Low Price Attraction May Boost Positioning In Nigeria’s Dividend Stocks, As Earnings Season Beckons

Market Update for February 13

One fitting word to describe Tuesday’s trading on the Nigerian Stock Exchange (NSE) is: catastrophic. The market took a very deep and unexpected plunge after the seemingly mild bloodbath experienced in the previous seven trading sessions of decline to reflect a peak in panic sell-offs, even at a time the global markets that set off the panic wave are on the rebound route by resisting further correction, while the price of oil, Nigeria’s mainstay, continues to oscillate.

The continued wave-6 decline was worsened on Tuesday as highly capitalized stocks shed weight to record their biggest losses since the correction started on February 5, 2018, just as the continued decline in traded volume over the last three trading sessions after given a sign of recovery attempt last Friday. This hope was dashed on Monday and Tuesday when the bearish charge came strong. The market further broke down the 42,000 mark on low volume.

Tuesday’s free fall notwithstanding, it had from its opening stayed low till close with intraday highs at 42,735.32 from lows of 41,614.10.
The market technicals for the day was weak as the negative breadth widen on a low volume and high selling pressure of 92% and buying position of 8%, volume index was 0.50 with institutional money flow index at 34.47 point to reflect the hesitation among foreign and portfolio players as they wait to see the actual numbers that have been factored in prices, pushing prices to their new 52-week highs.
Meanwhile, the decline in prices is making these stocks attractive for new positioning.

The All-Share Index lost significant ground by shedding 1029.74 points in one day to close at 41,708.15 basis points after opening at 42,737.89, representing a decline of 2.41% on a low traded volume that was lower than the previous day’s. Similarly, market capitalisation had all of N369.54bn (about $1bn) sliced off close at N14.97tr, after opening at N15.34tr which also represented 2.41% value depreciation in position.

The seven-day downturn has been due to heavy losses suffered by Dangote Cement, Nigerian Breweries, Nestle Nigeria, Dangote Flour, Guinness, International Brewery, UBA, FBNH, UACN, PZ, Stanbic IBTC, Double 11, Forte Oil and UBN. These impacted negatively on the NSE’s Year-To-Date returns to further drop to 9.06%, just as market capitalisation gain for the period reduced to N1.36 trillion, representing a 9.98% YTD growth.

The composite index and all other sectorial indexes closed in deep red, while NSE AseM continues to remain flat. Market breadth for the day remained negative as decliners outpaced advancers in the ratio of 40:15, to continue its seven trading sessions of bear run.
Market activities in volume and value terms were down by 9.07% and 28.97% respectively to 470.52 million shares worth N3.68 billion from previous day’s 502.87 million units valued N5.19bn.

Transaction volume for the day was considerably boosted by financial services stocks like Diamond Bank, FCMB, Fidelity Bank, UBA and FBNH which witness increased trading to top the activity chart as most traded.
At the end of the day, AG Leventis and Berger Paints topped the advancers table with 7.02% and 5.00% gain to close at N0.61 and N9.45 respectively, purely on market forces and full year earnings expectations, while Prestige Assurance and Skye Bank led the decliners log, losing 7.14% and 6.54% to close at N0.52 and N1.00 each, on profit booking.

TODAY OUTLOOK

Expect slowdown of panic selling as low price attraction will boost positioning in dividend paying stocks ahead earnings declaration, given insight of upturn is imminent if volume keep reducing on a downtrend movement of the market. The expected January inflation figure today will also revealed the state of pricing in the first month of 2018.
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
http://investdata.com.ng/2018/02/low-price-attraction-may-boost-positioning-nigerias-dividend-stocks-earnings-season-beckons/