Market Update for November 7, 2018
It was another difficult and volatile session on the Nigeria stock exchange on Wednesday as the benchmark index gave up Tuesday’s rally, and when it was apparent that there was going to be no follow-through, in the afternoon especially, it took out the lows and sold off. It dropped sharply, closing below the session’s opening point on huge traded volume driven by transaction in Zenith Bank to top the day trading.
The trading session started on a green note in the morning which oscillated up and down till midday before the composite index pulled back sharply in the afternoon after touching intraday highs of 32,218.20 basis points to low of 32,083.25bps. It then retraced up in the last few minutes to close the day at 32,108.30 as motive wave 3 slowed down in the midst of low liquidity and political uncertainties as February 16, 2019 date for the Presidential election draws closer.
The volume spike in Zenith Bank during the session with money flow index reading 78.40 from the previous day position of 44.70 points signaled the entry of institutional investors as portfolio reshuffling is ongoing ahead of December rally and 2018 full year report. It has been noted that the stock is selling below its book value, leading the sector as the stock with the highest dividend yield. Zenith Bank is currently trading above its 100-Day Moving Average, and 45% below its 52 week high.
Market technicals at the midweek were negative and mixed with huge volume traded amidst, negative market breadth and sentiments, as revealed by Investdata’s Daily Sentiment Report, which showed a sell volume of 81% and buy position of 19%. The volume index for the day’s total transactions was 1.95.
Forces behind the day’s market performance were maintained despite selloffs in high cap stocks. Money flow index for the session rose to 54.30bps, from previous day’s 50.69ps, indicating that funds are entering some stocks and at the same time leaving some stock in the midst of rebalancing.
Index and Market Cap
At the end of midweek’s trading, the All Share Index shed 45.73bps, closing at 32,154.03bps, after opening at 32,154.03bps, representing 0.14% decline, just as market capitalization was slightly down by N16.69bn, closing at N11.72tr, from an opening value of N11.74tr which represents 0.14% dip in value.
Attention: join Investdata buy and sell signal setup to get all our in-depths analysis on the picture and to get access to our carefully and curated watch list.Institutional players and discerning investors. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. The number of stocks on our watchlist has increased due to the prolonged market correction. Take advantage of this service to buy right and sell right.
The session’s downturn was impacted by profit taking among high priced stocks like: Seplat, Lafarge Bank, Flourmills, FBNH, Zenith Bank and Dangote Sugar. This impacted the Year-to-Date returns, heightening the loss position to 16.04%, while market capitalization dropped N1.88tr since January, representing 13.89% drop, from the year’s opening value.
Bearish Sectors Indices
Sectorial indexes were largely bearish, except for the NSE Banking that gained 0.19%, in the direction. Market breadth stayed negative with decliner’s outnumbered advancers in the ratio of 23:14, to halt the previous day’s bear market.
Market activities were up in volume and value by 200.75% and 236.92% respectively to 459.14m shares worth of N9.4bn, from the previous day 149.65m units value at N2.79bn. Transaction volume was boosted by financial service stocks like: Zenith Bank, FBNH, Guaranty Trust Bank, FCMB and Access h Bank.
The best performing stocks for the midweek were Niger Insurance and NPF Microfinance that topped the advancer table by gaining 10% and 9.63% respectively to close atN0.22 and N1.48 each on a low price attraction. On the flip side, Aiico Insurance and Lafarge Africa lost 9.86% and each to close at N4.50 and N0.27 each on profit taking
We expect the current oscillating trend to continue as investors digest company numbers, given that there is no new incentive for the market in November, unless and until there is a change in the narrative.
The ongoing volatility will persist as Q3 numbers assist investors and fund managers rebalance their portfolios, while watching the political space and ahead of the expected Q3 GDP and full year company earnings position. These are likely to drive prices north, or south, while determining market direction before or after Presidential Election.
Investors should review their positions in line with 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 volatile amidst mixed company, economic and market fundamental.
Attention! Attention!! Attention!!!
Invest 2019 Traders & Investors Summit
Theme: Best Returns In 2019 & Beyond: Adopting The Billionaire Mentality In Stock Selection
- Pre-election year performance Review and post-election Investing opportunities
- Simple Strategies for picking undervalued stocks With Fundamental & Technical Tools
- Psychology of Equities Trading For Managing Positions & Money
- Mastering Market Dynamics & Dividend Techniques To Grow Your Income in 2019
- Picking the Right Stocks to Retire Rich In Financial Independence
- Nigeria’s Post Election Economy & 2019 Sectoral Analysis
- Understanding the big picture of Budget Delay & Its Implication on the Economy/Stock Market
Investdata Consulting Ltd presents The 8th edition of its TRADERS & INVESTORS SUCCESS SUMMIT tagged: INVEST 2019, designed to be the biggest yearly workshop for stock market traders &investors in Nigeria.
Theme: Adopting The Billionaire’s Mentality In Stock Selection.
Venue: Ostra Hotel & Hall, Alausa, Opposite NNPC Gas-Plant Ikeja Lagos.
Date: Saturday, December 8, 2018.
The huge decline in stocks from its January 2018 peak has not necessarily been due to the fundamentals of quoted companies, but investors flight for safety over uncertainties arising from next year’s general elections, participants will learn from experts/facilitators at the workshop, how and where to position for juiciest returns, depending on investment horizon.
Previous editions have attracted participants from diverse class of investors and traders, as well as several world-class professionals and experts as speakers and facilitators, including representatives of quoted companies and stockbroking firms. The event has helped market players to effectively time opportunities for higher returns in the New Year.
In today’s equity market, there is wisdom in being able to identify ‘buy’ opportunities very early and sell for maximum returns, while minimizing loss in any market situation.Understanding the dynamics of the stock market during any cycle is the very key to successful trading and investing. For this to happen,we must arm ourselves with knowing the essential driving forces behind the market as they move up and down.
At the INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT (TISS) you will discover some seldom considered aspects of investing and trading that can help you bag more big winners, while ratcheting down the number of losers in 2019 and beyond.
This summit will provide answers to these six crucial questions AND others
- What exactly is it we are trying to do as traders & investors?
- What occurs every post-election year that we wish to take advantage of?
- What are the prevailing market moves and who are the dominant players?
- What is ‘smart money’ doing?
- Where should we look to enter the market or exit?
- Is it the same every day, season and year?
When you answer these important (and frequently overlooked) questions correctly, your trading/investing skills will launch into new levels.
For Registration kindly send YES or REG to 08028164085, 08032055467, and 08111811223 now for details.
CRO|Investdata Consulting Ltd
Tel: 08028164085, 08032055467