Best, Worst Performing Stocks On Earnings Reactions

Looking closer to the market reaction to earnings reports released in Q1 2017 will give an insight into what to expect of the full year earnings reports when they are presented to the Nigerian Stock Exchange (NSE) in 2018, considering the economy recovery as the monetary and fiscal authorities try to complement each other at this point.
It must be noted that the market situation today and performance of 2016 are different, given that the factors on ground in the market currently are very much positive because the economy has finally come out of recession and continuing on the path of recovery and growth. These factors have equally reflected on the market and companies fundamentals.
The Nigerian stock market is truly becoming a barometer to measure actually activities in the economy, as some analysts have argued, judging from the fact that it was the first to go into recession long before the Nigerian economy began to exhibit the traits, closing negative for three consecutive years. The market’s indicators also turned green month-on-month long before the National Bureau of Statistics (NBS) confirmed Nigeria’s positive GDP growth in the second quarter of 2017. The market also has confirmed the inflow of domestic and foreign capital seeking for best returns.
Investdata Research believes that price movement of equities at the time earnings reports were released to the market should guide investors and traders to know what to expect when the full-year numbers eventually come seeing how the market responded in Q1.
What you discover as market reaction when the full year earnings reports start pouring in beginning from first quarter of 2017 (between January and March) may surprise.
The table below shows how market reacted to positive numbers and negative reaction days as the stock’s price declined when the companies presented their 2016 full-year score-cards. The best performing stocks are those that gained the most on their earnings reaction days.
As revealed by the table above, Fidelity Bank ranked first with a huge gain of 25.6% on its earnings reaction for five trading sessions, which means it gained over 5% daily on the average within its first five days; followed by Mobil Oil with a gain of 22.03%, and ahead of National Salt’s 21.41%. Other top gainers within the period under review were: Nestle, Dangote Flour and CAP. Notice also that on the list, Consumer Goods manufacturing stocks occupied the top five position, except for Fidelity Bank and Mobil. This should give the investing community an insight into where to look for best numbers in the coming earnings season, even as the banking industry remains a honey-pot for discerning investors, especially helped by improved liquidity in the system, powered by the recovery mode of the economy.

The worst performed in earnings reaction days for the period was Forte Oil that topped the table with 18,96 percent, next was Diamond Bank with 13.19 percent followed by May & Baker, Livestock Feed and Dangote Cement.
Let the tables above guide you this period that prices are relatively high on the strength of liquidity and confidence as you position for expected earnings to know how to set your target if the reports are positive or negative when the market react to it. It is important to set target as every investment is against expectation, if not met exit on time to cut loss and protect your capital.

Attention! Attention!! Attention!!!

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
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Attend the Practical Conference on Technical Analysis for the Novices and Advance Traders. We would be taking participants through:
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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.

What you will learn at the Technical Analysis Chart Conference
1. The 3 Simple trading secrets that can help anyone succeed at investing
2. The tenets of stock trading and investing Using TA
3. Trading and investing strategies that will help you manage your risk, protect your capital and profit from market oscillation.
4. How to trade on your own online.
5. The psychology of trading and investing and how it will make you successful.
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 this New Year.
For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223.

Ambrose Omordion
CRO|Investdata Consulting Ltd
Tel: 08028164085, 08032055467