Invest Data Consulting Ltd

MARKET UPDATE FOR DECEMBER 14, 2017 It was a difficult trading session on the Nigeria Stock Exchange on Thursday, as market indicators declined further on a highly volatile mode to consolidate the losing streak that almost wiped out all of the gains recorded month-to-date, due to massive profit taking in blue chip stocks that almost triggered panic among retail investors. Considering what the market had done in terms of performance year-to-date especially, profit taking is not unexpected also given that it is an integral aspect of stock trading and investing. Trading activities for the day started out with a little pop to the downside, reaching intraday lows of 37.840.14, breaking down the psychological line of 38,000 and strong support level of 38,241.45 from the day’s high of 38,539.91 on below recently traded market average volume.  The index had actually formed bear wedge, despite reducing the losing streak to close the day at 37,933.70 which was also lower than ...

NSE INDEX SET TO CLOSE POSITIVE IN OCTOBER AMIDST STRONG Q3 NUMBERS Nigeria’s equity market had a very narrow up on Monday to start the week on mixed despite the increasing number of companies that released their quarterly earnings to the market during the trading session, with their numbers revealing mixed performance, as some companies posted positively surprising earnings that offered insights into the transformation activities going within these companies. These, more or less, also reflected the fact of the larger economy coming farther out of the woods, just as they confirm that the economic fundamentals being portrayed are not just on paper, but real, particularly the Nigeria’s exit from recession with its Q2 GDP growth of 0.55% after five consecutive quarters of being negative. Nonetheless, the slow reaction to these numbers is evidence that liquidity in the market is low even at the end month that coincides with the official end of earnings reporting season. ...

NSE INDICATORS REMAIN RED AMIDST CAUTION, UNCERTAINTY AMONG INVESTORS Nigeria’s stock market suffered another loss on Monday to kick start the last full week of October and the peak of the third quarter earnings reporting season, which has so far failed to fuel stock prices despite financials that beat expectations which may not be divorced from the fact that many market players lack the funds needed to trade the season. This reflected in the decline in participation by domestic players who hold 34.94% stake in the market, whereas foreign investors’ stake has risen in September to 65.06%. We all know foreign investors are selective and play in few stocks, besides the fact that they do not just increase their position or sell down until proper analysis of the latest numbers are carried out. This is why we believe value investors and traders in strong and fundamentally sound companies should not rush for the exit door in panic, but adjust their waiting period and keep ...