Market Update for June 26, 2018
It was a moderately sustained recovery trend on Tuesday at the Nigerian Stock Exchange, as the benchmark All-Share index resisted further decline on improved volume traded and regardless of the mixed sentiments exhibited by the investing public as it closed flat.
The NSE Index gapped down slightly in the morning session, before rebounding around midday to afternoon when there was no follow through due indecision among traders and investors.
Meanwhile, the market remained volatile as the index hit intraday highs of 38,040.10 basis points from a low of 37,929.64bps, searching for direction before closing at 37,988.54bps. During the day’s trading, there was an off-market crossed deal of 280m shares of Union Bank by local investors at N5.50 each.
Tuesday’s market technicals were weak and mixed as traded volume was high in the midst of flat market breadth and mixed sentiments, with Investdata’s Daily Sentiment Report showing a ‘buy’ pressure of 53% and ‘sell’ volume, 47% on a volume index of 0.80 of the day’s total transactions.
The momentum behind the market performance were high, despite the mixed sentiment, reflecting on the money flow index at 38.39 points from the previous day’s 32.70 points. This is an indication that funds are entering the market again as a follow-up from Monday, due to the activities of bargain hunters positioning ahead of the earnings season and implementation of the new market structure.
Index and Market Cap
At the close of trading on Tuesday the NSEASI shed a marginal 3.58bps, closing at 37,988.53bps, after opening at 37,992.12bps, representing a 0.01% decline on a high volume that was higher than the previous day’s. Similarly, market capitalisation dropped by N1.3bn to remain flat at N13.76tr it opened the day.
If you are hunting for the right stocks to buy on this oscillating trend, join Investdata Buy & Sell Signal setup. We have a watchlist of stocks for different investment purposes that you may position in, as the market sets for another phrase of recovery. To register and become a member send Yes or stocks to the phones numbers below. Our watch list has increased due to the prolonged correction before now, take advantage of this service to buy right and sell right.
The flat market performance was driven by slight price decline in medium and high cap stocks like Guaranty Trust Bank, Zenith Bank, UBA, 11 Plc, Skye Bank, Diamond Bank, International Brewery and Japaul Oil, which impacted negatively on the NSE’s Year-to-Date return as the YTD loss inched to 0.67%. The gain in market capitalisation for the period stood at N97.24bn, a 0.97% rise above the year’s opening value, on the impact of new listings earlier in the year.
Bearish Sector Performance
Sectorial performance for the day were bearish, except for NSE Insurance and Industrial that was up while the NSE Oil/Gas, Banking and Consumer goods were down marginally. Market breadth remain at equilibrium as decliners-advancers ratio stood at 23:22 to keep market on a side range movement
Market activities were up in volume and value by 160.20% and 37.58% respectively to 538.64m shares worth N4.71bn from the previous day’s 207.42m units valued at N3.42bn. The day’s volume was boosted by trading in financial services and conglomerates goods stocks like Union Bank, Fidelity Bank, Transcorp, FBNH and Zenith Bank that witnessed increased trading to top the activity chart.
NEM Insurance and FCMB were the best performing stocks for the day, as they topped the advancers’ table, with 9.87% and 9% respectively to close at N3.34 and N2.30 each, due to a combination of market sentiments and expectation of Q2 earnings reports
On the flip side, Japaul Oil and international Breweries were the worst performing, losing 8.89% and 6.14% each to close at N0.41 and N41.30 on profit taking and market forces.
Market Outlook
We expect more buying interest to sustain the trend reversal with eyes fixed on March account earnings reports, more of which will start hitting the market. Volatility is likely to continue as investors and fund managers reposition for end of the quarter to earn good fee and commission as equities remain undervalued with higher yields. Investors should review their position in line with their investment goals and take action as events as it unfolds in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value, especially during this season were less earnings are released ahead of march full year earnings release and Q2 interim dividend payment are expected in the market arena very soon.
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
Save The Date: Investdata Stock Market Training Workshop
On Saturday, July 28, 2018
Comprehensive Stock Trading & Investing Toolkit for Rest of 2018
Sub Topics
Review of 2018H1 Market & Economic Performance: How Fiscal Reforms and Stimulus Will Support the Market/Economy in 2018H2.
In this presentation, the speaker will discuss how historically the Fiscal and Monetary policies have influenced Nigeria’s stock market, the implications for the second half and it would drive equity prices higher as recovery continues.
2018H2 Trading Checklist: How to Find Winning Stocks in Nigeria’s Volatile Equity Market
After the prolonged correction, volatility is here to stay for the rest of 2018. Is it time to start worrying about losses suffered so far, a flattening yield curve or time to relax due to the outstanding earnings season? Better yet, is there a way to harness increased volatility to your advantage? Our facilitator, a stock market expert will show you how to handle increased volatility in 2018. He’ll offer insights into forces impacting today’s market. He will share, using real-time examples, his ultimate checklist to finding winning stocks propelled by volatility. This simple strategy allows you to quickly evaluate stocks and to better time entry and exit points, while understanding market forces moving your portfolio
How To Generate Consistent Superior Equity Returns and Income With Dividend Stocks
Here, the expert will discuss his approach to generating equity income by investing in undervalued dividend stocks, what he looks out for when trading dividend stocks at a discount to historical valuations on multiples of price to sales, earnings, cash flow, book value, and enterprise value to EBITDA. In addition, he requires companies to have positive operating cash flow over the past 12 months, with dividends covered comfortably by cash flow.
Powerful Patterns and Effective Strategies for Trading Shifts in Market Volatility
Recent and ongoing changes in market volatility present both risks and opportunities for discerning traders. Learn some of the most effective strategies for taking advantage of the high-probability trading opportunities available in equities, while minimizing risks associated with stock market trading. The six most powerful patterns in the market to trade, how to know which patterns and strategies to specialize in for consistent results and the critical difference between oscillating and momentum patterns.
Kindly call or send yes to 08032055467, 08028164086 or 08111811223.
Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
