Invest Data Consulting Ltd

MORE VOLATILITY AHEAD, AMIDST PORTFOLIO REBALANCING, AS INVESTORS DIGEST EARNINGS, ECONOMIC DATA Trading activities on the Nigeria Stock Exchange over the past week was up as the earnings reporting season officially came to a close with many companies rushing to release their scorecards, many of which beat market expectations thereby triggering demand for such stocks as traders and investors reacted by rebalancing their portfolios ahead of the year end. There is the factor of a minor rebalancing of the MSCI (Morgan Stanley Capital Index) Frontier index to be released on November 13, besides other economic data, even as positive macro-economic indices continue to pure in, supporting to support the economic recovery narrative. Some of such economic data include the recently released October Purchasing Managers Index released by the Central Bank of Nigeria (CBN), which stood at 55 points from 55.3 points in September, while that by the private sector (NOIPoll) were 64.8 points f...

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 ...

VOLATILITY RAGES AS SMART INVESTORS ENHANCE POSITIONS IN SELECTED STOCKS The nation’s stock market had a generally mixed session on Tuesday. The day started out on a front and back movement of the index before selloff ensued as a result of profit booking by short-term traders that halted four trading sessions of bull-run. This profit taking is normal and should be expected in a recovering market especially when traders had recorded capital gains.   Volatility mode in the market continued ahead of more Q3 corporate earnings being released to the market in trickles, just many have announced their closed period and released board meeting notifications. The market recorded intraday high of 36,846.77 which is becoming the new resistance level, while the day’s low was 36,747.68 points before closing the day marginally lower on a high volume. The new support level for the day was 36,747.68 as market breadth close flat.  Market momentum for the day turned weak wi...

VOLATILITY PERSISTS AMIDST PORTFOLIO REPOSITIONING, SPECULATION, AHEAD OF Q3 EARNINGS SEASON Nigeria’s stock market indices had an interesting but volatile session on Thursday. The day opened with the benchmark index in the red, moving to strong support level by midday, after which it had a strong rally between midday and the afternoon session as high cap stocks appreciated in value, following which the day closed significantly positive. There was a breakout of strong resistant level of 35,680 as intraday rally hit high of 35,778.98, from a low of 35,155.08 which is around the new month’s support level. The current breakout of the consolidated sideways narrow range resulted from portfolio repositioning and speculations ahead of expectations that the earnings season that had just kicked off with light reporting from few companies would rev into steam. Already, more companies have been announcing their Q3 closed period in preparation of making the actual numbers available ...

AS VOLATILITY CONTINUES, NIGERIA’S BOURSE TRENDS SIDE-WAYS, AMIDST WAIT FOR MPC MEETING OUTCOME The Nigeria stock market had a difficult session as it started the last week of September, Monday, red. The index gapped lower on the continued wait-and-see attitude of investors and traders for the outcome of the two-day Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting today, as medium and high cap stocks suffered price declines. The market attempted to bounce back to resistance, but the early rally attempt was stalled and rolled over sharply, with the index really pushing back hard into midday when it attempted to reduce the loss position. The market had broken out the downtrend line but on sideways movement, awaiting positive news and end of the quarter/month rebalancing of fund managers’ trading accounts to push prices up ahead of earnings season trading by speculators. As we have earlier said, smart money is using the ongoing correction in the mark...

VOLATILITY LINGERS, AMID PROFIT TAKING, PORTFOLIO REALIGNMENT ON Q2 NUMBERS, ECONOMIC DATA Nigeria’s stock market got a hit on Tuesday to continue its volatility with all the indices gapping down sharply as investorsintensified profit booking and late reaction to the global political tensions with North Korea withdrawing its threat to drop missile inUS territory. The market was up slightly in the first hour, but came down sharply by midday and afternoon, looking likean intra-day bottom was in view. An important resistance could not be taken out, while the intraday pullback was held near the trading session lows to close the day lower on high volume. The intraday high and low of the index were 37,954.43 and 37,007.13 respectively.  Going by these realities, INVESTDATA Research believes investors and traders should play the market with knowledge to protect funds and maximize profit, even as we note that doing this entails good money management when trading and investing...