Expect Portfolio Rebalancing On NGSE, As Investors Digest Emerging Q3 Reports
MARKET UPDATE FOR OCTOBER 17, 2018
Volatility on the Nigeria Stock Exchange (NSE) continued at midweek despite the onset of Q3 earnings reporting season with trading indicators oscillating to reverse previous day’s gains as the composite index closed lower on profit booking and selloffs in high cap stocks that pulled the market down.
Trading for the day started out with a quick move to the downside at the opening session, followed by an orderly sell-off into the afternoon when it touched intraday lows of 32,413.90 basis points from highs of 32,722.18bps to retest the recent secondary support level. However, it rallied back marginally in the last few minutes to finish the session at 32,437.35bps on a lower volume of transaction.
As it is now, the market index has gone back to rest on the short Moving Average of seven and 21 days after it had earlier broken out. A breakdown of 7DMA could confirm 15 months lower lows, but the expected company fundamentals that would be made visible through the quarterly earnings which have started rolling in could support an uptrend, if the numbers beat expectations. Already, companies that have released their Q3 numbers include UBA, Guaranty Trust Bank and Lafarge Africa. We note that the numbers have been mixed as performance of the financial service providers were boosted by trading and other incomes, rather than their traditional interest income, while Lafarge posted loss.
Market technicals at midweek were negative and mixed as volume traded was relatively low on a negative market breadth in the midst of high selling pressure as revealed by Investdata’s Daily Sentiment Report, indicating a ‘sell’ volume of 94% and buy position of 6%. The volume index for the day’s total transactions was 1.18.
Energy behind the day’s market performance was weak as reported numbers came mixed, reflecting in the money flow index at 40.55bps, from previous day’s 47.70bps, an indication that funds left some stocks as traders took profit in the face of low liquidity in the market.
Trading for the day started out with a quick move to the downside at the opening session, followed by an orderly sell-off into the afternoon when it touched intraday lows of 32,413.90 basis points from highs of 32,722.18bps to retest the recent secondary support level. However, it rallied back marginally in the last few minutes to finish the session at 32,437.35bps on a lower volume of transaction.
As it is now, the market index has gone back to rest on the short Moving Average of seven and 21 days after it had earlier broken out. A breakdown of 7DMA could confirm 15 months lower lows, but the expected company fundamentals that would be made visible through the quarterly earnings which have started rolling in could support an uptrend, if the numbers beat expectations. Already, companies that have released their Q3 numbers include UBA, Guaranty Trust Bank and Lafarge Africa. We note that the numbers have been mixed as performance of the financial service providers were boosted by trading and other incomes, rather than their traditional interest income, while Lafarge posted loss.
Market technicals at midweek were negative and mixed as volume traded was relatively low on a negative market breadth in the midst of high selling pressure as revealed by Investdata’s Daily Sentiment Report, indicating a ‘sell’ volume of 94% and buy position of 6%. The volume index for the day’s total transactions was 1.18.
Energy behind the day’s market performance was weak as reported numbers came mixed, reflecting in the money flow index at 40.55bps, from previous day’s 47.70bps, an indication that funds left some stocks as traders took profit in the face of low liquidity in the market.
Index and Market Cap
The benchmark NSE All Share Index shed 284.83bps, closing at 32,437.35bps, after opening at 32,722.18bps, representing a 0.87% decline, just as market capitalization shed N103.98bn, closing at N11.83tr, from N11.95tr, representing a 0.87%, value loss.
The benchmark NSE All Share Index shed 284.83bps, closing at 32,437.35bps, after opening at 32,722.18bps, representing a 0.87% decline, just as market capitalization shed N103.98bn, closing at N11.83tr, from N11.95tr, representing a 0.87%, value loss.
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The day’s downturn resulted from selloffs and profit taking in medium and high cap stocks like: Dangote Cement, Nigerian Breweries, UBA, Fidelity Bank, Access Bank, Zenith Bank, Forte Oil, FBNH and UACN. This impacted negatively on Year-to-Date negative returns, which increased to 15.18%, and market capitalization to N1.76tr, representing a 13.09% drop, from the opening value.
The day’s downturn resulted from selloffs and profit taking in medium and high cap stocks like: Dangote Cement, Nigerian Breweries, UBA, Fidelity Bank, Access Bank, Zenith Bank, Forte Oil, FBNH and UACN. This impacted negatively on Year-to-Date negative returns, which increased to 15.18%, and market capitalization to N1.76tr, representing a 13.09% drop, from the opening value.
Bearish Sector Performance
Midweek sectorial performance was largely bearish, except for the NSE Insurance that closed higher. Market breadth was negative as decliners offset advancers in the ratio of 22:11, to halt the previous up market.
Market transactions in volume and value were down by 63.63% and 31.12% respectively to 240.76m shares worth N3.66bn, from previous day’s 662.02m units, valued at N5.31bn. Activities were boosted by trading in financial services stocks like: Zenith Bank, UBA, Fidelity Bank, Sterling Bank and Guaranty Trust Bank
Sunu Assurance and Continental Reinsurance were the best performing stocks, chalking 10% and 9.63% respectively to close at N0.22 and N1.48 per share, on the impact of market forces and low price attraction. On the flip side, Pharma Decko and UACN lost 10% and 9.09% respectively, closing at N1.71 and N10 each on profit booking and market forces.
Midweek sectorial performance was largely bearish, except for the NSE Insurance that closed higher. Market breadth was negative as decliners offset advancers in the ratio of 22:11, to halt the previous up market.
Market transactions in volume and value were down by 63.63% and 31.12% respectively to 240.76m shares worth N3.66bn, from previous day’s 662.02m units, valued at N5.31bn. Activities were boosted by trading in financial services stocks like: Zenith Bank, UBA, Fidelity Bank, Sterling Bank and Guaranty Trust Bank
Sunu Assurance and Continental Reinsurance were the best performing stocks, chalking 10% and 9.63% respectively to close at N0.22 and N1.48 per share, on the impact of market forces and low price attraction. On the flip side, Pharma Decko and UACN lost 10% and 9.09% respectively, closing at N1.71 and N10 each on profit booking and market forces.
Market Outlook
Expect the oscillating trend to continue as more companies present their numbers in the coming days, amidst increased bargain hunting activities, while volatility and profit taking continue, if the numbers beat market and analysts forecast.
The much anticipated Q3 earnings reports would assist investors and fund managers rebalance their portfolios, while watching the political space and analysing the actual numbers that will give insights into expectations for Q3 GDP and full year company earnings power. These are likely to drive prices north, or south, while determining market direction before or after Presidential Election.
Investors should review their positions in line with investment goals, strength of the company numbers and act as events unfold in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value,
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst mixed company, economic and market fundamental.
Expect the oscillating trend to continue as more companies present their numbers in the coming days, amidst increased bargain hunting activities, while volatility and profit taking continue, if the numbers beat market and analysts forecast.
The much anticipated Q3 earnings reports would assist investors and fund managers rebalance their portfolios, while watching the political space and analysing the actual numbers that will give insights into expectations for Q3 GDP and full year company earnings power. These are likely to drive prices north, or south, while determining market direction before or after Presidential Election.
Investors should review their positions in line with investment goals, strength of the company numbers and act as events unfold in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value,
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst mixed company, economic and market fundamental.
Attention! Attention!! Attention!!!
Investdata Consulting Ltd presents The 8th edition of its TRADERS & INVESTORS SUCCESS SUMMIT tagged: INVEST 2019, designed to be the biggest yearly workshop for stock market traders &investors in Nigeria.
Investdata Consulting Ltd presents The 8th edition of its TRADERS & INVESTORS SUCCESS SUMMIT tagged: INVEST 2019, designed to be the biggest yearly workshop for stock market traders &investors in Nigeria.
Theme: Adopting The Billionaire’s Mentality In Stock Selection.
Venue: Ostra Hotel & Hall, Alausa, Opposite NNPC Gas-Plant Ikeja Lagos.
Date: Saturday, December 8, 2018.
Time: 10a.m.
Venue: Ostra Hotel & Hall, Alausa, Opposite NNPC Gas-Plant Ikeja Lagos.
Date: Saturday, December 8, 2018.
Time: 10a.m.
The huge decline in stocks from its January 2018 peak has not necessarily been due to the fundamentals of quoted companies, but investors flight for safety over uncertainties arising from next year’s general elections, participants will learn from experts/facilitators at the workshop, how and where to position for juiciest returns, depending on investment horizon.
Previous editions have attracted participants from diverse class of investors and traders, as well as several world-class professionals and experts as speakers and facilitators, including representatives of quoted companies and stockbroking firms. The event has helped market players to effectively time opportunities for higher returns in the New Year.
In today’s equity market, there is wisdom in being able to identify ‘buy’ opportunities very early and sell for maximum returns, while minimizing loss in any market situation.Understanding the dynamics of the stock market during any cycle is the very key to successful trading and investing. For this to happen,we must arm ourselves with knowing the essential driving forces behind the market as they move up and down.
At the INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT (TISS) you will discover some seldom considered aspects of investing and trading that can help you bag more big winners, while ratcheting down the number of losers in 2019 and beyond.
This summit will provide answers to these six crucial questions AND others
Previous editions have attracted participants from diverse class of investors and traders, as well as several world-class professionals and experts as speakers and facilitators, including representatives of quoted companies and stockbroking firms. The event has helped market players to effectively time opportunities for higher returns in the New Year.
In today’s equity market, there is wisdom in being able to identify ‘buy’ opportunities very early and sell for maximum returns, while minimizing loss in any market situation.Understanding the dynamics of the stock market during any cycle is the very key to successful trading and investing. For this to happen,we must arm ourselves with knowing the essential driving forces behind the market as they move up and down.
At the INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT (TISS) you will discover some seldom considered aspects of investing and trading that can help you bag more big winners, while ratcheting down the number of losers in 2019 and beyond.
This summit will provide answers to these six crucial questions AND others
• What exactly is it we are trying to do as traders & investors?
• What occurs every post-election year that we wish to take advantage of?
• What are the prevailing market moves and who are the dominant players?
• What is ‘smart money’ doing?
• Where should we look to enter the market or exit?
• Is it the same every day, season and year?
• What occurs every post-election year that we wish to take advantage of?
• What are the prevailing market moves and who are the dominant players?
• What is ‘smart money’ doing?
• Where should we look to enter the market or exit?
• Is it the same every day, season and year?
When you answer these important (and frequently overlooked) questions correctly, your trading/investing skills will launch into new levels.
For Registration kindly send YES or REG to 08028164085, 08032055467, and 08111811223 now for details.
For Registration kindly send YES or REG to 08028164085, 08032055467, and 08111811223 now for details.
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/2018/10/expect-portfolio-rebalancing-on-ngse-as-investors-digest-emerging-q3-reports/
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/2018/10/expect-portfolio-rebalancing-on-ngse-as-investors-digest-emerging-q3-reports/
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