Volatility May Linger On NGSE, Amidst Portfolio Rebalancing Ahead Of May 29

Volatility May Linger On NGSE, Amidst Portfolio Rebalancing Ahead Of May 29

SHARE:

Post Views: 99 Market Update for May 14 Stocks again declined further on the Nigerian Stock Exchange (NSE), Tuesday, remaining on the negative path, d...

NGSE Indicators Remain Volatile, As Volume Remains Weak
Profit Taking, Sell-offs Persist As Investors, Analysts Watch For GDP Data, MPC Outcome
Speculations Still On NGSE, Ahead Of MPC Outcome, Oct Inflation Report

Market Update for May 14
Stocks again declined further on the Nigerian Stock Exchange (NSE), Tuesday, remaining on the negative path, despite the seemingly positive market breadth and buying interest as revealed byInvestdata’s daily sentiment report.
Buy volume stood at 23% and sell position, 77% of the total daily transaction volume index of 0.54.
The worsening trade dispute between U.S and China has rattled investor confidence and sentiment as the global economic outlook remains unclear, just as an absence of major economic triggers in Nigeria have kept foreign and local investors on the sidelines. They are waiting and watching to see how the expected new economic managers and policymakers plan to boost productivity that will drive development and growth with their reforms and action.
Trading on Tuesday was very volatile and mixed as the NSE All-Share index opened on the downside in the morning and oscillated between the mid-morning to afternoon sessions. This was after touching intraday low of 28,398.96 basis points from a high of 28,535.31bps on slightly improved demand for banking, insurance and oil stocks, before closing the session at 28,422.76bps.
Market technicals for the day were negative and mixed, with volume traded lower than previous day’s, while market breadth was in favour of the bulls.
Energy behind the day’s market performance was very weak as shown by the Money Flow Index of 8.34 points, from previous day’s 15.47bps, indicating that funds had left the market amidst continued sell-offs by foreign and domestic institutional investors waiting on the sidelines to see monetary and fiscal Policy slant in the new dispensation as events unfolds in the economic and political fronts.

Index and Market Cap
At the end of Tuesday’s trading, the benchmarkNSEASI shed 61.68bps to close at 28,422.76bps, after opening at 28,484.44bps, representing a 0.22% drop, just as market capitalization lost N23.17bn, closing at N10.68tr from its opening value of N10.7tr, which also represented 0.22% value loss.

Attention: Join Investdata buy and sell signal setup to get all our in-depth analysis of the picture and to get access to our carefully created watch list of stocks. 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 during this portfolio reshuffling and repositioning ahead of Q2 numbers and fiscal stimulus.
The session’s downturn was driven by sell-offs in stocks like Nestle, Seplat, ETI, Lafarge Africa, Dangote Sugar, and Honeywell, among others. This impacted negatively on the Year-to-Date loss, which heightened to 9.57%, just as market capitalization decline soared to N1.47tr, or 8.99%, from the year’s opening level of N11.72tr.

Mixed Sector Indices
The sectoral performance indexes were largely bullish except for the NSE Consumer and Industrial Goods that closed lower as sell-offs persisted in both sectors. Market breadth turned positive as the number of advancers outweighed decliners in the ratio of 20:16.
Market activities were down in volume and value by 6.8% and 3.4% respectively to 200.09m shares worth N2.69bn as against the previous day 214.68m units value at N2.78bn. Volume was driven by financial services stocks GuarantyTrust Bank, Zenith Bank, Access Bank, UBA and FBNH.
Neimeth Pharm and Courtville were the best-performing stocks, topping the advancer table with a gain of 9.09% and 8.33% respectively, closing at N0.60 and N0.26 per share, on market forces. On the flip side, University Press and Royal Exchange Assurancelost 9.73% and 8.33% respectively to close at N1.67 and N0.22, purely on profit-taking.

Market Outlook
We expect a slowdown and mixed performance to continue as value investing by discerning investors takes advantage of the low valuation to rebalance their portfolio ahead of the release by the National Bureau of Statistics (NBS) of the April inflation and Q1 GDP data, alongside the MPC meeting holding on May 20/21. More importantly, we expect that the government’s disbursement and implementation style in 2019 and beyond will change for good so as to drive the economy.
Investors look to government’s policy direction as the market faces low liquidity problems in the ongoing Q1 earnings reporting season, vis-à-vis market and economic fundamentals.
The drop in prices of major blue chips in recent times has created entry opportunities, following which we expect speculative trading to shape the market direction going forward.
The ongoing volatility will continue as investors and fund managers rebalance their portfolios, with eyes fixed on political space and ongoing quarterly earnings position and post-election market dynamics. Investors should review their positions in line with their investment goals, the 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 to guide their decisions while repositioning in any stock, especially now that stock prices remain low in the midst of mixed company numbers, weak economic and market fundamentals.

Take Action
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the just concluded and life-transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT, CHART SUMMIT, and POST ELECTION BULLS & BEARS Home study pack (USB) that you can play on your phone, Laptop and Television set. The events were a successful, insightful and educative outing that not only offered direction as to where investors should look for profitable trade in 2019 and beyond, insight into industries, sectors, and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with the possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment.
Don’t sit on the Fence call or text Stock to 08028164085, 08032055467, 08111811223 now.

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