Invest Data Consulting Ltd

Nigeria’s stock market on Tuesday witnessed increased demand for stocks ahead of Q1 numbers resulted from the prevailing low valuations that had attracted foreign and local investors to trade huge volume in banking stocks. They were lured, as Investdata has continuously noted in the past, by the high margin of safety based on the intrinsic value of listed equities on the exchange, at a time Money flow index dropped to 32.79 points from previous day’s 44.78 points. This is an indication that funds are leaving the market. It was a very volatile session, but huge rally that started with a gap down as trading opened, a situation that lingered till midday before the market reversed on the back of heavy volume. There was stronger positive sentiment that pushed intraday highs to 40,862.01 by the afternoon from lows of 40,409.90, before closing at 40,788.68 in the last five minutes of trading. This was also helped by money market rate and bond yield that remain south ahead of the expec...

Market Update for Week Ended February 2 and Outlook for Feb 5-9 Nigeria’s equity market over the past week closed higher on impressive Q3 numbers from companies in the consumer goods sector, besides the 57.3 points January Purchasing Managers’ Index (PMI) report, making 10 months of positive data. Last week’s gain halted the previous week’s down market, the first in 2018, resulting from a massive profit taking and panic selling. The increased buying pressure and demand for stocks in the period under review, which ushered in the second month of the year is likely to continue in the uptrend direction, if history repeats itself as full year earnings season earnestly kicks off with early filers this month. The Q3 numbers for March accounts released last week has given insights into what should be expected from companies in that sector with December year end fiscal account. International stock markets around the world were lower over the past week, especially the U.S markets that ...

AGAIN, IT’S CAUTION, AS INVESTORS, TRADERS AWAIT MORE DATA, BREAKDOWN OF 2018 BUDGET Nigeria’s equity market on Wednesday had a very volatile session, but continued its uptrend despite the seemingly weak market breadth, closing higher on the strength of last minutes appreciation in the share price of Dangote Cement (which alone accounts for about one-third of total market capitalization), following which it traded above the psychological line of 37,000 level on a low volume that made technicals for the day weak and mixed.  During, the trading session price performance of banking stocks were mixed as the sector’s index, as well as the NSE Insurance closed lower. The fact that the Tuesday’s presentation of a N8.6tr Appropriation Bill for 2018 had little or no impact on the market, could mean that investors are indifferent to the fiscal spending plan, given, like Investdata noted in its update of Tuesday, that the effect of the 2016 budget and the current one (2017) has n...

The nation’s equity market had a mixed session on Tuesday to continue its volatility, reversing previous down session as investors reposition on the strength of earnings power, news and expectations continue to attract attention to interim dividends declared recently. Those also under the radar of investors and traders include low price stocks, undervalued equities with strong earnings that are trending up, as well as those with strong potentials as the economy and market fundamentals inspire hope for a brighter tomorrow. The trading session opened with marginal gain in the morning, oscillating in the mid-morning to afternoon, touching intraday high of 37,063.04 to breakout the 37,000 resistance level from the day low of 36,907.07 after which it finally closed the day higher. The underlying technicals were good and positive, particularly on the NSE All-Share index, NSE Banking and NSE Industrial good, which were trading above their 20-Day moving average, MACD was positive, mon...

This week is the last in the third quarter of 2017 and would offer a deeper insight into what should be expected from companies in different sector of the economy at year-end.   Therefore, take a look at the sectorial indexes chart below to know where to buy against the quarter end and indeed the last quarter of the year, considering market performance and economic recovery so far. Knowing that the market has gone ahead of the economy because it came out of a three-year recession before the economy due to positive sentiment that followed full-year 2016 and first half of 2017 earnings season that beat market estimates and expectations.   This is in addition to the apex bank’s intervention in the foreign exchange market that attracted more inflow and liquidity into the market.    This week, we are looking at the weekly index action in major sectors of the market, given that the recently released positive economic data did not impact the market as...

Slow Down In NSE Indicators’ Decline, As Investors Position Ahead Of Q3, Full Year Numbers Trading volatility on the floor of the Nigerian Stock Exchange continued on Tuesday as the market closed lower for the third consecutive day as cautious trading persisted with volumes traded which tracks behavioral pattern or sentiments of traders and investors lower than market average, especially in recent time. We have seen this pattern multiple times over the last few weeks. Notice that within the past three trading sessions however, the market’s losing magnitude have been dropping with volume transacted gradually looking up as we expect increase in volume and  volatility in the remaining days of the month, going into the last quarter of the year. Also, the market is anxiously awaiting the return of speculators by this month end ahead of Q3 earnings season in October and as well as the outcome of the Monetary Policy Committee (MPC) meeting that is scheduled for September 25 and ...