical workshop is for novice traders, investors, professionals and fund managers who want to overcome fear and improve their trading performance. The workshop is basically on technical analysis and practical charting teaching on evidence-based techniques that is working in today market. Also the power of focused trading and investing strategies that will help participants build mental skills to turn fear into profits and protect capital.

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 2018. Also come with your laptop.

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
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