Low Price Attraction Boosts Positioning Ahead Earnings Declaration On Nigerian Bourse

Market Update for February 12

Nigeria’s equity market started the week on a scary note on Monday with the composite All-Share index plunged from the opening of the day’s trading session in continuation of last week’s correction wave to record the highest loss position in the last six trading days of down market.
It had a 6-wave decline, and by midday rallied off on the strength of Dangote Cement’s gain to reduce losses, after touching intraday highs of 43,198.00 from lows of 42,080.55, which it rolled over, closing the day at 42,737.89. Trading for the day reflected market players’ fear and panic selling which was as a result of extended negative sentiments of corrections.
With this in mind, as we said on Friday, the psychology always changes when stocks go down. At this point many search for stories to fit the price, trying to raise up a negative scenario unfolding for the market. Having been involved in the market for more than 15 years, I have seen, within short and long term cycles, thousands of turning points, trend changes, phases of a cycles, trends and corrections of trends. Stock markets can, and do have technical corrections. And this long pullback can come with reasons or none at all, other than price.
For clarity, let us look at the developed markets and economies, especially the U.S where interest rate and inflation are on the rise ahead of the tax cut which will naturally put pressure on the stock market despite the strong earnings. But here, we have a recovering economy with strong projection of growth this year, money market rate are on the southward movement now, consumer confidence and corporate earnings are looking up. The prospects of earnings coming in better than expected is high so there is no need for all these panic here and there. Stay with the right stocks, oil price and global markets are recovery. If you are hunting for the right stocks to buy, join Investdata Buy and Buy Signal Setup to play the stock market profitably especially with this earnings season.
At the end of trading on Monday, the market broke down the psychological line of 43,000 that had formed recent support, now heading to the 50 DMA on improving buying pressure of 59% and selling position of 41% of total transaction, with volume index of 0.56 with money flow index of 35.18 point looking down.
Meanwhile, the All Share Index shed 390.03 points to close at 42,737.89 basis points after opening at 43,129.926, representing a decline of 0.90% on a high traded volume that was lower than the previous day’s. Similarly, market capitalisation went down to close at N15.34tr after opening at N15.48tr which also represented a 0.90% value loss in investors’ portfolios worth.
The downturn recorded was due to value depreciation by Nigerian Breweries, Dangote Sugar, Lafarge Africa, Guaranty Trust Bank , Zenith Bank and UBN, all of which further dragged the NSE’s Year-To-Date returns to 11.75%, just as market capitalisation gain for the period reduced to N1.89tr, representing a 12.56% YTD growth.
The benchmark index and all other sectorial indexes closed red, except for the NSE Industrial, which was green, while NSE AseM continues to remain flat. Market breadth for the day remained negative as decliners outnumbered advancers in the ratio of 36:13, to continue its six trading sessions of bear transition.
Market activities in volume and value terms were mixed. While volume dropped by 6.33% to 517.44m shares from previous day’s 552.39m units, value rose by 15.37% to N5.19bn from N4.49bn.
Transaction volume for the day was considerably boosted by financial services stocks like Skye Bank, FBNH, Jaiz Bank, UBA and FCMB, which witness increased trading to top the activity chart as most traded.
Best performing stocks for the day were PZ and Beta Glass with 5.83% and 4.97% gain to close at N25.40 and N68.70 respectively, on market forces and full year earnings expectations, while Eterna and Equity Assurance led the decliners side, losing 9.67% and 8.33% to close at N5.42 and N0.44 each, on profit booking and market forces.


The relatively low price attraction has boosted positioning ahead earnings declaration, while supporting high possibility of rebound today in the midst of volatility and portfolio reshuffling as buying pressure is looking up again. But stay with value stocks as today trading confirm direction.
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.
This chart summit is designed specifically for those who:
• Jump out of profit position in fear of giving profits back?
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• Increasing you position size to try and 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 technical analysis and practical charting teaching on evidence-based techniques that is working in today market. Also the power of focused trading and investing strategies that will help participants build mental skills to turn fear into profits and protect capital.
Registration is ongoing
There will be sales of stock trading and investing materials at the end of the conference, Fundamental and Technical Analysis materials, including home study packs you can play and viewed on your phone, laptop and television set. All at 20% discount for attending. You need to prepare yourself and profit from the market and the recovery economy to truly achieve your financial independence and freedom in 2018. Also come with your laptop.
For more enquiries about the programme, please call 08032055467, 08179547605, and 08111811223.

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