Market Update for September 21

The bearish mood on the Nigerian Exchange continued at the midweek despite the seeming mixed sentiment that revealed buying interests in some sectors and in dividend stocks, following which the benchmark NGX All-Share Index closed marginally lower, reversing previous session’s gain on a low traded volume and negative market breadth.

Position taking in some banking stocks supported the sectoral index and reduced the decline of the general market index, regardless of the recent volatility across NGX in the face of price markdown and profit taking ahead of MPC meeting holding next week after the interest rates hike by Feds again by a further 75 basis points at the expense of economic recession and continuation of its aggressive monetary policy tightening.

The market remains quiet ahead of next week’s meeting of the Central Bank of Nigeria (CBN) Monetary Policy Committee, because many players stay on the fence, waiting to confirm direction before jumping in, as outlook for the economy and the financial market remains unpredictable. However, there are sectors, industries and individual stocks that are still seeing positive activities from traders and investors. Those are stocks players should be paying attention to, as the decline in the NGX index action was halted after the fourth successive session, on improved traded volume in the midst of negative market breadth.

Despite, the seeming bear run, the market internals are revealing the hidden forces that work 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’s 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 sessions show position taking, while funds enter some stocks as revealed by money flow index which need to be confirmed, especially as positive sentiment supported the previous session candlestick formation and reversal pattern which was weak.

At the current declining phase, the decision about when to buy or sell individual stocks or an index, 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. Also, the last quarter of the year is around the corner, are you prepare to take advantage of seasonality to recover your losses and boost your gains?

To navigate the rest of the 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 price oscillation continued as it pulls back to $90.46 in the midst of weak demand and fear of recession around the globe in the face of supply tighten, as China battle with Covid 19 lockdown. The up and down movement in oil price, has 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, midweek’s trading opened on the down side and oscillated for the rest of the day on buying interests and selloffs in blue chip stocks, a situation that pushed the NGX’s index to an intraday low of 49,318.55bps from its highs of 49,455.99ps, before closing slightly below its opening figure at 49,421,91bps.

Market technicals were mixed and weak, with lower volume of shares traded than the previous day in the midst of breadth favouring bears on positive sentiment as revealed by Investdata’s Sentiments Report showing 75% buy position and 25% sell volume. The total transaction volume index stood at 0.30points, just as momentum behind the day’s performance was relatively weak as Money Flow Index is looking down at 35.27pts, from the previous day’s 42.41pts, indicating that funds left 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 Wednesday’s trading, the composite NGX All-Share index slide by 23.40bps, closing at 49,421.91bps, after opening at 49,445.31bps, representing a 0.05% drop, just as market capitalization fell by N12.62bn, closing at N26.66tr, from the previous day’s N26.67tr, which also represented a 0.5% value loss.

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 decreased to 15 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.

Midweek’s downturn was driven by selloffs in Lafarge. FBNH, NGXGroup, Sterling Bank, Accrsscorp, Oando, Cadbury, UCap, NEM, Academy Press and Jaiz Bank among others, which impacted mildly on Year-To-Date gain, as it reduces to 15.70%. Market capitalization gain YTD also rose to N2.93tr YTD, representing a 19.56% rise over the opening level for the year.

 Bearish Sector Indices

All the sectorial performance indexes were down, except NGX Banking that closed 0.49% higher, while the NGX Insurance index led the decliners after losing 1.21%, followed by Energy, Industrial and Consumer Goods with 0.10%, 0.03% and 0.02% respectively.

Market breadth was negative, as losers outpaced gainers in the ratio of 12:10; just as transactions in volume and value were down, as players exchanged 51.88m shares worth N500.01m, with volume driven by trades in Zenith Bank, GTCO, Sterling Bank, Fidelity Bank and Transcorp.

Unity Bank and Multiverse were the best-performing stocks, gaining 10% and 9.82% respectively, closing at N0.44 and N3.13 per share respectively on market forces. On the flip side, Academy Press and NEM Insurance lost 9.78% and 6.08% respectively, closing at N1.66 and N5.25 per share, purely on profit taking.

Market Outlook

We expect a mixed trend as reversal is underway on bargain hunting and cautious trading as investors digest the latest inflation data and recent results from the banking sector, especially those with interim dividend payout ahead of next MPC meeting, while portfolio rebalancing continues on bargain hunting 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.

Sub-Topics

1. Equity Investing in changing volatile Market: Two Sides Of The Coin, Mr Rotimi Olubi. MD ARM Securities Ltd
2. Arbitrage Trading & Other New Strategies To Hedge Against Stagflation, Mr Abiola Rasaq , CSCS
3. Mastering Contemporary Technical Tools For Wealth Building In Uncertain Environment, Mr Abdul-Rasheed Momoh, Head Capital Market, Trw Stockbrokers Ltd
4. 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.

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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

1. How all fixed income market instruments had failed investors in stagflation environment
2. How arbitrage trading is creating income for discerning market players
3. How to hedge against inflation and preserve capital in sectors and industry that have the potential to drive profit that will support equity prices
4. How classical technical analysis had failed many traders in this high volatile market
5. How to filter market noise and identify the most opportune time to join any trade
6. Tradeable chart patterns and candlestick formations that signal real money-making opportunities
7. Five hot stocks that beat inflation and deliver over 30% in a short period of time.
8. 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

Venue: ZOOM

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.

Ambrose Omordion

CRO|Investdata Consulting Ltd

info@investdata.com.ng

ambrose.o@investdataonline.com

ambroseconsultants@yahoo.com

Tel: 08028164085, 08179547605