Market Update for April 10
Trading activities on the Nigerian Stock Exchange (NSE) at the midweek continued its volatility, closing marginally up on a strong positive sentiment for banking and blue-chip stocks.
The rekindled bargain hunting in the market is attributed to low valuation and a sign that it is bottoming out. All eyes are therefore on the government to champion a new course for the economy with the expected economic policies, reforms and plans to stimulate development and growth that will drive progressive economic activities and create jobs while in the process impacting the nation’s GDP positively.
The recovery sign at the end of midweek’s trading is what many analysts refer to as a ‘dead cat bounce.’ It is an indication that strength is returning, subject to confirmation in subsequent sessions before serious moves are taken.
The general market flow or direction is said to make up 50% of a stock’s movement north or south.
Every market player wants to invest in stocks during a bull-run when the market is on a confirmed uptrend. This confirmation usually occurs when a major index follows through on day four or later, after the rally attempt. The first two or three days of a rally are normally disregarded since the rally has not yet proven it will succeed and follow through with power and conviction. Therefore, a follow-through day occurs when, at least, one of the major indexes makes a big percentage gain on higher volume. The percentage gain should generally be in the region of 2%, or more.
The session opened slightly to the upside in the morning to mid-morning, but pulled back by midday to early afternoon before, the composite index rallied back up in wedge to resist further decline. This was after it had touched intraday low of 29,123.72 basis points from a high of 29,213.93bps, before finally closing at 29,202.54bps on a high traded volume.
Major global central banks in recent times are taking clearly coordinated moves in both messages and policies to ward off erosion of confidence in the global economy. None is interested in surprises as part of an effort to manage the U.S’ 10-year yield and allow for speculative flows that may impact emerging markets and economies positively, since at the end of the FOMC meeting.
Midweek’s market technicals were positive and mixed, with volume traded was higher than the previous day’s in the midst of positive breadth and strong buying pressure as revealed by Investdata’s daily sentiment report. This shows a buy volume of 87%, and 13% sell position of the total daily transaction volume index of 1.05.
Momentum behind the day’s market performance was very weak, despite the relative improvement as shown by Money Flow Index at 16.96 points, from previous day’s 12.01bps. This indicates low inflow into the market, despite the seeming increase in demand for stocks.
Index and Market Cap
At the end of the trading session All-Share index was slightly up by43.97bps to close at 29,202.54bps, after opening at 29,143.46bps, representing a 0.15% growth, while market capitalization was up N16.51 billion to N10.97 trillion, from its opening value of N10.95tr, and representing 0.15% appreciation in value.
Attention: Join Investdata buy and sell signal setup to get all our in-depth analysis of the picture and to get access to our carefully created watch list of stocks. 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 during this Q1 earnings season and beyond.
The session’s upturn was attributed to buying interest in stocks like Dangote Cement, Zenith Bank, FBNH Holding, Dangote Sugar, FCMB, UBA, Access Bank, Wema Bank, NPF Microfinance, Custodian Investment, and Transcorp. This impacted positively on the Year-to-Date loss which reduced marginally to 7.09%. Market capitalization drop fell to N755.45 billion, or 6.45%, from the year’s opening level of N11.72tr.
Mixed Sector Indices
The sectoral performance indexes were largely bearish, except for NSE Banking and NSE Oil/Gas that closed higher with 0.62% and 0.26% respectively. Others were in red position. Market breadth turned positive as advancers outnumbered decliners in the ratio of 24:18.
Market activities for the session were mixed as volume traded was up by 28.77% to 481.63m shares against the previous day 374.03m units, while value dropped by 5.37%, to N2.88bn, from Tuesday’s N3.06bn. Volume was driven by financial services and conglomerates stocks like Transcorp, UBN, Sterling Bank, Access Bank, and Guaranty Trust Bank.
The best-performing stocks for the day, were Livestock Feeds and Custodian Investment with gains of 10% and 9.84% respectively, closing at N0.55 and N6.70 per share on market forces and the 35 kobo dividend per share ahead of its Q1 numbers. On the other hand, Cutix and Glaxosmith lost 10% each, closing at N1.62 and N8.55 each, on profit taking and poor numbers, despite the offer of 50 kobo dividend from previous year’s retained profit.
Market Outlook
We expect a positive outing depending on market forces as traders speculate ahead of Q1 numbers and inflation data for March, which will give direction into how this year could turn out after seeing the weak 2018 financials.
Investors look to government’s policy direction as the market faces low liquidity problems in the ongoing earnings reporting season, vis-à-vis market and economic fundamentals.
Given the drop in the prices of major blue chips in recent times, creating entry opportunities, we expect speculative trading to shape the market direction going forward.
The volatility witnessed last week was driven by traders and investors repositioning ahead of dividend declaration by major listed companies.
The ongoing volatility will continue as investors and fund managers rebalance their portfolios, with eyes fixed on political space and ongoing full year company earnings position and post-election market dynamics. Investors should review their positions in line with their investment goals, the 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 to guide their decisions while repositioning in any stock, especially now that stock prices remain low in the midst of mixed company numbers, weak economic and market fundamentals.
Meanwhile, we greatly appreciate participants in the Abuja Invest 2019 Post-Election Bulls & Bears held on Saturday, March 23.
The investment education train moves to Port Harcourt, Rivers State, with Chart Summit 2019!
Attend the Practical Conference on Technical Analysis Application on the stock market for novices and Advance Traders, where we would take participants through:
• Understanding the momentum behind current equity movements and when to exit using SIMPLE Technical Indicators and Tools to avoid losing capital and profit.
• Understanding the dynamics of Technical Analysis and its application in stock, currency and bond markets.
• Our team of experts and time-tested resource persons will show you how you too can successfully and confidently trade and invest in stocks profitably on your own, from your phone, laptop and/or Personal Computer.
• Know what Smart Money is doing
• Know what they are buying or selling, and
• How you can buy what they are buying.
The workshop is scheduled as follows
FEE: N10, 000
DATE: April 13. 2019
TIME: 10am – 4.00pm
VENUE: Emerald Hotel, 193, Aba Road Rumuola, Port Harcourt, Rivers State.
This Summit is designed specifically for those who:
• Jump off profit position out of fear
• Suffer indecision in pulling the trigger for fear of sustaining a loss
• Holding on to losing positions for fear of realizing a potential loss
• Trading often leads to unplanned trades for fear leaving money on the table
• Do small trade size or invest small amounts because you’ve just suffered a huge loss, or
• Plan to increase your position size to make up for past losses
This practical workshop is for novice traders, investors, professionals and fund managers who want to overcome fear and improve their trading performance. The workshop is basically on practical charting on evidence-based techniques that are working in today market, just as the power of focused trading and investing strategies to help participants build mental skills and turn fear into profits, besides protecting capital.
Registration is ongoing
Prepare yourself to profit from the market, as the economy recovers in the months ahead, while truly achieving financial independence and freedom in 2019 and beyond. There will be Home Study Packs you can play and view on your phone, laptop and television sets that will teach, among others: Stock trading/investing, Fundamental/Technical Analysis on sale at the venue. All at 20% discount for participants.
Also, Come With Your Laptop for the practical sessions.
TAKE ACTION
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 trade in 2019, insight into industries, sectors, and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with the 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
