Mixed Trend Ahead, On Earnings, Dividend News, Quarter-end Window Dressing

Market Update for March 29

The recovery moves on the Nigerian Stock Exchange continued Monday, as the momentum that comes with the earnings reporting season in terms of liquidity, volume and trading pattern picked up during the peak season with more companies releasing their numbers ahead of the deadline for submission, not forgetting the quarter-end window dressing by market players.  These impacted positively on the NSE’s composite All-Share index, which closed higher, reversing the previous session loss position on a high traded volume and positive market breadth.

This retracement will help to reduce the loss position recorded during the recent market correction while investors position for dividend and improved earnings expectations, ahead of Q1 numbers in the new month. Value and growth stocks continued to look up as the trading environment and pattern change to reflect the market and national economic realities, while sentiments and consumption flow the way of liquidity. 

Institutional investors, fund managers and others are likely to reposition their portfolios on the strength of the earnings performances released so far, and amid expectations for the 2021 Q1 corporate earnings. With these we expect them to take early positions for the new financial year, knowing that these numbers will influence price performance in the short or long-run, despite the usual up and down movement of the market at any time. At the same time also, profit taking from the new uptrend is inevitable for traders.

It is noteworthy that beside the pale economic recovery from recession, other indices are still mixed. An example is Headline Inflation still at the risk of climbing higher, especially if petrol pump price is again increased as being proposed, with its attendant effects on transportation costs, even while insecurity across the country remains unchecked. Thankfully, however, PMI is gradually looking up as oil price continues to oscillate at the international market, following which we advise investors and traders to play cautiously around the market place. This they can do by allowing their investment objective, entry and exit strategies to guide them, so as to avoid being trapped in any trade.

Meanwhile, Monday’s trading opened on the downside and oscillated in the mid-morning to late afternoon on buying interests in high cap and blue chip stocks that pushed the composite index to an intraday high of 39,493.39 basis points, breaking out the 39,412.25bps resistance level on high volume, from its lows of 39,207.48bps, before closing above it opening point at 39,493.37bps.

Index and Market Caps

At the end of Monday’s trading session, the benchmark NSEASI gained 277.17bps, closing at 39,493.39bps after opening at 39,216.20bps, representing a 0.71% growth. Similarly, market capitalization rose by N145.03bn, closing at N20.66tr, from previous day’s N20.52tr, which also represented 0.71% value gain.

Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just reduced to 8 STOCKS TO WATCH THAT ARE BUILDING NEW BULLISH BASE in our watchlist. These stocks are with double potentials to rally considering their current and oscillating mood of the market value.

To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current oscillating market in the midst of earnings season, portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.

Monday’s upturn is indication of increasing buying trend in the market, especially in stocks like MTNN, Guaranty Trust Bank, Zenith Bank, Lafarge Africa, Ecobank Transnational Incorporation, Custodian Investment, UBA, and Dangote Sugar, among others. This impacted positively on Year-To-Date loss, which reduced to 1.93%, just as market capitalization loss dropped to N393.62bn, or 1.87% below its opening value for the year.

Mixed Sector Indices

Performance indexes across the sectors were mixed, as the NSE Banking, Insurance and Consumer Goods closed 2.06%, 0.56% and 0.19% higher respectively, while the NSE Oil/Gas led the decliners after losing   0.50%, followed by Industrial goods with 0.0.7% lower.

Market breadth remained positive from the previous session, as advancers outnumbered decliners in the ratio of 28:12; just as transactions in volume and value were up after investors exchanged 522.17m shares worth N10.65bn.

The best performing stocks of the session were Custodian Investment and Courtvile Business Solution gaining 10% each, while closing at N6.66 and N0.22 per share respectively on the 45 kobo dividend proposed and market forces. On the flip side, Cornerstone Insurance and Oando lost 9.84% and 6.06% respectively, closing at N0.53 and N3.10 per share, on profit taking and market forces.

Market Outlook

We expect the mixed trend to continue as more corporate earnings hit the market in the face of rising dividend and quarter end window dressing by fund managers, as well as portfolio reshuffling ahead of Q1 earnings reporting season in April. Also, the pullbacks offer bargain hunters and income investors another opportunity to reposition in high dividend yields and undervalued stocks, while more companies release their full-year and quarterly numbers to support recovery. This is based on the fact that the rising fixed income yields may not be enough to scare all investors away from the equity market.

Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the rising oil prices that have so far supported the economy and equity market, despite the seeming improvement in the fixed income yield which had remained at negative real rate of return due to the subsisting high inflation.

However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by 2020 full numbers and expected 2021 Q1 earnings reports, until the next MPC meeting in May.

The NSE’s index action and indicators are heading in the same direction   on a low traded volume and positive buying sentiments in the midst of rising yield in bond and TB.

Master Class On Comprehensive Cash flow For Personal Wealth Creation

Sub-Topics

1.Catch The Right Market Top With Tested Strategies To Preserve Wealth In A Quiet Market – By Engr. Ekwueme Michael Anyadibe, M.D, X-Front Trader Ltd

2. How To Invest & Trade For Short, Medium, And Long Term In A Mix Market, Alhaji  KurfiGarba MD/CEO Apt Securities & Funds Ltd

3. Comprehensive Trading, Using The 4 Phases Of The Stock Market To Create Consistent Cashflow In Bear and Bull Cycle, Combining Fundamental And Technical Tools. Mr Ambrose Omordion, Chief Research Officer, Investdata Consulting Ltd

To effectively take advantage of changing trading patterns and the oscillating stock market, active traders and investors must stay ahead of the new market structure and conversant with strategies used by institutional investors or smart money.

With traders like you in mind, we have designed this Quarterly Comprehensive Master Class For Personal cashflow and Wealth Creation at this special workshop that will feature time-tested traders and CEOs of some of the largest stockbroking firms by various parameters on the NSE. They will share knowledge accumulated over several decades of time and money.

In this EIGHT-HOUR master class, you will learn strategies and techniques on how to create cash flow and capture winning trades in any market cycle.

Specifically, the session is aimed at sharing knowledge on:

1.    How to eliminate the guesswork from your trade, using investdataFundaTech Toolbox to determine trade opportunity.

2.    What strategies work best for the current market situation 

3.    Refining your ‘buy’ and ‘sell’ strategies with precision

4.    Identifying key sectors capable of supporting the market and creating cash flow. 

5.    How to time the market in any cycle

6.    Actionable trade ideas and stock chart analysis

7.    10 trading ideas and hot stocks to buy in Q2 and beyond

8. Special Telegram group for immediate action taking, updates and direction

Date:  April 3, 2021

Time:  9am prompt

Venue:  ZOOM.

Fee:  N 50,000

However, with less than 2 days to Q2 2021, you need to start planning your cash-flow through trading in second quarter and beyond.  Don’t miss this opportunity as we countdown to April 3, 2021 for the Comprehensive Master Class for cashflow.

During this practical session our team of experts will reveal practical trade ideas and opportunities in Q2 2021 to consolidate your gains and maximize returns. That is what you can apply or implement immediately and start tracking the result by yourself and Investdata research team on your behalf. Want to be among the smart investors and traders in Q2 send Yes to: the phone numbers below now.

Also, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the new year.

Meanwhile, the home study packs on INVEST 2021 New Opportunities & New Paths To Profits Summit materials and 10 Golden Stocks for 2021, Strategies and How to invest profitably in this Changing Market Dynamics/ Recession, Mastering Earnings Season For Profitable Investing and Trading in any market situation/ cycles, Life Beyond COVID 19 Investment Opportunities In The Stock Market are now available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08179547605, 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/mixed-trend-ahead-on-earnings-dividend-news-quarter-end-window-dressing/