Mixed Sentiments, Bargain Hunting, Ahead Of Macroeconomic Data, Election Uncertainties

Market Update For November 9

Midweek’s session on the Nigerian Exchange was mixed, as the benchmark NGX All Share index retraced up to test the T line, closing flat on a slightly positive market breadth and low traded volume that signals reversal of trend, thereby halting the previous day’s pullback in the face of increasing economic headwinds and sovereign risk. This is happening at a time fresh data shows that the nation’s debt remains over-weighted in the midst of policy summersaults and a seeming inaction on the part of the government’s economic managers.

There is also the wait and see attitude of market players in the midst of impressive earnings and expected end of year seasonality, as many players are holding cash to confirm market direction, especially as the financial market reset in 2023 and beyond is underway to create wealth for discerning investors. Also, the current market correction and pullbacks offer good entry opportunities to investors.

On the strength of actual numbers released so far by the quoted companies, sector rotation and portfolio alignment have continued among market players, 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.

With the strong quarterly earnings posted by quoted companies, which is a pointer to higher dividend payout and yields as prices are currently low, to support about the potential for a 3-5% Santa Claus rally, knowing that market pullback was driven by CBN rate hikes and others factors like 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 stops 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 extended its pullbacks to trade at $92.27, in the midst of plans by Saudi-Arabia to deliver full oil volume to Asia, despite production cut and Brookfield betting billions of dollar on Australias energy transition, amid the emergency energy shutdown in Ukraine. Also with fear of Saudi oil attack in the face of continued fear of global recession and supply tighten due to the Russia-Ukraine war that is getting worse, 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 in the face of rising interest rates and inflation. 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.

Meanwhile, midweek’s trading opened slightly in the green, which was sustained for the rest of the day, oscillating on buying interests in banking stocks and others, a situation that pushed the NGX’s index to an intraday high of 44,071.20bps from its lows of 43,448.58bps before closing slight above its opening level at 43,477.48bps.

Market technicals were positive and weak, with lower volume of trade than the previous session in the midst of breadth favoring bulls on a selling sentiment as revealed by Investdata’s Sentiments Report showing 5% buy position and 95% sell volume. The total transaction volume index stood at 0.79 points, just as momentum behind the day’s performance was weak as Money Flow Index is looking down at 40.07pts, from the previous day’s 40.30pts, indicating that funds left the market.

For you to successfully invest and trade in this volatile market, 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 below.

Index and Market Caps

The benchmark NGX All-Share Index, at the end of Wednesday’s trading inched up 15.88bps, closing at 43,477.48basis points, after opening at 43,461.60bps, representing a 0.04% up, just as market capitalization rose by N8.70bn, closing at N23.68tr from the previous day’s N23.67tr, which also represented a 0.04% 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 buying range has just increased to 24 as they build a new bullish base and positive chart patterns to be on our watchlist. These stocks have double the potentials to rally, considering their earnings prospects and the oscillating moves in a recovery market and 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.

Midweek’s upturn was driven by position taking in shares of Dangote Cement, GTCO, Sterling Bank, Zenith Bank, UBA, Champion Breweries, Nahco and Linkage Assurance, among others, which impacted mildly on Year-To-Date gain, increasing to 1.78%. Market capitalization gain YTD increased to N783 billion, representing a 7.04% rise over the opening level for the year.

Mixed Sector Indices

Sectorial performance indexes were mixed, as NGX Industrial goods and Banking closed higher by 0.27% and 0.04% respectively, while the NGX Energy led the decliners after losing 0.67%, followed by Insurance and Consumer goods with 0.37% and 0.17% respectively.

Market breadth turned slightly positive with gainers outnumbering losers in the ratio of 12:11; just as activitiess in volume and value were down as investors exchanged 133.41m shares worth N1.81bn. Volume was driven by trades in FBNH, Oando, Zenith Bank, UBA and GTCOT.

Unity Bank and Linkage Assurance were the best performing stocks after gaining 9.09% and 7.69% respectively, closing at N0.48 and N0.42 per share respectively on market forces.  On the flip side, Honeywell Flour and Prestige Assurance lost 9.09% and 8.70%, closing at N2.00 and N0.42per 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

  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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