Market Update for June 10
The bullish transition on the Nigerian Exchange continued on a low momentum, closing Thursday’s trading marginally higher, as investors buying sentiment remained high, despite the low traded volume that persisted.
The high buying pressure and inflow of funds into the equity space shows institutional investors or smart money are taking position ahead of economic data and half year earnings reporting season that are around the corner. This suggest that discerning investors and traders should look the way of sectors and companies with high consumption and demand, capable of impacting positively on company numbers, while hedging against the nation’s galloping inflation.
The prevailing low traded volume shows that some market players are watching positions they already have taken, looking for the next breakout levels of 39,494.70 and 39,674.48 basis points, after the NGX All-Share index action had crossed 39,200 points to trigger another ‘buy’ opportunity for breakout traders. On the strength of this changing momentum, trading and price patterns for many stocks, as well as profit taking possibility is high, paving way for a stronger recovery that may push the index above the previous high. There are new ‘buys,’ as NGXASI maintained uptrend.
Thursday’s trading started slightly on the downside before oscillating for the rest of the session on continued positive sentiment and buying interests in banking and consumer goods stocks, a which pushed the composite index to an intraday high of 39,210.10bps where it closed, from its lows of 39,159.50bps on a positive breadth.
Market technicals were positive and mixed with lower traded volume than previous day in the midst of breadth that favoured the bulls on high buying sentiments, as revealed by Investdata’s Sentiments Report showing 100% ‘buy’ volume. Total transaction volume index stood at 0.65 points, just as energy behind the day’s performance was relatively strong, as seen in the 69.24.pts Money Flow Index, compared to previous day’s 63.39pts, indicating that funds entered the market.
Index and Market Caps
At the end of Thursday trading, the key performance index NGXASI inched up by 39.15bps from an opening figure of 39,170.95bps, representing a 0.10% rise, just as market capitalization grew by N20.41bn, closing at N20.44tr from its opening value of N20.42, also representing a 0.10% value gain.
Attention: If you have not signed up for INVESTDATA buy and sell signal setup, don’t delay. As the number of stocks entering their buy range have just increased to 15 as they build new bullish base to be in our watchlist. These stocks are with double potentials to rally considering their earnings prospect and oscillating mood of the market.
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 again.
The session’s upturn was driven by buying interest in Guaranty Trust Bank, Zenith Bank, Unilever Nigeria, Access Bank, Vitafoam, Stanbic IBTC, PZ Cussons, FCMB, Ecobank Transnational Incorporated, and Fidelity Bank, among others. This impacted mildly on Year-To-Date loss, reducing it to 2.63%, while the drop in market capitalization YTD reduced to N619.53bn, representing a 2.89% drop below its opening value for the year.
Mixed Sector Indices
Performance indexes across sectors were mixed, as NGX Banking and Consumer Goods closed 0.52% and 0.44% higher respectively, while the NGX Insurance led the decliners, after shedding 1.04%, followed by Industrial goods with 0.01% down.
Market breadth, remained positive, as gainers overwhelmed losers in the ratio of 19:15; while activities in volume and value terms were down, after stockbrokers traded 158.37m shares worth N2.24bn, compared to the previous day’s 181.53m units valued at N3.96bn. Volume was driven by trades in Zenith Bank, Sterling Bank, UBA, Transcorp and charms.
Linkage Assurance and PZ were the best performing stocks during the session, as they gained 9.09% and 7.14%, closing at N0.60 and N6.00 per share respectively on market forces and earnings expectations. On the flipside, Computer Warehouse Group and CHI Plc lost 9.60% and 8.97% respectively, closing at N1.13 and N0.71 per share, on selloffs and profit taking.
Being the last trading day of the week, profit-taking may slowdown the buying momentum as revealed by the six technical indicators and five moving averages, but there is a possibility of trend continuing, depending on market forces on sustained positioning. This is in anticipation of positive news and economic data in the midst of oscillating oil price and global economic and stock market recovery across climates. We also expect the ongoing vaccination to support global and domestic economic recovery that will support the market and give direction.
The banking sector and others remain attractive on the back of the prevailing low prices, despite the Q1 mixed numbers.
Again, the way to go is: Target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities ahead of interim dividend announcement. This is especially given that despite the seeming improvements, fixed income yield continues to offer negative real rate of return due to the galloping inflation.
However, the strong and faster recovery may continue, depending on market forces, going forward, as propelled by expected Q2 earnings reports, until the next MPC meeting in July.
INVESTDATA 2021Q3 MASTERCLASS
Theme: Road Map For Improved Trading Results&Enhanced Confidence
- Building Wealth with Diversified Portfolios In Amidst Economic Recovery, Stagflation Alhaji KurfiGarba MD/CEO Apt Securities & Funds Ltd
- Combining Technical Indicators & Tools With Higher Time Frame To Initiate, Manage Trades Mr Abdul-Rasheed OshomaMomoh, Head Capital Market at Trw Stockbrokers Ltd
- Volume Factors That Give Profitable Signals in Any Market Phase, or Cycle, Mr Ambrose Omordion, Chief Research Officer, Investdata Consulting Ltd
Based on the changing market dynamics and trading environment, Investdata Master class will show you how to effectively combine fundamental and technical tools to read and analyses simultaneously for a true insight into market actions and direction.
This Master Class will cover
- Selecting portfolios that beat inflation in a recovery economy
- How to read the higher and trading time frame bars for a true trading edge.
- Knowing the factor that fuel stock market trading and how its impact your portfolio.
- Entry and exit technique that get you in and out at good prices and add to your bottom line.
- Improve your chances of entering wining trades, using volume factor and analysis to see what the market is doing more clearly and with a greater degree of confidence.
- 5 Hot inflation beating stocks
- Q3 trade ideas and sectorial indexes charting
Trading the equity market on minutes and day charts can be challenging, because things or events happen so fast. Volatility occurs first on the daily time frame, often with little or no warning.
Momentum indicators like RSI, MACD and moving average are useful, but most times they give false signals, making many traders miss opportunities and solid trades. But for you to pinpoint a winning trade and where smart money is moving with more accuracy, you need volume analysis and sentiment reports.
Date: July 3, 2021
Time: 9am prompt
Fee: N 50,000
However, with less than 28 days to the beginning of Q3 2021, you need a road map to navigate the quarter profitably with confidence. Don’t miss this opportunity as we countdown to July 3, 2021 for this Master Class.
During this practical session, our team of experts will reveal practical trade ideas and opportunities that you can apply or implement immediately in Q3 2021 to consolidate your gains, maximize returns and start tracking the result by yourself.
If it is your desire to be among smart investors and traders in Q3, send Yes to: the phone numbers below now.
Meanwhile, the home study packs on Comprehensive Stock Market trading course video, 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, 08111811223 now.
CRO|Investdata Consulting Ltd
Tel: 08028164085, 08179547605