Short-term Profit Taking On NGSE, As Investors Crunch Q3 Numbers

Short-term Profit Taking On NGSE, As Investors Crunch Q3 Numbers

SHARE:

Post Views: 154 Market Update For October 24, 2018 Volatile trading on the Nigerian Stock Exchange continued at the midweek, amidst profit booking, as...

Expected March Accounts May Spike Buying Interest As Volatility May Linger
Corporate Actions And AGM Dates As At Friday, Nov. 2, 2018
Nigeria’s GDP Records Slower 1.95% 2018Q1 Growth At N16.1tr, Says NBS

Market Update For October 24, 2018

Volatile trading on the Nigerian Stock Exchange continued at the midweek, amidst profit booking, as the benchmark All-Share Index closed negative after four consecutive sessions of bull-run. This was as traders cashed out their profit from the recent rally, driven by Q3 numbers released so far.
Investors are taking advantage of the corporate earnings to reposition and reshuffle their portfolios as they study and interpret the numbers ahead of full-year expectations and changing market dynamics in the midst of increasing political risks and uncertainties ahead of the 2019 general elections which is less than four months away.
The All Share index opened Wednesday on a little upside in the morning before pulling back sharply by mid-morning and into the afternoon, touching intraday lows of 32,403.60 basis points, from a high of 33,201.34bps. It therefore broke down the 33,000 mark and the shortest Moving Average of seven and 21, after touching the 45DMA. The downward retracement was largely driven by selloffs in bellwether stock- Dangote Cement, as well as Nestle, which remains the highest priced on the NSE, and Unilever to close the session lower at 32,403.60bps on a high traded volume.
During the session, more earnings were made available, including those of Caverton Offshore (READ) and Sterling Bank (READ), showing surprising performance with their top and bottom lines rising above the international standard of measuring good score-cards. Those of Cadbury and Ecobank Transnational Incorporated (READ) were mixed, with turnover/gross earnings flat, while profit level growth was significant.
Market technicals were negative and mixed as volume traded was high amidst positive market breadth and strong selling pressure as revealed by Investdata’s Daily Sentiment Report, showing a selloff position of 100% and buy volume of 0%. The volume index for the day’s total transactions was 1.75.
The force behind the day’s market performance was weak, due to massive profit taking by traders. The money flow index for the session dropped to 61.01bps, from previous day’s 65.62bps, an indication that funds are entering some stocks and leaving others ahead of end of the month and earnings season.

Index and Market Cap
The composite NSE index shed significant 787.86bps to close at 32,403.60bps, after opening at 33,191.45bps, representing a huge 2.37% decline. Similarly, market capitalization lost N287.62bn to close at N11.83tr, from an opening value of N12.12tr, representing a 2.37% value loss, losing almost all of its Month-to-Date gains.

Attention: Investdata buy and sell signal setup is our premium advisory service. And we do like to invite you to join today, as we are beginning what I think will be a tremendous run for value stocks into the end of the year. It’s a great deal for the money. Just subscribe, and get immediate access to a WATCHLIST of stocks. When you join, you’ll get immediate access to every recommendation–past, present and future–in the Signal Setup. And we will deliver the bigger picture and update every week, directly to you via email. We look forward to welcoming you on-board and navigating together as we continue to invest alongside the smart money, institutional players and discerning investors. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. The number of stocks on our watchlist has increased due to the prolonged market correction. Take advantage of this service to buy right and sell right.
The downturn was impacted by profit booking in low, medium and high cap stocks like: Nestle, Dangote Cement, Unilever, Flour Mills, Oando, FBNH and Wema Bank. This impacted heavily on the Year-to-Date negative returns, which increased to 15.27%, and market capitalization to N1.81tr, representing 13.43% drop, from the opening value.

Mixed Sectors Indices
Sectorial performance indexes were largely bearish, except for the NSE Insurance and banking that closed higher. Market breadth was positive as advancers’ outnumbered advancers in the ratio of 17:16, thereby cuttings short the bull transition.
Market activities were mixed as volume rose 105.71% to 360.97m shares, from Tuesday’s 185.19m units, while value fell to N2.33bn, from previous day’s N2.35bn, with transactions boosted by trading in financial services and conglomerates stocks like: FCMB, Access Bank, Transcorp, Regence Insurance and Sterling Bank.
Diamond Bank and Law Union were the best performing stocks, as their prices climbed 9.45% and 7.69% up respectively, closing at N1.39 and N0.56 per share, on expected earningsreports and low price attractions. On the flip side, Mcnichols and Trans-nationwide lost 10% and 8.45% respectively to close at N0.45 and N0.65 each on market forces and profit booking.

Market Outlook
Expect a mixed performance in midst of short term profit taking as more companies present their numbers and increased bargain hunting activities, while volatility to continue, if the numbers beat market and analysts forecast.
The ongoing Q3 earnings reports would assist investors and fund managers rebalance their portfolios, while watching the political space and analysing the actual numbers that will give insights into expectations for Q3 GDP and full year company earnings power. These are likely to drive prices north, or south, while determining market direction before or after Presidential Election.
Investors should review their positions in line with investment goals, strength of the company numbers and act as events unfold in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value,
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst mixed company, economic and market fundamental.

Attention! Attention!! Attention!!!
Investdata Consulting Ltd presents The 8th edition of its TRADERS & INVESTORS SUCCESS SUMMIT tagged: INVEST 2019, designed to be the biggest yearly workshop for stock market traders &investors in Nigeria.

Theme: Adopting The Billionaire’s Mentality In Stock Selection.
Venue: Ostra Hotel & Hall, Alausa, Opposite NNPC Gas-Plant Ikeja Lagos.
Date: Saturday, December 8, 2018.
Time: 10a.m.

The huge decline in stocks from its January 2018 peak has not necessarily been due to the fundamentals of quoted companies, but investors flight for safety over uncertainties arising from next year’s general elections, participants will learn from experts/facilitators at the workshop, how and where to position for juiciest returns, depending on investment horizon.
Previous editions have attracted participants from diverse class of investors and traders, as well as several world-class professionals and experts as speakers and facilitators, including representatives of quoted companies and stockbroking firms. The event has helped market players to effectively time opportunities for higher returns in the New Year.
In today’s equity market, there is wisdom in being able to identify ‘buy’ opportunities very early and sell for maximum returns, while minimizing loss in any market situation.Understanding the dynamics of the stock market during any cycle is the very key to successful trading and investing. For this to happen,we must arm ourselves with knowing the essential driving forces behind the market as they move up and down.
At the INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT (TISS) you will discover some seldom considered aspects of investing and trading that can help you bag more big winners, while ratcheting down the number of losers in 2019 and beyond.
This summit will provide answers to these six crucial questions AND others

• What exactly is it we are trying to do as traders & investors?
• What occurs every post-election year that we wish to take advantage of?
• What are the prevailing market moves and who are the dominant players?
• What is ‘smart money’ doing?
• Where should we look to enter the market or exit?
• Is it the same every day, season and year?

When you answer these important (and frequently overlooked) questions correctly, your trading/investing skills will launch into new levels.
For Registration kindly send YES or REG to 08028164085, 08032055467, and 08111811223 now for details.

Ambrose Omordion
CRO|Investdata Consulting Ltd

info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

COMMENTS

WORDPRESS: 0
DISQUS: 0