Market Update for February 14
Nigeria’s stock market on Thursday recorded yet another mixed session, rebounding from previous day’s dip to close marginally higher on renewed buying interest in fundamentally sound industrial, consumer goods and insurance stocks with historical evidence of dividend payment.
The NSE All-Share Index started out on a very brief upside movement in the morning but pulled back between mid-morning and midday, before retracing up in the early afternoon amidst increased demand for blue chip stocks, regardless of the worsening political tension ahead of Saturday’s general elections.
However, the performance index closed positively for the day on a high traded volume, after touching intraday highs of 32,496.18 basis points, from a low of 32,367.49bps, before finishing the day at 32,453.69bps on a positive market breadth. The fifth wave being a very strong one extended its moves in the midst of accumulation ahead of the earnings reporting season, that has just kicked off with Newrest ASL Nigeria Plc releasing its 2018 full year result, with an impressive 20 kobo dividend offer (READ HERE), despite the company plan to delist from the exchange.
The company numbers have however given an insight into what is likely to come from other companies in the airline services subsector. Already, quarterly numbers of these companies reveal their earnings capacity and expected payout to guide traders and dividend income investors.
Thursday’s market technicals were positive, but mixed, with traded volume lower than previous session’s in the midst of a positive breadth and high buying pressure as revealed by Investdata’s Daily Sentiment Report, showing a buying volume of 67% and selling position of 33%. Daily transaction volume index for the day stood at 1.26.
Forces behind the day’s market performance were flat, despite the up market as shown by money flow index at 74.20 points, from previous day’s 74.07bps, indicating that funds are moving around stocks.
Index and Market Cap
At the end of Thursday’s trading session, the All Share index gained 39.77bps, to close at 32,453.69bps after opening at 32,413.92bps, representing a 0.12% growth, while market capitalization was up N14.83bn, closing at N12.1tr, from the opening value of N12.09tr. This represented a 0.12% appreciation in value also.
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Thursday’s seeming upturn was largely driven by like Dangote Cement, Unilever, CCNN, UBA and UACN, among others. This impacted positively on Year-to-Date gain to 3.26%, while market capitalization gain was slightlyup to N382 billion from the year’s opening level of N11.72tr, also representing a 3.26% growth.
Mixed Sectors Indices
Sectoral indexes were largely bullish, except for the NSE Banking and Oil/Gas that closed red as investors took profit in Guaranty Trust Bank, Access Bank, Oando, Eterna and others, while market breadth was positive with advancers outnumbering decliners in the ratio of 22:19.
Market activities were down in volume and value by 10% and 12.08% respectively to 423.38 million shares worth N3.73 billion, from previous day’s 479.3 million units valued at N4.24 billion. Transaction volume was largely driven by financial services and conglomerates stocks like: Diamond Bank, Transcorp, Zenith Bank, Access Bank and VeritasKapital.
Top gainers for the day were ABC Transport and Livestock Feeds that chalked 10% each to close at N0.44 and N0.66 respectively on market forces and earnings expectations, while the flipside was led by UBN and Oando after shedding 8.03% and 5.17% respectively to close at N6.30 and N5.50 each, on the back of profit booking.
Market Outlook
Being the last trading day of the week before the all-important Presidential and National Assembly polls, profit taking and volatility will continue, as investors and traders reposition for 2019 dividend declaration season and post-election rally which are expected to shape market performance in the interim. We advise cautious trading and investing while positioning in fundamentally sound equities. We expect early filers like United Capital, Africa Prudential, NB, and Forte Oil to hit the market with their numbers any moment from now.
Volatility will also continue as investors and fund managers reposition their portfolios, with eyes fixed on political space and ahead of January inflation data, which is another factor likely to drive prices north, or south, while determining market direction before or after the Presidential Election.
Investors should review their positions in line with their investment goals, strength of the company numbers and act as events unfold in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value,
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain low in the midst of mixed company numbers, weak economic and market fundamentals
RE:PORT HARCOURT 2019
We wish to appreciate all who made our Port Harcourt INVEST 2019 Summit a huge success. This has once again demonstrated that Nigerians are hungry for investment information and desire to change their financial position.
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Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
