Investors Upbeat Amidst Hope Of More Financials, Position Taking

Investors Upbeat Amidst Hope Of More Financials, Position Taking
Market Update for January 30

The nation’s equity market on Tuesday had a very volatile, but positive session as a strong follow-up of the previous up market. It appears that the back of the uptrend is strengthened by the expected earnings reporting season as actual numbers from service and consumer goods sector stocks were impressive and strong enough to support their prices.
The composite Nigerian Stock Exchange (NSE) index opened the day lower, quickly gaping down in the early hours of the session, before rebounding between the mid-morning and midday. This move was sustained till the afternoon session to stay above the 20 and 50-Day moving averages and support the price rally, while keeping the trendline of wave 5 up on a huge volume.
The rest of the day was spent in a mixed sentiment for end of month profit taking and balancing of the first month’s account by window dressing prices to close higher. At the end of the day it closed above the day’s opening figure of 44,306.48 basis points, after touching intra-day highs of 44,493.79 from lows of 43,986.69 points.
The technicals for the day was strong as volume was up, market breadth remains positive despite profit taking during the trading session. Tuesday’s session of 100% buying pressure revealed position taking ahead of earnings reporting season, as volume index recorded 1.08 of the day’s total transaction, to reflect a buy market in a bullish transition.
Meanwhile, the benchmark index for the day gained 187.31 points to close at 44,493.79 basis points after opening at 44,306.48, representing a growth of 0.42% on a high traded volume that was higher than the previous day’s. Similarly, market capitalisation was up N67.15 bn to close at N15.95tr, after opening at N15.88tr, which also represented 0.42% appreciation in the trading portfolios of market players.
The uptrend was sustained at the end of the day because some stocks in different classes recorded value gain to impact positively on the NSE’s Year-To-Date returns, which further moved up to 16.34%, just as market capitalisation gain climbed to N2.34tr, representing 17.20% YTD growth.
All Share index and other sectorial indices closed higher, except for the NSE Consumer Goods, NSE Oil/Gas and NSE Lotus that were in the red by 0.10%, 0.56% and 0.16% respectively, while the NSE AseM, remained flat. Market breadth was positive as advancers outpaced decliners in the ratio of 34:24, continuing the three-day bull extension.
Market activities in volume and value terms for the day were up by 52.73% and 26.36% respectively to 876.98m shares worth N7.43bn from the previous day’s 573.55m units valued at N5.88bn. Transaction volume for the day was considerably boosted by conglomerates and financial services sector stocks like Transcorp, Diamond Bank, Skye Bank, Honeywell and FCMB, which continue to witness increased trading volumes to top the activity chart as most traded.
Best performing stocks for the day were Diamond Bank and Honeywell that led the advancers’ table with 10.00% apiece to close at N3.19 and N3.08 respectively. While there is full year expectations for Diamond Bank, Honeywell posted impressive Q3 numbers that were released during Tuesday’s trading. ABC Transport and Royal Exchange Assurance topped the decliners’ log, losing 8.33% to close at N0.44 each, on market forces, while in the process reflecting the new pricing rule. It is expected that all quoted companies without information, or have continue to disappoint and cause pain for investors will go the same way with time.
Honeywell Flour’s Q3 result was impressive with top and bottom-line up and Earnings Per Share (EPS) of 35 kobo, up from the previous 16 kobo.


Being the last trading of January, expect more Q3 numbers, while volatility and profit taking will continue in the midst of portfolio reshuffling and repositioning for the expected full year reports that are underway. It is important to note that the candlestick formation at the close of Tuesday’s trading supports an uptrend. Bull ascendancy in the first month of 2018 has wipe away January effect.

However, we would like to reiterate that investors should go for equities with intrinsic value, especially during this season that dividend payment is approaching.
We advise investors to allow numbers guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases know the cycles in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this seasonality changes as the year winds down, sign up to INVESTDATA BUY AND SELL signal setup by calling 08028164085.
Get your home study pack on INVEST 2018 Traders & Investors Summit and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable. You can also still access stocks analysed in the home study pack of the INVEST 2018 traders & investors summit, which includes 15 stocks picks for 2018 are available now to guide your positioning as trading for the year just started.
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available, you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467, 08028164086 or 08111811223.

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Investdata Consulting Ltd is organizing another workshop where experts would simplify market jargons with the aim of increasing understanding and increasing the pool of retail investors.
Theme: ABC of Technical Analysis for the Novices and Advance Traders
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Attend the Practical Conference on Technical Analysis for the Novices and Advance Traders. We would be taking participants through:
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The workshop is scheduled as follows:
DATE: February 24. 2018
TIME: 10am – 3.00pm
VENUE: Ostra Hall & Hotel, Behind MKO Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Lagos.

What you will learn at the Technical Analysis Chart Conference
1. The 3 Simple trading secrets that can help anyone succeed at investing
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4. How to trade on your own online.
5. The psychology of trading and investing and how it will make you successful.
Registration is ongoing
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For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223.

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