Market Update September 14
The mixed trading and trend continued on the Nigerian Exchange Tuesday as the key performance NGX All Share Index inched up on a low traded volume and negative breadth, halting the previous six consecutive days of bear transition.
This seeming return of strength after a long downtrend signals the possibility of an uptrend reversal underway on the strength of market forces and news, with all eyes on the Treasury Bills’ auction which begins today. There is also the Consumer Price Index report for the month of August expected to be release by the National Bureau of Statistics (NBS), ahead of the two-day regular meeting of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC), which opens tomorrow. Added to these is the letter by President Muhammadu Buhari seeking the Senate approval for more foreign borrowing in the midst of the nation’s already high debt profile and huge cost of servicing these locally and international debts.
Technically, the market seems to have resisted further decline after forming an inverted hammer candlestick on Monday in the midst of mixed sentiments with the 58% ‘buy’ volume and 42% ‘sell’ position with market players’ interests in financial and industrial goods supporting the market. The NGX index action and candlestick formation of many stocks revealed mixed sentiment and the psychology of players across all classes of stocks, especially the medium and low cap equities that dominated the gainers table for a while now.
Meanwhile, Tuesday’s trading started slightly on the upside before oscillating mildly between the midday to afternoon on selloffs and buy interest across the major sectors, in high, medium and low cap companies. This situation pushed the composite index to an intraday high of 38,936.99 basis points, from its lows of 38,897.68bps, after which it closed slightly above the opening point at 38,920.50bps.
Market technicals were weak and mixed as volume traded was higher than that of the previous day in the midst of breadth favoring the bears and mixed sentiment as revealed by Investdata’s Sentiment Report showing 58% ‘buy’ volume and 42% sell position. Total transaction volume index stood at 0.99 points, just as impetus behind the day’s performance was relatively weak, with Money Flow Index looking down at 24.79points, from the previous day’s 36.14points, an indication that funds left the market, despite flat market at the end of the day.
To navigate the rest of the quarter and year profitably, order Investdata’s video on Technical Analysis Made Easy for Profitable Trading 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, checkout the video materials below.
Index and Market Caps
The NGX All Share Index, at the close of Tuesday’s trading inched up by 4.88 basis points, closing at 38,920.50bps, from its opening level of 38,915.62bps, representing a 0.01% up, just as market capitalization rose marginally by N2.5bn, closing at N20.28tr, from the opening value of N20.28tr, also represented 0.01% value gain.
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.
Tuesday’s upturn was driven by demand for Lafarge Africa, Zenith Bank, Flour Mills, Vitafoam, and United Capital, among others, which impacted Year-To-Date loss mildly, as it reduced to 3.35%, just as the loss in market capitalization YTD stood at N790.17bn, representing a 3.71% decline from the year’s opening value.
Mixed Sector Indices
Performance indexes across the sectors were mixed, as the NGX Industrial Goods and Banking closed 0.13% and 0.09% higher respectively, while the NGX Insurance Index led the decliners after losing 0.85%, followed by Oil/Gas and Consumer goods with 0.39% and 0.08% respectively.
Market breadth was negative, as losers outpaced gainers in the ratio of 21:14, while activities in volume and value terms were mixed after stockbrokers traded 228.48m shares worth N1.88bn, compared to the previous day’s 201.1m units valued at N2.53bn. Volume was driven by trades in Wema Bank, Access Bank, UBA, Mutual Benefits and FidelityBank.
UPDC and Academy Press were the best-performing after gaining 9.93% and 5% and closing at N0.51 and N0.21 per share respectively on market forces. On the flip side, SCOA and Veritas Assurance lost 9.72% and 8.70% respectively, closing at N1.30 and N0.21 per share, purely on selloffs.
Market Outlook
We expect reversal as all eyes are TB auction rates, August Inflation data and MPC meeting, just as investors and traders are taking advantage of market pullbacks to reposition, while many stocks remain undervalued and at the same time are trading within their buy ranges, a situation expected to attract funds into the equity space given the high dividend yields capable of serving as a hedge against inflation. Also, institutional investors and others continue to digest the Q2 GDP growth ahead of more first-tier bank results, 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 lowvolume suggests that institutional investors and others are still cautiously looking at the numbers. It is noteworthy that oil price rebounded 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
Sub-Topics
- 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, recognise 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 million 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 its 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
Venue: ZOOM
However, with less than 30 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.
Ambrose Omordion
CRO|Investdata Consulting Ltd
ambrose.o@investdataonline.com
Tel: 08028164085, 08179547605
