Reversal Imminent As Investors Seek Signs Of Market Bottom On NGSE

Market Update for July 4, 2018

It looks like the bear dominance in the last three trading sessions is slowing down on improved positive sentiments attributed to low price attraction as bargain hunters take advantage of the current situation in the market to strategically position for the expected Q2 numbers, economic data and implementation of the budget. This is considering the approval of N13.45bn and N11.72bn by the Federal Executive Council for exploration and construction of roads to the new Niger bridge ahead in the eastern part of Nigeria.

The midweek trading session opened on a gap downside in the morning which lasted till midday before retracing marginally up by afternoon as buying sentiment for high and medium cap stocks looked up after touching intraday lows of 37,445.76 basis points from highs of 37,611.68bps. It finally closed the day at 37,499.07 points to remain under the 20-Day Moving Average and bearish channel.

The market at this point looks good to position for medium and long term, however, many investors are waiting to identify the bottom before jumping in, which may trigger reversal any moment from now.

Market technicals at the end of midweek’s trading were negative and mixed as  traded volume was high in the midst of negative market breadth and  improved sentiments, as revealed  by Investdata’s Daily Sentiment Report showing a ‘sell’ pressure of 68% and ‘buy’ volume of 32% on a volume index of 1.13 of the day’s total transactions.

Despite the seemingly improved sentiment, energy behind the market’s performance weaked further, as reflected on the money flow index at 16.14 points from the previous day’s 22.26 points, an indication that funds are still leaving the market.

Index and Market Cap                                     

The All Share index at end of midweek trading  shed  105.05bps, closing at 37,499.07bps, after opening at 37,66.23bps, representing a 0.28% decline on a high volume that was higher than the previous day’s. Similarly, market capitalisation dropped by N38.42bn to close N13.58tr from an opening value of N13.62tr representing 0.28% value loss.

If you are hunting for the right stocks to buy on this oscillating trend, join Investdata Buy & Sell Signal setup. We have a watchlist of stocks for different investment purposes that you may position in, as the market sets for another phrase of recovery. To register and become a member send Yes or stocks to the phones numbers below. Our watch list has increased due to the prolonged correction before now, take advantage of this service to buy right and sell right.

The downturn recorded on Wednesday was due to losses suffered across board, like Forte Oil, Unilever, UBN, NB, Guinness, Lafarge Africaa, Access Bank and Dangote Sugar. These impacted negatively on the NSE’s Year-to-Date return, pushing it further down to 1.95%, while market capitalisation loss for the period stood at N25.41 billion, a 0.19% rise below the year’s opening value, on the impact of selloffs. .

Bearish Sector Performance

Sectorial performance remained bearish for the day, except for the NSE Banking that was slightly up, while the NSE Insurance, Oil/Gas, Industrial and Consumer goods were down. Market breadth was negative as decliners outnumbered advancers in the ratio of 24:21 to continue its three day down market.

Market activities were up in volume and value by 96.49% and 18.08% respectively at 505.6mshares worth N3.13bn, from the previous day’s 257.39m units valued at N2.65bn. The day’s volume was boosted by trading in financial services, industrial, transport stocks like Multiverse, Nacho, Guaranty Trust Bank, Access Bank and FCMB that witnessed increased trading to top the activity chart.

The best performing stocks for the day were May & Baker and FCMB   that topped the advancers’ table, with 9.76% and 9.62% respectively to close at N2.25and N2.28 each, due to market force and low-price attraction.

On the flip side, Mcnihols and Forte Oll were the worst performing, losing 10.00% each to close at N0.81 and N26.10 on market forces

Market Outlook

We expect the sell-offs to slowdown as lower prices attracts new positioning ,while volatility continue ahead of Q2 earnings season since 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 advantage? Our facilitator, a stock market expert will show you how to handle increased volatility in 2018. He’ll offer insights into forces impacting today’s market. He will share, using real-time examples, his ultimate checklist to finding winning stocks propelled by volatility. This simple strategy allows you to quickly evaluate stocks and to better time entry and exit points, while understanding market forces moving your portfolio

How To Generate Consistent Superior Equity Returns and Income With Dividend Stocks

Here, the expert will discuss his approach to generating equity income by investing in undervalued dividend stocks, what he looks out for when trading dividend stocks at a discount to historical valuations on multiples of price to sales, earnings, cash flow, book value, and enterprise value to EBITDA. In addition, he requires companies to have positive operating cash flow over the past 12 months, with dividends covered comfortably by cash flow.

Powerful Patterns and Effective Strategies for Trading Shifts in Market Volatility

Recent and ongoing changes in market volatility present both risks and opportunities for discerning traders. Learn some of the most effective strategies for taking advantage of the high-probability trading opportunities available in equities, while minimizing risks associated with stock market trading. The six most powerful patterns in the market to trade, how to know which patterns and strategies to specialize in for consistent results and the critical difference between oscillating and momentum patterns.

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
https://investdata.com.ng/2018/07/reversal-imminent-investors-seek-signs-market-bottom-ngse/#more