Negative sentiment resurfaced on the Nigerian Exchange Tuesday, halting the seeming recovery that had been mixed in the face of negative market breath and oscillating traded volume to reflect position taking in some sectors and stocks, despite the CBN’s monetary policy tightening that has induced price corrections, offering good entry opportunities to investors.
The NGX All-Share Index fell sharply, almost wiping out all the year-to-date gain, amid sustained panic selling and profit-taking on fears that affected prices of high priced stocks and blue-chips, and despite the better-than-expected corporate earnings that should support high payouts at the end of the current financial year.
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.
Despite the bearish momentum and election risk, we still talk about the potential for a 3-5% Santa Claus rally and how CBN moves can cause investors to either sell or buy in droves. At the end of the day, even when outcomes of MPC meeting are 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 continued to tumble, trading at $95.50, in the midst of the European Commission saying it is impossible to cap gas prices, 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.
Tuesday’s trading started on the downside and was sustained throughout the session on selloffs in blue chip companies, a situation that pushed the NGX’s index below psychological line of 44,000 mark to an intraday low of 43,439.72bps from its highs of 44,293.10bps before closing significantly below its opening level at 43,461.60bps.
Market technicals were weak and mixed, with higher volume of trade than the previous session in the midst of breadth favoring bears on a selling sentiment as revealed by Investdata’s Sentiments Report showing 3% buy position and 97% sell volume. The total transaction volume index stood at 1.49 points, just as impetus behind the day’s performance was weak as Money Flow Index is looking down at 40.30pts, from the previous day’s 41.80pts, indicating that funds left the market.
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Index and Market Caps
At the end of Tuesday’s trading, the key performance NGX All-Share Index, shed 807.83bps, closing at 43,461.60 basis points, after opening at 44,269.43bps, representing a 1.82% decline, just as market capitalization fell by N440bn, closing at N23.67tr from the previous day’s N24.11tr, which also represented a 1.82% depreciation in value.
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Meanwhile, the session’s downturn was driven by selloffs in shares of Dangote Cement, MTNN, Guinness, NB, Stanbic IBTC, GTCO, Fidelity Bank, Zenith Bank, FCMB and Custodian, among others, which impacted negatively on Year-To-Date gain, reducing it to 1.74%. Market capitalization gain YTD increased to N782 billion, representing a 7% rise over the opening level for the year.
Bearish Sector Indices
Sectorial performance indexes were down, except for the NGX Oil/Gas that closed 0.56% higher, while the NGX Industrial goods led the decliners after losing 3.93%, followed by Insurance, Consumer goods and Banking with 1.32%, 0.58% and 0.17% respectively.
Market breadth remained negative with losers and gainers in the ratio of 19:12; just as transactions in volume and value improved as stockbrokers crossed 249.91m shares worth N2.50bn. Volume was driven by trades in Accesscorp, FBNH, Transcorp, Fidelity Bank and GTCO.
The best performing stocks were Unity Bank and Thomas Watts which gained 10% and 8.57% each, closing at N0.44 and N0.38 per share respectively on market forces and earnings expectation. On the flip side, Guinness Nigeria and Custodian Investment e lost 9.95% and 9.32%, closing at N74.65 and N5.35per share, purely on profit taking and selloffs.
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
- Stagflation, Economic Headwinds & The Stock Market: Are Market Players Prepared?
- Comprehensive & Complete Wealth Building Actionable Strategies for 2023
- Identifying Great Value Stocks For Santa Claus & Post-Election Rally
- The Power of Technical Tools In Today’s Volatile Market
- Building Recession-Resistant Portfolios
- The Role of Commodity Trading In Wealth Creation, Agricultural Development
- Fixed Income Market Slice & Dice In A Changing Interest Rates, Inflationary Environment
8, Four Steps To Simplify Your Day Trading & Understanding the power of Breakout Trades
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
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.
CRO|Investdata Consulting Ltd
Tel: 08028164085, 08179547605