Volatility May Continue As Investors Position Short-Term For Earnings Season, Low Price Attraction

Volatility May Continue As Investors Position Short-Term For Earnings Season, Low Price Attraction


Post Views: 689 Market Update for February 14 The nation’s equity market on Wednesday had a decent volume traded to follow-through the session’s volat...

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Market Update for February 14

The nation’s equity market on Wednesday had a decent volume traded to follow-through the session’s volatility, closing green after seven trading days of pullbacks. The composite index was very resiliently, despite being down pre-market, as it opened slightly lower before rallying back by the mid-morning into the afternoon, touching intraday highs of 42,207.86 from a low of 41,657.35, pulling back in the closing minutes of the day to consolidate at 42,171.80, 36.06 points.
The sustainability of this rebound is yet uncertain, until Thursday’s movement follow through with strong buying pressure as more players take advantage of the seven-day correction to buy low ahead of Q4 numbers.
The January inflation rate of 15.13% as reported by the National Bureau of Statistics (NBS) further confirmed Nigeria’s improving economic fundamentals, for now, while all eyes are fixed on the February 27, 2018 release date for the 2017Q4 and full-year GDP data, which is expected to give the true position of thing for the period.
However, the positive macro-economic indices released so far this year reflect a good start for the economy so long as it can be sustained and even improved upon to propel the expected growth in the year as expressed recently by the Federal Government (READ).
Nigeria’s external reserves hit $41.469bn as of February 13, 2018, according to data on the Central Bank of Nigeria (CBN) website, despite the oil price oscillation in the international market.
Global stock markets closed up on Wednesday, irrespective of the unstable oil price movement amidst positive and strong Q4 GDP reports from Japan and Europe, while U.S inflation numbers came slightly hotter than expected.
Back home, it was a sigh of relief for technicals on Wednesday, as market breadth turned positive on a higher volume of trades, with buying pressure at 93% and selling position of 7%, volume index was 0.56 with money flow index at 35.47 point.
Meanwhile, the Nigerian Stock Exchange (NSE) benchmark Index gained 463.65 points to close at 42,171.80 basis points after opening at 41,708.15, representing a growth of 1.11% on above average traded volume that was higher than the previous day’s. Similarly, market capitalisation recovered N166.39bn to close at N15.13tr, after opening at N14.97tr which also represented 1.11% value gain in investors’ portfolios after more than one week of losses.
The upturn recorded was resulted from price appreciation in low, medium and high cap stocks like Nigerian Breweries, UBA, UBN, FBNH, Nestle Nigeria, Dangote Flour, Beta Glass, Flourmills, Access Bank and FCMB. These impacted positively on the NSE’s Year-To-Date returns, which bounced back to 10.27%, just as market capitalisation gain for the period rose to N1.52tr, representing an 11.20% YTD growth.
All Share index and all other sectorial indexes closed higher, except for NSE Oil/Gas that was lower by 0.29% while NSE AseM continues to remain unchanged. Market breadth for the day was positive as advancers outnumbered decliners in the ratio of 25:19, to halt the seven trading sessions of down market.
Market activities in volume and value terms were up by 10.67% and 28.11% respectively to 520.74m shares worth N4.72bn from previous day’s 470.52m units valued at N3.68bn.
Transaction volume for the day was considerably boosted by financial services stocks like Skye Bank, FCMB, UBA, Diamond Bank and Guaranty Trust Bank which witness increased trading to top the activity chart as most traded.
Best performing stock for the day were Skye Bank and FCMB with 10.00% and 9.80% gain to close at N1.10 and N2.80 respectively, purely on market sentiments and expectation of full-year earnings while First Aluminum and Lasaco Assurance were the worst performers, losing 9.09% and 5.88% to close at N0.40 and N0.32 each, on market forces.


Expect short term positioning for Q4 earnings reports and volatility to continue as traders jump back into the market on low price attraction ahead of dividend declaration. The relatively low market determined interest rate in the money market and sell-off in the bond market will boost inflow into stock market as fund managers play earnings season for quick returns in high dividend paying stocks, as inflation figure continue to decline to 15.13% from December 15.39%.
However, we would like to reiterate that investors should go for equities with intrinsic value, especially during this season that dividend payment is approaching.
We advise investors to allow numbers guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases know the cycles in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this seasonality changes as the year winds down, sign up to INVESTDATA BUY AND SELL signal setup by calling 08028164085.
Get your home study pack on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which includes 15 stocks picks for 2018 are available now to guide your positioning as trading for the year just started.
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

Chart Summit! Chart Summit!! Chart Summit!!!

Investdata Consulting Ltd is organizing another workshop where experts would simplify market jargons with the aim of increasing understanding and increasing the pool of retail investors.
Theme: ABC of Technical Analysis for the Novices and Advance Traders
Have you traded the stock market before and failed? It is a known fact that about 90% of those who trade without knowledge and understanding of the dynamics will end up losing 90% of their capital most of the time. You don’t have to be one of them.
Therefore, when you attend this Practical ABC Technical Analysis conference, you would learn how to trade such that you become one of the lucky 10%, who manage to consistently play the market profitable by themselves through our SIMPLE trading strategies and buy & sell signal setup.
Consistency is the key to equity trading and investing successfully.
At investdata we have been teaching investors simple and proven strategies which when implemented makes you a successful trader and investor in any market situation, especially when it comes to equipping you well enough to know how to protect their portfolios and profit from market corrections in a recovering economy.
We have also, over time, focused attention on attuning the mindset of investors and traders to managing risk, while eliminating emotions when trading so as to avoid irrational investment decisions.
Attend the Practical Conference on Technical Analysis for the Novices and Advance Traders. We would be taking participants through:
• Understanding the momentum behind current equity movement and when to exit using SIMPLE Technical Indicators and Tools to avoid losing capital and profit.
• Our team of experts and time-tested resource persons will show you how you too can successfully and confidently trade and invest in stocks profitably on your own from your phone, laptop and/or desktop computer.
• Know what the smart money are doing
• Know what they are buying
• How you should buy what they are buying.

The workshop is scheduled as follows:
DATE: February 24. 2018
TIME: 10am – 3.00pm
VENUE: Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.

This chart summit is designed specifically for those who:
• Jump out of profit position in fear of giving profits back?
• Indecision in pulling the trigger because you fear the prospects of a loss?
• Holding on to losing positions because you fear taking the loss?
• Trading often leads into unplanned trades because you fear leaving money on the table?
• Small trade size or investing small amount because you’ve just had a large loss?
• Increasing you position size to try and make up for past losses?
This practical workshop is for novice traders, investors, professionals and fund managers who want to overcome fear and improve their trading performance. The workshop is basically on technical analysis and practical charting teaching on evidence-based techniques that is working in today market. Also the power of focused trading and investing strategies that will help participants build mental skills to turn fear into profits and protect capital.
Registration is ongoing
There will be sales of stock trading and investing materials at the end of the conference, Fundamental and Technical Analysis materials, including home study packs you can play and viewed on your phone, laptop and television set. All at 20% discount for attending. You need to prepare yourself and profit from the market and the recovery economy to truly achieve your financial independence and freedom in 2018. Also come with your laptop.
For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223.

Ambrose Omordion
CRO|Investdata Consulting Ltd

Tel: 08028164085, 08032055467