Volatility Persists As Investors Position For Year-End Rally, Amidst Profit Taking

Market Update for November 23

Trading on the Nigeria Stock Exchange on Thursday remained very volatile to consolidate the recovery mode on the strength of positive and bright economic indices that were recently released to the market, as investors and traders positioned for September year-end results and December end of year seasonal rally and those hoping to end the year higher than they opened.
Market direction, especially at this time of the year, will be a function of money flow and depending on the prevailing sentiment, particularly when the Q3 corporate earnings has laid bare the true position of most companies on the NSE, in terms of their financial health, fitness and possibility of beating market expectations again when their full year earnings score-cards are released, with higher payout.
The day’s trading started out with little gain which continued to move back and forth till midday when it picked up and rallied very strongly by the afternoon session to hit an intraday high of 36,984.36 point which had been the recent resistance level, helped by value gain in Dangote Cement which on that day opened its latest cement plant in Congo Democratic Republic, making its 17th across Africa. The index later pulled back, touching a low of 36,592.26 as it took back about three-quarter of the day’s gains, before rallying up again to form a symmetric triangle chart pattern that supported continuation of trend as it closed the day higher on a huge volume and stronger positive market breadth.
Market techincals for the day was positive despite the seeming high selling pressure as revealed by the volume index of 1.71 with selling position of 75% and buying volume at 25% of the total transactions of the day to continue the previous day’s bull transition. All of the market indexes closed higher for the day except NSE Industrial that was down.
Meanwhile, the composite index NSEASI gained 79.99 basis points to close at 36,688.75 from the 36,608.76 points it opened, which represented a 0.22% growth, in the same direction with market capitalisation that went up by N27.85bn to close at N12.77tr from the previous N12.75tr, representing a 0.22% value gain in investors’ position.
The upturn recorded was due to price appreciation by low, medium and high cap stocks like Zenith Bank, Access Bank, Dangote Sugar, UBA, Flourmills Seplat, Nestle and International Brewery, as investors and traders took position ahead of year-end rally, a situation that impacted positively on the ASI’s year-to-date return to 36.52%, just as YTD growth in market capitalisation stood at N3.53tr, representing a 38.14% rise over the year’s opening value.
Market breadth was positive as the number of advancers outpaced decliners in the ratio of 29:11 on a huge traded volume that was higher than previous day level.
Market activities in terms of volume and value were up by 55.11% and 16.01% respectively to 513.8m shares valued at N6.45bn, from previous day’s 331.24m units worth N5.56bn. Transactions were driven by the shares of UBA, Access Bank, Zenith Bank, Tantalizer and Fidelity Bank that topped the volume chart.
At the end of the day’s trading session Custodian & Allied Insurance topped the advancers’ log, gaining 4.99% to close at N4.00 per share, on the strength of its improving fundamentals. It was followed by International Brewery that was up by 4.13% to close at N53.94 on market forces due to its going merger process.
On the flipside, PZ shed a further 4.99% to close at N23.42 each on market forces and profit taking, ahead of Champion Breweries which lost 4.69% to close at N2.05 each, also on profit taking and market forces.


Being the last trading day of the week, expect volatility to continue as traders take profit from the few day rally, as investors position on strength of strong earnings and positive economic data ahead of the year-end since the price of oil in the international market remains relatively high to boost the nation reserve that will attract inflow.
Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases know the cycles in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this seasonality changes as the year winds down, sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467.
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Sub Topics

The Pre-election Economy & 2018 Budget: Implementation and Impact On the Recovery Bull Market
In this presentation, Mr Olufemi Awoyemi the founder/CEO of Proshare Limited, chartered Accountant and seasoned financial analyst will review the economy and impact of government policies so far, discussing how the proposed N8.6tr budget will influence the economy in a pre-election year. He will also take participants through the outlook for the stock market in 2018, while attempting to answer a question like: Is there really any reason to cheer from the mere size of the 2018 budget, considering how those of the past two years have been implemented, especially during this economic recovery phases?
Impact and Implication of NSE New Rules on your Equity Investment in 2018 and Beyond
The new strategies to trade and invest in a transforming market will be revealed to boost players profit and minimized losses by Alhaji Garba Kurfi, a chartered accountant, Fellow CIS and Managing Director of APT Securities & Funds Limited. He will also tell participants about classes of stocks to focus on, in this new market normal value of 1kobo in 2018.

The Secret For Finding Better Trades & Investment Opportunity
Mr. Abdul-Rasheed Oshoma Momoh, Head, Capital Market in TRW Stockbrokers Limited will handle: “Discover how to Trade Smarter, How You Can Stay on the Right Side of the Market Most of the Time,” as well as specific, high winning probability, chart patterns: “Trading Price Direction based on Momentum Flows, The current market cycles, how they are used for trading price direction, in addition to How to set realistic & achievable profit.”
Comprehensive Earnings Guide for Investing and Trading in 2018 Earnings Season Profitably
“Equity price movement is a function of earnings in the short run and long term,” market reaction to earnings in any market cycles is prolonged by dividend payout, relative to price. It makes a lot of sense to trade in the direction by knowing the companies that will grow their payout in 2018… as long as you identify such stocks in their early stages. Hindsight, as they say, earnings calendar, trend, surprise and quality of numbers are very useful in making profitable investment decision in 2018 and beyond, which would be handled by Ambrose Omordion, Chief Research Officer of InvestData Consulting Ltd

How to Pick Investable Securities: Using Econometric Models and Other Strategies Of Successful Traders To Improve Your Trading Margin
In this presentation by Engr Mike Ekwueme Anyadibe, CEO of X-Front Trader Limited, you will learn how financial engineering can be applied on NGSE market data: How the gurus pick securities, depending on their client’s different investment goals, whether for dividend Income. Or, are you a momentum or trend following trader who wants to grow your wealth through the stock market? Even If you’re a complete beginner – What is model, And Why Was It the profitable strategy between 2009 – 2017 so far.
This summit is the perfect opportunity to learn from the best industry experts and to get the personal attention in the exclusive Q&A session after presentations!

The summit holds on December 9, 2017 at Ostra Hall & Hotel, Behind M.K.O Abiola Gardens, Opposite NNPC Gas Plant, CBD, Alausa, Ikeja. Time is 9:00am. The fee is N25,000 per participant. Payment made on or before December 1, 2017 attracts 10% discount. Companies sending more than two representatives would enjoy 15% discount. Those who have participated in our previous seminars and workshops will enjoy 15% discount. Payment should be made into Investdata Consulting Limited; Zenith Bank Acct. No: 1013033032 or UBA, Acct. No: 1020288683.

To register for the coming summit Kindly visit our site www.investdataonline.com OR www.investdata.com.ng also you can call or send yes to 08032055467, 08111811223 or 08179547605

N.B: At this event you’ll hear real case studies and see examples of exactly how you can use these same techniques. This summit is packed with great content, but the room only has capacity for 100 people and registration is ongoing, so you’ll need to act fast.
If you are looking for a way to make money in the market as a Full-time or Part-time trader or investor, this is your opportunity.

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Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd

Tel: 08028164085, 08032055467

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