Market Update for February 22

Nigeria’s stock market had a very positive Thursday to continue its volatility and followed up previous day’s recovery as more 2017 full year earnings reports are expected to roll in with dividend declaration that will support the seeming retracement in the market. It appears that the bears are gradually losing grip of the market to usher in an uptrend. The NSE index retraced up after touching its 50-Day Moving Average to trade above the 50 and 100-Day moving averages, price support, and trendlines. The rest of the day’s trading session was basking in positive sentiment as reflected in the market breadth, despite the low traded volume that signaled market expectation of these numbers.
During the session also the index hit intraday highs of 42.292.85 from lows of 42,158.32 points and at the same time forming a symmetrical triangle chart pattern that supports continuation or trend reversal. The day ended near the session highs, which is a good close to keep the bull transition.
Oil was among the biggest movers of the day, helped by the U.S. inventory numbers reported yesterday, at a time the market was expecting an inventory build-up, but instead got a large drawdown in supply. This is expected to further boost oil prices and impact Nigeria’s market positively to support the expected full-year numbers. Crude oil oscillated around $50 just a few months ago and today, is above $60. Even so, this bullish wave has not subsided at all, as the Organisation of Petroleum Exporting Countries (OPEC) continues to stick with its deal on production cuts as part of efforts to stabilize price. Over the past 11 months, 142m barrels have been taken out of the U.S. market, representing about 11% of the inventory.
Remember, last year, one of the best research-driven commodities funds on the planet, led by the star commodities investor Leigh Goehring and his long-time research head Adam Rozencwajg. They do some of the most thorough supply/demand work on oil and broader commodities. They have been pounding the table on the fundamental case for $100 per barrel oil. And they think we will see it this year.
They say demand is raging, as supply is faltering while the world has overestimated what the shale industry is capable of producing. In all of this, they believe the market is leaning heavily the wrong way (i.e. “maximum bearishness”). They think we’ve hit the tipping point for prices–where we will see the price of oil accelerate.
Recently, they noted: “We remain firmly convinced that oil-related investments will offer phenomenal investment returns. It’s the buying opportunity of a lifetime.”
However, if we do indeed see oil prices start to accelerate, we will likely see the inflation data accelerate with it.
Back home, Nigeria’s equity market technicals for Thursday were strong but mixed, with high buying pressure of 75% on low volume traded, while selling position stood at 25%. Volume index was 0.40 with money flow index at 23.85 point.
Meanwhile, the composite NSE All-Share index gained 100.46 points to close at 42,158.32 basis points, representing a growth of 0.24% on lower traded volume than the previous day’s. Similarly, market capitalisation for the day went up by N36.05bn to close at N15.17tr, after opening at N15.13 trillion which also represented 0.24% value gain in investors’ positions.
The upturn was sustained by price appreciation recorded by Total, UBA, Dangote Flour, Flour Mills, Access Bank, UBN, Nestle, Lafarge Africa, Zennth Bank, ETI and FBNH, all of which impacted positively on the NSE’s Year-To-Date returns, as it bounced to 10.50%, just as market capitalisation gain for the period stood at N1.56tr, representing 11.43% YTD growth.
The All Share index and other sectorial indexes closed higher, except for the NSE Consumer Goods that slipped 0.34% lower, while the NSE AseM remained unchanged. Market breadth turned positive as advancers outnumbering decliners in the ratio of 24:17. Market activities in volume and value terms were down by 40.01% and 41.89% to 342.1m shares worth N3.09bn from previous day’s 570.26m units valued at N5.33bn.
Transaction volume for the day was boosted by financial services stocks like Fidelity Bank, Skye Bank, FBNH, FCMB and UBA, which witnessed increased trading to top the activity chart.
At the end of the trading session, Japual Oil and Wapic Insurance topped the advancers table with 5.41% and 4.92% gain to close at N0.39 and N0.64 respectively, on market forces, while Unic Insurance and Courtville Business Solution topped the decliners table after shedding 6.67% and 4.56 % respectively to close at N0.28 and N0.34, on market forces and impact of the new pricing rule.

TODAY’S OUTLOOK
Being the last trading day of the week, expect mixed performance as profit taking may resurface while repositioning ahead of Q4 numbers continue, especially as these early filers Nestle, FO, Africa Prudential and Ucap are expected to hit the market today or early next week. We also expect oil price oscillation and market volatility to continue as traders goes in and out of position, especially with the market pattern changing and prices are relatively low.
The relatively low interest rates in the money market and sell-off in the bond market will boost inflow into stock market as fund managers play earnings season for quick returns target high dividend yield stocks,
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.

Chart Summit! Chart Summit!! Chart Summit!!!
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
Have you traded the stock market before and failed? It is a known fact that about 90% of those who trade without knowledge and understanding of the dynamics will end up losing 90% of their capital most of the time. You don’t have to be one of them.
Therefore, when you attend this Practical ABC Technical Analysis conference, you would learn how to trade such that you become one of the lucky 10%, who manage to consistently play the market profitable by themselves through our SIMPLE trading strategies and buy & sell signal setup.
Consistency is the key to equity trading and investing successfully.
At investdata we have been teaching investors simple and proven strategies which when implemented makes you a successful trader and investor in any market situation, especially when it comes to equipping you well enough to know how to protect their portfolios and profit from market corrections in a recovering economy.
We have also, over time, focused attention on attuning the mindset of investors and traders to managing risk, while eliminating emotions when trading so as to avoid irrational investment decisions.
Attend the Practical Conference on Technical Analysis for the Novices and Advance Traders. We would be taking participants through:
• Understanding the momentum behind current equity movement and when to exit using SIMPLE Technical Indicators and Tools to avoid losing capital and profit.
• 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 desktop computer.
• Know what the smart money are doing
• Know what they are buying
• How you should buy what they are buying.
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.
FEE: N10,000

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
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467