MARKET UPDATE FOR FEBRUARY 12
Nigeria's
equity market started the week on a scary note on Monday with the composite
All-Share index plunged from the opening of the day's trading session in
continuation of last week's correction wave to record the highest loss position
in the last six trading days of down market.
It had
a 6-wave decline, and by midday rallied off on the strength of Dangote Cement's
gain to reduce losses, after touching intraday highs of 43,198.00 from lows of
42,080.55, which it rolled over, closing the day at 42,737.89. Trading for the
day reflected market players’ fear and panic selling which was as a result of
extended negative sentiments of corrections.
With
this in mind, as we said on Friday, the psychology always changes when stocks
go down. At this point many search for stories to fit the price, trying to
raise up a negative scenario unfolding for the market. Having been involved in
the market for more than 15 years, I have seen, within short and long term
cycles, thousands of turning points, trend changes, phases of a cycles, trends
and corrections of trends. Stock markets can, and do have technical
corrections. And this long pullback can come with reasons or none at all, other
than price.
For
clarity, let us look at the developed markets and economies, especially the U.S
where interest rate and inflation are on the rise ahead of the tax cut which
will naturally put pressure on the stock market despite the strong earnings.
But here, we have a recovering economy with strong projection of growth this
year, money market rate are on the southward movement now, consumer confidence
and corporate earnings are looking up.
The prospects of earnings coming in better than expected is high so
there is no need for all these panic here and there. Stay with the right stocks,
oil price and global markets are recovery. If you are hunting for the right
stocks to buy, join Investdata Buy and Buy Signal Setup to play the stock
market profitably especially with this earnings season.
At the
end of trading on Monday, the market broke down the psychological line of
43,000 that had formed recent support, now heading to the 50 DMA on improving buying
pressure of 59% and selling position of 41% of total transaction, with volume
index of 0.56 with money flow index of 35.18 point looking down.
Meanwhile, the All Share Index shed 390.03
points to close at 42,737.89 basis points after opening at 43,129.926,
representing a decline of 0.90% on a high traded volume that was lower than the
previous day's. Similarly, market capitalisation went down to close at N15.34tr
after opening at N15.48tr which also represented a 0.90% value loss in
investors’ portfolios worth.
The
downturn recorded was due to value depreciation by Nigerian Breweries, Dangote Sugar, Lafarge
Africa, Guaranty Trust Bank , Zenith Bank and UBN, all of which further dragged
the NSE’s Year-To-Date returns to 11.75%, just as market capitalisation gain
for the period reduced to N1.89tr, representing a 12.56% YTD growth.
The benchmark index and all other sectorial indexes closed
red, except for the NSE Industrial, which was green, while NSE AseM continues
to remain flat. Market breadth for the day remained negative as decliners outnumbered
advancers in the ratio of 36:13, to continue its six trading sessions of bear
transition.
Market activities in volume and value terms were
mixed. While volume dropped by 6.33% to 517.44m shares from previous day’s
552.39m units, value rose by 15.37% to N5.19bn from N4.49bn.
Transaction volume for the day was
considerably boosted by financial services stocks like Skye Bank, FBNH, Jaiz
Bank, UBA and FCMB, which witness increased trading to top the activity chart
as most traded.
Best performing stocks for the day were PZ and
Beta Glass with 5.83% and 4.97% gain to close at N25.40 and N68.70
respectively, on market forces and full year earnings expectations, while
Eterna and Equity Assurance led the decliners side, losing 9.67% and 8.33% to close at N5.42 and N0.44 each, on profit
booking and market forces.
TODAY OUTLOOK
The relatively low price attraction has
boosted positioning ahead earnings declaration, while supporting high possibility
of rebound today in the midst of volatility and portfolio reshuffling as buying
pressure is looking up again. But stay
with value stocks as today trading confirm direction.
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.
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
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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