Market Update for December 1
Thursday’s trading on the Nigerian Exchange sustained its strong momentum and mixed sentiment to begin the new month flat, even as the NGX index action traded above its strong support level of 47,299,16 basis points, despite the profit taking in telecom giant- MTNN which weighed on the general market performance amid a high volatility. This, therefore, created opportunity for discerning investors and traders to buy the dip, especially in the companies with a consistent track record of dividend payment with strong fundamentals and growth prospect that will support further price and payout.
Technically, the correction or sideways movement of the NGX index’s action is setting the stage for an uptrend after this oscillation in the first week of December, due to profit taking and portfolio repositioning, as revealed by momentum indicators for the day which were strong. Specifically, the ADX rose to 47, RSI at 71.41 while Money Flow Index is looking up to read 80.62 points on the daily chart. The continuation of this trend depends largely on the interplay of market forces and inflow of funds into equity space as market open Friday.
The buying sentiment across the banking and consumer goods sectors continued as players digest the mixed macroeconomic data in the midst of year-end seasonality and expected corporate actions in 2023. Other major sectors of the market, especially industrial, energy and insurance, witnessed some selloffs as the market remain on a topping pattern or resistance level.
The high traded volume in the face of positive breadth and mixed sentiment 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 institutional investors, are still holding cash to confirm the primary market direction, especially given the anticipated financial market reset in 2023, and beyond expected to create wealth for action takers.
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Oil price oscillation continued, as it retraced up to trade at $87.05, 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.
Thursday’s trading opened slightly upside, but reversed at midday on profit-taking and demand for banking, and consumer goods stocks, among others, a situation that pushed the NGX’s index to an intraday low of 47,537.87bps from its highs of 47,769.38bps before closing slightly below its opening level at 47,656.64bps.
Market technicals were positive and mixed, with higher volume of trade than the previous session in the midst of breadth that favored the bulls on mixed sentiment as revealed by Investdata’s Sentiments Report showing 51% buy position and 49% sell volume. The total transaction volume index stood at 1.05 points, just as energy behind the day’s performance was strong as Money Flow Index was looking up at 80,62 pts, from the previous day’s 80.81pts, indicating that funds flat in the market, despite closing lower.
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Index and Market Caps
The NGX All-Share Index, at the end of Thursday trading shed 8.13 basis points, closing at 47,660.04 basis points after opening at 47,656.64bps, representing a 0.01% drop, just as market capitalization fell by N1.85bn closing at N25.96tr from the previous day’s N25.96tr, which also represented a 0.01% value loss.
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Meanwhile, the day’s downturn was driven by profit taking in MTNN, ETI, FCMB, NGX Group, Transcorp and Honeywell, among others, which impacted mildly on Year-To-Date gain, reducing it to 11.57%. Market capitalization gain YTD stood at N3.21tr, representing a 16.42% rise over the opening level for the year.
Mixed Sector Indices
Sectorial performance indexes were mixed as the NGX Banking and Consumer Goods closed 2.16% and 0.77% higher respectively, while the NGX Insurance index led the advancers after gaining 0.12% followed by Energy with 0.08%. Just as Industrial goods closed flat.
Market breadth was positive, as gainers outnumbered losers in the ratio of 13:11; just as activities in volume and value were up with investors exchanging 172.41m shares worth N2.62bn. Volume was driven by trades in FCMB, Courtville , Accesscorp, UBA and Zenith Bank.
UPDC REIT and McNichole were the best performing stocks, after gaining 9.09% and 8.89%, closing at N3.00 and N0.69 per share respectively on market forces. On the flip side, Honeywell Flour and RT Briscoe lost 7.69% and 7.41% respectively, closing at N2.10 and N0.25 per share, purely on profit taking and selloffs
Market Outlook
We expect mixed sentiment and trend to continue 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
- Comprehensive & Complete Wealth Building Actionable Strategies for 2023 Mr Oladipo Ajayi Head of Fixed Income at Chapel Hill Denham
- 2023 Stock Market Outlook And Identifying Great Value Stocks For Santa Claus & Post-Election Rally Alhaji Garba Kurfi MD/CEO APT Securities & Funds Ltd)
- The Power of Technical Tools In Today’s Volatile Market Mr Rotimi Olubi. MD ARM Securities Ltd
- Building Recession-Resistant Portfolios In A Financial Reset Mr Muktar Mohammed, MD Muktar Finance Ltd
- The Role of Commodity Trading In Wealth Creation, Agricultural Development
- 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
- The exact sectors and tickers you should be looking at this volatile market
- Market events and others you can use to trade in any market situatio
Benefits of attending
- 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
ambrose.o@investdataonline.com
Tel: 08028164085, 08179547605
