Invest Data Consulting Ltd

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...

Investdata Consulting Limited will on December 9, 2017 host another edition of its one-day annual Traders and Investors’ Summit to look once again into the investment opportunities presented by the coming year, looking at the current economic and market fundamentals as a basis for forecasting what the coming year holds for investors and investments. At the last edition, held on December 3, 2016, the attention of participants were called to 10 “RECESSION-PROOF” Stocks and likely honey-pots in this ongoing year at a time the market was still in red and investors where edgy as to what 2017 holds. Those who attended the summit would remember the following 10 suggested stocks: ·          United Capital Plc ·          United Bank for Africa Plc ·          Dangote Sugar Plc ·          Zenith Bank Plc · ...

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. ...

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...

What should investors seek from the third quarter earnings reports that have started hitting the market? How should they position for robust returns? Let me share a few here. Go back the two previous quarters to review the performance pattern within the current financial year of any company in question. In other words, what has the earnings trend been like in the first and second quarters? Please note that companies with consistent incremental performances are most suitable for investment purposes as the probability of a better last quarter performances are higher in those. You might choose to dwell on the reasons for the inconsistent performance patterns, including the fact that some companies do have cyclical sales trends for which reason the quarterly performances are bound to vary sharply. Note such stocks and act appropriately. Add up the three quarter earnings that you now have to see what the average performances would be. Or better still, find the average of the last...