Market Update for November 20

Monday’s trading on the Nigerian Exchange was mixed, starting the week on a negative note, as profit taking resurfaced after four straight sessions of up market during which the composite All-Share index traded above 71,000 basis points psychological line on a selling sentiment and low traded volume. The candlestick formation revealed a top reversal pattern and no supply that indicates the possibility of smart money making up prices as monetary policy direction remains unclear, on the back of yet another postponement of the Central Bank of Nigeria Monetary Policy Committee meeting for the second time in a row. Meanwhile, Investdata notes that there is the increased macroeconomic headwinds, amidst the heightened uncertainty that could have made the situation far worse than it is today for equity investors, but for the fact that domestic institutional and retail investors have filled the void created by the exit of foreign players from the market.
Despite, the seeming profit booking in the market on Monday, the equity space remains the quickest way to hedge against the rising inflationary pressure in the system today.
So, a pullback or correction will create another entry opportunity for discerning market players, as all eyes are on the midweek Treasury bill primary auction outcome for further insights into the flow of funds in the financial market, in the face of year-end seasonality. This had already kicked off with impressive Q3 earnings and rising fixed income market yields that remains a mixed bag.
The NGX All-Share index on Monday closed marginally lower on low traded volume and positive market breadth in the face of profit booking in banking stocks and others. As the 2024 financial year is set to begin ahead of full-year earnings and dividend season in Q1 2024, the latest corporate earnings on the exchange has offered an insight into the high possibility of dividend growth at the end of this current financial year. This is especially true of companies in the service sectors with earnings yield and Earnings Per Share that support high payout ratios at the end of the day. Also, the time frame for dividend payment and capital gains are now shorter, hence the ongoing rebalancing by portfolio managers, looking at the different investment choices or windows to create value, especially as real rate of return is still above inflation.
The divergence between the index’s action and momentum indicators signals that a reversal is underway and needs to be confirmed, even as the NGX index still trades above the T-Line and 71,000 mark to pullback from the previous session’s level. Traders need to watch out as the market consolidates at this level of distribution phase in the midst of a very high volatility.
To navigate the rest of the quarter and year profitably using fundamental and technical analysis, join investdata’s 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 mixed trend and volume pattern, it is time to shop for undervalued stocks, sector rotation, go for defensive stocks at the next insider playing opportunity.
Oil price oscillation continued, as it rebounded in the last few trading days to trade at $82.02 per barrel in the midst of positive economic data and possibility of rate cut by some of the central banks as inflation data continue to cool off. As the ongoing Middle East conflict influencing demand and supply. With geopolitical tensions rising across the globe at a time the Russia-Ukraine war gradually approaches its third year, and remains a major concern with much more at stake than previously thought. The supply tightening due to the Russia-Ukraine war will propel the up and down movement in oil price, which also drive market volatility across the globe.
Meanwhile, Monday’s trading started slightly in the upside and oscillated for the rest of the session, pulling back thereafter on profit taking in blue chip companies, and positioning in others stocks,a situation that pushed the Index to an intraday low of 70,959.16bps from its highs of 71,122.32bps, before closing marginally below its opening figure at 71,008.70bps.
Market technicals were positive and mixed with a lower volume traded, when compared to the previous session, in the midst of breadth favoring the bulls on a selling sentiment as revealed by Investdata’s Sentiments Report showing 30% buy position and 70% sell volume. The total transaction volume index stood at 0.93 points, just as the momentum behind the day’s performance was strong, with Money Flow Index looking down to read 75.62pts, from the previous day’s 81.53pts, indicating that funds left the market.
To successfully invest and trade in this volatile market for the rest of 2023, 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
At the end of Monday’s trading, the NGXASI, lost 101.29bps, closing at 71,008.70bps, from the 71,112.99bps opening level, representing a 0.15% dip. Market capitalization fell by N57.31bn, closing at N39.05tr, from the previous day’s N39.11tr, which also represented a 0.15% in value loss.
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 35 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 recovery 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 downturn was driven by profit taking in Stanbic IBTC, NB, Zenih Bank, Accesscorp, Transcorp, UBA, CWG and Caverton among others. This impacted mildly on Year-To-Date gain, reducing it to 38.55%, while Market Capitalization YTD gain stood at N10.84tr, representing a 39.89% rise above its opening level for the year.

Mixed Sector Indices
Sectoral performance indexes were mixed, as the NGX Insurance index closed higher by 0.50%, while NGX Banking led the decliners after losing 0.36%, followed by Consumer goods with 0.09%. Just as NGX Industrial goods and Energy finished flat.
Market breadth was positive as gainers outnumbered loser in the ratio of 34:15, while activities in volume and value terms were down, after investors exchanged 358.45m shares worth N4.36bn, driven by trades in Accesscorp, Aiico, Universal Insurance, Japaul Gold and Verita Kapital.
Multiverse and ABC Transport were the best performing stocks, gaining 9.92% and 9.88% respectively, closing at N3.99 and N0.89per share respectively, on market sentiment and forces. On the flip side, RT Briscoe and Prestige Assurance lost 9.84% and 9.09%, closing at N0.55 and N0.50per share, purely on the back of selloffs and profit taking.

Market Outlook
We expect mixed sentiment to continue as investors target dividend paying stocks and profit taking, in the midst of portfolio rebalancing on the strength of the better-than-expected corporate numbers released and high yields. As 2024 is setting up with dividend season ahead.
Meanwhile, all eyes are on the fiscal and monetary authorities to give direction of the government reforms and policies so far.

Take Action

Invest 2024 Traders & Investors Summit
Theme: Navigating Nigeria Economic Reality With Diversified Portfolio & Investing Strategies

Sub-Topics
1. Nigeria Economic Challenges; Surprising Insight For Profitable Investing: Economic
Policies & the 2024 National Budget
2. Current Reality Of Rising Inflation & Mixed Interest Rate Outlook: Where Is Fixed Income
Market In Wealth Creation In 2024
3. Where To Shop On NASD/OTC Market For Profitable Trading in 2024 & Beyond
4. Real Estate Investment Opportunities in the Hyper-Inflationary Environment Of Today
5. Understanding Commodity Markets For Profitable Portfolio Diversification in 2024
6. NGX ETFs Products As Investment Alternatives In 2024
7. Manging Investment & Trading Risks: Using Technical Analysis/Indicators
8. Trading With Numbers & Dates: 10 Golden Stocks For 2024

As market reader and trading coach, daily I hear stories from many investors and traders
about the challenges they are facing in today’s market, and we want to provide actionable
solutions at this summit that can benefit every type of market players, especially at this
time, the stock market had rallied for straight 4years breaking out 2008 peak and hitting all time high in the history of NGX. So, No matter your experience level… or your portfolio balance.
We are excited to invite you to the upcoming Invest 2024 Traders & Investors Summit a live
online investment event where trusted team of market experts and professionals will reveal
the strategies that have allowed then stay ahead of any market situation on NGX for
decades.
This summit is all about giving you a competitive edge, boost your portfolio bottom line and
enhanced your confidence no matter your investing and trading experience.
Take away from this summit includes:
 How to construct a resilient Power Portfolio that adapts to market changes
 Techniques to generate cash flow from your stock holdings and trading
 Analysis of different market/investment windows to stay ahead of the current
economic reality.
 Strategies for safeguarding your investments during uncertain times
 Ways to amplify your purchasing power when inflation surges
 10 golden stocks for 2024

Date: December 2, 2023
Fee: 35k
Venue: Zoom

Want to be among the successful investors and traders in 2024 send Yes to: 08028164085, 08179547605 now.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08179547605