Trending Today
Oil prices climbed over 2% on Tuesday as tensions between Israel and Lebanon and expectations of extended OPEC+ supply cuts boosted the market. Brent crude rose $1.79 (2.5%) to $73.62, while WTI gained $1.84 (2.7%) to $69.94. OPEC+ is likely to extend cuts through Q1 2024, aiming to stabilize prices amid weak demand and rising U.S. crude inventories. U.S. Job Openings Grow in October, Layoffs Hit 1.5-Year Low U.S. job openings rose by 372,000 to 7.744 million in October, while layoffs dropped to their lowest level in over a year, indicating an orderly slowdown in the labor market. Despite more vacancies, hiring declined by 269,000, particularly in construction and manufacturing. The job openings-to-unemployed ratio increased to 1.11, still below pre-pandemic levels. With worker confidence rising, the Federal Reserve may consider another interest rate cut to combat inflation. UK Retail Sales Hit by Black Friday Shift and Low Consumer Confidence Retail sales in November dropped 3.3%, the sharpest decline since April, as Black Friday spending moved to December, the BRC reported. Non-food sales fell 2.1% over three months, while food sales rose 2.4%. Rising energy costs and low confidence continued to weigh on spending. Barclays noted a 3.1% drop in essential spending, the steepest in five years, with supermarket sales down 1.8%. Non-essential spending rose slightly, driven by cinema ticket purchases. Overall card spending declined 0.5%, the first dip since July. South Africa’s Economy Shrinks in Q3 Amid Agricultural Slump South Africa’s GDP contracted by 0.3% in Q3 2024, contrary to economists’ forecasts of 0.5% growth, largely due to a 28.8% decline in agriculture caused by a severe drought. While mining, manufacturing, and construction sectors grew, the agricultural slump drove overall negative growth. Analysts remain optimistic about a rebound in the coming quarters, with expectations of modest recovery despite the downturn. Nigeria’s Private Sector Sees Employment Decline Amid Inflation The November Stanbic IBTC PMI® report shows a slight drop in private sector employment, ending a six-month growth streak. The decline, mainly in the services sector, reflects rising costs and weak demand. While new orders grew modestly, high prices continued to limit demand, and output fell for the fifth straight month. Business confidence hit a record low due to ongoing inflationary pressures. The PMI rose to 49.6 from 46.9 in October, signaling continued contraction, although Nigeria’s non-oil GDP grew by 3.46% in Q3 2024, with Q4 growth forecast at 3.2%.

Mixed Sentiment Yet, Amid Low Stocks Valuation, Portfolio Repositioning On NGX

Market Update for June 13

Equity trading on the Nigerian Exchange continued its seesaw movement Thursday, with the benchmark NGX All-Share index closing higher to halt the previous session’s loss on an above average volume and positive market breadth. This was amid buying sentiment and despite forming a top reversal chart pattern that supports pullback or continuation of trend in the midst of a consolidating pattern and distribution phase that needs confirmation.

With banks unfolding their recapitalisation plans to meet the new capital requirement set by the Central Bank of Nigeria (CBN), the sector is witnessing improved volume of trade, buying interest and increased position taking in recent times ahead of the announcement of primary market offer prices. There is also the impact of the second quarter earnings reporting session in July. Guaranty Trust Company joined the list of peers that have notified the investing public of its primary market activities plan.

All eyes are still on the March year-end audited earnings reports and such macroeconomic data as the Consumer Price Index for the month of May, just as preparations by banks in the country for primary market activities reaches top gear to support market sentiments at the end of the day trading session. More companies on the NGX, including NEM Insurance and Learn Africa, during the session released their Q3 earnings forecast.

Sector rotation and portfolio rebalancing on the exchange will continue ahead of the second half of the year. Service oriented companies have given insights into what players should look forward to after the sectors had  driven the nation economy again, as revealed by Q1 GDP, especially financial, insurance, aviation, agriculture, oil and tech companies, among others. This is expected to support their numbers going into the future.

The NGX index’s action is currently trading above the T-line, 50-EMA and 50-SMA in the midst of buying sentiment and positive momentum. Just as market players are looking to more corporate actions to position for dividend income. Although, we see fiscal and monetary policies trying to return the nation’s economy to the path of recovery, despite the continued mismatch of policies and implementation style as oscillating oil production output persist in the midst exchange market challenges.

More Annual General Meeting notifications poured into the exchange on Thursday, just as other companies presented resolutions from their meetings. The latest came from PZ and McNichols, among others, while Airtel Africa continued to update the market on its share buyback. Just as initiates Plc, Zenith Bank, Custodian Investment informed the market of insiders dealing in its shares. In the face of these, it is safe for investors to target companies with consistent track records of dividend payment, strong fundamentals and growth prospects that will support further growth in earnings which price feeds on in any market cycle.

Technically, the market is topping at a distribution phase, as revealed by candlestick formation and momentum indicators. As ADX is looking up at 17.15, while RSI and Money Flow Index are mixed to read 59.43 and 79.11 points against the previous session 57.73 and 73.90points respectively. Market players should watch this current trend and trade wisely as oscillation continue in the face of a ranging market and funds entering the market which need to be confirm as trading opens today. Also, trading volume pattern continued to oscillates, suggesting buying interest in some sectors and profit taking in the midst of wait and see attitude of players.

To navigate the rest of the quarter and beyond profitably using fundamental and technical analysis to run, join investdata live sessions at noon every Monday, Wednesday and Friday 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 oscillating volume of transaction witnessed in recent time, it is time to go shopping for undervalued stocks, sectors and the next insider playing opportunity.

Oil prices were flat on Thursday, as it continues its oscillation to trade at $82.36 per barrel in the midst of monetary policy concerns and continued tension in the Middle East, even when many central banks had signal possibility of rate cuts to boost economic activities in the face of sticky inflation. Just as geopolitical tension across the globe remained a major threat to many economies and the commodity market and other factors that impact oil price as it continued to fall. This trend may likely continue in 2024, this up and down movement that drive volatility. As Middle East conflict and war in Ukraine continue to influence oil supply and demand.

Meanwhile, Thursday’s trading opened on the upside and it was sustained throughout the session on position taking in blue chip companies and underpriced stocks, a situation that pushed the NGX’s index to an intra-day high of 99,835.02bps from its lows of 99,621.86bps, before closing above its opening level at 99,832.25bps.

Market technicals for the session were positive and mixed with lower volume when compared to the previous session in the midst of breadth favoring the bulls on a buying sentiment as revealed by Investdata’s Sentiments Report showing 99% buy position and 1% sell volume. The total transaction volume index stood at 1.16 points, just as energy behind the day’s performance was strong as Money Flow Index was up to read 79.11pts, from the previous day’s 73.90pts, indicating that funds entered the market.

For you to successfully invest and trade in this volatile market in 2024, order for Investdata’s video on Buy & Sell Technical Analysis Toolbox to navigate the volatile market 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 above and prepare for Q3 Master Class.

Index and Market Caps

NGX All-Share Index, at the end of Thursday trading gained 201.71bps pushing it to 99,832.25bps after opening at 99,630.51bps, representing a 0.20% up. Market capitalization rose by N114.12bn, closing at N56.47tr from the previous day’s N56.36tr, which also represented a 0.20% value gain.

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 oversold range has increased as market correction and pullbacks call for caution and positive chart patterns to be on our watchlist. These stocks have potentials to retrace, considering their earnings prospects and the oscillating moves in an upmarket and weak economy.

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 that can stimulate and re-track the economy to the path of growth and development.

The session upturn was driven by buying interest in the shares of Zenith Bank, NB, UACN, NEM, UBA, FBNH, GTCO and Wapco among others. This impacted positively on Year-To-Date gain which increased to 33.51%. Market capitalization YTD gain stood at N11.58tr, representing 38.05% above its opening level for the year.

Bullish Sector Indices

Sectoral performance indexes were up, save for NGX Energy index that closed flat, while NGX Insurance led the advancers after gaining 1.80%, followed by Banking, Consumer and Industrial goods with 0.98% 0.30% and 0.12% respectively.

Market breadth was positive as gainers outnumbered losers in the ratio of 30:18, while activities in volume and value were down after players exchanged 502. 60m shares worth N8.65bn. Volume was driven by trades in Zenith Bank, Aiico, Accescorp, GTCO and UBA.

NB and Unity Bank were the best performing stocks, gaining 10% and 9.91% respectively, closing at N31.90 and N1.22 per share respectively on market forces and sentiment. On the flip side, ETI and Daarcomm lost 9.92% and 8.77% respectively, closing at N21.35 and N0.52 per share, purely on profit taking.

Market Outlook

We expect mixed sentiment to continue in the face of low valuation and portfolios repositioning, dividend investing and reactions to Insurance corporate earnings, while taking advantage of pullbacks to position and rebalancing portfolio.

This is amid the volatility and pullbacks that add more strength to upside potential. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.

Investdata Q3 Master Class

Theme-Revolutionary Trading & Investing Strategies In Financial Market For Generating Cashflow

Sub-Topics

  1. Unlocking The Key To Profitable Trading In The Alternative Markets-AlhajiGarba Kurfi, MD/CEO APT Securities & Funds Ltd
  2. Combining Technical Indicators & Tools With Higher Time Frame To Initiate, Manage Trades-Mr. Abdul-Rasheed Oshoma Momoh, Executive Director Operations at, TRW Stockbrokers Ltd
  3. Mastering Earnings Trends & The Economy: Navigating Surprises and Disappointment To Rebalance Portfolio For Higher Returns-Mr. Ambrose Omordion, CRO, Investdata Consulting Ltd

In the changing market fundamentals and sentiment in the financial market of today, and as circular flow of funds continue to search of better opportunities with relative risk. The latest trading tools and techniques that are working will be displayed and shared.

This Q3 Master Class will help clear the path for opportunities to make profits in any kind of market condition. Effective combination of fundamental and technical analyses in any market cycle will help you identify optimal trading opportunities no matter what is going on in the stock market or the global economy.

Why you should attend

  1. Experts and professional traders will reveal the strategies and insights that help them to stay in profit in any market conduction.
  2. Understand how to navigate and thrive under uncertain market situations.
  3. Boost your profits by discovering actionable strategies to enhance your trading performance.
  4. Answers to your important trading questions
  5. A more complete trading and investing strategies beyond the NGX that makes trade profitable in other markets
  6. Two great trades that will give 200% return in one year and how we do it.

Date:  June 29, 2024

Time:  9am prompt

Venue:  ZOOM.

Fee:  N 70,000

However, with less than 25 days to the beginning of Q3 2024, you need a road map to navigate the quarter profitably with confidence. Don’t miss this opportunity as we countdown to June 29, 2024 for this Master Class.

During this practical session, our team of experts will reveal practical trade ideas and opportunities that you can apply or implement immediately in Q3 2024 to consolidate your gains, maximize returns and start tracking the result by yourself.

If it is your desire to be among smart investors and traders in Q3, send Yes to: the phone numbers below now.

08028164085, 08179547605 now.

Ambrose Omordion

CRO|Investdata Consulting Ltd

info@investdata.com.ng

ambrose.o@investdataonline.com

ambroseconsultants@yahoo.com

08028164085

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