Invest Data Consulting Ltd

Market Update for February 21 Trading on the floor of the Nigerian Stock Exchange on Wednesday was volatile once more, closing flat, following through the previous session, just as it proof very resilient to remain above the 42,000 level, despite the mixed sentiments during the trading session. The NSE composite index was up pre-market, but opened higher, sustaining the momentum within the mid-morning to midday at 42,241.04 which was the day’s high, before rallying to resistance, pulled back and consolidated. It broke out in the morning and ran up into the last couple of hours when it consolidated, but held, and closed in the green column on improved volume traded but negative market breadth. The NSE All Share index was up 9.92 at 42,158.32, which was 96.34 points off its intraday high, even as the market struggled for direction with the changing pattern as observed so far. Investors and traders should therefore combine fundamentals of the market/companies and index/price ...

Photo Caption: From left, Godstime Iwenekhai, Head, Listing Regulation, The Nigerian Stock Exchange (NSE); Joseph Umolu, Company Secretary/Director, Legal Services; Oscar Onyema, Chief Executive Officer, NSE; John Coumantaros, Chairman, Flour Mills of Nigeria Plc; Paul Gbededo, Group Managing Director, Flour Mills of Nigeria Plc; Jacques Vauthier, Chief Finance Officer, Flour Mills of Nigeria Plc and Tony Ibeziako, Ag. Head, Listings Business Division, NSE during the Facts Behind the Issue presentation at the Exchange on Thursday, February 1, 2018. The management of Flour Mills of Nigeria Plc, on Thursday in Lagos assured the nation’s investment community that its ongoing N39.9bn rights issue by way of 1.476bn ordinary shares of 50 kobo each at N27 each, is part of efforts to reduce cost of servicing its commercial loans and retaining shareholder value. Specifically, the rights issue, which opened on January 15 and would close on February 21, 2018, is on the basis nine new shar...

THOUGH PROFIT TAKERS LURK, INFLOW OF FUNDS POWER EQUITY PRICES HIGHER IN SANTA CLAUS RALLY The benchmark index of the Nigerian Stock Exchange over the past week was bullish with the consumer goods and banking indexes outperforming the general market, due to increased demand for equities of these sectors as a result of their impressive numbers, confidence in their management teams and adherence to good corporate governance that continues to attract inflows from domestic institutional and foreign investors alike. There is also attention focused on stocks that are likely to increase dividend payout in 2018 for the 2017 financial year which is gradually but surely winding down. The inflow of funds to the equities market is not unexpected, given the fact that rates in the money market are on the downward swing in recent times, given also the intra-market moves seen in the last eight days with the gradual drop in interest rates on money market instruments. This is despite the fact...

INDICATORS FLAT, AMIDST REBALANCING  INDUCED VOLATILITY, HOPE FOR BETTER ECONOMIC DATA Nigeria’s stock market on Thursday had a mixed session to continue its volatility as it struggled to breakout the recent resistance level where it formed a double top as mentioned in our previous day’s review, but on intraday movement. It mildly broke out the level by touching a high of 36,912.54 before slightly closing below the level on a high volume as big cap stocks like Nigerian Breweries, Zenith Bank, Dangote Cement, as well as Unilever, PZ and International Brewery shed value amidst profit taking by traders from three trading sessions of bull-run to narrowly close lower on a positive market technicals.  The index started out the day with a move down just after the opening bells, and then rebounded between midday and mid afternoon session, only to rollover in the last minutes as the blue chips listed above were negative. The index was negative by about 10.05 points. It w...

CAUTION AMONG INVESTORS STILL, AS MORE Q3 COME BELONG EXPECTATION The nation’s stock market struggled on Wednesday, searching for direction as Q3 earnings numbers continued to trickle in to the market, even as scorecards so far released have come with mixed performance, while the ones that even came with seemingly impressive numbers are yet to receive positive market acknowledgement in terms of upward price movements. Guaranty Trust Bank Plc, Nigeria’s biggest banking stock (by market capitalization) released its numbers for the nine-month ended September 30, 2017, which analysts agree were below market expectation also at the midweek. This reality is expected to reflect on its price performance as the market open this morning.   The earnings report came with marginal decline in Topline, while bottom line moved slightly up as the bank needed to make far less provisioning for loan loss during the period . The trading session opened with the market index slidin...

INVESTORS, TRADERS RETURN AHEAD Q3, YEAR-END POSITIONING, ECONOMIC DATA INFLOW The nation’s stock market had a positive, even if volatile Monday to start the week in consolidation of the three trading sessions of up market as earnings speculation trading which had commenced earlier entered top gear with hope of more numbers hitting the bourse in the coming days. The first banking sector earnings report was made available by the directors of United Bank for Africa Plc during the session, giving an insight into the kind of third quarter reports that traders and investors should expect from its peers, especially the first tier stocks. The day opened slightly up before having back and forth movement by the mid-morning trading as it searched for intraday direction until midday when highly capitalized stocks appreciated in value amidst continued positioning ahead of their nine-month numbers. As a result of this, there was an increased demand for banking, consumer goods, agribu...

VOLATILITY MAY PERSIST, AS INVESTORS, SPECULATORS POSITION FOR Q3 EARNINGS SEASON ·          TRADERS RETURN AHEAD OF SEPTEMBER INFLATION, Q3 GDP DATA Trading on the Nigerian Stock Exchange (NSE) started out the week Monday on a positive note to consolidate the four trading session of up market that supports another round of rally despite the day’s mixed technicals as stocks make new 2017 highs on high volume with investors and traders positioning for Q3 numbers. The NSE’s benchmark index had an interesting but volatile Monday. It began slightly down in the early hours of the trading session, but had a really strong rally from mid-morning to midday and by the afternoon where it hit intraday high of 36,888.73 and low of 36,320.29 points. This was the support level for the day after breaking the resistant level of 36,640.34 to close high for the day. The market uptrend momentum continued on the strength of price appreciation in the me...