Investors React To 2018 Corporate Earnings On NGSE, Amid Positioning For Q1

Market Update for April 1
Basic indicators of the Nigerian Stock Exchange (NSE), on Monday, had a tough and mixed session, following which gains of the two preceding sessions were wiped out, with the NSE All-Share index closing lower on a huge traded volume, amidst negative sentiments.
The market reacted to the flurry of corporate earnings released over the weekend, many of which came with mixed performance with profitability and investment ratios of most coming below popular expectations. This triggered another round of selling pressure, which dampened market sentiments, , as traders and portfolios managers repositioned for the second quarter ahead of 2019 Q1 scorecards. The resumed selloff reflected the low confidence and liquidity in the equity market.

Trading for the day opened on a downside, a situation that was sustained throughout the session, as the benchmark index hit its recent new support level after breaking down the tested support lines. The index has formed a double bottom that signals reversal, depending however on market forces at Tuesday’s trading session. The NSE index finished the session on a negative note after touching intraday low of 30,531.69bps from high of 31,041.42bps it’s opened the trading session.

Monday’s market technicals were negative and mixed, with huge transaction volume, which was higher than previous day’s in the midst of negative breadth and strong selloff as revealed by Investdata’s Daily Sentiment Report, showing sell volume of 100% and total daily transaction volume index at 4.72.
Energy behind the day’s market performance were weak and poor, as shown by money flow index at 10.75 points, from previous day’s 14.07bps. This indicates that funds are still leaving the market even as the rate cut is expected to attract funds to the market.

Index and Market Cap
NSE All-Share Index at the end of Monday’s trading lost a significant 509.73 basis points to close at 30,531.69bps, from 31,041.42bps, representing a 1.64% decline. Market capitalization lost N149.69bn, closing at N11.52tr from its opening value of N11.67 trillion, representing 1.28% value loss. This difference in percentage terms was due to listing of additional 6.62bn ordinary shares in favour of Access Bank, following the its merger with Diamond Bank.

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 during this earnings season and beyond.

Downturn during the session was driven by selloffs in medium and high cap stocks like Nestle, Nigerian Breweries, Guaranty Trust Bank, CCNN, UACN, FBNH,Oando, Dangote Flour and Wema Bank. This impacted on Year-to-Date loss, extending it to 2.86%, while market capitalization dropped by N139.21, or 1.12%, from the year’s opening level of N11.72tr.

Bearish Sector Indices
All sectoral performance indexes were in red, led by the NSE Consumer Goods, which suffered the highest loss of 4.92%, after Dangote Flour Mills reported a huge loss before and after tax in its audited financial released on Monday, which means shareholders will not be paid dividend. It was followed by NSE Industrial with 3%, while market breadth was negative as decliners outweighed advancers in the ratio of 18:12.

Market activities in volume and value were however up by 546.06% and 16.65% respectively as 1.72bn shares worth N3.68bn changed hands, compared to previous day’s 266.86m units valued at N3.15bn. Volume was driven by financial services and ICT stocks like: Wema Bank, UBA, Chams, Fidelity Bank and ETI.

McNichols and Berger Paints were the best performing stocks for the day, gaining 10% and 9.76% respectively to close at N0.77 and N9.05 per share on good dividend payouts. On the other hand, Union Diagnostic and Beta Glass lost 10% and 9.94% respectively, closing at N0.27 and N64.85 each, as the market reacted to their 2018 numbers.

Market Outlook
We expect a mixed market performance as players reposition for Q1, which will help give direction into how this year could turn out. We note also that there are more company’s notifying the NSE of their closed period for first quarter 2019 earnings reports.
Investors look to government’s policy direction as the market faces low liquidity problems in the ongoing earnings reporting season, vis-à-vis market and economic fundamentals.

Given the drop in the prices of major blue chips in recent times, creating entry opportunities, we expect speculative trading to shape the market direction going forward.
The volatility witnessed last week, was driven by traders and investors repositioning ahead of dividend declaration by major listed companies.
The ongoing volatility will continued as investors and fund managers rebalance their portfolios, with eyes fixed on political space and ongoing full year company earnings position and post-election market dynamics. 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.
Meanwhile, we greatly appreciate participants in the Abuja Invest 2019 Post-Election Bulls & Bears held on Saturday, March 23.

The investment education train moves to Port Harcourt, Rivers State, with Chart Summit 2019!
Attend the Practical Conference on Technical Analysis Application on stock market for novices and Advance Traders, where we would take participants through:
• Understanding the momentum behind current equity movements and when to exit using SIMPLE Technical Indicators and Tools to avoid losing capital and profit.
• Understanding the dynamics of Technical Analysis and its application in stock, currency and bond markets.
• Our team of experts and time-tested resource persons will show you how you too can successfully and confidently trade and invest in stocks profitably on your own, from your phone, laptop and/or Personal Computer.
• Know what Smart Money is doing
• Know what they are buying or selling, and
• How you can buy what they are buying.

The workshop is scheduled as follows:
FEE: N10, 000
DATE: April 13. 2019
TIME: 10am – 4.00pm
VENUE:Emerald Hotel, 193, Aba Road Rumuola, Port Harcourt, Rivers State.

This Summit is designed specifically for those who:
• Jump off profit position out of fear
• Suffer indecision in pulling the trigger for fear of sustaining a loss
• Holding on to losing positionsfor fear of realizing a potential loss
• Trading often leads into unplanned trades for fear leaving money on the table
• Do small trade size or invest small amounts because you’ve just suffered huge loss, or
• Plan to increase your position size to make up for past losses

This practical workshop is for novice traders, investors, professionals and fund managers who want to overcome fear and improve their trading performance. The workshop is basically on practical charting on evidence-based techniques that is working in today market, just as the power of focused trading and investing strategiesto help participants build mental skills and turn fear into profits, besides protecting capital.
Registration is ongoing

Prepare yourself to profit from the market, as the economy recovers in the months ahead, while truly achieving financial independence and freedom in 2019 and beyond. There will be Home Study Packs you can play and view on your phone, laptop and television sets that will teach, among others: Stock trading/investing, Fundamental/Technical Analysis on sale at the venue. All at 20% discount for participants.
Also, Come With Your Laptop for the practical sessions.

TAKE ACTION
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 trade in 2019, insight into 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, 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
https://investdata.com.ng/2019/04/investors-react-to-2018-corporate-earnings-on-ngse-amid-positioning-for-q1/