Market Update for September 8
The bull resurfaced on the Nigerian Exchange Thursday, halting three consecutive sessions of negative outing on improved buying sentiment and momentum as the benchmark NGX All-Share Index closed higher on a low traded volume and positive market breadth. Position taking across the major sectors inched up, especially in the financial stocks and others, propelled by the impressive numbers emanating from the banking sector, with interim dividend corporate actions that triggered buying interest from income and dividend investors. This is not unexpected, given that this sector is the most consistent in dividend payment in the history of the exchange.
On Thursday also, United Bank for Africa Plc released its half-year audited to the market in line with its projection, with impressive numbers, with gross earnings growing by more than 18% to N372.36bn, compared to previous half-year’s N316.04bn, just as profit after tax inched up 16% from N60.58bn in 2021 to N70.33bn. The net earnings translated to N1.98 Earnings Per Share, against N1.69 in 2021, with the board offering an interim dividend of 20 kobo per share. Investors reacted as the share price inched up slightly on the release of the result during the session.
The oscillation trend in the market is attributed to the historical case for the September effect, depending on the period analysis and what is happening. It is generally believed that retail investors liquidate their portfolios, going into the month to offset school fees for the children and other seasonal expectations, like the August inflation report, the outcome of the forthcoming Monetary Policy Committee meeting. Others include the fear of global economic recession and pre-election year tension, ahead of Q3 earnings reporting season in October. Also, the market continues its oscillation of making lower lows and lower highs to create buy opportunities for discerning investors as revealed by price action, volume and momentum.
Midweek’s bullish hammer reversal pattern was confirmed at the end of Thursday’s trading, but a continuation of this trend should be confirmed as trading opens Friday, given the NGX index action’s reversal on a low traded volume amidst positive market breadth and buying sentiment as index trades below the T line, ahead of the above mentioned events in the month. My answer regarding what to do under the current phase or market mood, whether regarding an individual stocks or an index, especially when to buy or sell, is always based on price actions and the money flow direction. We only want to hold stocks that are increasing, or at least retaining their value, while avoiding equities that are on the decline, and the toolset to evaluate price action is technical analysis.
The contemporary technical analysis that works in the changing volatile market, is what you should adopt. That is why it’s never been more important to join me at the upcoming Q4 Master Class in October, the largest quarterly traders summit in Nigeria. I will be sharing new actionable strategies and real trading education that will arm you with the tools that will help you meet your financial goals for the rest of the year 2022 and beyond.
To navigate this month 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 prices rebounded after pulling back to trade below $90 pre Ukraine war prices on Russia threatening to halt supply in the midst of weak demand as a result of impending recession and tight supply worries that may keep the price oscillating below $100, despite OPEC cutting output in the face of G7 capping Russia oil as energy crisis continue in Eurozone in the midst of aggressive interest rate actions by central banks across the globe droving bearish sentiment. Despite the bailout package of china’s government to simulate economic activates and stable employment and that of Germany package to manage energy crisis.
Thursday’s trading opened slightly on the downside and oscillated and rebounded by afternoon on position taking in blue-chips stocks, a situation that pushed the NGX’s index to an intraday high of 49,658.07bps from its lows of 49,577.38ps, before closing slightly above its opening figure at 49,652.25bps.
Market technicals were positive and strong, with higher volume of shares traded than the previous day in the midst of breadth favoring the bulls on buying sentiment as revealed by Investdata’s Sentiments Report showing 93% buy volume and 7% sell position. The total transaction volume index stood at 0.88points, just as impetus behind the day’s performance was relatively strong as Money Flow Index is looking flat at 53.39pts, from the previous day’s 53.99pts, indicating that funds left the market, despite closing in the green.
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
At the end of Thursday’s trading, the NGX All-Share index gained 11.08bps, closing at 49,652.25bps, after opening at 49,599.73bps, representing a 0.11% up, just as market capitalization rose by N28.33bn, closing at N26.78tr, from the previous day’s N26.75tr, which also represented a 0.11% appreciation 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 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 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.
Meanwhile, Thursday’s upturn was driven by position taking in Union Bank of Nigeria, FCMB Holdings, Ardova, Etranzact, Cutix, UBA, Fidelity Bank, United Capital, FTNcocoa and Cornerstone Insurance among others, which impacted mildly on Year-To-Date gain, which increased to 16.24%. Market capitalization gain YTD also rose to N3.23tr YTD, representing a 20.11% rise over the opening level for the year.
Bullish Sector Indices
The sectorial indexes were up except for the NGX Consumer Goods that closed 0.15% lower, while the NGX Banking index led the advancers after gaining 1.07%, followed by Insurance, Energy and Industrial goods with 0.75%, 0.37% and 0.16% respectively.
Market breadth remained positive, as gainers outnumbered losers in the ratio of 22:9; just as activities in volume and value were mixed, after investors exchanged 161.88m shares worth N1.63bn, with volume driven by trades in Transcorp, Fidelity Bank, Sterling Bank, FCMB and UBA
Etranszact and Ardova were the best-performing stocks, after gaining 9.81% and 8.94% respectively, closing at N9.00 and N1.60per share respectively on market forces. On the flip side, Vitafoam and Multiverse lost 9.96% and 9.92% respectively, closing at N21.25 and N2.36 per share, purely on profit taking.
Market Outlook
Being the last trading day of the week, we expect a mixed trend, as all eyes are on Accesscorp’s result and next week’s expected release of the inflation report for the month of August, while portfolio rebalancing continues on bargain hunting. Also, investors continue to analyse the numbers released by UBA, in the midst of the worsening sovereign risks.
We note also the flow of funds into the fixed income segment on the rate hike by the CBN, as sector rotation persists. Analysts are also focused on the lookout for August CPI and flow of funds amid oil prices oscillation.
INVESTDATA Q4 MASTER CLASS
Theme New Actionable & Technical Strategies For Profitable Trades In Changing Market Environment.
Sub-Topics
- Equity Investing in changing volatile Market: Two Sides Of The Coin, Mr Rotimi Olubi. MD ARM Securities Ltd
- Arbitrage Trading & Other New Strategies To Hedge Against Stagflation, Mr Abiola Rasaq , CSCS
- Mastering Contemporary Technical Tools For Wealth Building In Uncertain Environment, Mr Abdul-Rasheed Momoh, Head Capital Market, Trw Stockbrokers Ltd
- Time & Price Analysis For Money Making In Uncertain Market, Mr Ambrose Omordion, CRO. 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 understand the power of money flow and timing in wealth creation through stock trading and investing.
This Q4 masterclass is for you, because it will help you follow exact steps in real time, using the new strategies by following the current volatility and happenings in the market.
Nigeria has entered one of the greatest inflationary periods in the last six months, which is threatening investment and economic activities. And government policies through their economic managers had pushed 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 its 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
- How all fixed income market instruments had failed investors in stagflation environment
- How arbitrage trading is creating income for discerning market players
- How to hedge against inflation and preserve capital in sectors and industry that have the potential to drive profit that will support equity prices
- How classical technical analysis had failed many traders in this high volatile market
- How to filter market noise and identify the most opportune time to join any trade
- Tradeable chart patterns and candlestick formations that signal real money-making opportunities
- Five hot stocks that beat inflation and deliver over 30% in a short period of time.
- How to buy right on the two sides of equity investing, fundamental vs technical, risk vs profit, buy vs sell and bears vs bulls,
Date: October 1. 2022
Time: 9AM Prompt
Fee: N50,000 per participant
Venue: ZOOM
However, with less than 24 days to Q4 Master class October 1, 2022, you need to make money and avoid losses, 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 maximise 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.
Ambrose Omordion
CRO|Investdata Consulting Ltd
ambrose.o@investdataonline.com
Tel: 08028164085, 08179547605
