Market Update for November 28
Stocks closed marginally high at the end of Thursday’s trading on the Nigerian Stock Exchange, as investors reawakened their buying interest in banking, Consumer Goods and kobo stocks, and the process slowing down selloffs and profit-taking.
The nation’s stock market may be set for a bullish ride, with undervalued and dividend-paying stocks prepare to lead the next rally as signaled by the performance recorded so far.
Ahead of the Santa Claus and year-end rally, there is the hope that the better-than-expected GDP of 2.28% and expansion of credit by banks to the real sector would keep the growth tempo.
This is also expected to boost consumer and investor confidence to increase consumption and buying interests in equities as they spend more money this season.
Going forward, there is a possibility that lagging sectors could offer the best investment opportunities yet for year-end positioning and beyond. As we have always maintained, traders and investors should not panic out of their position, but instead, watch the market trend as accumulation is still ongoing. This is especially true of high dividend-paying stocks with yields above the 91-day Treasury Bills rate of 7.8%.
Thursday’s trading started on the upside and was sustained throughout the session, despite the oscillation as demand for stocks and selling momentum pushed the composite NSE All-Share index to an intraday high of 26,863.97 basis points, from its low of 26,790.10bps, before closing at 26,824.50bps on positive breadth.
The session’s market technicals were positive and mixed with volume traded higher than the previous day, in the midst of positive breadth and mixed buying sentiments as revealed by Investdata’s sentiment report of a 47% ‘buy’ volume and 53% sell position. The day’s total transaction volume index stood at 0.94, just as the impetus behind the day’s performance was strong as Money Flow Index read 59.91 points, from the previous 49.49bps. This is an indication that funds entered some stocks and the market, despite the marginal gain recorded.
Index and Market Cap
At the end of the trading session, the All-Share index recorded a marginal 34.40bps gain, closing at 26,824.50bps from its 26,790.10bps opening, representing a 0.13% rise, just as market capitalization rose by N16.61bn, closing at N12.95tr, from the opening value of N12.93tr, which also represented a 0.13% value gain.
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Thursday’s upturn was impacted by buying interests in stocks like Guaranty Trust Bank, Zenith Bank, FBNH, UBA, Access Bank, Unilever, Cadbury, UACN, Oando, and Transcorp. These impacted mildly on the NSE’s Year-to-Date loss, reducing it to 14.65%, while market capitalization gain for the period inched up to N1.23tr, representing 10.46% growth from the year’s opening value of N11.72tr.
Mixed Sector Indices
The sectoral performance indexes were largely bearish, except for the NSE Banking and Oil/Gas indexes that closed higher by 0.65% and 0.68% respectively, while the NSE Consumer Goods index led the decliners, after losing 0.30%. It was followed by the NSE Industrial goods and Insurance which lost 0.14% and 0.01% respectively.
Market breadth turned positive as advancers outpaced decliners in the ratio of 19:13, while market transactions were up in volume and value traded by 60.02% and 16.24% respectively to 303.82m shares worth N1.72bn, from the previous day’s 189.86m units valued at N1.48bn. This volume was boosted by transactions in Law Union Insurance, UBA, Access Bank, Mutual Benefits Assurance and Zenith Bank
Cadbury and Cutix were the best-performing stocks, topping the advancers table, after chalking 10% and 0.72% respectively to close at N9.90 and N1.58 respectively, on the back of improved earnings and market forces. On the flip side, C & I Leasing and Jaiz Bank lost 9.85% and 8.70% respectively, closing at N5.95 and N0.63 on profit-taking and weak earnings.
Market Outlook
We expect the intraday oscillation to continue on profit-taking and interoperation of MPC outcome on the capital flow and repositioning in value stocks will persist. The changing sentiments in expectation of improved liquidity as interest rates drop in the money market had trigger buying interest in stocks regardless of a high risk that is associated with investing equity.
The current undervalued state of the market offers investors opportunities to position for short and medium-to-long-term views. We expect that investors would target fundamentally sound and dividend-paying stocks for possible capital appreciation as the year draws down.
Also, traders and investors need to change their trading strategies due to NSE’s pricing methodology, CBN directives and its impact on the economy in the nearest future, and another fiscal policy initiative that may provide liquidity for the economy and market.
Take Action
INVEST 2020: Opportunities and Trade Ideas Summit
Sub-Topics
A. Recession or Boom: Five Trading Strategies for Picking Best Stocks in Good Times or Bad- AlhajiGarbaKurfi, Managing Director of APT Securities & Funds Limited.
B. 2020 Global/Nigeria Macro-Economic Outlook & Sectors To Position, Mr. RazaqAbiola, Head, Corporate Strategy CSCS Nigeria Plc
C. Critical Chart Patterns For Pinpointing Stocks That Could Explode Higher In 2020- Mr. Abdul-Rasheed OshomaMomoh, Head, Capital Market, TRW Stockbrokers Limited,
D. Keys To Identify Opportunities In Stocks, Exchange Traded Fund (ETF) Fixed Income and Commodities Markets In Any Market Environment.- Engr. Ekwueme Mike Anaydibe, Head, Fixed Income Sales at TRW Stockbrokers Limited.
E. Mastering Earnings & Dividend Game Plan For 2020 Investing Opportunity & Beyond- Mr. Ambrose Omodion, Chief Research Officer, InvestData Consulting Limited,
Over the years, we have received requests from our followers, concerning our annual Traders & Investors Summit scheduled for December, where experts and analysts would x-ray investment and trading opportunities in the New Year.
At the forthcoming summit, participants would
• Learn from some of the best professionals in the market
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• Offer opportunities to network with peer value investors and investment professionals who share your passion for investing
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Expected Takeaways
• Pinpointing chart patterns for Profitable Trades and investing opportunities in an uncertain market environment
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• Special Earnings and Dividend Game Plan for 2020 investment opportunities
• Understanding the changing economy and trend for profitable investment
• How successful value fund managers research into and evaluate companies
• Exclusive insight and actionable value strategies from world-class professional Traders
• Over 10 Trading and investing tips for identifying undervalued Stocks you can buy now
Date: December 7, 2019
Fee: N25,000
Venue: Ostra Hall & Hotels Ltd, Off OtunbaJobifele Way, Opposite NNPC Gas Plant C.B.D, Alausa, Ikeja Lagos, Nigeria.
However, with less than 60 days into the year 2020, you need to start planning now because it is either you plan to succeed in 2020 or you don’t decide. Instead, you fold your hands means you are planning to fail. So, this practical summit is first of its kind because a team of experts will reveal pure practical trade ideas and opportunities in 2020 that will help participants recoup losses and maximize returns no theory. That is, what you can apply or implement immediately and start tracking the result by yourself.
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Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
