Positive Sentiments Ahead On Profit Taking, Positioning Ahead Of Inflation Data, Q4 Earnings, Elections Uncertainty

Market Update for January 9

It was mixed trading session on the Nigerian Exchange on Monday, as profit taking resurfaced in some major sectors of the market, despite closing higher on the help of price appreciation of telecoms grants to continue the uptrend and extending the bull transition for two consecutive days on a less than average traded volume and positive market breadth to start the first full trading week for the year 2023.

Meanwhile, more companies continue to notify the exchange of its closed period and board meetings. Investors are also keeping an eye on macroeconomic reports expected this month, particularly the consumer price index and the first meeting of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) for the year, as well as unaudited Q4 financials. These are likely to drive the ongoing volatility in the face of the usual January effect that had been positive in the previous years and month.

The mixed market sentiments and strong momentum continued to support the recovery as revealed in the short, medium and long term trend. Also forming top pattern that support reversal at the end of Monday trading, which need to be confirm.  Just as volatility and recovery are likely to continue for the rest of the month due to the expected full-year earnings and corporate actions that would support price.

This is however, notwithstanding uncertainties associated with the coming 2023 general elections, and a possible post-election rally, all things being equal.  As NGX’s historical peak of earnings reporting season draw closer, it is expected to attract more liquidity and buying interest depending on earnings surprises and disappointments. Also, as the rates and yields in the fixed income market have been on the decline across all tenor as seen in the last TB primary market auction offer for 2022.

Technically, the NGX index action is on markup phase in the midst of a topping chart and bullish V-shape pattern that supports reversal or continuation of trend on a daily time frame, as the convergence between the index action and MACD on a dally chart supports continuation of trend, in the midst of profit taking that hit some financial stocks.  let us keep our gaze on market forces and money flow.

Momentum indicators at the end of the day trading appear to remain stronger, as revealed by the ADX reading 64.01, just as, RSI and Money Flow Index are looking up to read 78.33 and 90.61 points against the previous session 75.73 and 90.57 points respectively. Volume trading pattern suggests the gradual return of many players who had been seating on the fence before now, including institutional investors holding cash to confirm the primary’s market direction, especially given the anticipated financial market and economic reset in 2023, that comes with huge opportunities to create wealth for smart investors and traders.

To navigate the rest of the quarter and the year 2023 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 low volume of transaction witnessed, it is time to go shopping for undervalued stocks, sectors and the next insider playing opportunity.”

Oil price oscillation continued, pulling back again to trade at $79.15 per barrel on increasing fear of global recession in the midst of China reopening borders and Covid 19 cases. Just as the geopolitical tension and fear of recession as a result of high interest rate and inflation across the globe. Also, supply tightened due to the Russia-Ukraine war that has lingered so far. The up and down movement of oil price also continues to drive volatility.

Meanwhile, Monday’s trading opened in the upside and oscillated throughout the session on profit and position taking in some highly priced stocks, medium and low cap companies, a situation that pushed the NGX’s index to an intraday high of 51,841.05 basis points from its lows of 51,207.13bps before closing sharply above its opening level at 51,700.36bps.

Market technicals were positive and mixed, with higher volume of trade compared to the previous session in the midst of breadth favoring the bulls on buying sentiment as revealed by Investdata’s Sentiments Report showing 78% buy position and 22% sell volume. The total transaction volume index stood at 1.12 points, just as momentum behind the day’s performance was strong as Money Flow Index looked up at 90.61pts, from the previous day’s 90.57pts, indicating that funds entered the market.

For you to successfully invest and trade in this volatile market in 2023, 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

The key performance NGX All-Share index, at the end of Monday trading gained 478.02 basis points, closing at 51,700.36bps after opening at 51,222.34bps, representing a 0.93%, just as market capitalization rose by N260.38bn closing at N28.16tr from the previous day’s N27.89tr, which also represented a 0.93% 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 30 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.

Monday’s upturn was driven by demand for Airtel Africa, Ucap, May & Baker, Wapic, CHI Plc and Thomaswy, among others, which impacted positively on Year-To-Date gain of 0.88%. Market capitalization YTD gain stood at N220.19bn, representing 0.86% above its opening level for the year.

Mixed Sector Indices

Sectorial performance indexes for the session were mixed, as NGX Banking and Insurance closed lower by 1.13% and 0.70% respectively, while NGX Consumer goods gained 0.19%.  Just as NGX Industrial goods and Energy closed flat.

Market breadth was positive as gainers outnumbered losers in the ratio of 18:16; whereas activities in volume and value were mixed, after investors exchanged 220.73m shares worth N2.70bn. Volume was driven by trades in Sterling Bank, UBA, FBNH, Accesscorp and Zenith Bank.

Thomaswy and ABC Transport were the best performing stocks, after gaining 9.28% and 8.00%, closing at N1.06 and N0.27 per share respectively on market forces.  On the flip side, UBN and Wema Bank lost 8.63% and 8.21% respectively, closing at N6.35 and N3.58per share, purely on profit taking.

Market Outlook

We expect positive sentiments and mixed trend on profit taking and positioning ahead of CPI data and volatility in the face of Q4 earnings reports and election uncertainty, as pullback at this point add more strength to upside potential. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.

Crucial Announcement

As the new year begins, you need to get started with activities that will help you in achieving your goals for the year. To this end, I must tell you that events and activities that happened in 2022 will shape 2023.

As a result, it is only investors who have improved on their skills and knowledge that will be able to scale through and withstand circumstances beyond their control in the market.

However, we want all to benefit from what 2023 investment has to offer.

As a result, the management have met and decide to assist everyone who have been following InvestData Consulting Limited to participate and secure your portfolio starting from Now through participating in the *InvestData Live Session Jumbo pack.*

*This is not new because I have been talking about it for the Past 6 months*

This Consist of the following…

  1. Access to NGX Q&A Class with Ambrose Omordion
  2. Access to the NGX Q&A Class with Ambrose Omordion Replay.
  3. Access to the Past NGX Q&A Class with Ambrose Omordion Replay
  4. Access to Weekly Stock Pick.
  5. Access to Buy and sell signal
  6. Access to the Daily Live Academy Class

It all goes for N50000 and it is for one year.

Simply put, if you want to participate in the 2023 NGX Class with Ambrose Omordion starting this Saturday then get your InvestData Live Session Jumbo pack now before it is too late.

Or else you won’t be able to have access to the above benefits starting from Saturday 7th January, 2023

Decide now if you are in or out…

Because an investment in your stock and general market knowledge pays the best interest.

Please Pay N50,000 into InvestData Consulting Limited Zenith Bank 1013815737. After Payment Send the details of your payment including name, email address and phone number to 08028164085 to have your access sent to you.

Ambrose Omordion

CRO|Investdata Consulting Ltd




Tel: 08028164085, 08179547605