Mixed Trend, As Investors Position On Market Pullback, Ahead Of Quarter-end

Market Update September 20

Trading activities on the Nigerian bourse started the week on a mixed and volatile session with the composite NGX All-Share index closing lower on a low traded volume and amid negative sentiments to reverse gains of the previous session. It thereby extended the sideways movement ahead of the end of the month and quarter window dressing, as players continue to digest the positive macroeconomic data and impact of the Monetary Policy Committee decision, which are likely to determine an uptrend or downtrend from this level of a breakout or fake-out.

In line with our expectations, members of the Monetary Policy Committee, at the end of their regular bi-monthly meeting on Friday, unanimously voted to keep the benchmark Monetary Policy Rate at 11.5%, besides also voting to retain other the policy instruments unchanged. We believe that the Liquidity Ratio and Cash Reserve Ratio, at the current levels need close monitoring.

Technically, the market activity levels remain weak in recent days on a sell volume driven by local institutional investors and portfolio repositioning across all classes of stocks, especially the bellwether equities and dividend-paying stocks that have been the major drivers.  

Meanwhile, Monday’s trading opened slightly on the upside before oscillating mildly between the mid-morning to the afternoon on profit-taking and selloffs among the major sectors and buying interests in medium and low-priced stocks. This situation pushed the NGX index to an intraday low of 38,900.92 basis points, from its highs of 38,961.46bps, after which it closed below the opening figure at 38,906.42bps.

Market technicals were weak and mixed as the volume traded was higher than that of the previous day in the midst of flat breadth on selling sentiment as revealed by Investdata’s Sentiment Report, showing 9% ‘buy’ volume and 91% sell position. Total transaction volume index stood at 0.80 points, just as the momentum behind the day’s performance was relatively weak, with Money Flow Index looking down at 25.92points, which was however better than the previous day’s 18.85points, an indication that some funds entered the market, despite the down market.

To navigate the rest of the quarter and year profitably, order Investdata’s video on Technical Analysis Made Easy for Profitable Trading 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 Market Caps

At the end of Monday’s trading, the NGXASI slipped by 37.45 basis points, closing at 38,906.42bps, from its opening level of 38,943.87bps, representing a 0.10% drop, just as market capitalization fell by N19.35bn, closing at N20.27tr, from the opening value of N20.29tr, also represented 0.10% deprecation in value.

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 25 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 oscillating mood 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 driven by selloffs in Unilever, PZ Cussons, Zenith Bank, and GTCO, among others. These impacted mildly on Year-To-Date loss, which increased to 3.39%, just as the cumulative loss in market capitalization stood at N786.25bn, representing a 3.73% decline from the year’s opening value.

Mixed Sector Indices

Performance indexes across the sectors were mixed, as the NGX Industrial Goods and Energy closed 0.13% and 0.08% higher respectively, while the NGX Insurance Index led the decliners after losing 0.78%, followed by Banking and Consumer Goods with 0.27% and 0.16% respectively.

Market breadth was at par, as losers were equal to gainers in the ratio of 19:19, while transactions in volume and value terms were up after investors traded 190.96m shares worth N2.35bn, compared to the previous day’s 155.1m units valued at N1.95bn. The day’s volume was driven by trades in Ekocorp, UBA, Transcorp, Sovereign Trust Insurance, and Fidelity Bank.

Consolidated Hallmark Insurance and Chams were the best-performing after gaining 9.62% and 9.52% and closing at N0.57 and N0.23 per share respectively on market forces. On the flip side, SCOA and Veritas Assurance lost 9.43% and 8.70% respectively, closing at N0.96 and N0.21 per share, purely on selloffs.

Market Outlook

We expect the mixed trend to continue as investors and traders utilize the market’s pullbacks to position, while many stocks are trading within their buy ranges, a situation expected to attract funds into the equity space, given the Dividend Yield capable of serving as a hedge against inflation. Also, institutional investors and others continue to digest recently release economic data ahead of the month and quarter-end, as well as the continued repositioning of portfolios for the year’s last quarter. Also, investors are still observing the interplay of forces in the FX market as the CBN gives a guideline for the new digital currency platform. The day’s low volume suggests that institutional investors and others are still cautiously looking at the economic data and policy direction of the economic managers. It is noteworthy that oil price pullback in the international market; corporate actions, as well as the interim dividend possibilities, are around the corner.


Theme Road To Wealth: Avoiding Financial Lockdown In Q4 & Beyond


  1.  The Power of Earnings: Best Trading Strategies To Grow Your Portfolio, By (AlhajiGarbaKurfi, MD/CEO, APT Securities & Funds Ltd)
  2. The Road Ahead For The Economy & Impact of PIB On Equity Market, By Mr. AbiolaRasaq, CSCS).
  3.  Classical Chart Patterns For High Powered Profits In Any Market Cycle, By Mr. Ambrose Omordion, Chief Research Officer, Investdata Consulting Ltd

Are you interested in building wealth and improving your trading results through tested and effective investing strategies for the rest of the year and beyond? Smart domestic investors, like Aliko Dangote, Jim Ovia, Tony Elumelu, TY Danjuma, and Abdul SamadRabiu, among others, recognize the power of creating wealth through stock trading and investing.

This Q4 masterclass is for you because it will help you follow exact steps in real-time and target one of the most active time frames in the market.  It doesn’t matter how the government is creating new money and credits, or what tricks they are employing, or how they spin them ….

Nigeria has entered one of the greatest inflationary periods despite the seeming slowdown in the last four months. Inflation is not a threat. It is government policy from this point forward that will push millions of Nigerians down …. Out of the middle class…out of private retirement, healthcare, and decent lives, based on independence and privacy… into a collective nightmare we call financial lockdown.

This is what happens when people are trapped by their own collapsing currency, such that they become deeply indebted. Inflation causes huge distortions in the economy and in the markets, so it is critical that you take the necessary steps to ensure you are not left behind.

We have put together this Q4 masterclass to help market players avoid those needless losses and build a profitable portfolio that has high ROI…… Especially in a volatile market, when you don’t know which way up….

Participants will learn the following

  1. How to trade earnings to boost their portfolio bottom line
  2. The relationship between equity price movement and power of earnings
  3. The road ahead, which sector and industry have the potential to drive profit that will support equity prices
  4. How to simplify price action analysis on any time frame
  5. How to filter out market noise and identify the most opportune time to join any market
  6. Tradeable chart patterns and candlestick formations that signal real money-making opportunities
  7.  Trend trading secrets for profitable trades and minimal risk
  8. Five hot stocks that beat inflation and deliver over 25% in 90-day investment windows.

Date: October 2. 2021

Time: 9 am Prompt

Fee: N50,000 per participant

Venue: ZOOM

However, with less than 12 days to Q4 Master class October 2, 2021, you need to make money and avoid financial lockdown, boost your trading bottom line. Don’t miss this opportunity.

During this practical session, our top industry experts will reveal profitable trade ideas and opportunities in Q4 to consolidate your gains and ride on year-end seasonality to maximize returns. That is what you can implement immediately to start tracking the result by yourself and the investdata Research team on your behalf. You definitely want to be among the smart traders and investors in Q4. So, send “YES” or “STOCKS” to 08028164085 and 08179547605.

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.

Ambrose Omordion

CRO|Investdata Consulting Ltd




Tel: 08028164085, 08179547605