Market Update for November 16
The nation’s equity market on Tuesday witnessed a positive outing, halting four consecutive days of decline on a high traded volume and rekindled buying interests occasioned by the recent pullbacks in the midst of positive economic data and positive sentiment for financial stocks.
Investors buying sentiments in the equity space resulted from discerning players taking advantage of price corrections in blue-chip stocks as all eyes are on fixed income market yields and the upcoming federal government bonds that had made many players sit on the fence.
As mentioned in our Monday update, technically the NGX index’s action has formed a bullish hammer that supports a reversal, which was confirmed at the end of Tuesday’s trading session on a high volume, driven by FBNH and others. Momentum indicators for the day were bullish, with ADX reading 64.46 and the money flow index looking up at 64.48 points on the daily chart. The continuation of this trend depends highly on the interplay of market forces on Wednesday.
However, the better-than-expected Q3 earnings, interim corporate actions, and positive economic data as well the level of liquidity in the equity market will determine the extent of the expected market rally when it begins, from this pullback. Already too, all eyes are on happenings as regards the global inflation rates and oil prices currently oscillating around $82 per barrel.
Tuesday’s trading started slightly on the downside, before rebounding by the mid-morning and oscillating for the rest of the session on demand for low, medium, and high cap stocks. This situation pushed the composite index to an intraday high of 43,469.31 basis points from its lows of 43,175.64bps and thereafter closed above its opening point at 43,44.20bps.
Market technicals for the day were positive and strong as volume traded was higher than the previous day’s in the midst of a flat breadth and positive sentiments as revealed by Investdata’s Sentiment Report showing 95% buy volume and 5% sell position. The total transaction volume index stood at 1.08 points, just as momentum behind the day’s performance remains relatively strong, Money Flow Index looked up at 64.48 points, from the previous day’s 56.84 points, indicating that funds entered the market.
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Index and Mkt Cap Movement
The key performance index, at the close of Tuesday’s trading, gained 225.48 basis points, at 43,444.20bps after opening at 43,230.341bps, representing a 0.49% growth, just as market capitalization rose by N112bn, closing at N22.67tr, from the opening value of N22.56tr, also representing 0.49% appreciation in value.
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The session’s upturn was due to demand for stocks like Airtel Africa, FBNH, and UBA, among others, which impacted positively on Year-To-Date gain, as it increased to 7.88%. Market capitalization stood at N1.68tr YTD, representing a 7.61% growth from the year’s opening value.
Mixed Sector Indices
Sectoral performance indexes were mixed, as NGX Insurance, Banking, and industrial goods closed higher by 0.39%, 0.11%, and 0.01% respectively, while NGX Oil/Gas index led the decliners after losing 2.49%, followed by Consumer Goods with 0.38%.
Market breadth was at par, as gainers were equal to losers in the ratio of 18:18, while activities in volume and value terms were up after investors had exchanged 423.83m shares worth N11.65bn, compared to the previous day’s 293.43m units valued at N4.293bn. Volume was boosted by trades in FBNH, Sterling Bank, Transcorp, GTCO, and Jaiz Bank.
Cutix and Cornerstone Insurance were the best-performing stocks, gaining 8.33% and 7.69%, and closing at N3.25 and N0.56per share respectively on market forces. On the flip side, Total Energies and Mutual Benefits Assurance lost 9.97% and 6.90% respectively, closing at N216.80 and N0.27 per share, purely on profit-taking.
Market Outlook
We expect a mixed trend ahead of next week’s meeting of the Central Bank of Nigeria Monetary Policy Committee (MPC) and the unclear direction of yields in the fixed income market and upcoming FGN Bonds. Also, momentum investing continues as high volume resurfaced after the pullbacks had created new opportunities for players to jump into positions on the strength of the Q3 numbers. Also, candlestick formation and volume traded during the day’s trading revealed that buyers are in control, as the index rebounded. Also, we note that institutional players are not selling but positioning in blue-chip companies, as the pullback was on a light volume. It is equally noteworthy that this pullback at this level is for the accumulation of more positions ahead of year-end seasonality. Also, many stocks are trading within their buy ranges, a situation expected to attract more funds into the equity space, given the Dividend Yield capable of serving as a hedge against inflation.
Invest 2022 Traders & Investors Summit
Theme: Master The Market, Get The Best Of Pre-Election Year 2022
Sub-Topics
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, Mr. AkinyinkaAkintunde, 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, Mr. OluwasegunAkinwale, 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.
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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
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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
ambrose.o@investdataonline.com
Tel: 08028164085, 08179547605
