Market Update September 27
Monday’s was yet another mixed trading session on the Nigerian Exchange, as the benchmark index NGXASI closed lower on a low traded volume and positive breadth to short-live the two sessions of bull transition and recovery, just as the industrial goods and insurance stocks suffered losses on the impact of market forces and profit-taking.
The seeming slowdown in the NGX All-Share index amidst portfolio reshuffling and the quarter-end window dressing ahead of the earnings reporting season mainly followed the 2.94% decline by BUA Cement.
Value and growth investing among discerning players continued on the exchange as buying interests and positive sentiments for undervalued stocks and sectors with high upside potentials to rally on uptrend earnings and expected impact of inflation and high exchange rates on the industries and companies.
Also, with the rally in oil prices influencing the nation’s external reserves, the Oil/Gas stocks are becoming attractive to players, while positive sentiment for the sector is on the increase ahead of the Q3 earnings season and last quarter numbers. There is the seemingly ambitious projection of oil price hitting $90 per barrel before the end of 2021, even as the seasonality that supports high consumption of energy and fuel is around the corner.
Technically, the low volume traded and the seeming divergence between the NGX index action and MACD histogram suggests that markup by smart money is underway, which we wait to confirm during the trading sessions of this week. Monday’s pullback was due to the BUA Cement exerting its weight on the NGX All-Share index, given that it is one of five stocks that control 60-70% of the market index. The others are Airtel Africa, MTN Nigeria, Dangote Cement, and Nestle. Also, these high cap stocks have helped the movement of the NGXASI, especially against the backdrop of the rule that price can only up or down when 100,000 units or more of stock are traded.
Meanwhile, Monday’s trading started slightly on the downside and oscillated on selloffs and buy interests in high, medium, and low-priced stocks, pushing the NGX index to an intraday low of 38,511.97bps, from its highs of 38,965.30bps, after which it closed below its opening figure at 38,864.33bps.
Market technicals were positive but mixed with lower volume traded than the previous day, while breadth favoured the bulls on positive sentiments as revealed by Investdata’s Sentiment Report showing 78% ‘buy’ volume and 22% sell position. Total transaction volume index stood at 0.59 points, just as the momentum behind the day’s performance was weak, and Money Flow Index turned up at 34.47points, from the previous day’s 32.22points, indicating that funds entered in, despite the down market.
To navigate the rest of the quarter and year profitably, order Investdata’s video on Buy & Sell Technical Analysis Toolbox 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 close of Monday’s trading, the composite NGXASI shed 97.95 basis points to close at 38,884.33bps, representing a 0.25% decline, just as market capitalization fell by N51.06bn, closing at N20.25tr, from the opening value of N20.30tr, also representing 0.25% 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 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.
Specifically, Monday’s downturn followed selloffs and profit-taking in BUA, GTCO, Zenith Bank, Ecobank Transnational Incorporated, UBA, Fidelity Bank, and United Capital, among others, which impacted negatively on Year-To-Date loss that dropped to 3.42%. This was just as the cumulative loss in market capitalization stood at N791.42bn, representing a 3.79% decline from the year’s opening value.
Mixed Sector Indices
Performance indexes across sectors were mixed, as the NGX Insurance and Industrial Goods index closed 2.39% and 1.09% down respectively, while the NGX Oil/Gas Index led the advancers, after gaining 1.2%, followed by the Banking and Consumer Goods with 0.40% and 0.24% respectively.
Market breadth was positive, as gainers outnumbered losers in the ratio of 20:12, while transactions in volume and value terms fell after stockbrokers traded 139.45m shares worth N1.27bn, compared to the previous day’s 633.52m units valued at N6.45bn. Volume was driven by trades in Sovereign Trust Insurance, Fidelity Bank, GTCO, Transcorp, and Courtvile Business Solution.
University Press and Transcorp Hotel were the best performings, gaining 9.8% and 9.7% to close at N1.12 and N5.43 per share respectively on low price attractions and market forces. On the flip side, Mansard insurance and Chams lost 9.94% and 4.35% respectively, closing at N2.99 and N0.22 per share purely on selloff and profit-taking.
We expect the rebound on quarter-end window dressing, rallying oil price above $80, and Q3 earnings expectation, just as investors and traders take advantage of pullback to position ahead of earnings reporting season. Also noteworthy is the fact that 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.
INVESTDATA Q4 MASTER CLASS OPEN FOR REGISTRATION
Theme Road To Wealth: Avoiding Financial Lockdown In Q4 & Beyond
- The Power of Earnings: Best Trading Strategies To Grow Your Portfolio, By (AlhajiGarbaKurfi, MD/CEO, APT Securities & Funds Ltd)
- The Road Ahead For The Economy & Impact of PIB On Equity Market, By Mr. AbiolaRasaq, CSCS).
- 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
- How to trade earnings to boost their portfolio bottom line
- The relationship between equity price movement and power of earnings
- The road ahead, which sector and industry have the potential to drive profit that will support equity prices
- How to simplify price action analysis on any time frame
- How to filter out market noise and identify the most opportune time to join any market
- Tradeable chart patterns and candlestick formations that signal real money-making opportunities
- Trend trading secrets for profitable trades and minimal risk
- 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
However, with less than 5 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.
CRO|Investdata Consulting Ltd
Tel: 08028164085, 08179547605