Market Update for January 2
The first trading session of 2019 was a very volatile one as it closed lower on low traded volume given that most bargain hunters are still on holidays, with those available taking profit from highly capitalized and blue chip stocks. Recall that most of these had appreciated during the last Santa Claus and year-end rally.
Meanwhile, on the economic front, data from the Central Bank of Nigeria (CBN) showed relative improvement in the Purchasing Managers’ Index (PMI) which reveals that activities in the nation’s manufacturing sector expanded in December to 61.1 points from 57.9 points in December. This was a reflection of the festive period and did not inspire investors as the developments in the political economy is at its peak ahead of the 2019 general elections. This is still hindering many from participating in the market now after suffering huge losses in 2018.
Wednesday’s trading session started off the day on a little gap down in the morning then reversed up at the mid-morning before pulling back in the midday to afternoon and managed to rebound marginally in the end of the trading session.
However, the NSE index hit an intraday low at 31,065.25 from highs of 31,434.04 before finally closing at 31,070.06 on a negative sentiments.
Investdata Research believes that January effect that was wiped way in early 2018 will resurface this period due to low liquidity in the market ahead of the general polls which will influence the market negatively, unless there are positive economic or political news or information that will reverse the trend before the presidential election and 2018 full year earnings season. Discerning investors and members of Investdata signal group should use this opportunity to shop for companies that will grow their dividend payout which will drive price during the earnings season and avoid the companies that are likely to cut dividend.
Midweek market technicals were negative as traded volume was lower than previous day’s huge transactions in the midst of negative breadthand strongselling pressure as revealed by Investdata’s Daily Sentiment Report, showing a sell volume of 99% and 1% buy position. Volume index for the day’s total transactions was 0.64, while the momentum behind the market’s performance was down, as reflected in the money flow index at 36.66bps, from previous day’s 36.97bps, indicating that funds are leaving some stocks and entering others for now.

Index and Market Cap
The All Share Index at the end of the session shed 350.44 basis points to close at 31,070.06bps, from 31,430.50bps, which represented 1.15% decline, just as market capitalization dropped by N134.41bn to N11.57tr, from opening value of N11.72tr, representing a 1.15% value loss.
Attention: Join Investdata buy and sell signal setup to get all our in-depths analysis on the picture and to get access to our carefully created watch list. 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.
The downturn was impacted by value depreciation in medium and high cap stocks like: Nestle, Dangote Cement, Flour Mills, Dangote Sugar, Dangote Flour, Diamond Bank, FCMB, Oando, Honeywell, Access and Transcorp among others. Bring the Year-to-Date loss to 1.15%, and that of market capitalization to N134.41bn from its opening level of N11.72tr, representing 1.15% decline.

Bearish Sectors Indices
All the sectoral indices were in red, except for NSE Banking that slightly closed up by 0.08%, while market breadth was negative with decliners outnumbering advancers in the ratio of 22:16, just as activities were down in volumeand value by 76.93% and 60.47% respectively. As investors traded 214.4m shares worth N1.56bn, compared to previous session’s 929.3m units valued at N3.95bn, driven by, Diamond Bank, Sovereign Trust Insurance, Access Bank, Zenith bank and FBNH.
Julius Berger and Vitafoam were the best performing stocks as they topped the advancers’ table, gaining 9.95% and 9.55% respectively to close at N22.10 and N4.82 each, apparently on the back of market forces and dividend payment of 25 kobo and 1:5 bonus. The day’s decliners’ side was led by Nigerian Breweries and Law Union Insurance, following their 8.42%% and 8.33% slide, closing at N78.30 and N0.55 each, on profit taking .
Market Outlook
Expect profit taking and sustained volatility amidst repositioning for 2018 full year earnings season to shape performance of the market ahead of December inflation data, MPC meeting, the Presidential election, earnings season and hand over.
MACD on weekly time frame support uptrend while daily time frame has started looking down.
The ongoing volatility will persist as Q3 numbers assist investors and fund managers rebalance their portfolios, while watching the political space and ahead of full year company earnings position and post-election market dynamics. These are likely to drive prices north, or southward, while determining market direction before or after the Presidential Election.
Investors should review their positions in line with their investment goals, strength of the com.pany’s 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 low in the midst of weak company, economic and market fundamentals.

RE: INVEST 2019
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the Just Concluded and life transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT Home study pack (USB) that you can play on your phone, Laptop and Television set. The event, which held on Saturday, December 8, 2018, was yet another successful, insightful and educative outing that not only offered direction as to where investors should look for a profitable 2019, but industries, sectors and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment.
Don’t sit on the Fence call or text Stock to 08028164085,08032055467, 08111811223 now.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467