Expect Mixed Sentiment, As Investors Position Ahead Of Pullbacks In Sound Stocks

Market Update for the Week Ended Nov 5 and Outlook for Nov 8-12

The nation’s equity market during the just ended week witnessed post-earnings season profit-taking that halted a seventh successive week of bull transition on a low traded volume and negative breadth as selloffs hit some of the major sectors ahead of year-end seasonality and repositioning for 2021 dividend expectations. 

The economy has its own four cycles which are determined by such economic indicators as interest rates, inflation, and national output/productivity which enable investors to identify which sectors have done or will do well.  Understanding market structure using technical analysis will tell us the current phase of the market, which will enable us to apply the right strategies to win big.

However, to improve your profit-taking strategy is to sell when many traders are buying into positions. This is a smart way of taking profits because large moves are often followed by digestion days, where the market consolidates or pulls back for a breather. Knowing where to take profit is a highly debated issue or topic among traders. There have been pre-determined rules for selling or profit-taking.

we envisage a mixed trading pattern due to bargain hunting activities in dividend-paying stocks amid intermittent profit-taking activities. That notwithstanding, we advise market players to position in fundamentally sound stocks with positive technicals and sentiment as market fundamental and liquidity keep looking up in the face of oil price trading above $84 in the international market, while the nation external reserves hit $40 billion again.

Technically, the NGX index’s action on a weekly time frame reveals mixed sentiments, as ADX remained above 20 points at 30.64, just as the money flow index was up at 76.58 points, revealing the increase in money flow to the equity space. These are indications that confirm the daily move and volatility, as the NGX index has rebounded again to break out the strong resistance level of 42,000 basis points which signals the possibility of trend continuation on the daily and weekly chart with the index resisting a further decline. So, we have to wait to see what happens in the new week as analysts interpret the various Q3 earnings reports.

The low traded volume, during the week, is an indication that institutional investors are not selling and the volume that took the market up is still very intact. The light volume on the profit-taking activities shows that retail investors like you and I are the ones booking profits.

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Movement Of NGXASI

The NGX index had a mixed trend of three down sessions and two up days. The week’s trading for the week opened on the downside on Monday, as a result of profit-taking before the market retraced up on Tuesday following the increased buying interests in banking and industrial goods stocks. There was a pullback at the midweek and Thursday, when the benchmark index shed 0.09% and 0.08% respectively, while the index rebounded on Friday by 0.17%, bringing the week’s total loss to 0.06%, compared to the previous week’s 0.46% gain. This performance was driven by selloffs and buy an interest in bellwether stocks.

Consequently, the key performance index shed 24.10 basis points, closing at 42,014.50bps, after touching an intra-week low of 41,930.73bps from its highs of 42,151.01bps, as the week’s opening figure was 42,038.60bps on mixed sentiments and profit-taking in low, medium, and high priced stocks. Market capitalization during the period fell by N12.58bn, closing at N21.93tr, compared to the previous week’s N21.93tr, which also represented a 0.06% value loss.

The week’s top gainers table was dominated by low and medium-priced stocks which had become the toast of investors, despite the negative and selling sentiments. There were due to positive sentiment for Regency Assurance, SCOA, Wema Bank, Fidson Healthcare, University Press, Okomu Oil, and GSK, in the midst of the continued portfolio repositioning on the strength of the recently published nine-month earnings reports and positive economic data. It is noteworthy that the NGX Index and price actions revealed the presence of sellers in the market, a situation that reflects on some sectorial indexes.

Market breadth was slightly negative for the week in the midst of low traded volume and better than expected earnings performance that are likely to support recovery in the short to long run as investors increase their stake on a pullback. Decliners outnumbered advancers in the ratio of 43:23, on a negative sentiment as revealed by investors’ sentiment report showing a 62% sell volume and 38% buy position. Money Flow Index rose to 76.58bps from the previous week’s 76.38 points, an indication that some funds entered the market.


The NGX index’s action, on a weekly chart, maintained a bullish inverted head, shoulder, and saucer chart pattern that supports and indicates an imminent uptrend but on low volume traded. The candlestick pattern at the end of last week was equally bullish to indicate that the market is resisting further decline, as the slowdown in the benchmark index after seven consecutive weeks of positive outing reveals a cautious investing, and indecision as many players stayed on the fence during the period. The index action is set to break out its strong resistances levels of 42,151.40 and 42,248.16bps on expected renewed buying interests in the new trading week that will support an uptrend. However, we need to watch out, the outcome of earnings analysis. Also with all eyes on fixed income market yields and oil prices that should further support market fundamentals to attract liquidity to the equity space. A pullback at this point will create new buying opportunities.

Mixed Sectoral Indices

The performance indexes across the sector were mixed, with the NGX Insurance and Industrial Goods indices chalking 0.99% and 0.88% respectively, while the NGX Banking led the decliners after losing 1.73%, followed by Energy and Consumer Goods with 1.63% and 0.74% respectively. Activities in volume and value terms were down, as players exchanged 1.43bn shares worth N12.37bn, compared to the previous week’s 3bn units valued at N34.55bn. Volume was driven by Financial Services, Conglomerates, and Consumer goods,  particularly FBN Holdings, Sterling Bank, UBA, Access Bank, and Transcorp.

The best-performing stocks for the week were Regency Assurance and Multiverse Mining which gained 18.92% and 10% respectively, closing at N0.44 and N0.22 per share respectively on market forces. On the flip side, Eterna and Unilever lost 15.49% and 14.42% respectively, at N07.31 and N13.35per share, purely market forces and profit-taking.

Outlook for the week

We expect a mixed sentiment, as investors and bargain hunters continue to take advantage of price pullback in fundamentally sound stocks for repositioning. It is also noteworthy that fund and portfolio managers continue to take a position on Q3 numbers ahead of the current financial year-end. For now, many stocks remain in their buy range to attract funds into the equity space. Also, investors will continue tracking yields movement in the fixed income market.   Also, investors are still observing the interplay of forces in the FX market as the CBN gives a guideline for the new digital currency platform. Last week’s low volume suggests that institutional investors are not selling. It is noteworthy that oil prices rebounded to trade above $84 in the international market; corporate actions, as well as the interim dividend possibilities, are around the corner.

Invest 2022 Traders & Investors Summit

Theme: Master The Market, Get The Best Of Pre-Election Year 2022


1.  Balanced Trading: Playing Nigeria’s Multiple Exchanges For Diversification, MrOlatundeAmolegbe, CEO, Arthur Steven Asset Management  Ltd &President of CIS 
2. Agriculture, Economic Recovery & Diversification: Where Is Commodity Trading In Your Portfolio, MrAkinyinkaAkintunde, Business Development Manager, AFEX Commodities Exchange Ltd.
3. Technical Outlook & Indicators For Profitable Market Timing, Mr Abdul-Rasheed OshomaMomoh, Head Capital Market at, TRW Stockbrokers Ltd 
4. Benefits & Dangers Of Fixed Income Instruments In An Inflationary Environment, MrTeribaAdeboye, MD/CEO, Qualinvest Capital ltd
5. Economic Outlook and implications of the N16.45 Trillion 2022 Budget On Sectors/Stock Market, MrOluwasegunAkinwale, Senior Portfolio Manager,Coronation Asset Management Ltd
6. Profitable Stock Picks Made Easy, Using Fundamental Tools, Mrs. Ebiere Helen Fumudoh, MD/CEO, Norrenberger Securities Ltd
7. The Role of Real Estate & REIT Instruments In the Ecosystem, Mr Tope Ojo, Managing Partner,Tope & Tunde Estate Surveyors &Valuers 

8. Trade Opportunities & 10 Golden Stocks for 2022, Mr Ambrose Omordion, Chief Research Officer, Investdata Consulting Ltd

Investdata Consulting Limited holds the 10th edition of its annual Investment conference tagged Invest 2022 Traders & Investment Summit, which has over the years remained a game changer for market players. This edition is aimed at helping stakeholders identify opportunities and bringing ideas for profitable trading as we enter a pre-election year.

Invest 2022 is a not-to-be missed summit capable of completely changing your view about where the economy and stock market are headed and when you should fully plunge in or hold cash.  Join the experts and experienced professionals to discuss a Big Picture Perspective of where the stock market and other investment windows are currently placed and what signs to be vigilant about over the coming months and year 2022.  Don’t miss this summit.

We have held this annual summit since 2012, to give investor and traders insight, perspective and expectation in the new year.  This year Invest 2022 Summit is exceptional being vaccination driven economic recovery after Covid 19 disruption.  The big picture of what is happening and outlook for 2022, analysis of the status of different investment windows and opportunities, ranging from the economy, equity, bond, commodity, real estate and others using fundamental and technical tools.

More than 80% of the golden stocks pick during Invest 2021 Summit have beaten their targets, returning more than 40% to 60% in less a year. Due to growing concern and fear around the globe and domestic economy/stock market as analysts are predicting a big melt-down in stocks from ant time soon, to sometime in 2022.

Looking at history, there is no doubt that correction or pullbacks are on the cards at some stage. However, this big questions on everybody minds are when will this occur and whether it will end this bull run or market recovery.

Whatever happens, what is the best way to Prepare rather than try to Predict? This is what Invest 2022 Summit will address.  So you are invited to Speck or facilitate at this event

What to expect at this Summit?
A. Why the market is on high alert for the New Year rally, or Correction
B. Strategies to stay in profit, overcome market correction/pullbacks
C. How to position in stocks for robust profit ahead of 2022
D. How to take advantage of the circular flow of funds in financial markets
E. Risk/return from Bonds to stocks right now.
F. Key to profitable trading and investing in the stock market/other investment windows

Benefits for attending

 1,10 Golden Stocks for 2022
 2, Admission to Investdata Buy & Sell WhatsApp Platform
 3, Among others
Don’t miss this summit, if you have any exposure to the stock market, either directly or indirectly via managed funds of any kind…….
“Invest 2022 – Connects you to new trade opportunities and ideas to boost your trading results/bottom line”

Don’t miss this summit, if you have any exposure to the stock market, either directly or indirectly via managed funds of any kind……..

Date: December 4, 2021

Time: 9am

Venue: Zoom

Want to be among the successful investors and traders in 2022? Send Yes to 08028164085, 08179547605 now.

Meanwhile, the home study packs on Comprehensive Stock Market trading course video,Stock Market Analysis Beyond Fundamental & Technical Analysis,  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 now.

Ambrose Omordion

CRO|Investdata Consulting Ltd




Tel: 08028164085, 08179547605