Can Investors Sustain Renewed Buying Interest Ahead Of Nigeria’s Polls, Earning Season?
Market Update for January 15
The Nigerian stock market had on Tuesday sustained its fourth back-to-back gain on a high traded volume that was impacted by bullish performance of sectors, led by insurance and industrial goods which recorded 3.38% and 3.11% gains respectively.
The Nigerian stock market had on Tuesday sustained its fourth back-to-back gain on a high traded volume that was impacted by bullish performance of sectors, led by insurance and industrial goods which recorded 3.38% and 3.11% gains respectively.
This was irrespective of the seeming low liquidity in the market as smart money exited a situation that has affected volume and returns since last year.
The NSE benchmark All Share index started out with a move to the upside at the opening in the morning. This was sustained till afternoon, as it touched intraday high of 30,172.40 basis points, from a low of 29,964.79bps before pulling back in the last few minutes, closing the session at 30,137.53bps, due to some profit taking.
The renewed buying interest in the market as the election draws closer is just technical as mentioned in our update for Monday, amidst low price attraction ahead of the full-year earnings reporting season. This recent rebound is however still weak until there is a breakout of the first resistance level of 30.576.9bps, which will confirm the bull rally in a bearish market.
Any pullback as a result of profit booking or panic selling at this point before the February 16 Presidential and National Assembly elections will usher in the real rebound that will last one month, no matter who emerges winner of the presidential polls.
The nation’s economic front now and post-elections will remain very dicey despite the seeming recovery of oil prices and promising outlook for emerging markets that is likely to trickle down to frontier markets.
The nation’s economic front now and post-elections will remain very dicey despite the seeming recovery of oil prices and promising outlook for emerging markets that is likely to trickle down to frontier markets.
Market technicals for Tuesday were positive, as traded volume was higher than previous day’s in the midst of a positive breadth and strong sentiment as revealed by Investdata’s Daily Sentiment Report, showing buy volume of 83% and 17% sell position.
Volume index for day’ was 0.92.
The energy behind the day’s market performance was weak, but inched up, as reflected in the 28.99bps money flow index, from previous day’s 27.76bps, an indication that funds entered the market and some stocks, which supported demand for equity despite the seeming low liquidity.
The energy behind the day’s market performance was weak, but inched up, as reflected in the 28.99bps money flow index, from previous day’s 27.76bps, an indication that funds entered the market and some stocks, which supported demand for equity despite the seeming low liquidity.
Index and Market Cap
At the end of the trading session, the NSE benchmark index rose by 172.74bps, closingat 30,137.53bps, from 29,964,79bps, representing 0.58% growth. Market capitalization rose by N64.42bn, closing at N11.24tr from the opening value of N11.17tr, representing a 0.58% value gain.
At the end of the trading session, the NSE benchmark index rose by 172.74bps, closingat 30,137.53bps, from 29,964,79bps, representing 0.58% growth. Market capitalization rose by N64.42bn, closing at N11.24tr from the opening value of N11.17tr, representing a 0.58% value gain.
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The sustained upturn was due to rekindled interest in blue chip stocks that had suffered losses, like CCNN, Zenith Bank, Stanbic IBTC, Oando, Access Bank, Dangote Sugar and NEM Insurance, thereby reducing Year-to-Date loss to 4.11%. Market capitalization negative position also dropped to N482.16bn, from the year’s opening level N11.72tr representing a 4.11% decline.
Bullish Sectors Indices
All sectoral performance indices were in green, except for the NSE AseM that closed flat. Market breadth was positive, as advancers outnumbered decliners in the ratio of 21:13. Market activity in volume and value were up by 119.24% and 192.43% to 300.03m shares worth N3.25bn from the previous day’s 132.41m units valued at N1.09bn. Transaction volume was driven by financial services stocks: Diamond Bank, Guaranty Trust Bank, UBA, FBNH and Zenith Bank.
All sectoral performance indices were in green, except for the NSE AseM that closed flat. Market breadth was positive, as advancers outnumbered decliners in the ratio of 21:13. Market activity in volume and value were up by 119.24% and 192.43% to 300.03m shares worth N3.25bn from the previous day’s 132.41m units valued at N1.09bn. Transaction volume was driven by financial services stocks: Diamond Bank, Guaranty Trust Bank, UBA, FBNH and Zenith Bank.
CCNN and Ikeja Hotel were the best performing stocks for the day, after gaining 10% and 9.35% respectively to close at N22.00 and N1.52 each on expected Q4 earnings and market forces. On the flipside, Newrest ASL and Veritas Capital led the decliners’ table, losing 9.49% and 9.09% respectively to close at N7.25 and N0.20 each, on profit taking and market forces.
Market Outlook
We expect the ongoing trend and volatility to continue amidst repositioning for 2018 full year earnings season to shape market performance ahead of the various factors listed above. We advise cautious trading and investing in the days ahead.
We expect the ongoing trend and volatility to continue amidst repositioning for 2018 full year earnings season to shape market performance ahead of the various factors listed above. We advise cautious trading and investing in the days ahead.
The ongoing volatility will persist as Q3 numbers assist investors and fund managers reposition their portfolios, while watching the political space and ahead of full year company earnings position and post-election market dynamics. These are likely to drive prices north, or south, while determining market direction before or after the Presidential Election.
Investors should review their positions in line with their investment goals, strength of the company numbers and act as events unfold in the global and domestic environment.
Investors should review their positions in line with their 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 low in the midst of mixed company numbers, weak economic and market fundamentals.
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain low in the midst of mixed company numbers, weak economic and market fundamentals.
PORT HARCOURT 2019
Investdata will be in Port Harcourt, Rivers State where we would reveal investment opportunities available for smart investors on the Nigerian Stock Exchange this year.
Venue: Emerald Hotel, 193, Aba Road Rumuola, Port Harcourt, Rivers State,
Date: Saturday 26, January 2019,
Time: 10.am.
Registration Begins at 9.am prompt
Admission is free
Investdata will be in Port Harcourt, Rivers State where we would reveal investment opportunities available for smart investors on the Nigerian Stock Exchange this year.
Venue: Emerald Hotel, 193, Aba Road Rumuola, Port Harcourt, Rivers State,
Date: Saturday 26, January 2019,
Time: 10.am.
Registration Begins at 9.am prompt
Admission is free
Comprehensive Home study packs of INVEST 2019 TRADERS & INVESTORS SUMMIT held on December 8, 2018, containing the 10 golden stocks for 2019 will however be on sale for N20,000 each.
The FIRST 20 persons to register at the venue will get 20% discount.
This seminar will cover the following:
Review of 2018 market performance
Outlook for 2019 and Post elections expectations
Dividend & Bonus expectation in 2019
Sector by Sector Analysis and projections
The FIRST 20 persons to register at the venue will get 20% discount.
This seminar will cover the following:
Review of 2018 market performance
Outlook for 2019 and Post elections expectations
Dividend & Bonus expectation in 2019
Sector by Sector Analysis and projections
RE: INVEST 2019
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the Just Concluded and life transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT Home study pack (USB) that you can play on your phone, Laptop and Television set. The event, which held on Saturday, December 8, 2018, was yet another successful, insightful and educative outing that not only offered direction as to where investors should look for a profitable 2019, but industries, sectors and companies to seek worthwhile returns.
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the Just Concluded and life transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT Home study pack (USB) that you can play on your phone, Laptop and Television set. The event, which held on Saturday, December 8, 2018, was yet another successful, insightful and educative outing that not only offered direction as to where investors should look for a profitable 2019, but industries, sectors and companies to seek worthwhile returns.
What stocks should you buy? Grab the pack for the 10 Golden Stocks with possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment.
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Don’t sit on the Fence call or text Stock to 08028164085, 08032055467, and 08111811223 now.
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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