Market Update for September 13
The seesaw movement witnessed in recent times continued on the Nigerian Exchange Tuesday, with the benchmark NGX All-Share index closing marginally up. Helped by the seeming buying interest in a few blue chip stocks, which halted the previous session loss position, even as low transaction volume persisted as market breadth flipped negative. Caution reigned on the bourse as all eyes remained on the August inflation data and the expected half-year earnings report from Accesscorp.
The mixed sentiment across the major sectors resulted from portfolio rebalancing and sector rotation that is ongoing in the market, as investor position in stocks with higher earnings and dividend yields to hedge against inflation in the face of low liquidity in the market due to rate hike and absent of institutional investors. Also, position taking in some banking and industrial goods stocks helped the index to close slightly up.
The expected August consumer price index will shape and influence investors’ sentiments ahead of the Central Bank of Nigeria (CBN) Monetary Policy Meeting (MPC) on rate hike or otherwise. The continued low liquidity in the equity space is due to increase in fixed income yields. But in hedging against inflation that is reading 19.64%, some sectors and individual equities remain the best bet for capital preservation and growth in this changing environment.
The oscillating trend in the market is attributed to the historical case for the September effect, depending on the period analysis and what is happening. It is generally believed that retail investors liquidate their portfolios, going into the month, to pay school fees for their children and wards, among other seasonal expectations highlighted earlier. Others include the fear of a global economic recession and Nigeria’s pre-election year tension, ahead of Q3 earnings reporting season in October.
As the market continues its sideways movement, the internals are revealing the hidden forces that works for both short and long term traders to get into the best position and allow you to stay in them for maximum profit. The market internals measure the forces behind the advancers and associated volume of the uptick or downtick. These two ratios tell you everything you need to know to predict future price movement. So, the volume pattern and index structure in recent days show position taking while funds enter some stocks as revealed by the volume traded and money flow index which need to be confirmed, especially as mixed sentiment recorded on Tuesday signals a change in trend, ahead of the above mentioned events in the month.
My answer regarding what to do under the current phase or market mood, whether regarding an individual stocks or an index, especially when to buy or sell, is always based on price actions and the money flow direction which combines price and volume. We only want to hold stocks that are increasing, or at least retaining their value, while avoiding equities that are on the decline, and the toolset to evaluate price action is technical analysis.
The contemporary technical analysis that works in the changing volatile market, is what you should adopt. That is why it’s never been more important to join me at the upcoming Q4 Master Class in October, the largest quarterly traders summit in Nigeria. I will be sharing new actionable strategies and real trading education that will arm you with the tools that will help you meet your financial goals for the rest of the year 2022 and beyond.
To navigate this month profitably using fundamental and technical analysis to run, join investdata live sessions at noon every trading day “and also get investdata technical toolbox to play the current state of the market do suggest that discerning investors are gradually becoming greedy, while others are fearful, as seen in the recent range market. Despite the mixed sentiment witnessed, it is time to go shopping for undervalued stocks, sectors and the next insider playing opportunity.”
Oil prices pulled back to trade at $93.07 as UA inflation data beat projection to increase fear of recession as CPI report support rate hike from Fed next meeting in the face of China battling with Covid 19 lockdown. The continued oscillation in oil price also continues to drive volatility in the face of rising interest rates and inflation. Despite the bailout package of the Chinese government to simulate economic activates and stable employment, as well as that of Germany aimed at managing the energy crisis.
Tuesday’s trading opened slightly in the upside and oscillated at midday to afternoon on profit taking and buying interest in blue-chips stocks, a situation that pushed the NGX’s index to an intraday high of 49,655.34bps from its lows of 49,612.40ps, before closing slightly above its opening figure at 49,627.72bps.
Market technicals were weak and mixed, with higher volume of shares traded than the previous day in the midst of breadth favoring bears on a mixed sentiment as revealed by Investdata’s Sentiments Report showing 64% sell position and 34% buy volume. The total transaction volume index stood at 0.80points, just as energy behind the day’s performance was relatively strong as Money Flow Index is looking up at 63.51pts, from the previous day’s 63.13pts, indicating that funds entered the market.
For you to successfully invest and trade in this volatile market, order for Investdata’s video on Buy & Sell Technical Analysis Toolbox to navigate the volatile market profitably, enhance trading decisions and boost your bottom line. Also, to up your game in stock trading and investing, understanding the key to trading price and index action will go a long way to make the difference in your trading results, check out the video materials below.
Index and Market Caps
At the end of Tuesday’s trading, the NGX All Share index inched up 2.01bps, closing at 49,627.72bps, after opening at 49,626.05bps, representing a 0.004% up, just as market capitalization rose by just N90 million, closing at N26.77tr, from the previous day’s N26.77tr, which also represented a 0.004% value gain, just a flat position.
Attention: If you have not signed up for INVESTDATA’s buy and sell signal setup, don’t delay, because the number of stocks entering their buying range has just increased to 35 as they build a new bullish base and positive chart patterns to be on our watchlist. These stocks have double the potentials to rally, considering their earnings prospects and the oscillating moves in a recovery market and economy.
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 that can stimulate and re-track the economy to the path of growth and development.
Meanwhile, Tuesday’s upturn was driven by demand for shares in Cutix, NGXGroup, UPDC, Fidelity Bank, Lafarge Africa, Accesscorp, Learn Africa, Honeywell, and Nahco, among others, which impacted mildly on Year-To-Date gain, which remained flat at 16.18%. Market capitalization gain YTD also rose to N3.23tr YTD, representing a 20.05% rise over the opening level for the year.
Bearish Sector Indices
The sectorial indexes were in red, except for the NGX Industrial Goods that closed 0.14% higher, while the NGX Insurance index led the decliners after shedding 0.57%, followed by Banking and Consumer goods with 0.09% and 0.02% respectively. Just as Energy closed flat.
Market breadth turned negative, as losers outnumbered gainers in the ratio of 16:13; just as transactions in volume and value were up, after investors exchanged 160.24m shares worth N1.49bn, with volume driven by trades in Zenith Bank, Courtville Business Solution, Transcorp, Chams and GTCO.
Multiverse and NPF Microfinance were the best-performing stocks, gaining 9.69% and 7.84% respectively, closing at N2.83 and N1.65per share respectively on market forces. On the flip side, Redstar Express and Caverton lost 10% and 4.55% respectively, closing at N2.43 and N1.05 per share, purely on selloffs and profit taking.
We expect cautious trading ahead of consumer price index report, as all eyes are on Accesscorp’s result and next MPC meeting, while portfolio rebalancing continues on bargain hunting. Also, investors continue to analyse the numbers released by UBA, in the midst of the worsening sovereign risks.
We note also the flow of funds into the fixed income segment on the rate hike by the CBN, as sector rotation persists. Analysts are also focused on the lookout for August CPI and flow of funds amid oil prices oscillation.
INVESTDATA Q4 MASTER CLASS
Theme New Actionable & Technical Strategies For Profitable Trades In Changing Market Environment.
- Equity Investing in changing volatile Market: Two Sides Of The Coin, Mr Rotimi Olubi. MD ARM Securities Ltd
- Arbitrage Trading & Other New Strategies To Hedge Against Stagflation, Mr Abiola Rasaq , CSCS
- Mastering Contemporary Technical Tools For Wealth Building In Uncertain Environment, Mr Abdul-Rasheed Momoh, Head Capital Market, Trw Stockbrokers Ltd
- Time & Price Analysis For Money Making In Uncertain Market, Mr Ambrose Omordion, CRO. Investdata Consulting Ltd.
Are you interested in building wealth and improving your trading results through tested and effective investing strategies for the rest of the year and beyond? Smart domestic investors understand the power of money flow and timing in wealth creation through stock trading and investing.
This Q4 masterclass is for you, because it will help you follow exact steps in real time, using the new strategies by following the current volatility and happenings in the market.
Nigeria has entered one of the greatest inflationary periods in the last six months, which is threatening investment and economic activities. And government policies through their economic managers had pushed millions of Nigerians down …. Out of the middle class…out of private retirement, healthcare and decent lives, based on independence and privacy… into a collective nightmare we call financial lockdown.
This is what happens when people are trapped by their own collapsing currency, such that they become deeply indebted. Inflation causes huge distortions in the economy and in the markets, so its critical that you take the necessary steps to ensure you are not left behind.
We have put together this Q4 masterclass to help market players avoid those needless losses and build a profitable portfolio that has high ROI…… Especially in a volatile market, when you don’t know which way up….
Participants will learn the following
- How all fixed income market instruments had failed investors in stagflation environment
- How arbitrage trading is creating income for discerning market players
- How to hedge against inflation and preserve capital in sectors and industry that have the potential to drive profit that will support equity prices
- How classical technical analysis had failed many traders in this high volatile market
- How to filter market noise and identify the most opportune time to join any trade
- Tradeable chart patterns and candlestick formations that signal real money-making opportunities
- Five hot stocks that beat inflation and deliver over 30% in a short period of time.
- How to buy right on the two sides of equity investing, fundamental vs technical, risk vs profit, buy vs sell and bears vs bulls,
Date: October 1. 2022
Time: 9AM Prompt
Fee: N50,000 per participant
However, with less than 24 days to Q4 Master class October 1, 2022, you need to make money and avoid losses, boost your trading bottom line. Don’t miss this opportunity.
During this practical session our top industry experts will reveal profitable trade ideas and opportunities in Q4 to consolidate your gains and ride on year end seasonality to maximise returns. That is what you can implement immediately to start tracking the result by yourself and the investdata Research team on your behalf. You definitely want to be among the smart traders and investors in Q4. So, send “YES” or “STOCKS” to 08028164085 and 08179547605.
CRO|Investdata Consulting Ltd
Tel: 08028164085, 08179547605