Market Update for March 24
The bulls resurfaced powerfully on the Nigerian Stock Exchange (NSE) at midweek, reversing loss of the previous session with the All-Share index closing higher on a low traded volume and positive breadth, crossing the 39,000 psychological line again after testing it on the previous day.
Midweek’s rebound in apparent reaction to the outcome of Tuesday’s Central Bank of Nigeria Monetary Policy Committee meeting, which removed any iota of uncertainty in the minds of players about the direction of the economy in the short-term, at least, was driven by price appreciations in heavy weights like MTN Nigeria, and Dangote Cement, among. It may not also be unrelated to the month and quarter end positioning and window dressing by investors and fund managers with the earnings reporting season at its peak, especially post-MPC decision with members voting to retain the benchmark rates. Investors have also continued reacting to dividend news and the impressive yields offered by the market.
With the earnings season extending to April when the 2021 first quarter corporate earnings of companies with December financial year end mare expected to come in, the improving positive sentiments and inflow of funds to the equity space may be sustained, depending on the Q1 numbers released.
It is therefore important that investors know how to use their entry and exit strategies at this point to improve returns on their investment by attending the oncoming master class for cashflow to create personal wealth in Q2 and beyond.
As strength gradually return to the market on few earnings released ahead of deadline, the NSE index action broke out the 14-Day Moving Average to test the 20-DMA on a positive sentiment, sustaining the new uptrend on a low traded volume, which further complimented the confidence around the market.
At the midweek, Lafarge Africa reported improved numbers based on operations for the year, declaring N1.00 dividend per share; Custodian Investment offered 45 kobo, while Stanbic IBTC Holdings sent shock wave with its surprising final dividend of N3.60, making it a total dividend of N4.00 per share, in addition to a bonus of one new share for every six held by investors with different closure dates. Also, there is the N2.10 dividend offer from CAP Plc and N1.04 from Beta Glass.
We are, therefore, of the opinion that the ongoing earnings season, helped by the unchanged interest rates, might support the new recovery move by the market, following which investors seeking to preserve their capital and even profit from the ongoing, should play fundamentally sound stocks selling at a high margin of safety.
Meanwhile, midweek trading opened on the upside and it was sustained throughout the session on buying interests on blue chip stocks, a situation that pushed the benchmark index to an intraday high of 39,110.55 basis points from its lows of 38,695.24bps, and thereafter closed higher above its opening point at 39,086.78bps.
Market technicals were positive and mixed, with volume traded lower than previous day’s in the midst of positive breadth and high buying pressure as revealed by Investdata’s Sentiments Report showing 94% ‘buy’ volume and 6% sell position. Total transaction volume index stood at 0.89 points, just as momentum behind the day’s performance become relatively strong, with Money Flow Index looking up sharply at 54.65pts, from the previous day’s 46.96pts, indicating that funds entered the market.
Index and Market Caps
At the end of Wednesday’s trading, the NSEASI gained 380.81bps, closing at 39,086.78bps after opening at 38,704.97bps, representing a 0.98% growth. Similarly, market capitalization rose by N199.24nm, closing t at N20.45tr, from previous day’s N20.25tr, which also represented 0.98% value gain.
Attention: If you have not signed up for Investdata buy and sell signal setup, don’t delay. We have just reduced to 8 STOCKS TO WATCH THAT ARE BUILDING NEW BULLISH BASE in our watchlist. These stocks are with double potentials to rally considering their current and oscillating mood of the market value.
To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current oscillating market in the midst of earnings season, portfolio reshuffling and repositioning as we await an economic reform policy to stimulate and re-track the economy again.
Midweek’s upturn was impacted by position taking in Dangote Cement, MTNN, Stanbic IBTC, NB, Guinness, UACN, Unilever, Nascon, and FBNH, among others. This impacted positively on Year-To-Date loss, reducing it to 2.94%, just as market capitalization loss dropped to N606.89bn, or 2.88% below its opening value for the year.
Mixed Sector Indices
Performance indexes across the sectors were mixed, as NSE Insurance and banking closed 0.56% and 0.21% respectively lower, while the NSE Consumer Goods index led the advancers after gaining 0.73%, followed by Energy and Industrial goods with 0.68% and 0.65% respectively higher.
Market breadth turned positive, as advancers outnumbered decliners in the ratio of 20:16; just as activities in volume and value terms were down after traders exchanged 361.9m shares worth N5.7bn.
Stanbic IBTC and NPF Microfinance were the best performing stocks, gaining 9.99% and 9.60% respectively, closing at N48.45 and N1.94 per share respectively as the market reacted positively to the N3.60 dividend declaration and audited earnings expectation respectively. On the flip side, MRS Oil and Coronation Insurance lost 9.70% and 9.09% respectively, closing at N12.10 and N0.50 per share, on selloffs and profit taking.
Market Outlook
We expect the mixed trend to continue as more corporate earnings hit the market in the face of rising dividend and fixed income market yields, as well as a trigger from the outcome of f MPC meeting during this earnings season and month/quarter activities. Also, the pullbacks offer bargain hunters and income investors another opportunity to reposition in high dividend yields and undervalued stocks, while more companies release their full-year numbers to support recovery. This is based on the fact that the rising fixed income yields may not be enough to scare all investors away from the equity market.
Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the rising oil prices that have so far supported the economy and equity market, despite the seeming improvement in the fixed income yield which had remained at negative real rate of return due to the subsisting high inflation.
However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by 2020 full numbers and expected 2021 Q1 earnings reports, until the next MPC meeting in May.
The NSE’s index action and indicators are heading in the same direction on a low traded volume and positive buying sentiments in the midst of rising yield in bond and TB.
Master Class On Comprehensive Cash flow For Personal Wealth Creation
Sub-Topics
1.Catch The Right Market Top With Tested Strategies To Preserve Wealth In A Quiet Market – By Engr. Ekwueme Michael Anyadibe, M.D, X-Front Trader Ltd
2. How To Invest & Trade For Short, Medium, And Long Term In A Mix Market, Alhaji KurfiGarba MD/CEO Apt Securities & Funds Ltd
3. Comprehensive Trading, Using The 4 Phases Of The Stock Market To Create Consistent Cashflow In Bear and Bull Cycle, Combining Fundamental And Technical Tools. Mr Ambrose Omordion, Chief Research Officer, Investdata Consulting Ltd
To effectively take advantage of changing trading patterns and the oscillating stock market, active traders and investors must stay ahead of the new market structure and conversant with strategies used by institutional investors or smart money.
With traders like you in mind, we have designed this Quarterly Comprehensive Master Class For Personal cashflow and Wealth Creation at this special workshop that will feature time-tested traders and CEOs of some of the largest stockbroking firms by various parameters on the NSE. They will share knowledge accumulated over several decades of time and money.
In this EIGHT-HOUR master class, you will learn strategies and techniques on how to create cash flow and capture winning trades in any market cycle.
Specifically, the session is aimed at sharing knowledge on:
1. How to eliminate the guesswork from your trade, using investdataFundaTech Toolbox to determine trade opportunity.
2. What strategies work best for the current market situation
3. Refining your ‘buy’ and ‘sell’ strategies with precision
4. Identifying key sectors capable of supporting the market and creating cash flow.
5. How to time the market in any cycle
6. Actionable trade ideas and stock chart analysis
7. 10 trading ideas and hot stocks to buy in Q2 and beyond
8. Special Telegram group for immediate action taking, updates and direction
Date: April 3, 2021
Time: 9am prompt
Venue: ZOOM.
Fee: N 50,000
However, with less than 25 days to Q2 2021, you need to start planning your cash-flow through trading in second quarter and beyond.
During this practical session our team of experts will reveal practical trade ideas and opportunities in Q2 2021 to consolidate your gains and maximize returns. That is what you can apply or implement immediately and start tracking the result by yourself and Investdata research team on your behalf. Want to be among the smart investors and traders in Q2 send Yes to: the phone numbers below now.
Also, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the new year.
Meanwhile, the home study packs on INVEST 2021 New Opportunities & New Paths To Profits Summit materials and 10 Golden Stocks for 2021, Strategies and How to invest profitably in this Changing Market Dynamics/ Recession, Mastering Earnings Season For Profitable Investing and Trading in any market situation/ cycles, Life Beyond COVID 19 Investment Opportunities In The Stock Market are now available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08179547605, 08111811223 now.
Ambrose Omordion
CRO|Investdata Consulting Ltd
ambrose.o@investdataonline.com
Tel: 08028164085, 08032055467
