Market Update for January 24th, 2019
It was another interesting and volatile session on the Nigerian Stock Exchange on Thursday as the composite index closed higher to extend the positive momentum for three consecutive trading days on a high buying pressure despite the relative low traded volume. As crude oil price at the end of the day jumped up in the international market as news that US might sanction Veneezuela as a result of geopolitical issues currently facing the country is expected to further impact our reserve and support the Fx market.
NSE All Share index opened the day trading on a gap up in the morning session, which stayed till midday but pulled back slightly in the early afternoon as profit taking in some of the banking and building materials stocks that had rallied, before retracing up in the last few minutes to finished the day higher at 30,989.60point after touching intraday low of 30,866.96. Some stocks closed well off their lows and finish the session higher as the NSE index tries to work through its recent resistance level.
With less than three weeks to the presidential election, the market continued to trend up especially driven by banking and blue chip stocks that have track records of dividend payment in the last four to five years and their yields are above the market average yield of 4.3% especially as earnings reporting season draw closer. As expectation of little drop in banks non-performing loans will boost their 2018 full year numbers. Even as CBN proposed stiff regulation of the banks’ capital formation before the end of second quarter 2019 to make the financial institutions stronger, further reduce the issue of NPL and others.
Market technicals for the session were positive and mixed as volume traded was lower than previous day’s in the midst of a positive breadth and strong demand for stocks as revealed by Investdata’s Daily Sentiment Report, showing buy volume of 100% and 0% sell position. Volume index for day’ was 0.76
Momentum behind the day’s market performance was up and strong, signaling entering of fund in the midst of low liquidity as reflected in the 50.94bps money flow index, from previous day’s 43.26bps, an indication that funds are entering some stocks.
Index and Market Cap
At the end of Thursday trading, benchmark index NSESAI gained 111.04bps, to close at 30,989.60bps after opening at 30,878.56bps, representing 0.36% growth; while market capitalization rose by N43.20 billion to close at N11.56 trillion from the opening value of N11.52 trillion, representing a 0.36% value gain.
Attention: Join Investdata buy and sell signal setup to get all our in-depths analysis on the picture and to get access to our carefully created watch list. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. The number of stocks on our watchlist has increased due to the prolonged market correction. Take advantage of this service to buy right and sell right.
The sustained upturn was driven by value gain recorded by low, medium and high cap stocks like, Dangote Cement, Guaranty Trust Bank, Access Bank, FBNH, UACN, FCMB, Wema Bank, Honeywell, Zenith Bank, Oando and Dangote Sugar, among others, reducing Year-to-Date loss to 1.40%, while the loss in market capitalization dropped further to N162.63 billion, from the year’s opening level N11.72 trillion representing a 1.4% decline.
Mixed Sectors Indices
All sectoral performance indices were largely bullish, except for the NSE Industrial goods that closed in the red as profit taker hit CCNN and other in the sector equities, while market breadth remained positive, with advancers outweighing decliners in the ratio of 27:20. Market activity were mixed as volume traded dropped by 42.97% to 268.26 million shares from the previous day 376.26 million units while value was up 9.83% to N3.15 billion from N2.97 billion. Transactions were driven by financial services stocks: Zenith Bank, UBA, FBNH, FCMB and Fidelity Bank
The best performing stocks for the day were Learn Africa and Ikeja Hotel after gaining 9.92% and 9.87% respectively, closing at N1.33 and N1.67 per share on market forces, while the flipside was led by Medview Airline and Resort Savings, losing 9.76% and 9.09% respectively to close at N1.85 and N0.20 each, on profit taking and market forces.
Market Outlook
The possibility of profit taking being the last trading day of the week is high in the midst of sustained volatility, as investors continue to reposition for 2019 dividend declaration season that will shape market performance after the elections. We advise cautious trading and investing why positioning in fundamentally sound equities.
The ongoing volatility will persist as investors and fund managers reposition their portfolios, with eyes fixed on 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.
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.
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
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
How to profit from Merger and Acquisition as a trader or Investor
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. 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.
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
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