The market and economic outlook for the rest of the year remains dicey and unpredictable as the unstable global economic prospect continues to hamper investor confidence, while the tension arising from the trade threatens world investment and trades relationship that support growth and development. The rising crude oil price that closed above $74 last week should further impact government revenue positively to reflect on the nation’s external reserves, supporting government spending. Revenue in excess of the $51 benchmark set for the 2018 budget should help to fund the budget deficit and reduce borrowing so that the spending plan will make the expected economic impact on the life of Nigerians.
The relative peace and security in the nation’s Niger Delta region that has guaranteed stability of oil output has supported the upside in the nation’s revenue, economic health and wellbeing which if not sustained as the 2018 general elections draw closer may reverse the progress recorded so far.
As the second half begins, more positive economic data are expected, especially inflation figure for June which INVESTDATA Research estimated could be in the region of 10.69 to 10.96%, Purchasing Managers Index (PMI) and GDP are also expected to confirm that the economy is on the path of growth or slowing down.
As Q2 earnings season kicks off on Monday, after the Q2 officially ended last week, company scorecards for half year are expected to reveal the current performance position in order to help investors ascertain the health and wellbeing of listed companies as they take investment decisions. This is especially true as equity prices remain low and the general election draws closer on daily base.
Traders and investors who understand the operations of the stock market should take this opportunity to position in some sectors for medium to long term gains, especially in the industrial goods, banking, Insurance, Agribusiness and consumer goods.
The half-year financials of many listed companies will help to project whether a company is likely to post better Q3 earnings or not, which is the most important quarterly earnings reports that give insight of how the full year could pan out, while at the same picturing economic activities as measured by the GDP.
July As An Unpredictable Month On Nigeria’s Bourse
Equity price movement as we have always noted in INVESTDATA, is a function of earnings. And other information emanating from its sector of operation and the economy which are expected to attract market players for different investment goals. In the Nigerian stock market, the month of July has been unstable in terms of performance making, it difficult to predict, especially with uncertainties that surround pre-election periods, since political parties have not done their primaries or shadow elections to choose candidates that will bear their flags in the general elections. It is very dicey at this point to predict whether it is an up market in July, but an oscillating market in this second half will likely close the year marginally up or flat as recorded in the first-half.
What to expect in July and August
- Implementation of new NSE market structure and pension funds new assets funding
- More quarterly and few full year earnings would be released. Earnings from blue-chip companies may strengthen market fundamentals, if positive and do beat estimates.
- Interim dividend expectation especially from the financial services stocks
- High market volatility as a result of profit taking and some disappointing numbers that will be released this period. Also, the source of funds flowing into the market may cause fluctuations, giving that both local and foreign institutional investors trade thereon. Also, there is the factor of the Federal Government crowding the private sector out of the financial market, with their offer of high and mouth-watery rates.
- Investors are expected to reshuffle their portfolios and invest in equities with strong fundamentals and prospects of growing their earnings going forward.
- A more vibrant market as a result of market players positioning for second half of the year, even as we expect liquidity to improve more.
- Market outlook for these months are dicey but invest wisely, using dates, bids, offers and volume when taking decisions.
- Managing risk and protecting capital at this point is very important, so you will be able to determine when to buy or sell by watching the stocks and the market, using technical analysis tools.
Investdata Stock Market Training Workshop
On Saturday, July 28, 2018
Theme- Comprehensive Stock Trading & Investing Toolkit for Rest of 2018
Review of 2018H1 Market & Economic Performance: How Fiscal Reforms and Stimulus Will Support the Market/Economy in 2018H2.
In this presentation, the speaker will discuss how historically the Fiscal and Monetary policies have influenced Nigeria’s stock market, the implications for the second half and it would drive equity prices higher as recovery continues.
2018H2 Trading Checklist: How to Find Winning Stocks in Nigeria’s Volatile Equity Market
After the prolonged correction, volatility is here to stay for the rest of 2018. Is it time to start worrying about losses suffered so far, a flattening yield curve or time to relax due to the outstanding earnings season? Better yet, is there a way to harness increased volatility to your advantage? Our facilitator, a stock market expert will show you how to handle increased volatility in 2018. He’ll offer insights into forces impacting today’s market. He will share, using real-time examples, his ultimate checklist to finding winning stocks propelled by volatility. This simple strategy allows you to quickly evaluate stocks and to better time entry and exit points, while understanding market forces moving your portfolio
How To Generate Consistent Superior Equity Returns and Income With Dividend Stocks
Here, the expert will discuss his approach to generating equity income by investing in undervalued dividend stocks, what he looks out for when trading dividend stocks at a discount to historical valuations on multiples of price to sales, earnings, cash flow, book value, and enterprise value to EBITDA. In addition, he requires companies to have positive operating cash flow over the past 12 months, with dividends covered comfortably by cash flow.
Powerful Patterns and Effective Strategies for Trading Shifts in Market Volatility
Recent and ongoing changes in market volatility present both risks and opportunities for discerning traders. Learn some of the most effective strategies for taking advantage of the high-probability trading opportunities available in equities, while minimizing risks associated with stock market trading. The six most powerful patterns in the market to trade, how to know which patterns and strategies to specialize in for consistent results and the critical difference between oscillating and momentum patterns.
Date On Saturday, July 28, 2018
Venue: Ostra Hotel & Hall
Kindly call or send yes to 08032055467, 08028164086 or 08111811223.
CRO|Investdata Consulting Ltd
Tel: 08028164085, 08032055467