Mixed Sentiment, Trend Ahead On Profit Taking, Portfolio Realignment Ahead Year End, Election Uncertainty

Market Update For November 29

Profit taking and pullbacks continued on the Nigerian Exchange Tuesday as the composite NGX All-Share index closed lower in the midst of a slightly negative market breadth and low traded volume. This extended the bear-run for a second consecutive session ahead of the last trading day of the month, just as the NGX index’s action yielded to a double top chart pattern formation.

Selling sentiment across the banking and consumer goods sectors that recently supported market rebound have been hit by profit-taking, as players continued to digest the mixed macroeconomic data and reposition their portfolio in the midst of year-end seasonality and expected corporate actions in 2023. Other major sectors of the market, especially industrial and insurance, witnessed some buying interests as the market entered its distribution phase.

Also, market players are studying all the unfolding developments against the backdrop of the rampaging inflation as they hedge against the rising inflation in some stocks with high dividend yields and strong earnings to support higher payout as financial year end of many companies draw closer.

While the low traded volume in the face of flat breadth and selling pressure signals the activities of speculators, and bargain hunters, given that institutional investors are still standing on the fence as revealed by transactions on the exchange. The mixed sentiment points to buying interests and profit taking among blue chip stocks. We also note the fact that many players, including the institutional investors are still holding cash to confirm market direction, especially given the anticipated financial market reset in 2023, and beyond expected to create wealth for action takers.

To navigate the rest of the year profitably using fundamental and technical analysis to run, join investdata live sessions at noon every trading day “and also get investdata technical toolbox to play the current state of the market do suggest that discerning investors are gradually becoming greedy, while others are fearful, as seen in the recent range market. Despite the low volume of transaction witnessed, it is time to go shopping for undervalued stocks, sectors and the next insider playing opportunity.”

Oil price oscillation continued, as it pulled back to trade at $83.97, as OPEC meet next week, pushback on gas price caped in EU energy crisis in the midst of Saudi cutting production, Covid 19 cases in China, geopolitical tension and fear of recession as a result of high interest rate and inflation across the globe. Also supply tighten due to the Russia-Ukraine war that has been lingering.  The up and down movement of oil price also continues to drive volatility.

Tuesday’s trading started slightly in the upside, but reversed at midday on profit-taking and selloffs in banking, consumer goods stocks and others, a situation that pushed the NGX’s index to an intraday low of 47,299.16bps from its  highs of 47,450.71bps before closing below its opening level at 47,322.97bps.

Market technicals were negative and mixed, with lower volume of trade than the previous session in the midst of breadth that favored the bears on selling sentiment as revealed by Investdata’s Sentiments Report showing 16% buy position and 84% sell volume. The total transaction volume index stood at 0.73 points, just as impetus behind the day’s performance was strong as Money Flow Index was looking up at 83.05 pts, from the previous day’s 82.97pts, indicating that funds entered in the market, despite closing lower.

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Index and Market Caps

The NGX All-Share Index, at the end of Tuesday trading shed 113.48 basis points, closed at 47,322.97 basis points after opening at 47,436.45bps, representing a 0.24% decline, just as market capitalization fell by N61.81bn closing at N25.78tr from the previous day’s N25.83tr, which also represented a 0.24% depreciation in value.

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Meanwhile, the day’s downturn was driven by profit taking in NB, GTCO, Zenith Bank, ETI, Stanbic IBTC, Accessorp UBN, UBA and Neimeth, among others, which impacted negatively on Year-To-Date gain, reducing it to 10.78%. Market capitalization gain YTD stood at N3.01tr, representing a 15.60% rise over the opening level for the year.

Mixed Sector Indices

Sectorial performance indexes were mixed as the NGX Banking and Consumer Goods closed 2.14% and 0.99% lower respectively, while the NGX Industrial Goods index led the advancers after gaining 0.12% followed by Insurance with 0.10%.  Just as Energy closed flat.

Market breadth was slightly negative, as losers outnumbered gainers in the ratio of 14:13; just as activities in volume and value were mixed as investors exchanged 120.94m shares worth N1.65bn. Volume was driven by trades in Transcorp, Accesscorp, Zenith Bank, FBNH and GTCO

The best performing stocks for the session were Chams and Coronation Insurance, which gained 9.09% and 6.06%, closing at N0.24 and N0.35 per share respectively on market forces. On the flip side, Neimeth Pharmaceuticals and NB lost 7.97% and 7.66% respectively, closing at N1.27 and N45.20 per share, purely on selloffs and profit taking

Market Outlook

We expect mixed sentiment and trend on profit taking and portfolio reshuffling ahead of year end seasonality in the face of election uncertainty, as pullbacks add more strength to upside rebound, so investors should take advantage of price correction ahead of year end seasonality. Also looking at the trends and events across the globe and domestically.

Invest 2023 Traders & Investors’ Summit

Theme: Preparing For Financial Market Reset In 2023 & Beyond

Sub-Topics

1, Budget 2023, Economic Headwinds & The Stock Market: Are Market Players Prepared? Mr Olatunde Amolegbe, CEO, Arthur Steven Asset Management Ltd & Immediate Past President of CIS

  1. Comprehensive & Complete Wealth Building Actionable Strategies for 2023 Mr Oladipo Ajayi Head of Fixed Income at Chapel Hill Denham
  2. 2023 Stock Market Outlook And Identifying Great Value Stocks For Santa Claus & Post-Election Rally Alhaji Garba Kurfi MD/CEO APT Securities & Funds Ltd)
  3. The Power of Technical Tools In Today’s Volatile Market Mr Rotimi Olubi. MD ARM Securities Ltd
  4. Building Recession-Resistant Portfolios In A Financial Reset Mr Muktar Mohammed, MD Muktar Finance Ltd
  5. The Role of Commodity Trading In Wealth Creation, Agricultural Development
  6. Fixed Income Market Slice & Dice In A Changing Interest Rates, Inflationary Environment Mr Teriba Adeboye, MD/CEO, Qualinvest Capital ltd

8, Four Steps To Simplify Your Day Trading & Understanding the power of Breakout Trades Mr Abdul-Rasheed Oshoma Momoh, Head Capital Market at, TRW Stockbrokers Ltd

9, 10 Golden Stocks for 2023,  Mr Ambrose Omordion, CRO. Investdata Consulting Ltd.
Investdata Consulting Ltd will hold the 11th edition of its annual Investment conference tagged Invest 2023 Traders & Investors Summit, which has over the years remained a game changer for market players. This edition is aimed at helping stakeholders prepare for the financial market reset expected to happen next year by identifying opportunities and bringing tradable ideas for profitable investment as we enter election year. This one-day event is yet “Another wealth transfers for the prepared as the bull is underway after this correction “

Are you prepare to move cash to profitable assets ahead of year-end and the 2023 general elections, Invest 2023 is a don’t miss summit that is capable of completely changing your view about wealth creation in a disconnect system where the economy and stock market are headed and when you should fully plunge in or hold cash. Join equity market experts and other experienced professionals as they discuss a “Big Picture Perspective” of where the stock market and other investment windows are today, and what signs to watch for in the coming months.  Don’t miss this summit.

This annual summit offers you, whether an investor, or trader an insight, perspective and expectation in the new year. This edition is exceptional, given the increasing headwinds across the globe and locally, ranging from the aggressive rate hikes, soaring inflation, geopolitical tensions, and uncertainties surround the 2023 general election like others before it. There will also analyses on the status of different investment windows and opportunities ranging from the economy, equity, bond, commodity markets, using fundamental and technical tools.

Looking at history, there is no doubt that a correction or rebound is on the cards at some stage over the coming months. However, this big questions on everybody’s lips include when this will occur and whether it will end this bull-run or market recovery. Whatever happens, what is the best way to Prepare rather than trying to Predict? This and more, are what Invest 2023 Summit will address.

What to expect at this Summit?
A. How to take advantage of the correction for huge profit
B. Strategies to stay in profit, overcome market correction/pullbacks
C. How to hedge against inflation and preserve your portfolio
D. Understanding the power of liquidity and circular flow of funds in financial markets
E. Risk/return from Bonds to stocks right now.
F. Commodity trading as another  investment window to boost return

  1. The exact sectors and tickers you should be looking at this volatile market
  2. Market events and others you can use to trade in any market situatio

Benefits of attending

  1. 10 Golden Stocks for 2023
    ii. Admission to Investdata Buy & Sell WhatsApp Platform
    iii. Among others

“Invest 2023 – Connects you to new trade opportunities and ideas to enhance your trading returns

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 3, 2023

Time: 9am

Fee: N30,000

Venue: Zoom

If you want to reset your profit by taking advantage of opportunities in financial market and assets repricing in 2023? Send Yes to 08028164085, 08179547605 now.

Ambrose Omordion

CRO|Investdata Consulting Ltd

info@investdata.com.ng

ambrose.o@investdataonline.com

ambroseconsultants@yahoo.com

Tel: 08028164085, 08179547605

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