Mixed Trend Ahead, On profit-Taking, As Pullback Offers Positioning Prospects
Market Update for November 11
Volatility continued on the Nigerian Exchange on Thursday as indexes and stock prices dropped lower on profit-booking ahead of economic data and in the face of continued portfolio rebalancing and repositioning for year-end seasonality and dividend expectations at a time the market has entered its most profitable six-month window that occurs between November and April.
The market extends its two sessions of losses on negative sentiments in the major sectors and blue-chip stocks with investors taking profit from the recent rally, normal and healthy trademark of any equity market across the world.
The seeming pullbacks and corrections at this stage will enable the market to gather more strength for a new rally, thereby creating more opportunities for discerning players to position in stocks with discounted values and a history of growing their dividend payout. Already, after all, the recently released Q3 earnings have laid bare the true positions of these companies and their earnings power.
The global markets recorded mixed performances in the face of inflation data released recently and other happenings in the fixed income markets after the 91 and 182-day bills rates remaining unchanged in the week’s Treasury Bills primary auction, while rates of the long tenored 364-day instruments fell further to 6.51% from 6.99%.
Technically, sellers are in control presently as the NGX index’s action pulled back for the second successive day with the market in its distribution phase at the close of Thursday’s trading, with all the momentum indicators looking down to confirm a change of trend. The ADX is reading 64.56 and the money flow index is down at 66.17point on the daily chart, following which the possibility of rebound and bull spike for the rest of the year and early 2022 remain high, after the profit-taking.
However, the better-than-expected Q3 earnings, and interim corporate actions, as well the level of liquidity in the equity space will determine the extent of the expected market rally when it rebounds from this pullback. Already too, all eyes are on happenings as regards the global inflation rates and oil prices currently oscillating around $84 per barrel, on the impact of the drop in oil consumption by China, as OPEC holds on to supply. So far, the direction of yields in the fixed income market remains yet unclear.
Thursday’s trading started slightly on the upside, before pulling back at mid-mornings and remained so for the rest of the session on profit-taking and selloffs in blue chips. This situation pushed the NGX index to an intraday low of 43,589.26 basis points from its highs of 43,709.28bps before closing below its opening level at 43,609.06bps.
Market technicals for the session were negative and weak with a lower volume traded than the previous day’s in the midst of breadth that favours the bears and selling pressure as revealed by Investdata’s Sentiment Report showing 84% sell volume and 16% buy position. The total transaction volume index stood at 0.42 points, just as momentum behind the day’s performance remains relatively strong, Money Flow Index looked up marginally at 66.17 points, from the previous day’s 71.65 points, indicating that funds left the market.
Order Investdata’s video on Buy &Sell Technical Analysis Toolbox to navigate the rest of the month and year profitably to 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 Mkt Cap Movement
The key performance NGXASI at the end of trading, shed 98.24 basis points, closing at 43,609.06bps after opening at 43,707.30bps, representing a 0.22% decline, just as market capitalization shed N51.27bn, closing at N22.76tr, from the opening value of N22.81tr, also representing 0.22%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 30 as they build a new bullish base and positive chart patterns to be on our watchlist. These stocks have double potentials to rally, considering their earnings prospect and the recovery move of the market at this time.
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 to stimulate and re-track the economy to the path of growth and development.
The day’s downturn was a result of selloffs and profit-taking in MTNN, GTCO, UBA, NGX Group, Zenith Bank, United Capital, Access Bank, and ETI, among others, which impacted mildly on Year-To-Date gain, reducing it to 8.29%. Market capitalization stood at N1.68tr YTD, representing a 7.81% growth from the year’s opening value.
Sectoral performance indexes were down, except for the NGX Consumer Goods which closed 0.02% higher, while the NGX Banking index led the decliners after losing 0.95%, followed by Insurance, and Industrial Goods with0.93% and 0.10% respectively, while Oil/Gas was flat.
Market breadth was negative, as losers outnumbered gainers in the ratio of 19:12, while transactions in volume and value terms were down after stockbrokers traded just 161.31m shares worth N2.14bn, compared to the previous day’s 270.70m units valued at N5.63bn. Volume was boosted by trades in FBNH, Transcorp, Zenith Bank, Access Bank, and Sterling Bank.
Unity Bank and FTNCocoa were the best-performing stocks, gaining 8.6% and 6.45% while closing at N0.59 and N0.42 per share respectively on market forces. On the flip side, Cornerstone Insurance and Cutix lost 9.86% and 9.83% respectively, closing at N0.52 and N5.70 per share, purely on profit-taking.
Being the last trading day of the week we expect the mixed trend on profit-taking and momentum investing as pullback create an opportunity for players to jump into positions on the strength of Q3 numbers, just as candlestick formation and volume traded at the end of day trading revealed sellers in control as the index slide down marginally. Also, we note that institutional players are not selling but positioning in blue-chip companies, as the pullback was on a light volume. It is equally noteworthy that this pullback at this level is for the accumulation of more positions ahead of year-end seasonality. Also, many stocks are trading within their buy ranges, a situation expected to attract more funds into the equity space, given the Dividend Yield capable of serving as a hedge against inflation.
Invest 2022 Traders & Investors Summit
Theme: Master The Market, Get The Best Of Pre-Election Year 2022
1. Balanced Trading: Playing Nigeria’s Multiple Exchanges For Diversification, MrOlatundeAmolegbe, CEO, Arthur Steven Asset Management Ltd &President of CIS
2. Agriculture, Economic Recovery & Diversification: Where Is Commodity Trading In Your Portfolio, Mr. AkinyinkaAkintunde, Business Development Manager, AFEX Commodities Exchange Ltd.
3. Technical Outlook & Indicators For Profitable Market Timing, Mr Abdul-Rasheed OshomaMomoh, Head Capital Market at, TRW Stockbrokers Ltd
4. Benefits & Dangers Of Fixed Income Instruments In An Inflationary Environment, MrTeribaAdeboye, MD/CEO, Qualinvest Capital ltd
5. Economic Outlook and implications of the N16.45 Trillion 2022 Budget On Sectors/Stock Market, Mr. OluwasegunAkinwale, Senior Portfolio Manager,Coronation Asset Management Ltd
6. Profitable Stock Picks Made Easy, Using Fundamental Tools, Mrs. Ebiere Helen Fumudoh, MD/CEO, Norrenberger Securities Ltd
7. The Role of Real Estate & REIT Instruments In the Ecosystem, Mr Tope Ojo, Managing Partner,Tope & Tunde Estate Surveyors &Valuers
8. Trade Opportunities & 10 Golden Stocks for 2022, Mr Ambrose Omordion, Chief Research Officer, Investdata Consulting Ltd
Investdata Consulting Limited holds the 10th edition of its annual Investment conference tagged Invest 2022 Traders & Investment Summit, which has over the years remained a game changer for market players. This edition is aimed at helping stakeholders identify opportunities and bringing ideas for profitable trading as we enter a pre-election year.
Invest 2022 is a not-to-be missed summit capable of completely changing your view about where the economy and stock market are headed and when you should fully plunge in or hold cash. Join the experts and experienced professionals to discuss a Big Picture Perspective of where the stock market and other investment windows are currently placed and what signs to be vigilant about over the coming months and year 2022. Don’t miss this summit.
We have held this annual summit since 2012, to give investor and traders insight, perspective and expectation in the new year. This year Invest 2022 Summit is exceptional being vaccination driven economic recovery after Covid 19 disruption. The big picture of what is happening and outlook for 2022, analysis of the status of different investment windows and opportunities, ranging from the economy, equity, bond, commodity, real estate and others using fundamental and technical tools.
More than 80% of the golden stocks pick during Invest 2021 Summit have beaten their targets, returning more than 40% to 60% in less a year. Due to growing concern and fear around the globe and domestic economy/stock market as analysts are predicting a big melt-down in stocks from ant time soon, to sometime in 2022.
Looking at history, there is no doubt that correction or pullbacks are on the cards at some stage. However, this big questions on everybody minds are when will this occur and whether it will end this bull run or market recovery.
Whatever happens, what is the best way to Prepare rather than try to Predict? This is what Invest 2022 Summit will address. So you are invited to Speck or facilitate at this event
What to expect at this Summit?
A. Why the market is on high alert for the New Year rally, or Correction
B. Strategies to stay in profit, overcome market correction/pullbacks
C. How to position in stocks for robust profit ahead of 2022
D. How to take advantage of the circular flow of funds in financial markets
E. Risk/return from Bonds to stocks right now.
F. Key to profitable trading and investing in the stock market/other investment windows
Benefits for attending
1,10 Golden Stocks for 2022
2, Admission to Investdata Buy & Sell WhatsApp Platform
3, Among others
Don’t miss this summit, if you have any exposure to the stock market, either directly or indirectly via managed funds of any kind…….
“Invest 2022 – Connects you to new trade opportunities and ideas to boost your trading results/bottom line”
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 4, 2021
Want to be among the successful investors and traders in 2022? Send Yes to 08028164085, 08179547605 now.
Meanwhile, the home study packs on Comprehensive Stock Market trading course video, Stock Market Analysis Beyond Fundamental & Technical Analysis, INVEST 2021 New Opportunities & New Paths To Profits Summit materials and 10 Golden Stocks for 2021, Strategies and How to invest profitably in this Changing Market Dynamics/ Recession, Mastering Earnings Season For Profitable Investing and Trading in any market situation/ cycles, Life Beyond COVID 19 Investment Opportunities In The Stock Market are now available. To obtain your pack send ‘Yes’ or ‘Stock’ to 08028164085, 08179547605 now.
CRO|Investdata Consulting Ltd
Tel: 08028164085, 08179547605