Market Update For November 14
The nation’s stock market opened the week’s trading on yet another negative note, reversing last week’s positive performance, amid profit taking and selloffs in large cap and blue chip stocks which weighed on the benchmark NGX All-Share index as it closed lower on mixed sentiments, low traded volume and flat market breadth. This was amidst the better-than-expected corporate earnings and low prices of stocks that created real opportunities for fresh entrance ahead of the October consumer price index that is expected to hit the market today, as well as year-end seasonality.
There was a slowdown in momentum as selloffs hit telecommunication giant- MTNN, offering entry opportunity for discerning investors in the face of sector rotation and all eyes on macroeconomic reports ranging from inflation, Q3 GDP and others to give the state of the economy and direction. Also noteworthy is the fact that many players, including the institutional investors are holding cash to confirm market direction, especially given the planned financial market reset in 2023, and beyond expected to create wealth for discerning investors.
Technically, at the end of Monday’s trading, some indicators revealed a new uptrend that needs confirmation today as the market opens, just as companies’ actual numbers continue to guide investors’ decision on portfolio alignments, amid increasing transaction volume that has become noticeable in some sectors and stocks, ahead of year-end seasonality and others events that are likely to give the market direction. Most stocks have touching their 52-week lows and some tending towards their year-to-date low, creating more entry opportunities for discerning investors.
Investing in the stock market requires deliberate efforts, if you must be on the winning side of the market at the right time, because it pays to take the opposite side of trade when bull or bear sentiments among market players hits an extreme level. This is called contrarian investing, which has been behind the famous quote by Warren Buffett: “be fearful when others are greedy and be greedy when others are fearful.” It is important for investors to know what to do per time, relative to the state of the market and happenings in the area of market fundamentals and economy at large.
Already, we are in the second half of Q4, so the prevailing dividend yields and prices are currently low, supporting the potential for a 3-5% Santa Claus rally, knowing that market pullback was driven by the CBN’s rate hikes and others factors like the 2023 general election, insecurity and exchange market problem. At the end of the day, the next outcome of MPC meeting could trigger the news-based market movements. As technical traders, we must not make decisions based on the news only. We do, however, have profit targets and stop loss in place to protect our investments from wild market swings that are caused by news.
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 mixed sentiment witnessed, it is time to go shopping for undervalued stocks, sectors and the next insider playing opportunity.”
Oil price continued its oscillation as it pulled back again to trade at $93.11, in the midst of OPEC cutting demand on 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, coupled with the impact of hawkish monetary policy by central banks, just as China’s COVID-19 lockdown issues are becoming confusing. The up and down movement of oil price also continues to drive volatility. Despite the bailout package of the Chinese government to simulate economic activates and stabilize employment, as well as that of Germany aimed at managing the energy crisis.
Monday’s trading started slightly in red, and was sustained for the rest of the session, despite oscillating on buying interests in financial stocks and selloffs in large cap companies, a situation that pushed the NGX’s index to an intraday low of 43,770.82bps from its highs of 43,956.76bps before closing below its opening level at 43,818.12bps.
Market technicals were weak and mixed, with lower volume of trade than the previous session in the midst of flat breadth on a selling sentiment as revealed by Investdata’s Sentiments Report showing 25% buy position and 75% sell volume. The total transaction volume index stood at 1.05 points, just as energy behind the day’s performance was weak as Money Flow Index is looking down at 43.56pts, from the previous day’s 49.96pts, indicating that funds left the market.
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Index and Market Caps
The benchmark NGX All-Share Index, at close of Monday trading shed 138.64bps, closing at 43,770.82basis points, after opening at 43,968.75bps, representing a 0.32% decline, just as market capitalization fell by N82.04bn, closing at N23.87tr from the previous day’s N23.95tr, which also represented a 0.32% value loss.
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Meanwhile, the session’s downturn was driven by profit taking and selloffs in MTNN, UCap, Africa Prudential, Oando, UBA, Unity Bank, Royal Exchange and John Holt, among others, which impacted negatively on Year-To-Date gain, increasing to 2.58%. Market capitalization gain YTD stood at N947bn, representing a 7.62% rise over the opening level for the year.
Mixed Sector Indices
Sectorial performance indexes were mixed, as NGX Insurance and Banking closed higher by 0.91% and 0.26% respectively, while the NGX Energy closed lower by 0.38%. However, Consumer and Industrial goods closed flat.
Market breadth was at par, as losers were equal to gainers in the ratio of 13:13; just as activities in volume and value were mixed as investors exchanged 187.08m shares worth N2.54bn. Volume was driven by trades in Accesscorp, Zenithh Bank, Transcorp, Unity Bank and NGXGroup.
FTN Cocoa and Consolidated Hallmark Insurance were the best performing stocks after gaining 9.68% and 6.90% respectively, closing at N0.34 and N0.62per share respectively on market forces and improved earnings respectively. On the flip side, John Holt and SCOA lost 9.88% and 9.71%, closing at N0.73 and N1.58 per share, purely on selloffs.
Market Outlook
We expect mixed sentiments to continue on portfolio repositioning and bargain hunting in the midst of expected macroeconomic data and election uncertainty, as investors are taking advantage of the low prices to reposition ahead Q3 GDP report and year end seasonality.
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
