Invest Data Consulting Ltd

PROFIT TAKING, VOLATILITY MAY CONTINUE AMIDST PANIC SELLING, REPOSITIONING FOR EARNINGS SEASON, Equities’ trading for the second week of 2018 on the Nigerian Stock Exchange (NSE) closed higher with prices of industrial goods stocks galloping more sharply than their peers in banking, consumers and petroleum marketing sectors. The traded volume within the period was huge as there has been no such record of 5.02bn shares transactions in the second week of a new year in more than a decade, attributable to more investors swooping in on the NSE which ranked second best performing bourse among emerging market. Add this to the fact that most Nigerian equities remain undervalued, despite the huge price gains of 2017, helped at a time the economy is in a strong recovery mode with the upbeat macro-economic indices that support strong market fundamentals, amidst the improved quarterly earnings reports of most companies, attracted huge inflow of funds into the stock market particularly fr...

This sectorial index is a component of NSE benchmark Index that measure performance of consumer goods equities with mixed financial year end of March, June, September and December. The index action shows that the sector is in strong recovery mode from a three-year pullback as a result of the unimpressive numbers, political tension in 2014 pre-election, insecurity in Nigeria’s troubled North-East region as a result of the Boko Haram insurgency which significantly affected sales, uncertainty over the 2015 general election, unstable exchange rate regime, made worse by the unclear policy direction of the Federal Government that came to power on May 29, 2015, beginning with the delay in constituting a cabinet until after six months. It was only after the nation had sank deep in recession for a full year in 2016 that the government launched its Economic Recovery and Growth Plan (ERGP) in February last year. One of the hardest hit was the consumer goods sector, owing to the shortage...

Trading on the Nigerian Stock Exchange had a positive finishing on Tuesday as equity prices continued to gallop amidst strong volatility to breakout the psychological line of 40,000 basis points in preparation to hit a new four-year highs on a huge transaction volume. This consolidated the fifth session of 2018 in a row of gains that kicked off the new year’s trading sessions. The technicals for the day remained strong and positive as institutional money index keeps looking up. The day started out with the composite index inching up slightly in the morning, then oscillating in the mid-morning before rallying up to test intra-day high of 40,485.54, from lows of 39,688.04. The breakout of 40,000 mark was successful to close the day at 40,362.97. Tuesday’s equity buying pressure stood at 85%, while selling volume was 15% with volume index of 1.43 points of the day total transaction. As earnings season kicks off this week with Vitafoam releasing it full-year scorecard for 2017 ...

It was indeed a superlative first week of 2018 on the Nigerian Stock Exchange (NSE) terms of performance, with the composite All-Share index chalking 1.78% to change three-year history of down market in the first trading week of a New Year as revealed by market data, that revealed down market of 13.03%, 5.63% and 2.32% in the opening week of 2015, 2016 and 2017 respectively. This could be attributed to change in the holding structure of the market with international players and domestic institutional investors controlling the lion’s share of market activities, leaving a very small fraction of the pie to the retail investors. This factor may have paled the usual January effect into seaming insignificance. We may have to wait until the end of the month to see the effect or not of the said January effect. Besides the continued volatility, the Nigerian equity market continues to bask under euphoria of positive factors such as the improving investor confidence and expectations of be...

The Nigerian Stock Exchange (NSE) is consolidating its superlative gains of 2017 as revealed by closing figures of its benchmark indicators at the end of the first four trading sessions of the week between January 2 and 5, 2018 In the New Year, we expect recovery, growth and expansion of the Nigerian economy to continue through this year and influence the nation’s stock market to new highs, as the macro environment would likely support and boost the ongoing market recovery, despite the meaningful risks associated in stocks investing. However, the increasing volatility in the market is likely to persist, but market players should target value and enhance it through a dynamic investing and trading approach, especially as 2018 is a pre-election year in Nigeria with its budget being the highest in the history of Nigeria as a nation. There are opportunities and uncertainties to navigate along the way. One of such is the possibility of increased liquidity as politicians and incumbent...