LATE FILING: Market Update for November 29
Trading activities on the Nigerian Stock Exchange on Thursday was very volatile, after which the composite All-Share index suffered heavy loss, extending the bear dominance resulting in a breakdown of the recent support level at 30,993.97 basis points, thereby making a lower low on a huge traded volume.
The continued free fall of equity prices indicates a low buying interest among the investors while managers of Nigeria’s economy and indeed the government have their focus on next year’s general elections, preparation for which is in top gear at the detriment of the economy.
Thursday’s pullback occurred after the market opened slightly up in the morning session due to price depreciation by highly capitalized stocks which dragged the benchmark index below the 31,000 mark, resulting in a new support level of 30,993.97bps to a lower low in the afternoon. This was after touching intraday highs of 31,061.18bps from a low of 30,545.20bps before retracing up at the last minutes to close the session at 30.611.55bps on a high selling pressure.
Market technicals for the day were negative and strong as volume traded was higher than Wednesday’s in the midst of negative market breadth and strong selling sentiment as revealed by Investdata’s Daily Sentiment Report, which shows a sell position of 87% and 13% buy volume. The volume index for the day’s total transactions was 1.72.
The forces behind the market’s performance was further weakened, as Money Flow index dropped to 23.19bps, from previous day’s 30.66ps, indicating that funds are leaving the market in the midst of prevailing low liquidity ahead of month end.
Index and Market Cap
At the end of Thursday’s trading the benchmark index lost 411.92bps, closing at 30,611.55bps after opening at 31,023.47bps, representing 1.33% decline, just as market capitalization lost N150.38bn at N11.18tr from an opening value of N11.33tr, representing a 1.33% slip.
Attention: Join Investdata buy and sell signal setup to get all our in-depths analysis on the picture and to get access to our carefully created watch list. 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 session’s downturn was followed losses suffered by medium and high cap stocks like Dangote Cement, Guaranty Trust Bank, Zenith Bank, UBA, FBNH, Lafarge Africa, Dangote Sugar, Fidelity Bank and Honeywell Flour. This increased Year-to-Date loss to 19.96%, which means the NSEASI remains one of the worst performing stock indexes around the world today. Market capitalization YTD decline increased to N2.42tr from its opening level in January, representing 18.17% down.
Mixed Sectors Indices
Sectorial performanceindices were largely bearish, except for the NSE Insurance and Consumer goods that closed higher, just as market breadth was negative with decliners outnumbering advancers in the ratio of 23:12.
Market activities were up in volume and value by 100.98% and 63.58% respectively at 441.61m shares worth N4.46bn, from previous day’s 220.4m units valued at N2.73bn, with transactions volume boosted by financial services stocks like: Universal Insurance Access Bank, Stanbic IBTC, Diamond Bank and Zenith Bank.
The best performing stocks for the session were VeritAssurance and Ikeja Hotel, after chalking 10% and 9.80% respectively to close at N0.22 and N1.68 each on market forces. The decliners’ side was led by ABC Transport and Diamond Bank that lost 9.68% and 9.59% respectively, closing at N0.28 and N0.66 each, on market forces and weak numbers
Market Outlook
Being the last trading day of the month, expect sustained bargain hunting and portfolio repositioning for year end to shape performance of the market ahead of Santa Claus rally, as number of companies hitting new 52-week low are on the increased to reflect undervalue state of the market.
The ongoing volatility will persist as Q3 numbers assist investors and fund managers rebalance their portfolios, while watching the political space and ahead of the expected Q3 GDP and full year company earnings position. 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 their 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 low in the midst of weak company, economic and market fundamentals.
HURRY, ITS NEXT SATURDAY!!
Invest 2019 Traders & Investors Summit
Theme: Best Returns In 2019 & Beyond: Adopting The Billionaire Mentality In Stock Selection
Sub-Topic
1. Pre-election year performance Review and post-election Investing opportunities
2. Simple Strategies for picking undervalued stocks With Fundamental & Technical Tools
3. Psychology of Equities Trading For Managing Positions & Money
4. Mastering Market Dynamics & Dividend Techniques To Grow Your Income in 2019
5. Picking the Right Stocks to Retire Rich In Financial Independence
6. Nigeria’s Post Election Economy & 2019 Sectoral Analysis
7. Understanding the big picture of Budget Delay & Its Implication on the Economy/Stock Market
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
