Equities

Low Transaction Volume, Pullbacks On NGX Creating New Buy Prospects Ahead Year-End

Market Update for November 24

Nigeria’s equity market had a mixed session at the midweek when the composite NGX index suffered a marginal decline, thereby extending its negative outing and sideways trending on less than average traded volume. Market breadth was, however, positive amid buying interests across sectors, except for the Oil/Gas that witnessed selloffs and profit-taking, dragging the market down with it.

The continued mixed sentiments and signals at the end of midweek’s trading indicate selling positions and buying interests among players, considering the ongoing portfolio rebalancing on the strength of what is happening in the fixed income environment. Corporate earnings position as of 2021Q3 revealed the undervalued state of the market, looking at price to earnings ratios of many stocks, besides the positive economic data.

Like we have reiterated, the market is still good technically, with the NGX index action staying strong in the face of profit-taking and portfolio repositioning, as the NGX All-Share index slipped to continue its sideways trending within the rectangular channel. Momentum indicators for the day were mixed nonetheless, as the ADX dropped to 58.76, while Money Flow Index rose to 70.71 points on the daily chart. The continuation of this trend depends largely on the interplay of market forces and inflow of funds into equity assets.

Meanwhile, Wednesday’s trading opened slightly on the upside, before pulling back to oscillate throughout the session on selloffs and position taking in the blue chips, a situation that pushed the NGX index to an intraday low of 43,233.98 basis points from its highs of 43,302.59bps before closing slightly below the opening points at 43,245.02bps.

Market technicals were weak and mixed, given the lower volume traded than the previous day’s in the midst of breadth that favoured the bulls on ‘sell’ sentiments as revealed by Investdata’s Sentiment Report showing 16% ‘buy’ volume and 84% sell position. The total transaction volume index stood at 0.56 points, just as the energy behind the day’s performance remained strong; with the Money Flow Index reading 70.71 points, from the previous day’s 66.11 points, indicating that there was funds inflow, despite the down market.

For you to successfully invest and trade in this market order for Investdata’s video on Buy & Sell Technical Analysis Toolbox to navigate the rest of the year profitably, enhance trading decisions, and boost your bottom line. Also, to up your game in stock trading and investing, understanding the key to trading price and index action will go a long way to make the difference in your trading results, check out the video materials below.

Index and Mkt Cap Movement

The benchmark NGXASI, at the end of Wednesday’s trading slipped 10.09 basis points, at 43,245.02.14bps after opening at 43,255.14bps, representing a 0.02% drop, just as market capitalization fell by N5.28bn, closing at N22.57tr, from the opening value of N22.58tr, also representing 0.02% value loss.

Attention: If you have not signed up for INVESTDATA’s buy and sell signal setup, don’t delay, because the number of stocks entering their buying range has just increased to 30 as they build a new bullish base and positive chart patterns to be on our watchlist. These stocks have double potentials to rally, considering their earnings prospect and the recovery move of the market at this time.

To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current oscillating market in the midst of earnings season, portfolio reshuffling, and repositioning as we await an economic reform policy to stimulate and re-track the economy to the path of growth and development.

Midweek’s downturn was propelled by selloffs in Stanbic IBTC, FBNH, Access Bank, GSK, International Breweries, Eterna, Honeywell, and Wema Bank among others, which impacted mildly on Year-To-Date gain, reducing it to 7.39%. Market capitalization stood at N1.55tr YTD, representing a 7.20% growth from the year’s opening value.

Bullish Sector Indices

Sectoral performance indexes were up, except for NGX Oil/Gas that closed 0.24% lower, while the NGX Insurance index led the advancers, gaining 2.05%, followed by the Banking, Industrial, and Consumer Goods with 0.25%, 0.13%, and 0.09% respectively.

Market breadth was positive as gainers outnumbered losers in the ratio of 22:18, while transactions in volume and value terms were down after players exchanged 243.19m shares worth N3.75bn, compared to the previous day’s 271.97m units valued at N2.9bn. Volume was boosted by trades in Zenith Bank, FCMB, Honeywell, Sterling Bank, and Access Bank.

Living trust and Chams were the best-performing stocks, gaining 9.79% and 9.52% respectively, closing at N0.88 and N0.23 per share respectively on market forces. On the flip side, Honeywell Flour and Eterna lost 9.78% and 9.02% respectively, closing at N3.69 and N6.05 per share, purely on profit-taking, amidst a statement by Ecobank Nigeria warning that the planned acquisition of Honeywell Group’s majority stake in Honeywell Flour Mills by Flour Mills of Nigeria breaches a subsisting court order. But both Flour Mills and Honeywell Flour, late on Wednesday night, in two different statements, debunked any such order (READ MORE).

Market Outlook

We expect a mixed trend to continue, as players digest the outcome of the latest Monetary Policy Committee meeting, ahead of Treasury Bills primary market auctions, with seasonality and cycles likely to influence equity prices ahead of year-end window dressing. The low volume traded in the midst of pullbacks is creating new buy opportunities on the strength of the Q3 numbers. Also, candlestick formation and volume traded during the session revealed that institutional players are not selling but positioning in blue-chip companies, as the index slide on a light volume. It is equally noteworthy that during a ranging market many players seat on the fence waiting for a breakout or down before jumping into any position.  Even as many stocks are trading within their buy ranges, a situation expected to attract more funds into the stock market, given the Dividend Yield capable of serving as a hedge against inflation.

Invest 2022 Traders & Investors Summit

Theme: Master The Market, Get The Best Of Pre-Election Year 2022

Sub-Topics

1.  Balanced Trading: Playing Nigeria’s Multiple Exchanges For Diversification, MrOlatundeAmolegbe, CEO, Arthur Steven Asset Management  Ltd &President of CIS 
2. Agriculture, Economic Recovery & Diversification: Where Is Commodity Trading In Your Portfolio, Mr. Akinyinka Akintunde, Business Development Manager, AFEX Commodities Exchange Ltd.
3. Technical Outlook & Indicators For Profitable Market Timing, Mr. Abdul-Rasheed Oshoma Momoh, Head Capital Market at, TRW Stockbrokers Ltd 
4. Benefits & Dangers Of Fixed Income Instruments In An Inflationary Environment, Mr. Teriba Adeboye, MD/CEO, Qualinvest Capital ltd
5. Economic Outlook and implications of the N16.45 Trillion 2022 Budget On Sectors/Stock Market, Mr. OluwasegunAkinwale, Senior Portfolio Manager, Coronation Asset Management Ltd
6. Profitable Stock Picks Made Easy, Using Fundamental Tools, Mrs. Ebiere Helen Fumudoh, MD/CEO, Norrenberger Securities Ltd
7. The Role of Real Estate & REIT Instruments In the Ecosystem, Mr. Tope Ojo, Managing Partner, Tope & Tunde Estate Surveyors &Valuers 

8. Trade Opportunities & 10 Golden Stocks for 2022, Mr. Ambrose Omordion, Chief Research Officer, Investdata Consulting Ltd

Investdata Consulting Limited holds the 10th edition of its annual Investment conference tagged Invest 2022 Traders & Investment Summit, which has over the years remained a game changer for market players. This edition is aimed at helping stakeholders identify opportunities and bringing ideas for profitable trading as we enter a pre-election year.

Invest 2022 is a not-to-be-missed summit capable of completely changing your view about where the economy and stock market are headed and when you should fully plunge in or hold cash.  Join the experts and experienced professionals to discuss a Big Picture Perspective of where the stock market and other investment windows are currently placed and what signs to be vigilant about over the coming months and year 2022.  Don’t miss this summit.

We have held this annual summit since 2012, to give investors and traders insight, perspective, and expectations in the new year.  This year Invest 2022 Summit is exceptional being vaccination-driven economic recovery after Covid 19 disruption.  The big picture of what is happening and outlook for 2022, analysis of the status of different investment windows and opportunities, ranging from the economy, equity, bond, commodity, real estate, and others using fundamental and technical tools.

More than 80% of the golden stocks pick during Invest 2021 Summit have beaten their targets, returning more than 40% to 60% in less than a year. Due to growing concern and fear around the globe and the domestic economy/stock market as analysts are predicting a big melt-down in stocks from ant time soon, to sometime in 2022.

Looking at history, there is no doubt that correction or pullbacks are on the cards at some stage. However, these big questions on everybody’s minds are when will this occur and whether it will end this bull run or market recovery.

Whatever happens, what is the best way to Prepare rather than try to Predict? This is what Invest 2022 Summit will address.  So you are invited to Speck or facilitate at this event

What to expect at this Summit?
A. Why the market is on high alert for the New Year rally, or Correction
B. Strategies to stay in profit, overcome market correction/pullbacks
C. How to position in stocks for robust profit ahead of 2022
D. How to take advantage of the circular flow of funds in financial markets
E. Risk/return from Bonds to stocks right now.
F. Key to profitable trading and investing in the stock market/other investment windows

Benefits for attending

 1,10 Golden Stocks for 2022
 2, Admission to Investdata Buy & Sell WhatsApp Platform
 3, Among others
Don’t miss this summit, if you have any exposure to the stock market, either directly or indirectly via managed funds of any kind…….
“Invest 2022 – Connects you to new trade opportunities and ideas to boost your trading results/bottom line”

Don’t miss this summit, if you have any exposure to the stock market, either directly or indirectly via managed funds of any kind……..

Date: December 4, 2021

Time: 9am

Venue: Zoom

Want to be among the successful investors and traders in 2022? Send Yes to 08028164085, 08179547605 now.

Meanwhile, the home study packs on Comprehensive Stock Market trading course video, Stock Market Analysis Beyond Fundamental & Technical Analysis,  INVEST 2021 New Opportunities & New Paths To Profits Summit materials and 10 Golden Stocks for 2021, Strategies and How to invest profitably in this Changing Market Dynamics/ Recession, Mastering Earnings Season For Profitable Investing and Trading in any market situation/ cycles, Life Beyond COVID 19 Investment Opportunities In The Stock Market are now available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08179547605 now.

Ambrose Omordion

CRO|Investdata Consulting Ltd

info@investdata.com.ng

ambrose.o@investdataonline.com

ambroseconsultants@yahoo.com

Tel: 08028164085, 08179547605

Related Articles

Back to top button