Nigeria’s Equity Market Seeks Positive Economic, Company Data To Inspire Reversal
Market Update for June 28, 2018
The nation’s equity market on Thursday extended its bearish
sentiments that had lingered for three consecutive days, despite the inflow of
March year-end earnings reports and notification of closed period for half year
results. At this point, the market is seriously waiting for a positive economic
and company news to reverse the current trend as many players are trading
cautiously to minimize their losing positions.
Trading started with a little move to the downside, and
further pullback to retest the recent strong support level at 37,700.01 basis
points in the midday as highly capitalized stocks lost grounds to breakdown the
sideways ranging at 37,988bps to 37,962bps movement in the previous
sessions. Intraday volatility was high
as the benchmark index touched lows of 37,708.50 from highs of 37,977.25 and
rallied back up in the late afternoon to close session at 37,733.44. One of the
March year-end accounts- Redstar Express released its fully result (READ HERE),
offering 40 kobo dividend, which market is likely to react to between today and
next week, while Honeywell and Flour Mills are expected to hit the market
today.
Thursday’s market technicals were negative and mixed as
traded volume was high in the midst of negative market breadth and sentiments,
as revealed by Investdata’s Daily Sentiment Report showing a ‘sell’ pressure of
91% and ‘buy’ volume of 9% on a volume index of 1.24 of the day’s total
transactions.
Momentum behind the market performance were weak and low to
reflect on the money flow index at 22.92 points from the previous day’s 31.17
points. This is an indication that funds are still leaving the market at the
end of Thursday trading. This also revealed the wait and see attitude of
bargain hunters who slowed down in their positioning ahead of the Q2 earnings
season and implementation of new pension assets classification funding that
will support long-term stability.
Index and Market Cap
The benchmark index on Thursday shed 230.49bps, closing at
37,733.44bps, after opening at 37,963.93bps, representing a 0.61% decline on a
high volume that was higher than the previous day’s. Similarly, market
capitalisation lost N83.56bn to close N13.67tr from an opening value of
N13.75tr, representing 0.61% value loss.
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oscillating trend, join Investdata Buy & Sell Signal setup. We have a
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The downturn recorded was due to price depreciation in low,
medium and high cap stocks like Dangote Cement, Guaranty Trust Bank, Zenith
Bank, FBNH, Dangote Flour, Oando, Diamond Bank, Sterling Bank, Fidelity Bank,
and Wema Bank. These impacted negatively on the NSE’s Year-to-Date return,
pushing it further down to 1.33%, while in market capitalisation gain for the
period stood at N4.68bn, a 0.25% rise above the year’s opening value, on the
impact of new listings earlier in the year.
Bullish Sector Performance
Sectorial performance for the day were seemingly bullish, except for the NSE Banking
that was down while the NSE Insurance, Industrial and
Consumer goods were up as Law Union Insurance, Aiico, Lafarge Africa, Dangote
Sugar Honeywell and Flourmill appreciated in value. Market breadth was negative
as decliners outweigh advancers in the ratio of 20:16 to keep the bear market
running.
Market activities were up in volume and value by 11.49% and
39.99% respectively to 414.93 million shares worth N4.45 billion from the
previous day’s 372.24 million units valued at N3.18 billion. The day’s volume
was boosted by trading in financial services and consumer goods stocks like
Champion Brewery, Sterling Bank, Zenith Bank, Guaranty Trust Bank and FBNH that
witnessed increased trading to top the activity chart.
Honeywell and Law Union Insurance were the best performing
stocks for the day, that topped the advancers’ table, with 9.52% and 9.3%
respectively to close at N2.41 and N0.84 each, due to market sentiments and
expected full year results
On the flip side, Equity Assurance and Wema Bank were the
worst performing, losing 4.55% and 4.11% each to close at N0.21 and N0.70 on
market forces.
Market Outlook
We foresee a reduction in the losing streak as more
impressive March accounts earnings reports hit the market today being the last
trading day of the week. Volatility is likely to continue while investors and
fund managers reposition for end of the quarter to earn good fee and commission
as equities remain undervalued with higher yields. Investors should review
their position in line with their investment goals and take action as events as
it unfolds in the global and domestic environment.
However, we would like to reiterate our advice that
investors should go for equities with intrinsic value, especially during this
season were less earnings are released ahead of march full year earnings
release and Q2 interim dividend payment
are expected in the market arena very soon.
We advise investors to allow numbers guide their decisions
while repositioning in any stock, especially now that stock prices remain
volatile amidst improving company, economic and market fundamentals.
Save The Date: Investdata Stock Market Training Workshop
On Saturday,
July 28, 2018
Theme- Comprehensive Stock Trading & Investing Toolkit
for Rest of 2018
Sub Topics
Review of 2018H1 Market & Economic Performance: How Fiscal Reforms and Stimulus Will Support
the Market/Economy in 2018H2.
In this presentation, the speaker will discuss how
historically the Fiscal and Monetary policies have influenced Nigeria’s stock
market, the implications for the second half and it would drive equity prices
higher as recovery continues.
2018H2 Trading Checklist: How to Find Winning Stocks in
Nigeria’s Volatile Equity Market
After the prolonged correction, volatility is here to stay
for the rest of 2018. Is it time to start worrying about losses suffered so
far, a flattening yield curve or time to relax due to the outstanding earnings
season? Better yet, is there a way to harness increased volatility to your
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How To Generate Consistent Superior Equity Returns and
Income With Dividend Stocks
Here, the expert will discuss his approach to generating
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for when trading dividend stocks at a discount to historical valuations on
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Powerful Patterns and Effective Strategies for Trading
Shifts in Market Volatility
Recent and ongoing changes in market volatility present both
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Kindly call
or send yes to 08032055467, 08028164086 or 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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