Indicators Close Green, On Improved Money-Flow Index On NGSE

Market Update for October 8, 2018

It was an interesting session on the Nigerian Stock Exchange on Monday, as the All-Share index closed marginally positive on improved buying sentiments that halted the four consecutive sessions of loss, kick-starting the week as investors awaits Q3 numbers. The relatively peaceful process in party primaries that produced different presidential candidates have set the tone for next year’s general elections.
The composite index gapped higher in the morning and was sustained till midday and into the afternoon, hitting intraday resistance level at 32,476.28 basis points, from lows of 32,383.15bps. It could not, however, get through before pulling back marginally to close the session at 32,444.96bps on a low traded volume that revealed the wait-and-see posture of investors as they continue to digest market dynamics.
Meanwhile, trading activities continued in the week and month with mixed bias on downtrend and recovery, following which market players should focus on economic indices and fundamentals, as corporate earnings reveal the true state of the listed companies to guide their next move. This has become necessary, because governance, it does seem, has been abandoned on the altar of politics.
Worse still, the capital projects in the Appropriation Bills of 2015, 2016, 2017 and 2018 are yet to significantly reflect and impact the economy positively, as signals and mixed economic indices emanating from the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS) are pointing to another round of recession, unless urgent steps are taken to stimulate the economy by strengthening productivity.
Monday’s market technicals were positive and mixed, with buying pressure looking up on a positive market breadth, but low traded volume as revealed by Investdata’s Daily Sentiment Report, revealing a ‘buy’ volume of 66% and 34% ‘sell’ position. The volume index for the day’s total transactions was 0.58.
The momentum behind the day’s market performance remained up, as reflected in the money flow index at 56.73bps, from the previous day’s 51.54bps, indicating that funds are entering some stocks as bargain basement pricing attracts new positioning ahead of the earnings season and last quarter seasonality’s in the midst of low market liquidity.

Index and Market Cap
The benchmark index at the end of the session gained 61.81bps, at 32,444.96bps, after opening at 32,383.15bps, representing a 0.19% rise, just as market capitalization was up by N22.56bn to close at N11.84tr, from an opening value of N11.82tr, representing a 0.19% appreciation in value.

Attention: Investdata buy and sell signal setup is our premium advisory service. And we do like to invite you to join today, as we are beginning what I think will be a tremendous run for value stocks into the end of the year. It’s a great deal for the money. Just subscribe, and get immediate access to a WATCHLIST of stocks. When you join, you’ll get immediate access to every recommendation–past, present and future–in the Signal Setup. And we will deliver the bigger picture and update every week, directly to you via email. We look forward to welcoming you onboard, and navigating together as we continue to invest alongside the smart money, institutional players and discerning investors.To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. The number of stocks on our watchlist has increased due to the prolonged market correction. Take advantage of this service to buy right and sell right.
Monday’s upturn was impacted by value gain in medium and high cap stocks like: Nigerian Breweries, Zenith Bank, Guaranty Trust Bank, FBNH, Stanbic IBTC, Conoil, UBN, Caverton and Honeywell, which impacted positively on Year-to-Date negative returns to contract 15.16%, while market capitalization lost N1.79 trillion, representing 12.97% slide from the opening value.
Bullish Sector Performance
The sectorial performance for the session was bullish, led by NSE Insurance and NSE Banking index with 0.77% and 0.42% respectively. Market breadth was positive as advancers outnumbered decliners in the ratio of 16:11, to short-lived bearish transition.
Market activities in volume and value were however down by 27.8% and 9.89% respectively to 120.82m shares worth N1.34bn, from previous day’s 166.65m units valued at N1.49bn.
Transactions were boosted by trading in financial services stocks like: Guaranty Trust Bank, FCMB, NEM, Fidelity Bank and Zenith Bank.
The best performing stocks for the day were Unity Bank and Neimeth that topped the advancers’ table, gaining 9.09%and 8.47% respectively to close at N0.96 and N0.64 per share, as a result of market forces. On the flip side, John Holt and Guinea Insurance lost 9.43% and 9.38% respectively, closing at N0.48 and N0.29 each on market forces.

Market Outlook
As the journey into 2019 elections enters top gear, expect increased activities of bargain hunters in the midst of volatility and profit taking ahead for the Q3 earnings reporting season that kicks off soon. Also, the September inflation data is being expected. Investdata projects that it could be in the region of 11.49%, despite the political risk, with the electioneering spending beginning.
Investors are looking forward to Q3 earnings reports so as to rebalance their portfolios and watch the political space, while analysing the actual numbers that will give insights into expectations for Q3 GDP and full year companies earnings power that are likely to drive prices and determine themarket before or after February election.
Investors should review their positions in line with investment goals, strength of the company numbers and act as events unfold in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value,
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst mixed company, economic and market fundamental.

Attention! Attention!! Attention!!!
Investdata Consulting Ltd presents The 8th edition of its TRADERS & INVESTORS SUCCESS SUMMIT tagged: INVEST 2019, designed to be the biggest yearly workshop for stock market traders &investors in Nigeria.
Theme: Adopting The Billionaire’s Mentality In Stock Selection.
Venue: Ostra Hotel & Hall, Alausa, Opposite NNPC Gas-Plant Ikeja Lagos. Date: Saturday, December 8, 2018.
Time: 10a.m.
The huge decline in stocks from its January 2018 peak has not necessarily been due to the fundamentals of quoted companies, but investors flight for safety over uncertainties arising from next year’s general elections, participants will learn from experts/facilitators at the workshop, how and where to position for juiciest returns, depending on investment horizon.
Previous editions have attracted participants from diverse class of investors and traders, as well as several world-class professionals and experts as speakers and facilitators, including representatives of quoted companies and stockbroking firms. The event has helped market players to effectively time opportunities for higher returns in the New Year.
In today’s equity market, there is wisdom in being able to identify ‘buy’ opportunities very early and sell for maximum returns, while minimizing loss in any market situation.Understanding the dynamics of the stock market during any cycle is the very key to successful trading and investing. For this to happen,we must arm ourselves with knowing the essential driving forces behind the market as they move up and down.
At the INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT (TISS) you will discover some seldom considered aspects of investing and trading that can help you bag more big winners, while ratcheting down the number of losers in 2019 and beyond.
This summit will provide answers to these six crucial questions AND others

• What exactly is it we are trying to do as traders & investors?
• What occurs every post-election year that we wish to take advantage of?
• What are the prevailing market moves and who are the dominant players?
• What is ‘smart money’ doing?
• Where should we look to enter the market or exit?
• Is it the same every day, season and year?

When you answer these important (and frequently overlooked) questionscorrectly, your trading/investing skills will launch into new levels.
For Registration kindly send YES or REG to 08028164085, 08032055467, and 08111811223 now for details.

Ambrose Omordion
CRO|Investdata Consulting Ltd
Tel: 08028164085, 08032055467