Expect Mixed Trend, Profit Taking, Momentum Investing, Positioning On Q3 Reports

Market Update for November 9

On Tuesday, transactions on the Nigerian Exchange remained upbeat, but on a reduced momentum as the composite All-Share index extended its bull-run for a third consecutive session, on above-average traded volume in the midst of positive breadth. There was also the impact of increased buying interests across the major sectors, except for insurance that witnessed some profit-taking activities during the session.

The positive sentiment and vibes supported the NGX index to close higher ahead of 2018 resistance level, as its counterparts across the globe recorded mixed performance on inflationary concerns and infrastructural bills that had impacted crude oil prices positively as it rebound at the international market.

Technically, the NGX index’s action has sustained its markup phase and is now set to break out a major strong resistance level of 43,921.17 basis points on price appreciation of high cap tech stocks and others. Also, momentum indicators have confirmed an uptrend with bullish MACD, positive RSI, and money flow index looking up on a daily chart, just as the possibility of a bull spike for the rest of the year and in 2022 is high after market players finish digesting the recently released earnings reports. We note that the market is set to break out its 2008 resistance level of 45,921.17bps if these positive vibes continue.

However, these strong earnings, interim corporate actions, and the level of liquidity in the equity space will determine the extent of the market rally when it rebounds from this pullback. Already too, all eyes are on happenings as regards the global inflation rates and oil prices currently oscillating around $84 per barrel; on the impact of the drop in oil consumption by China, as OPEC holds on to supply. So far, the direction of yields in the fixed income market remains unclear.

Tuesday’s trading started slightly on the upside which was sustained throughout the session before oscillating on buying interests in blue-chips and some profit-taking that pushed the NGX index to an intraday high of 43,730.89 basis points where it closed above its opening level, from a low of 43,242.15bps.

Market technicals for the day were positive and mixed with lower volume traded than the previous day’s in the midst of breadth favouring the bulls on positive sentiments as revealed by Investdata’s Sentiment Report showing 92% bull volume and 8% sell position. The total transaction volume index stood at 0.79 points, just as momentum behind the day’s performance remains relatively strong, Money Flow Index looking up at 68.07 points, from the previous day’s 63.07 points, indicating that funds entered the market.

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Index and Mkt Cap Movement

The benchmark index NGXASI, at the end of the session, gained 483.58 basis points, closing at 43,730.55bps after opening at 43,246.87bps, representing a 1.12% growth, just as market capitalization rose by N252.41bn, closing at N22.82tr, from the opening value of N22.57tr, also representing 1.12%value gain.

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Tuesday’s upturn was driven by buy interests in Airtel Africa, MTN Nigeria, Flour Mills, United Capital, Lafarge Africa, NGX Group, FTN Cocoa, Fidelity Bank, and Livestock Feed, among others, which impacted positively on Year-To-Date gain, which increased to 8.59%. Market capitalization stood at N1.75tr YTD, representing an 8.15% growth from the year’s opening value.

Bullish Sector Indices

Sectoral performance indexes were bullish, except for the NGX Insurance index which closed 0.28% lower, while the NGX Industrial Goods index led the advancers after crawling 0.21% up, followed by Consumer Goods, Energy, and Banking with 0.21%, 0.12%, and 0.07% respectively.

Market breadth was positive, as advancers outnumbered decliners in the ratio of 24:16, while activities in volume and value terms were down after stockbrokers traded 280.71m shares worth N3.48bn, compared to the previous day’s 443.61m units valued at N5.05bn. Volume was boosted by trades in Sterling Bank, UACN, Zenith Bank, United Capital, and Access Bank.

FTNCocoa and ABC Transport were the best-performing stocks after gaining 10% each, closing at N0.44and N0.33 per share respectively on market forces. On the flip side, Berger Paints and Caverton lost 9.52% and 9.09% respectively, closing at N8.55 and N1.70 per share purely on profit-taking.

Market Outlook

We expect the mixed trend on profit-taking and momentum investing as breakout traders jump into positions on the strength of Q3 numbers, just as candlestick formation and volume traded at the end of day trading revealed positive investors vibes as the index continues to trend up. Also, we note that institutional players are not selling but positioning in blue-chip companies, as they watch the pullback 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


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.

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

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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




Tel: 08028164085, 08179547605