Market Update For November 22
The positive momentum on the Nigerian Exchange continued on Tuesday, as buying interest among investors waxed stronger, irrespective of the expected outcome of Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting, with members voting unanimously to hike rates for the fourth consecutive time, this time by 100 basis points to 16.5% the highest in 21 years, while keeping other monetary policy variable unchanged.
Buying pressure among market players alongside the MPC meeting indicates the possibility that investors already factored in the expected hike, so market reaction to this reality Wednesday morning as trading opens on the exchange will confirm if this rebound had come to stay, ahead of year end seasonality and corporate actions in 2023. Also, there was position taking across the major sectors of the market, despite the low traded volume, with the NGX All-Share index extending its bull transition for three successive sessions in the midst of positive market breadth and strength returning back to blue chip companies and growth stocks.
Also, investors continue to reposition their portfolios on the strength of the recent corporate earnings. Investors are viewing all of these against the backdrop of the rampaging inflation as they hedge against the rising inflation in some stocks with high dividend yields and strong earnings to support higher payout as financial year end of many companies draw closer.
The current low traded volume in the face of positive market breadth signals the activities of speculators, and bargain hunters as institutional investors are still standing on the fence as revealed by transactions on the exchange. The increasing buying interest in banking stocks and other undervalued companies signal a buy market and imminent price markup by smart money.
Also noteworthy is the fact that market players are reassessing the impact of the CBN’s currency redesigning in its bid to check counterfeiting and control money in circulation, as all eyes are on the Q3 GDP that would show how the economy had fared in the last six months. This macroeconomic data and reaction to the rate hike of 16.5% are expected to shape market direction in the midst of the better-than-expected corporate earnings and low prices of stocks that created real opportunities for fresh entrance ahead of year-end seasonality.
The NGX index double top formation above the T line and 20-day moving average, signal possibility of profit taking as players reacts to MPC meeting outcome, despite positive sentiment, as revealed by cycle indicator, so wait and watch, while those that had meet their profit target should take it. But with all the sectors indexes retracing up at this oversold state of the market offers entry opportunities for discerning investors in the face of improving momentum. We also note the fact that many players, including the institutional investors are still holding cash to confirm market direction, especially given the anticipated financial market reset in 2023, and beyond expected to create wealth for action takers.
Technically, at the end of Tuesday trading, momentum and cycle indictors revealed a pullback in trend, which needs to be confirm, as the market is following through its recent rebound and companies’ actual numbers continue to guide investors’ decision on portfolio alignments, amid most stocks have touching their 52-week lows and some tending towards their year-to-date low, creating more entry opportunities for discerning investors.
To navigate the rest of the year 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 low volume of transaction witnessed, it is time to go shopping for undervalued stocks, sectors and the next insider playing opportunity.”
Oil price rebounded in the midst of its continued oscillation to trade at $88.72, in the face of Saudi cutting production, Covid 19 cases in China, geopolitical tension and fear of recession as a result of high interest rate and inflation across the globe. Also supply tighten due to the Russia-Ukraine war that has been lingering. The up and down movement of oil price also continues to drive volatility. Despite the bailout package of the Chinese government to simulate economic activates and stabilize employment, as well as that of Germany aimed at managing the energy crisis.
Meanwhile, Tuesday’s trading started in the green and it was sustained for the rest of the day, despite oscillating on profit taking and buying interest in across the sectors, a situation that pushed the NGX’s index to an intraday high of 44,976.21bps from its lows of 44,662.96bps before closing above its opening level at 44,929.33bps.
Market technicals were strong and mixed, with lower volume of trade than the previous session in the midst of breadth favoring the bulls on a positive sentiment as revealed by Investdata’s Sentiments Report showing 85% buy position and 15% sell volume. The total transaction volume index stood at 0.75 points, just as energy behind the day’s performance was relatively strong as Money Flow Index was flat at 61.29pts, from the previous day’s 61.68pts, indicating that funds slowdown in the market.
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Index and Market Caps
The composite NGX All-Share Index, at the close of Tuesday trading gained 266.37bps, closing at 44,929.33 basis points, after opening at 44,701.84bps, representing a 0.60% growth, just as market capitalization rose by N123.90bn, closing at N24.47tr from the previous day’s N24.33tr, which also represented a 0.60% appreciation in value.
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The upturn was driven by demand for the shares of MTNN, Lafarge Africa, International Breweries, GTCO, Zenith Bank, PZ, Fidson, UACN, Accesscorp, Nahco and UPDC, among others, which impacted positively on Year-To-Date gain, increasing to 5.18%. Market capitalization gain YTD stood at N1.42tr, representing a 10.17% rise over the opening level for the year.
Bullish Sector Indices
Sectorial performance indexes were in green, led by NGX Banking after gaining 1.10% followed by Consumer, Industrial, Energy and Insurance with 0.86%, 0.33%, 0.19% and 0.18% respectively.
Market breadth was positive, as gainers outnumbered losers in the ratio of 27:7; just as activities in volume and value were mixed as stockbrokers transacted just 125.56m shares worth N3.85bn. Volume was driven by trades in Zenith Bank, Fidelity Bank, MTNN, Aiico and Transcorp.
UPDCREIT and International Breweries were the best performing stocks after gaining 10% and 9.41%, closing at N2.75 and N4.65per share respectively on market forces. On the flip side, RT Briscoe and Presco lost 10% and 7.17%, closing at N0.27 and N110 per share, purely on selloffs and price adjustment for interim dividend.
Market Outlook
We expect mixed sentiment and trend as players digest CBN rate hike. Amidst bargain hunting, repositioning of portfolios and election uncertainty, as investors are taking advantage of the low prices ahead of year end seasonality.
Invest 2023 Traders & Investors’ Summit
Theme: Preparing For Financial Market Reset In 2023 & Beyond
Sub-Topics
1, Budget 2023, Economic Headwinds & The Stock Market: Are Market Players Prepared? Mr Olatunde Amolegbe, CEO, Arthur Steven Asset Management Ltd & Immediate Past President of CIS
- Comprehensive & Complete Wealth Building Actionable Strategies for 2023 Mr Oladipo Ajayi Head of Fixed Income at Chapel Hill Denham
- 2023 Stock Market Outlook And Identifying Great Value Stocks For Santa Claus & Post-Election Rally Alhaji Garba Kurfi MD/CEO APT Securities & Funds Ltd)
- The Power of Technical Tools In Today’s Volatile Market Mr Rotimi Olubi. MD ARM Securities Ltd
- Building Recession-Resistant Portfolios In A Financial Reset Mr Muktar Mohammed, MD Muktar Finance Ltd
- The Role of Commodity Trading In Wealth Creation, Agricultural Development
- Fixed Income Market Slice & Dice In A Changing Interest Rates, Inflationary Environment Mr Teriba Adeboye, MD/CEO, Qualinvest Capital ltd
8, Four Steps To Simplify Your Day Trading & Understanding the power of Breakout Trades Mr Abdul-Rasheed Oshoma Momoh, Head Capital Market at, TRW Stockbrokers Ltd
9, 10 Golden Stocks for 2023, Mr Ambrose Omordion, CRO. Investdata Consulting Ltd.
Investdata Consulting Ltd will hold the 11th edition of its annual Investment conference tagged Invest 2023 Traders & Investors Summit, which has over the years remained a game changer for market players. This edition is aimed at helping stakeholders prepare for the financial market reset expected to happen next year by identifying opportunities and bringing tradable ideas for profitable investment as we enter election year. This one-day event is yet “Another wealth transfers for the prepared as the bull is underway after this correction “
Are you prepare to move cash to profitable assets ahead of year-end and the 2023 general elections, Invest 2023 is a don’t miss summit that is capable of completely changing your view about wealth creation in a disconnect system where the economy and stock market are headed and when you should fully plunge in or hold cash. Join equity market experts and other experienced professionals as they discuss a “Big Picture Perspective” of where the stock market and other investment windows are today, and what signs to watch for in the coming months. Don’t miss this summit.
This annual summit offers you, whether an investor, or trader an insight, perspective and expectation in the new year. This edition is exceptional, given the increasing headwinds across the globe and locally, ranging from the aggressive rate hikes, soaring inflation, geopolitical tensions, and uncertainties surround the 2023 general election like others before it. There will also analyses on the status of different investment windows and opportunities ranging from the economy, equity, bond, commodity markets, using fundamental and technical tools.
Looking at history, there is no doubt that a correction or rebound is on the cards at some stage over the coming months. However, this big questions on everybody’s lips include when this will occur and whether it will end this bull-run or market recovery. Whatever happens, what is the best way to Prepare rather than trying to Predict? This and more, are what Invest 2023 Summit will address.
What to expect at this Summit?
A. How to take advantage of the correction for huge profit
B. Strategies to stay in profit, overcome market correction/pullbacks
C. How to hedge against inflation and preserve your portfolio
D. Understanding the power of liquidity and circular flow of funds in financial markets
E. Risk/return from Bonds to stocks right now.
F. Commodity trading as another investment window to boost return
- The exact sectors and tickers you should be looking at this volatile market
- Market events and others you can use to trade in any market situatio
Benefits of attending
- 10 Golden Stocks for 2023
ii. Admission to Investdata Buy & Sell WhatsApp Platform
iii. Among others
“Invest 2023 – Connects you to new trade opportunities and ideas to enhance your trading returns
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 3, 2023
Time: 9am
Fee: N30,000
Venue: Zoom
If you want to reset your profit by taking advantage of opportunities in financial market and assets repricing in 2023? Send Yes to 08028164085, 08179547605 now.
Ambrose Omordion
CRO|Investdata Consulting Ltd
ambrose.o@investdataonline.com
Tel: 08028164085, 08179547605
