Market Update for November 7
Trading activities on the Nigerian Exchange extended its positive momentum on Monday, despite closing flat, with the benchmark NGX All-Share Index inching up on a mixed sentiment and buying interests in blue-chips, especially those that had corrected before now on prevailing market conditions with stronger earnings to support a higher payout at the end of the current financial year.
On the strength of actual numbers released by the quoted companies, sector rotation and portfolio alignment that had continued among the market players, as increasing volume is being noticed in some sectors and individual stocks ahead of year-end seasonality and others events that are likely to give the market direction. Also, especially since most stocks have touched their 52-week lows, and some are tending towards their year low, creating more entry opportunities for discerning investors.
Investing in the stock market requires deliberate efforts, if you must be on the winning side of the market at the right time, because it pays to take the opposite side of trade when bull or bear sentiments among market players hits an extreme level. This is called contrarian investing, which has been behind the famous quote by Warren Buffett: “be fearful when others are greedy and be greedy when others are fearful.” It is important for investors to know what to do per time, relative to the state of the market and happenings in the area of market fundamentals and economy at large.
Despite the prolonged mixed investor sentiments recently, money flow index had indicated gradual entrance of funds into the equity space, as renewed interest on impressive numbers from some companies in the mixed of selloffs and profit-taking. Also, the seeming low liquidity and confidence ahead of the 2023 general election and other factors, this provides a huge rally opportunities for discerning traders and investors, as the NGX seems to rebound and signal lower highs at the end of Monday trading.
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 mixed sentiment witnessed, it is time to go shopping for undervalued stocks, sectors and the next insider playing opportunity.”
Oil price continued its oscillation as it pulls back to trades at $97.77, in the midst of emergency energy shutdown in Ukraine and price cap era. Also with fear of Saudi oil attack in the midst of continued fear of global recession and supply tighten due to Russia Ukraine war that are getting worst. Coupled with the impact of hawkish monetary policy by central banks, just as China COVID-19 lockdown issues are becoming confuse. The up and down movement of 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.
Meanwhile, Monday’s trading opened in the red and was sustained till early afternoon, before rebounding on position taking in blue chip companies, a situation that pushed the NGX’s index to an intraday high of 44,274.18bps from its lows of 44,217.38bps before closing slightly above its opening level at 44,269.43bps.
Market technicals were positive and weak, with lower volume of trade than the previous session in the midst of breadth favoring bears on a buying sentiment as revealed by Investdata’s Sentiments Report showing 92% buy position and 8% sell volume. The total transaction volume index stood at 0.63points, just as momentum behind the day’s performance was weak as Money Flow Index is looking up at 41.80pts, from the previous day’s 32.06pts, indicating that funds entered the market, despite closing flat.
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Index and Market Caps
The NGX All-Share Index, at the end of Monday’s trading inched up by 0.25bps, closing at 44,269.43 basis points, after opening at 44,269.18bps, representing a 0.001% up, just as market capitalization fell by N0.14bn, closing at N24.11tr from the previous day’s N24.11tr, which also represented a 0.001% value loss.
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Monday’s upturn was driven by demands in the shares of Geregu, UCap, Accesscorp, Fidson, UBA, Transcorp, Cutix, Linkage and NGX Group, among others, which impacted mildly on Year-To-Date gain, reducing it to 3.64%. Market capitalization gain YTD increased to N1.13tr, representing an 8.82% rise over the opening level for the year.
Mixed Sector Indices
Sectorial performance indexes were mixed as the NGX Insurance and Consumer Goods closed 0.87% and 0.02% higher respectively, while the NGX Banking led the decliners after losing 0.29%, followed by Industrial goods with 0.02%. Just as Energy closed flat.
Market breadth was negative with losers and gainers in the ratio of 18:11; just as activities in volume and value were down, with investors exchanging 103.27m shares worth N2.14bn. Volume was driven by trades in Zenith Bank, Geregu, GTCO, FBNH and Accesscorp.
Royal Exchange Assurance and Cutix were the best performing stocks, after gaining 9.72% and 6.83% each, closing at N0.79 and N2.19 per share respectively on market forces and earnings expectation. On the flip side, Learn Africa and Cornerstone Insurance lost 9.52% and 9.09%, closing at N1.52 and N0.40per share, purely on profit taking and selloffs.
We expect mixed sentiments to continue on portfolio repositioning and bargain hunting in the midst of expected macroeconomic data and election uncertainty, as investors are taking advantage of the low prices to reposition ahead Q3 GDP report and year end seasonality.
Invest 2023 Traders & Investors’ Summit
Theme: Preparing For Financial Market Reset in 2023 & Beyond
- Stagflation, Economic Headwinds & The Stock Market: Are Market Players Prepared?
- Comprehensive & Complete Wealth Building Actionable Strategies for 2023
- Identifying Great Value Stocks For Santa Claus & Post-Election Rally
- The Power of Technical Tools In Today’s Volatile Market
- Building Recession-Resistant Portfolios
- The Role of Commodity Trading In Wealth Creation, Agricultural Development
- Fixed Income Market Slice & Dice In A Changing Interest Rates, Inflationary Environment
8, Four Steps To Simplify Your Day Trading & Understanding the power of Breakout Trades
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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
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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
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- 10 Golden Stocks for 2023
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iii. Among others
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CRO|Investdata Consulting Ltd
Tel: 08028164085, 08179547605