Between Cadbury And Oando: Comparing Two SEC Forensic Audit Scenarios

Exactly a month ago, on Wednesday, October 18, 2017, management of the Securities & Exchange Commission (SEC) ordered the full suspension of the shares of Oando Plc for an initial two days, followed thereafter by somewhat indefinite technical suspension.
Full suspension is a situation where a company’s shares are barred from trading on the Nigerian Stock Exchange (NSE), while the other describes a situation where the stock trades but price movement is frozen for the period the suspension subsists.
The SEC also appointed a team of five firms to conduct forensic audit, including Deloitte.
In this piece, Investdata News compares the current situation in Oando to that of Cadbury Nigeria Plc 10 years ago.
One similarity between both that immediately comes to mind is that it was Cadbury Nigeria’s board under Dr. Uduimo Itsueli that announced the commission of an independent firm of auditors to review the company’s recent financial statements. This, Itsueli explained at the time, arose from “an internal review.

In the Oando case, its top officials accused the commission of using information freely provided it as if they were some discoveries. One of such is the corporate governance infraction noted by the SEC, which the company says were reported in its audited financial statements over the years.
The difference is that while the SEC’s action in the Oando case followed petitions by shareholders, Dahiru Mangal, and Ansbury Incorporated, who the commission would later dub “whistleblowers,” alleging gross misconducts, including corporate governance infractions against management, it was Cadbury’s board that called attention to the various infractions.
Also, similar is that Cadbury was fined “for filing a Rights Circular for the N5bn irredeemable convertible loan stock which contained false/misleading statements, failing which trading on its shares will be suspended,” just as in its letter of October 17, 2017, the SEC said Oando’s 2014 Rights Circular “contained misleading information.”

Also, while Bunmi Oni and Ayo Akadiri, then managing director and finance director respectively of Cadbury were suspended to allow for an impartial audit, the SEC announced suspension of Oando’s shares on the NSE, leaving the management in place. Also, while Oando’s management got an injunction from the Federal High Court, Ikoyi, Lagos against the planned forensic audit, Cadbury full cooperated, leading to the sack of the Oni-led management, as well as the board. It must however be noted that a court ruled that his ouster breached his contract of employment, directing that he be paid his entitlements for upward of six months.
Related to this is the fact that while the NSE announced suspension of Cadbury’s shares at the time to forestall erosion in value and welcomed by all, the SEC suspension is generally viewed as punitive for investors.

For Cadbury, Akintola Williams Deloitte was the firm of external auditors indicted by the SEC and ordered to a pay fine, while PricewaterhouseCoopers was hired to conduct the forensic audit. Today, Deloitte is appointed by the commission among the team of five firms for forensic investigation of a company audited by Ernst & Young, another international audit firm.
The SEC alleges that Oando declared N1.4bn dividends from unrealised profits, disposal of an asset was not at arms’ length, just as it released false financial statements to the public, while Oni, rather than the board and management, was accused of false accounting/book cooking, stocks buy-back, trade loading, tax default, false stock certificate and undisclosed interest in the company, as if it was his unilateral decision.
Both Oando and Cadbury were flagged for corporate governance infractions
While Cadbury was accused of paying dividend from non-existing profit, Oando allegedly also paid dividends to its registrar in piecemeal, a clear violation of SEC regulations.
Unlike the Cadbury case, Oando’s independent auditors- Ernst & Young, according to the SEC, auditors drew attention to the going concern status of the 2016 account, among others. E&Y had noted that Oando Plc’s liabilities exceeded the assets by as much as N263,8bn, for which reason the commission could have directed the board of the company to recapitalize.

While only PwC was appointed by the SEC to conduct forensic audit on Cadbury, the commission named a consortium comprising Akintola Williams Delloite, United Securities Plc, SPA Ajibade & Co, TJADAP Consulting and Associates, and Nasiru Muhammad and Co. to audit Oando
While it is not clear who paid the audit fees in the case of Cadbury, the commission directed that Oando bears the N160m cost of the audit, which as has been noted, would be another sore point when it comes to bearing the cost.
 
Over-Reaction?

For Oando, while the commission insists that its preliminary findings are weighty enough to warrant further investigation, the company’s management believes the regulator over reacted, given the prescribed penalties as set out against the infractions. None of them, the company argued, singularly or together warrant the institution of a forensic audit, full or technical suspension of trading of the company’s shares on the NSE.

It therefore wonders how: “The SEC arrive at its findings if it cannot be sure of the veracity of those findings, and more importantly how did it ascribe the appropriate level of weight to be given to those findings, enough to warrant an immediate suspension followed by a technical suspension of the shares of the company, especially if those findings are still mere allegations at this point, as the Commission has clearly communicated?”

Is Oando truly guilty as charged? Did the SEC over-react? Only the courts can truly answer those questions, among many others.
But, like most lawsuits in Nigeria, the contenders know when it begins, only the divine knows how and when it would be finally dispensed with. Meanwhile, the fate of investors, particularly retail, and traders, hangs on a delicate balance, amidst the wait to see the end of the legal tango between a regulated company and its regulator. But then, must regulators wait for the worst case scenario?


http://investdata.com.ng/2017/11/cadbury-oando-comparing-two-sec-forensic-audits/#more

10 Year After, Investors Await Daar Communications First Dividend Payment

By Kingsley Ighomwenghian

When Daar Communications Plc opened its initial public offering (IPO) between February 25 and on March 31, 2008, expectedly, there was excitement in the air, especially given that Nigeria’s first private broadcast conglomerate was offering the public part ownership of a potential honey pot.
The icing on the cake, many reasoned, was that the owners of RayPower Fm and African Independent Television (AIT), which broke the monopoly of state-owned Nigerian Television Authority and Radio Nigeria would afterwards list its shares for trading on the Nigerian Stock Exchange (NSE) as an entry and exit window.
Raypower and AIT had attracted the best of Nigeria’s broadcasters from the various government owned organisations across the country, following which both new stations became instant household brands and toasts of advertisers.
So, when the Initial Public Offering opened, it was no surprise that investors seized the opportunity. The unique selling proposition of the company was its upgrade to international standards with Higher Definition (HD) production, PayTV, as well as the sole broadcast rights over the 2009 Under-17 World Cup for which Nigeria initially got the nod to host. Many had calculated that the broadcast rights would have meant Daar Communications literarily breaking the bank in terms of revenue generation, profit and Returns-On-Investment (ROI) to shareholders.

A Juicy Offer

The company offered 1,829,478,000 ordinary shares for subscription, which was expected to yield a net proceed of N8.752bn, and another 960,000,000 units for sale by Daar Investment & Holding Company Limited (the parent company), all at N5.00 per share, with BGL Securities Ltd, Skye Bank and Fidelity as lead issuing Houses.
In an offer for sale, the proceeds goes to the offeror, in this case- the parent company, while proceeds of an offer for subscription belongs to the company- the issuer.
As such, of the net proceeds of the offer for subscription, the digital multi-channel platform to be completed over a six-month period, was to receive the lion’s share of N4bn or 45.7%; followed by N1.134bn or 12.97% for immediate procurement of programme content; N762.905m or 8.8% for working capital; while development of mobile TV, was to get N700m or 7.9%.
Also, N520m or 5.94% of the net proceeds was for completion of 11 new stations in Adamawa, Benue, Borno, Cross Rivers, Katsina, Kano, Ogun, Osun, Oyo, Sokoto and Zamfara also from the proceeds and construction of a film village over a four-month period; followed by N607.944m or 6.95% for upgrade of existing facilities; and N566.974m or 6.48% for programmes and digital satellite system; while the remaining N459.946m or 5.25% was for building and equipping of new studios across the country, the UK, US and the Carribean.

Juicy Projections

According to the offer prospectus, Daar Communications’ financials were supposed to have turned green in the 2005 full year profit after tax stood at N146.798m, from prior year’s N30.268m loss; and then N168.689m in 2006. Thereafter, it galloped to N223.782m in the 2007 half year ended June 30, from a turnover of N1.071bn.
In its three-year forecast (2008-2010), Daar Communications projected profit before tax of N3.217bn from total turnover of N10.294bn in 2008; after which it would grow to N4.258bn from N13.686bn; and then N5.772bn profit from revenue of N17.668bn in the 2010 full year. For the period, directors expected to distribute N2.496bn dividend or N0.31 per share in 2008; N3.072bn or N0.38 each the following year; and N4.032bn or N0.50 each in 2010.
This forecast, if achieved, many prospective investors must have calculated, would also have significantly boosted share price on the NSE, resulting in huge capital appreciation opportunities for those wishing to take profit.
It was therefore not unexpected that investors fell for the offer, after crunching the numbers and probably salivating, based on the robust outlook.
What most did not however take into account was the risk of the various matrixes going sour; including the withdrawal of Nigeria’s hosting right for the Under 17 (U-17) FIFA World Cup for which the company had ploughed short-term borrowings into the otherwise long-term broadcast equipment and acquisition of the rights.

And Suddenly…

The company’s first headache was therefore the withdrawal of Nigeria’s hosting rights for the U-17 World Cup, following the expiration of a three-week grace period for Nigeria to fully meet all hosting requirements between October 24 and November 15, 2009. This was even after an extension of the deadline for final inspection of tournament venues from July 5 to 26th and 27th owing to a personal guarantee to FIFA by then President Umaru Yar’Adua of Nigeria’s preparedness to host the tournament.
As if this was not enough trouble, Daar Communications’ multimillion Naira PayTV investment launched in October 2008 with 50 local and international channels went off air for some weeks over alleged debts to the channel owners.
It is not known whether the Securities & Exchange Commission (SEC), the apex capital market regulator, made efforts to ascertain that the offer proceeds were utilized for the various projects for which they were meant at the time.
While a message to the WhatsApp number of Tony Akiotu, Managing Director/Chief Executive of Daar Communications Plc on at 9.53pm on October 13, 2017, seeking to clarifications on certain issues around poor corporate governance and the company’s inability to post record profit over the years, were neither acknowledged nor responded to, although read. Even a November 10 reminder had not been answered by 11pm on Thursday, November 16, 2017, just as neither the chairman nor his predecessor-father could be reached, despite various attempts by this newspaper.

Blinking Hope

Ten years after the offer was conclude however, Daar Communications’ forecasts have remained just that: Mere projections. It may never be known whether truly the directors sold a dummy to the market, or unforeseen circumstances and uncertainties in the economy moved against the company, or whether it is a combination of both.
According to the financials for the full-year ended December 31, 2016, revenue dropped by N3.356bn or 47.35% from N7.089bn; while after tax loss increased from N1.51bn to N2.139bn, representing a 41.62% rise. This translated to a loss per share of 27 kobo, up from the previous 19 kobo.
Over the years too, shareholders have watched helplessly as Daar Communications share price cascaded from N5 at IPO price to 50 kobo per today, with the possibility of touching a new floor soon as a result of the new NSE rule that allows share prices to fall to a new floor of one kobo
No one needs look too far reasons why Daar’s share price has remains on the floor. The company’s nine-month result presented last month offered no hope even of a brighter tomorrow, with revenue down by 7.87% from N2.765bn in September 2016 to N2.547bn. While the revenue margins continue to shrink, cost of sales jumped to N3.31bn from N3.1bn, resulting in a gross loss of N762.476m, more than double the previous N335.05m. Other income slowed down from N1.02bn to N642m.
Net loss for the period increased to N2.021bn from N1.659bn, representing a N361.805m or 21.8%, representing loss per share of 25 kobo, from 21 kobo.

Peer Comparison

For comparative analyses, investdata.com.ng has produced below a table of companies (using company data) that were listed on the NSE in 2008 just like Daar Communications and how much better an investor would have fared put their money in those alternative vehicles. Notice that the worst of the trio is Omatek Ventures, which paid a dividend of five kobo in 2009, (a year after listing 1.5bn units at N4.90 each) before going into comatose. Consolidated Hallmark Insurance listed six billion units at N1.85 each; while 1.25bn shares of Dangote Flour Mills were listed on February 4, 2008 at N15 each.



Governance Gaps

But then, many links what is going on at Daar Communications to an obvious none adherence to good corporate governance practices which the Securities & Exchange Commission (SEC) has at various times codified since the days following the collapse of global corporates like Enron, WordCom and Arthur Anderson, among others.
Enforcement of rules however remains the biggest problem in Nigeria today.
For instance, under “Family and Interlocking Directorship,” Section 7.1 of the SEC governance code says: “Not more than two members of the same family shall sit on the board of a public company at the same time.”
The SEC Nigeria seems to be ignoring the clear breach of this rule. Besides the annual reports, Daar Communication on its website lists four Dokpesis as directors namely: Chief Raymond Paul Dokpesi Jnr, Chairman; High Chief Raymond Aleogho Anthony Dokpesi, (Chairman Emeritus/Founder); Dr. (Mrs) Oluwatosin Dokpesi; and Barr. Mary Dokpesi.
The SEC may need to explain this regulatory complacence.

Caveat Emptor

Reacting, Mazi Okechukwu Unegbu, a lawyer, chartered stockbroker and former bank Managing Director and chief executive of Maxifund Investment & Securities Ltd, told Investdata News in a telephone interview that the governance code is not a law in itself, but an advice on how a company should be properly governed.
Investdata.com.ng however notes that one of the allegations against Oando Plc by the SEC is the breach of the same code of Good Corporate Governance.
On the forecast given by Daar Communications in its 2008 IPO, Unegbu, also a former President and chairman, Council of the Chartered Institute of Bankers of Nigeria (CIBN), explained that it was a forecast based on the conditions precedent at the time, which should usually be followed by the “All things being equal” caveat.
For those who lost money in the deal, his advice: “As an investor you have taken a risk and you will live with it.”
Agreeing with him, Adebayo Adeleke, a shareholder activist and former General Secretary of the Independent Shareholders Association of Nigeria (ISAN) told investdata.com.ng also on telephone that all that shareholders can do when dissatisfied with the state of their company, “is to vote out the board or sell their shares.”
Unfortunately, Adeleke was quick to add, there is little shareholders can do in this case because there is a dominant shareholder in High Chief Dokpesi, “who cannot be outvoted.”
According to the company’s annual report, High Chief Dokpesi owns 320m units or 4% stake directly and another 4,890,522,000 or 61.13% (through Daar Investment & Holding Company), leaving the general public with 34.87%.
While the dominant shareholder may also not be receiving dividend because the company is in loss position, he continued, Dokpesi is still in charge of the company’s management, as a result of which he could be earning some form of income.
The SEC and NSE, he believes, may not be able to call the board and management to account either, unless they have reason to believe there is a serious infraction, or a whistleblower calls their attention to one.
Like Unegbu also, he say: “In the capital market, the golden rule of equity investment is caveat emptor.”

I Disagree

Disagreeing with both Unegbu and Adeleke however, Nona Awoh, another shareholder activist, says it is not true that there is nothing minority shareholders can do about the situation.
The questions that require answers he told Investdata in an interview are: “What efforts have the shareholders made to correct the situation? What role did the media play before now? What role should they have played?”
For him, “it is not also true that corporate governance is not enforceable. If I stole company money, do you mean I won’t I go to jail?”

Going Concern

Indeed, SIAO (Chartered Accountants), the company’s external auditors, in its report, expressed concerns over the ability of Daar to continue as a going concern.
It noted: “The current financial state of the company raises the issue of the ability of the company to continue in business in the nearest future.”
This conclusion, it said, was reached based on indicators such as the N2.1bn loss in 2016, from N1.5bn a year earlier; the fact that current liabilities for 2016 exceeded its current assets by N3.5bn; as well as the N1.5bn accrued statutory charges: pension, Payee, VAT, etc.

But Why?

Meanwhile, shareholders have not earned returns on their investment for the umpteenth time, but according to the 2016 financial report, the company’s chairman earned N18m as fees, N10.936m or 154.81% more than previous year’s N7.064m. Executive directors got N70.657m for the period, a drop from the previous N97.202m, with the highest paid director taking home N8.428m, same as prior year.
Under staff costs, in the note to the 2016 account, the group put staff salaries and allowances at N1.246bn, up from N1.153bn, at a time Investdata learnt that the workers are owed salaries in arrears, a situation that requires explaining.
The company has also in the past had to grapple with allegations of fraud arising from weak internal controls and organisational structure.

Timely Warning

The board and management of Daar Communications, Awoh believes, must do things differently to salvage the company, “because if they continue in their old ways, in two years, there may not be that company in existence any more.
“I may not be able to tell you the company’s problems off hand, but the truth is: In our environment, if you want to play politics and do business at the same time, you may run into a problem,” Awoh stressed further.
The only options opened to the company today are recapitalization by the owners, or new investors, in which case the core investor would divest its holding and give up some control of management. Are the owners ready for the hard options? Time, like Awoh believes, would tell.


http://investdata.com.ng/2017/11/10-year-investors-await-daar-communications-first-dividend-payout/#more

Market Infractions Cases Down By 87.6% In 18 Months, Says Gwarzo, SEC DG

Director General of the Securities and Exchange Commission, Mounir Gwarzo, on Thursday in Lagos said there are evidence that its zero tolerance to infractions has started to yield positive results.
A pointer to this reality, he noted, is the significant 87.6% drop in cases of market infractions from 291 in first quarter of ’2016 to 36 in Q3’ 2017.
In his opening remarks at the 21st Annual conference of the Chartered Institute of Stockbrokers (CIS), Gwarzo also noted the drop in the number of enforcement cases from 49 to 30 within the same period, in what he linked to the belief that all the initiatives introduced and results are helping capital market stakeholders respond adequately to the dynamic changes in the financial market.
On market regulation and development, he said the commission is committed to continue developing the Nigerian Capital Market in line with the 10-year Master Plan, besides the electronic dividend initiative that is very central. This is why, he continued, which the commission recently embarked on a massive media campaign to sensitize the public on the December 31, 2017 deadline on free e-dividend registration exercise and regularization of multiple accounts by investors.
In addition, he highlighted that the Commission has strengthened its Rule making process and more Rules are considered on a timely basis with the underlying justifications which will aid the market’s understanding of the thought process behind coming up with the rules.
He urged capital market participants to constantly adapt to new and rapidly changing economic, regulatory and business environments which will aid the performance of their expected roles in economic development of the nation.
Gwarzo noted that “almost everything now comes down to the application of (relevant) technology. In fact, at the nucleus of dynamic changes is technology. The financial market institution of the future is one that is currently making conscious effort to automate its processes by leveraging on relevant technology”.
He however noted that as an evidence of the responses to dynamic changes in the Nigerian Financial Market, the capital market has begun to observe the evolution of new products and processes which include Sukuk, Green Bonds, Derivatives, Commodities and Financial Technology (Fintech).

http://investdata.com.ng/2017/11/market-infractions-cases-87-6-18-months-says-gwarzo-sec-dg/#more

Attention! Attention!! Attention!!!
Invest 2018 Traders & Investors Financial Success Summit

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.

Dream it! Wish it! Do it! Enjoy it! Don’t Miss out

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

STRATEGIES FOR EQUITY INVESTMENT IN A PRE-ELECTION YEAR ECONOMY


At any given time in a nation’s political life cycle, success is measured by the living standard of the people economically or socially, which is a function of economic progress that is driven by developmental policies capable of ensuring sustainability through active participation of the private sector and effective implementation of such policies by government.
It has been an established fact across the globe that a nation’s economy cannot be separated from its politics, meaning that policies and political activities influence economic activities and investment in an economy.Elections come with uncertainties which every investor or trader factors into his investment decision to hedge against certain risks when the process is drawing closer.

This is why 2018 for Nigeria therefore comes with great investment opportunities for discerning investors and traders, just as it is spiced with uncertainties, for no other reason than its being a pre-election year, in a market structure dominated by foreign players that are here to make profit and not to look at the face of the economic managers. As such, when it is time for them to cash out of the market, they will go for the next available environment that offers opportunities, or even stay with cash while observing the unfolding scenario.
As a domestic investor or trader playing the same market with this sophisticated fund managers also known as smart money or institutional players, you need to up your game in stock market investment. This will help ensure that you do not become a dumping ground for fleeing portfolio investors through knowing and planning to exit positions before the general market begins.
This comes with knowing institutional money flow directions that would prompt you as to when you should exit or hold and whether you should enter/buy.

These and other technical indicators will be discussed at the INVEST 2018 TRADERS & INVESTORS FINANICAL SUCCESS SUMMIT, where different stock market trading and investing models that are technical analysis driven and fundamentally designed are shared with participants. The one that combines both technical and fundamentals are delivering profit, which has been working since 2009 till date.
Other take-aways from the summit are:
· The power of trading quarterly and full year earnings reporting season.
· Our rules-based approach to trading and investing in stocks.
· How buy & sell securities resistance and support
· How to take advantage of best market timing strategies to position before Major market earnings reporting season.
· How to quickly and accurately "predict" the next market reaction
· Learn why trading less is making more.
· Learn how to make use of trend identification, resistant and support to double your returns.
· Learn how to follow the institutional money flow and much more in pre-election year to protect capital.
Also, it is an opportunity to know you can identify opportunities in different sectors, especially with the Federal Government's plan to spend almost N8 trillion for 2018, which if implemented will quicken ongoing economic recovery.

Discover how you can unleash your Income Potential Trading stocks.

You will also discover why trading and investing in stock is the way to go.
Best regards



Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2017/11/strategies-for-equity-investment-in-pre.html

NSE INDICATORS REACT TO FASTER GDP GROWTH, INVESTORS UPBEAT ON MPC OUTCOME

Market Update for November 20

The nation’s stock market had a mixed and volatile session on Monday as it recovered from the seeming effects of the downgrade-induced pullback with the help of more positive economic data, particularly the nation’s Q3 GDP that came in a better than expected at 1.4%, helped by the robust growth in the oil sector, which begins to make more sense when considered vis-à-vis all other positive macro-economic indices like inflation which had in the last nine months grown slower to berth at 15.91% in the month of October. The improved GDP growth did not come as a surprise to many analysts and keen watchers of the Nigerian economy, judging from the marked improvement over the period of key indicators like the Purchasing Managers’ Index (PMI)that has consistently stayed above 50 points over the past seven months, hitting 55 point in October, consumer confidence index had moved up in the last three quarters to 67.48% at the end of Q3, just as corporate earnings have so far remained positive in the three quarters so far, of 2017, beating market and analysts’ expectations.

These factors are pointers to what investors should expect of stock prices as the market and economic fundamentals continue to improve, supporting expansion and productivity as reflected in the Q3 GDP data released by the National Bureau of Statistics (NBS)on Monday. This is a foretaste of what should be expected in 2018 if the monetary authorities continue to review strategies, while the fiscal authorities step up their game with more stimulus packages for critical sectors like the value chains in power, transportation, manufacturing and agricultural sectors to create more job opportunities, while enhancing the earnings power of the people thereby improving their living standards and in the process supporting growth and sustainable productive activities.

Trading for the day and week started out with a little move to the upside, after which it slid down. By late morning and near midday, the index hit the session’s lows at 36,599.99. In the afternoon, it rebounded to continue rallying as more medium and high cap stocks appreciated in value to touch intraday high of 36,800.85 which at the end of the day closed in positive territory to maintain three days of up market as investors and traders await the outcome of the two-day Monetary Policy Committee (MPC)which ends on Tuesday.

Market technicals for Monday was positive but weak on low volume despite the high buying pressure of 96%, with volume index for the day at 0.69and selling position at 4% of the total transactions on Monday. This is a signal that market recovery is gaining momentum as the NSE All-Share index is crossing its 20-Day moving average with money flow still looking up on a daily time frame, which suggests that investors can still hold their position despite the expected short-term profit taking from gains of the last few days.

Meanwhile, the benchmark index gained 89.02 basis points to close at 36,792.60 from the 36,703.58 points it opened, which represented a 0.24% growth, just as market capitalisation notched N30.98bn to close at N12.81tr from the previous N12.77tr, representing a 0.24% value gain in investors’ position.
The upturn recorded during the day was as a result of price appreciation in medium and high cap stocks like Zenith Bank,UBA, FBNH, PZ, Dangote Sugar, Nascon and Dangote Flour that impacted the ASI’s year-to-date returnto 36.90%, just as YTD growth in market capitalisation stood at N3.56tr, representing a 38.48% rise above the year’s opening value.

Market breadth for the day was positive as the number of advancers outnumbered decliners in the ratio of 17:15 on a low traded volume that was lower than last week Friday’s.
Market activities in terms of volume and value were down by 88.58% and 61.13% respectively to 208.71mshares valued at N2.45bn from the previous day’s 1.83bnunits, worth N6.31bn.
At the end of Monday’s trading session, PZ Cusson topped the advancers’ chart, gaining 10.23% to close at N24.79per share, on market forces, followed by National Salt which notched 9.59% to close at N15.89 on market sentiment and its impressive Q3 numbers.

On the flipside, Forte Oilshed a further 9.73% to close at N43.89 on profit taking and the probable impact of its exit from MSCI index, ahead of Law Union& Rock Insurance, which lost 4.62% to close at N0.62 each on market forces.

https://investdataltd..com.ng/2017/11/nse-indicators-react-to-faster-gdp.html

AMIDST CAUTIOUS TRADING, BEARS BARE FANGS, AS INVESTORS DIGEST ARRAY OF ECONOMIC DATA, OUTLOOK

Market Update for November 21

Tuesday’s trading on the floor of the Nigeria Stock Exchange ended on a negative note amidst technicals, which reflected bearish sentiments as traders and investors begin to gradually add the outcome of the day’s Monetary Policy Committee (MPC) meeting to the array of data that have graced the market so as to take a holistic decision on the direction of the market and indeed, the nation’s economy for the short, medium to long-term investment purpose. Before the meeting of the Central Bank of Nigeria’s MPC, data that and happenings in the market in recent weeks, besides the Q3 earnings season filings, stakeholders are trying to make sense of today, are the inflation and Gross Domestic Product (GDP) data, the MSCI Frontier Market outcome, Moody’s downgrade of the Nigerian sovereign and banks, confidence, the 2018 Appropriation Bill, as well as purchasing managers’ indices among others.

On Tuesday, the MPC at the end of its two-day meeting, the committee did not vote for easing of monetary policy to reduce cost of funds, increase lending by banks and in the process further boost productive activities to drive growth. Members voted eight to one to retain all rates, despite the relative improvements in the economy, warning that economic recovery remains fragile yet, considering where it was before slipping into recession. The committee also based their not-yet-time-to-clink-glasses decision on the fact that Nigeria’s population growth rate was faster than the GDP’s 1.4%.

That said, there is every need today than ever before for the monetary and fiscal authorities to redouble their efforts, strategies to undertake a review of their strategies, while critically assessing progress and impact to sustain and even improve on the recovery as revealed by the positive economic data and the latest Q3 GDP data. Profit booking as mentioned in our Monday update, where we warned that with the three trading sessions of gains, traders are likely to take their profit which took place at the end of trade on Tuesday.
The day started out with a little gap up in the index before the midday pullback into red where it lingered for the rest of the day, until the last minutes when there was a slight support at 36,579.63 from the intraday high of 36,864.64, to close lower for the day.

Market breadth also turned negative on Tuesday with high selling pressure of 93% on improved volume as revealed by the volume index of 0.86 and buying position at 7% of the total transactions of the day, halting market recovery to pullback the NSE All-Share index to its 20-DMA. It was however above the 50-DMA as money flow for the day turned head-down to reflect the bear situation of the day.
Meanwhile, the NSE’s composite index shed 192.52 basis points to close at 36,600.07 from the 36,792.60 points it opened, which represented a 0.52% decline, just as market capitalisation went down by N67.01bn to close at N12.74tr from the previous N12.81tr, representing a 0.52% value lost in investors’ portfolios.
The day’s downturn resulted from losses suffered by medium and high cap stocks like Forte Oil, Zenith Bank, UBA, FBNH, PZ, Dangote Flour, Stanbic IBTC, PZ, Flourmills and Nigeria Breweries as investors and traders took profit, a situation that impacted negatively on the ASI’s year-to-date return, reducing it to 36.19%, just as YTD growth in market capitalisation stood at N3.5tr, representing a 37.76% rise over the year’s opening value.

Market breadth for the day was negative as the number of decliners outpaced advancers in the ratio of 22:19 on a low traded volume that was higher than previous day level.
Market activities in terms of volume and value were up by 23.58% and 34.29% respectively to 257.93m shares valued at N3.29bn from the previous day’s 208.71m units worth N2.45bn.
At the end of the day’s trading session, Champion Brewery topped the advancers’ log, gaining 9.09% to close at N2.16 per share, on market forces, followed by Linkage Assurance which notched 5.17% to close at N0.61 on market forces.

On the flipside, Forte Oil shed a further 8.86% to close at N40 each on profit taking and the probable impact of its exit from MSCI index, ahead of Caverton which lost 5.30% to close at N1.25 each also on profit taking.

https://investdataltd..com.ng/2017/11/amidst-cautious-trading-bears-bare.html

Nigeria’s GDP Jumps 1.4% In Q3, As NBS Revises Previous Growth

The week started with good news on Monday as Nigeria’s National Bureau of Statistics (NBS) released the Gross Domestic Product (GDP) numbers for the third quarter of 2017, indicating that the nation’s economy grow by a more robust 1.4%.
The bureau also revised the figure for Q2 from 0.55% to 0.71%, owing to what it called the revision of oil GDP to 3.53% for that period and -2.24% in the corresponding period (Q2) of 2016.

Year-to-date, the NBS put Nigeria’s GDP at 0.41%, as nominal GDP (Q3) was valued at N29.83tr, while GDP for the period came to N18.03tr, with the non-oil sector contributing 89.96%, down from 90.96%, and representing the third consecutive quarter drop since Q4, 2016, when it stood at 93.25%. This may be a wake-up call for the Federal Government to intensify its efforts at diversifying the economy as far as from oil as possible.

In terms of contributions to GDP, the service sector leads with 48.28%, followed from afar by industries with 22.56% and agriculture, 29.15%.
The data shows an sustained improvement in agric sector GDP, which has continued to rise, as services and oil sectors decline gradually, especially since 2017Q1, which represents the peak of the service sector’s contribution since Q1 2016.
Contribution of oil which, incidentally continues to account for the about 75% of Nigeria’s annual revenue, stood at 10.04%, up from 9.04% in the previous quarter.

Crude oil production for the period under review rose by 8.55% from 1.87 million barrels per day (mbpd) in the second quarter of 2017, to 2.03mbpd, representing the second consecutive rise since Q1, when it stood at 1.69mbpd, a pointer to the government’s efforts at maintaining and sustaining the peace (though) fragile, in the country’s Niger-Delta region.
The nation’s manufacturing sector GDP contracted by -2.85% in the period under review, from 0.64% in the preceding quarter. In the 2016Q3, it recorded -4.38%, impacted by cement GDP, which continued to lag behind, contracting by 4.56%, worse than its -4.16% in Q2 just as it moves nearer the -6.26% record in 2016Q3

Agric GDP growth recorded improvements at 3.06%, from 3.01% in 2017Q2 and 4.54% in 2016Q3; helped by crop production, which improved by 3.19%, slower than 3.21% in 2017Q2 and 4.88% in 2016Q3
Fishing contracted by 2.84% in Q3, from 2.72% and 0.34% in the 2017Q2 and 2016Q3; just as forestry improved by 3.95% from 3.89% in Q2 and 2.08% in 2016Q3; just as livestock sub-sector climbed by 2.52% from 2.28% and 0.76% in 2017Q2 and 2016 Q3 respectively.

Industry GDP climbed 8.83%, an improvement over the 1.45% in Q2 and -12.66% in 2016Q3; GDP in the services sector suffered negative growth at -2.66% in Q3, bigger than the -0.81% recorded in Q2 and -1.17% in 2016Q3.
Wood and wood products under manufacturing sector grew by 1.24% from -2.09% in Q2 and -6.3% in 2016Q3; while textiles, apparels and footwear under Manufacturing GDP rose 0.19%, down from 0.2$ in the preceding quarter.

Food and Beverage under Manufacturing GDP suffered decline as it managed to grow by 0.58% from 2.67% in Q2, while facing the risk of negative growth soon, just as it did with -5.75% in 2016Q3.
Mining and quarrying soared 25.44% from just 3.51% in the previous quarter and -22.65% in 2016Q3, boosted by the 25.89% growth in crude petroleum and natural gas, from just 3.53% in Q2 and -23.04% in the corresponding period of 2016.
Growth in quarrying and other mining activities continued to be constrained, as it improved by 1.86%, down from 2.24% in the 2017Q2 and 7.07% in 2016Q3; metal ores recorded a robust 10.7% from a negative of -1.09% and the 6.89% of the 2016Q3.

Coal mining could not pull a similar stunt, as it contracted by a princely -38.49% from 4.92% and -7.76% in 2016Q3.

http://investdata.com.ng/2017/11/nigerias-gdp-jumps-1-4-q3-nbs-revises-previous-growth/

Year-End Portfolio Rebalancing By Investors, Traders, Keeps NSE Indicators On Edge

Market Update for November 22

Nigeria’s stock market ended trading at the midweek on a flat note, with marginal gain and weak technicals, as market players continue to weigh the expected impact of positive macro-economic data over the recent downgrade by Moody’s and MSCI Index rebalance on the market performance as the year draws to a close, and in view of the end of the year Santa Claus rally and other seasonal changes, this is especially given that the market and economy remain on the path of recovery, given the seeming slower than expected growth pace of the Q3 GDP released on Monday.

The market’s composite index opened the day green and started moving up and down by the mid-morning, rallying at midday to a high of 36,693.59 before the downward pull by profit taking activities. It failed to break down the recent support at 36,563.43 points. This was until the last hour when a 5-wave advance slightly took formation from a double bottom chart pattern that supports uptrend and recovery, which was not strong enough to make meaningful impact. Thursday’s market sentiment and direction will however confirm it.

The selling pressure in the market remain relatively high at 65% on negative breadth with improved volume as revealed by the volume index of 0.88 and buying position at 35% of the total transactions of the day to reverse the previous day’s bear market in search of direction. all the sectorial indexes were in green, except the NSE Pension that closed in red, while Nestle Nigeria’s share price hit another all-time high at N1,300 on the strength of its impressive third quarter earnings report and positive market sentiment on its consistent dividend payout, irrespective of the yield and its shareholding structure that had always supported the price.

Meanwhile, All Share Index for the day gained slightly 8.69 basis points to close at 36,608.76 from the 36,600.07 points it opened, which represented a 0.02% growth, just as market capitalisation was up by N7.29bn to close at N12.75tr from the previous N12.74tr, representing a 0.02% marginal appreciation.
The seeming upturn resulted from value gain by medium and high cap stocks like Nestle, Zenith Bank, Unilever, Dangote Sugar and International Brewery, as investors and traders took position ahead of year-end rally, a situation that helped the ASI’s year-to-date return to 36.22%, just as YTD growth in market capitalisation stood at N3.5tr, representing a 37.88% rise over the year’s opening value.

Market breadth for the day was negative as the number of decliners outnumbered advancers in the ratio of 23:17 on a high traded volume that was higher than previous day level.
Market activities in terms of volume and value were up by 28.42% and 68.99% respectively to 331.24m shares valued at N5.56bn from previous day’s 257.93m units worth N3.29bn.
At the end of Wednesday’s session also, Unilever topped the advancers’ table, gaining 5.69% to close at N39.95 per share, on the strength of its improving fundamentals and it retention on the MSCI index. It was followed by Nestle, which notched 3.08% to close at N1300 as investors react to its interim dividend of N15 and based on its improved earnings.
On the flipside, GSK shed a further 9.70% to close at N22.80 each on market forces and profit taking, ahead of Flour Mills which lost 4.98% to close at N31.5 each also, on profit taking.

TODAY’S OUTLOOK

As market opens, expect volatility to continue as interpretation of the recent positive economic data like inflation, Q3 GDP and retention of MPR at 14% continues, in the midst of profit booking, portfolio rebalancing and repositioning ahead of the year-end rally as commodity price of oil in the international market remain relatively high to boost the nation reserve.
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.

Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable
The training materials on stock Trading and Investing for Financial Independence series are Available, you can play on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467 or 08111811223.

Attention! Attention!! Attention!!!

INVEST 2018 TRADERS & INVESTORS FINANICAL SUCCESS SUMMIT

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.

Dream it! Wish it! Do it! Enjoy it! Don’t Miss out

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
http://investdata.com.ng/2017/11/year-end-portfolio-rebalancing-investors-traders-keeps-nse-indicators-edge/

VOLATILITY PERSISTS AS INVESTORS POSITION FOR YEAR-END RALLY, AMIDST PROFIT TAKING

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.

TODAY’S OUTLOOK

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.

Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable
The training materials on stock Trading and Investing for Financial Independence series are Available, you can play on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467 or 08111811223.

Attention! Attention!! Attention!!!
INVEST 2018 TRADERS & INVESTORS FINANCIAL SUCCESS SUMMIT

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.

Dream it! Wish it! Do it! Enjoy it! Don’t Miss out

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2017/11/market-update-for-november-23-2017.html

YEAR-END OUTLOOK: VOLATILITY, PROFIT TAKING, AS INVESTORS REALIGN PORTFOLIOS

MARKET UPDATE FOR WEEK ENDED NOVEMBER 24 AND OUTLOOK FOR NOV 27-DEC 1

Nigeria’s stock exchange over the past week continued on its volatility path, even as it reversed previous week’s down market on the strength of investors and traders taking advantage of last week’s Monetary Policy Committee (MPC) meeting outcome, which induced a pullback. It was not just the outcome of the MPC meeting alone, as investors and traders interpreted it along with other positive economic data such as the Q3 GDP and inflation data, as well as the Purchasing Managers’ Index to position in fundamentally sound equities, especially blue-chip stocks like Dangote Cement, which recently expanded its foot-hold on the continent, with the opening of its latest plant in Congo Democratic Republic; and Nestle Nigeria that continues to bask on the robust market disposition, helped by the juicy interim dividend of N15per share, just as its improved earnings capacity remains a support base for its price and dividend to hit a new all-time high.

The market during the week recorded a mixed performance,closing higher on strong technicals and good buying pressure that reflect demand for stocks, hit tinga recent resistance level on a weekly high of 37,374.88 after breaking out the psychological line of 37,000 point again from the low of 36,563.48basis points. At the same time, the index formed a symmetrical triangle chart pattern that supports continuation or reversal of current trend with end of month and year round the corner.Market breadth was positive as volume index for the period stood at 1.29, with buying pressure of 99% and 1% selling position of the total transaction, amidst repositioning on the part of traders after Moody’s downgrade of both the sovereign and banking stocks; coming after the reclassification of most Nigerian stocks on the MSCI Frontier Index, and the decision of the MPC to hold its benchmark Monetary Policy Rate (MPR) at 14%, while retaining others on the argument that the recent improvements in the GDP remains fragile, when considered against the nation’s population growth rate.



Investdata Research maintains its long held opinion that there is need for a holistic approach to quickening the growth of Nigeria’s economy, which must involve the monetary and fiscal authorities to boost productivity, achieve and sustain meaningful growth.

The composite NSEAll-Share index for the week gained 662.33points to close at 37,365.91 points, from an opening figure of 36,703.58 points, representing a 1.80% growth on a higher volume of transactions that were driven by financial services and consumer goods.

Market capitalisation for the period closed higher at N13.01trfrom the opening value of N12.77tr, representing a 1.84% value gained in investor portfolios, with low and medium cap stocks dominating the advancers’ log as a result of their high upside potentials and low price attraction, considering impressive numbers of quoted companies.



The upturn recorded for the period were due to price appreciation in the low, medium and high stocks that impacted positively on the NSEASI’s year-to-date return to 39.04%, just as market capitalisation for the period increased to N3.76tr, representing a 40.69% gain from the year’s opening value.

Market breadth for the week was positive with advancers’ outnumbering decliners in the ratio of 36:24 on a high volume of trades that is marginally lower than previous week’s.

It was a big and mixed week for markets around the world as U.S equities rose on investors expected increase in shopping activities as households celebrated Black Friday, whereas in Europe markets closed lower on the lingering political uncertainty and lower liquidity levels due to the thanksgiving holiday. Asia markets were mixed to close the period as investors look to position with Chinese stocks,ahead of the November 30thmeeting of the Organisation of Petroleum Exporting Countries (OPEC) to determine whether to sustain the supply level, or further cut output that would further drive oil prices higher, with oil price hitting $64 to close on Friday at $63.7 from the previous day $63.4.



Trading on the NSE for the week started on a positive note as the market reacted to the better-than-expected Q3 GDP growth of 1.4% released same day to consolidate the previous trading session’s up market by gaining 0.24%. This was short-lived as the loss in Tuesday’s trading session wiped out the previous gains, as the index shed 0.52%, after which midweek’s trading session closed by a marginal 0.02% gain to signal an uptrend that was sustained on Thursday, just the following day with the index gaining 0.22% and 1.85% respectively to close the week higher than its opening with 1.80% gain.

The All Share Index and sectoral indices closed higher for the period, except for the NSE Oil/Gas that was lower by 1.45% while NSE ASeM closed flat for the week.

Market transaction for the week in terms of volume and value were down by 22.14% and 58.38% respectively at 2.18bnshares worth N22.8bn, from the previous week’s 2.8bn units valued at N54.78bn.

The best performing stock for the period was Dangote Sugar, which hit a new 52-week high, after gaining20.31% to close at N17.24,while Linkage Assurance recorded a rebound after the previous week’s sell-off to close at N0.64, gaining 14.29% to top the advancers table on the strength of low price attraction and market forces.



The worst performing equity for the period was Forte Oil which lost 17.73%, closing at N40.00 on market reaction to its exit from the MSCI frontier Market index and profit booking, while GSK followed with a 9.70% drop to close at N22.80per share on profit taking and its unimpressive Q3 numbers.

During the week also, Lafarge Africa listed additional shares of 85,261,220 units as a result of its capital re-organisation with Ashaka Cement; while FCMB and Nigerian Enamelware released their Q3 and Q2 earnings reports respectively.



Market Outlook
This week, expect a continuation of the volatility, being the lasttrading week for the month of November and the mark down of Nestle Nigeria for the N15 dividend, listing of Global Spectrum shares on the exchange and OPEC meeting, amidst portfolio reshuffling as seasonal changes influence stock prices amidst the volley of positive economic data. Expect traders to also take advantage of volatility and strong Q3 numbers for repositioning, profit taking and rebalancing their positions. There is also the effect of the reshuffling of stocks on the MSCI Frontier Index at this time.

But one thing that is clear in the current market situation is: Smart investors are accumulating and enhancing their positions in selected stocks.


Again, we advise that investors allow numbers to guide their decisions while repositioning for the rest of the year trading activities, especially now that prices of stocks are oscillating amidst improving economic and market fundamentals.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.


Investing in the stock market is in phases. You must know this in order to manage your trading and investment risk. For stocks that should be on your shopping list to buy in this end of the year and ahead of 2018 full year earnings season, sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467 or text Signal.
Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable in this recovery market.
Stock market trading and investing materialsfor Financial Independence series are Available. Kindly call or send yes to 08032055467 or 08111811223.



Attention! Attention!!Attention

INVEST 2018 TRADERS & INVESTORS FINANCIAL SUCCESS SUMMIT

Attend Invest 2018 Traders and Investors Financial Success Summit, where top investment tips for 2018 and beyond will be shared by stock market experts and professional Traders.
You may have had some ideas as to what we are going to suggest, maybe Bitcoin, or changes in the market in terms of companies whose shares are about to take off or the healthcare company with a new blockbuster product. It is much more than these…
I truly believe the best investment you can make if you want to check whether 2018 would be a great year for you financially, is to invest in education and I have a way for you to do that through the Investdata Buy and Sell Signal setup.



Plan to attend Invest 2018 and learn from industry experts the strategies that are working in today’s market for starting or growing your trading business and for investing in the stock market, as well as strategies to fast track your success…
When you attend this summit you’ll find out how you can start a stock trading or grow your investment in a smart way – so that it is easy to manage and generate increasing earnings whilst you spent less time at work.
You will also learn what really works in stock market investing – strategies that even beginners and experienced traders/ investors can use.


In the Nigeria stock market today, it is no longer about how long you have been in the market, how close you are to MDs and stockbroking firms, being particularly smart or working hard – the most important thing is doing it yourself through your phone and laptop by knowing the right strategies via knowledge and understanding how to effectively combine economic, company fundamentals and technical tools for profitable investing.
And once you know these strategies even someone of average intelligence and average resources can achieve outstanding results relatively fast.



Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

http://investdata.com.ng/2017/11/year-end-outlook-volatility-profit-taking-investors-realign-portfolios/http://investdata.com.ng/2017/11/year-end-outlook-volatility-profit-taking-investors-realign-portfolios/

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.

HONEYWELL FLOUR:WHEN CAPACITY BUILDING AND AGGRESSIVE MARKETING DRIVES GROWTH



The manufacturer and marketer of wheat based products like flour, semolina, whole wheat meal, noodles and pasta recently released its earnings report for six months ended September 30, 2017,in line with its post-listing requirements, which would allow investors assess its state of health, while planning their investments.
The result which came slightly earlier, when compared to that of 2016, was impressive, beating market and analysts estimates, despite the challenges that militated against the country’s manufacturing sector under review and continues to negatively impact operating costs. Noteworthy among these costs are: poor power supply, among other infrastructure problems bad roads continue to threaten bottom line of operators in the system.

The impact of these factors may however have been mitigated in the period under review as reflected in the average improvements in productivity with the Purchasing Management Index (PMI)rising continuously above 50 points for the seven consecutive months in October, when it stood at 55 points. This is therefore expected to translate into an improvement in the Q3 GDP data to be published by the National Bureau of Statistics (NBS) on Monday morning, from the0.55% improvement recorded in Q2, helped by the improvement in supply of foreign exchange by the Central Bank of Nigeria (CBN) through its investors and exporters window of the of the FX market that has so far helped to stabilize the exchange rate of the Naira, unlike in the past when many where plunged into losses as a result of foreign exchange differential.

As shown in its second quarter score-card under review, Honeywell Flour’s sales revenue grew by 60.22%, reflecting its aggressive marketing drive and improved market share through penetration into new segments, rising to N39.13bn, from N24.42bn. Earnings rose by a significant 469.15% from N389m in the corresponding period of 2016, to N2.21bn, despite the 68% increase in cost of sales, which largely contributed to the low Q2’17profit margin, despite the turnover growth rate. Also, on a quarterly basis, profit margin remains small albeit modestly by 5bps, also driven by high operational and production costs. The company continues to benefit from easier access to foreign exchange (for its imported inputs) and the relative improvement in demand for its products as purchasing power among consumers gradually improves, keeping the company products off the shelves.

Net Assets increased by a marginally 3.31% to N54.03bn from N52.34bn, while Earnings Per Share climbed to 28 kobo from 5 kobo in the 2016 half-year.
Based on its intrinsic value, Honeywell shares are fairly price at N6.20 each,helped by the recent improvement in its earnings power and fundamentals.
The growth in its numbers shows that the company has capacity to meet market demand and service the new markets as reflected on the top line, which is responsible for the increased cost of sales, which has nonetheless put serious pressure on operating cost, just like others. The company ’net profit margin is still below investor-expectation and the 15% international standards, despite moving from 1.59% in 2016 to 5.66%.

The strong earnings and improved balance sheet have however offered investors a high margin of safety, considering its price in a recovering stock market and economy, following which the stock is grossly undervalued, when benchmarked against its book value of N6.82
Judged by contributions of the various business segments, food recorded over 80% of total revenue, given a significant boost to the company’s bottom-line.

HONEYWELL FLOUR PLC
SECOND QUARTER EARNINGS REPORT FOR SEPTEMBER 30, 2017
COY
2016
2017

% Chg
(N)

(N)
Date Released
October,31 2016
October, 30 2017

Price at Released Date
1.23
2.01
63.41

Revenue
24,423,000,000
39,131,000,000
60.22

Profit After Tax
389,,000,000
2,214,000,000
469.15

Shareholders' Fund
52335,000,000
54,073,000,000
3.31

ESTIMATED RATIOS
Earnings Per Share

0.05
0.28
460.00

PE Ratio
6.27
1.80
-71.20

Earnings Yield
3.99
13.89
248.12

Book Value
6.60
6.82
3.33

P/B
0.19
0.29
52.63

ROE (%)
0.74
4.09
452.74

Profit Margin
1.59
5.66
255.97

Year Ended
March
March

Source: NSE, Company Report &Investdata Research

We expect the earnings growth to be sustained in Q3 and the rest of the financial year, driven by gross margin expansion in the near term, particularly in Q4, as we foresee further increase in the pace of revenue growth owing to market expansion, especially with the festive period around the corner. This will also be supported by management's cost cutting efforts which would impact on bottom-line, judging by the improvement in profit margin for the period.The continued turnaround in Honeywell Flour’s operation, if sustained,can give shareholders the confidence to expect a better dividend payout at the end ofthe ongoing 2018 financial year in March.
Valuation/Recommendations
The company’s price to earnings ratio stood at 1.80x, down from 6.27x, thereby shortening investors’waiting period on the strength of its improved earnings. Price-to-Book for the period stood at 0.29x,reflecting the inherent value and high margin of safety.
With the 65 kobo earnings per share projection for full year 2018, Investors with short, medium and long-term horizon should look the way of this stock, while traders cantake advantage of the current pullback price to position for share price appreciation.
We have therefore revalued Honeywell and upgraded it to a BUY for all investment purposes.


Technical View
Honeywell’s price action has recently formed cup and handle to trade above it 50-day moving average, a chart pattern that supports uptrend. The stock began trending up from March 17, 2017, but pulled back in July as a result of profit taking, and rebounded before this pulling back that is finding support at N1.94. But now that the stock is again trending down with year-end seasonal changes and the improved numbers, reversal is imminent. Traders should watch for the first support level at N1.94 and second support level at N1.90 as the market and analysts look forward to its Q3 earnings report.
Honeywell Flour Mill PLC
Share Holding Structure
Siloam Global Services Ltd

75%
First Bank Nigeria Plc

5%
Other Nigerians/ Institutional Investors

20%


Other Statistics
Shares Outstanding (MN)

7,930,197,658
Opening Price (2017)

1.46
Closing Price (2017)

1.05
Closing Price as at Nov 17, 2017

1.94
Date Listed

20th Oct., 2009
Year End

31st March
Five-Year Earnings Performance

Honeywell Flour's mixed performance for the past five years has reflected in its sales revenue and profit level that resulted in an unstable dividend payout for the period under review. Sales revenue for the period has been on the rise, helped by its penetration into new markets, which as stated earlier has reflected in the bottom line, despite the fluctuating cost centres that continue to influence profit.
With the economic recovery and improving output from the manufacturing sector as reflected in Honeywell Flour’s performance to place a fair value that matches the current market price,investor confidence and sentiments for the equity’s price has helped it to retain strength.
Nevertheless,when all other ratios such as the low Price to Earnings (P/E) and Book Value, are compared to current market price, it will be appropriate to place the equity at an intrinsic value of N6 to reflect the recent numbers posted for 2017.

Over the past five years specifically, the company’s turnover grew by 16.45% to N53.23bn from N45.71bn in 2013 after touching a high of N55.08bn in 2014, while within the same period, profit after tax has oscillated to a negative position of N3.02bn in 2016 and low of N1.12bn 2015 from N2.84bn in 2013, representing 51.41% growth to N4.5bn.
The company’s profit level has been unstable in the five-year period and at the beginning of the financial year 2017, while dividend payout has been irregular to indicate its earnings power that may result in investors retaining their shares, while the company's current shareholding structure and float are expected to support the share price.
HONEYWELL FLOUR PLC FIVE-YEAR FINANCIAL POSITIONS




2013
2014
2015
2016
2017

Date Released
July 20,2013
July 30, 2014
June 29, 2015
June, 30, 2016
June 30, 2017

Price @ Released
2.01
4.25
3.50
1.77
1.76

Turnover
45,709,382,000
55,054,365,000
49,057,511,000
50,883,780,000
53,227,891,000

Profit After Tax
2,843,520,000
3,351,564,000
1,120,267,000
-3,023,854,000
4,304,955,000

Net Assets
18,553,083,000
20,605248,000
20,315,834,000
16,362,599,000
52,334,665,000

Dividend

0.16
0.17
0.05

nil
0.06

Bonus

Nil
Nil
Nil
NIL
NIL


Source: NSE, Company Report &Investdata Research

Profitability Ratios
The company’s rebounding earning power and low full year P/E ratio of 3.24x as against the 5.61x in 2013, has reduced the waiting period investors have to recoup their investment as at 2017 release date. Also important is the high estimated Earnings Yield of 30.84% of the price.
Please note that the fluctuations recorded year-on-year in P/E ratio and Earnings Yield in the table below were due to the company’s unstable earnings and price movement. Estimated ratios show that the Book Value has not been stable in the last five years, just as profit margin has been low significantly, due to the increasing cost of operations from a low of 2.28% in 2015 to 8.09% in 2017. Return on Equity for investors have been mixed also for five years as depicted in the table below.

HONEYWELL FOLUR PLC- ESTIAMATED RATIOS


2013
2014
2015
2016
2017

Earnings Per Share

0.36

0.42

0.14

-0.38

0.54

PE Ratio

5.61

10.06

24.78

-4.64

3.24

Earnings Yield

17.84
9.94
4.04
--21.54
30.84

Book Value
2.34
2.60
2.56
2.06
6.60

Price To Book
0.86
1.64
1.37
0.86
0.27

ROE (%)
15.33
1.27
5.51
-18.48
8.23

Profit Margin (%)
6.22
6.08
2.23
-5.94
8.09

Year End

March
March
March
March
March

Source: Company Financial &Investdata Research
https://investdataltd..com.ng/2017/11/honeywell-flourwhen-capacity-building.html

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED NOVEMBER 24, 2017

https://investdataltd..com.ng/2017/11/investdata-price-earnings-tracking-for_29.html

MARKET UPDATE FOR NOVEMBER 27, 2017




AMIDST PORTFOLIO ADJUSTMENTS, INVESTORS, TRADERS TAKE PROFIT AHEAD OF SANTA CLAUS, YEAR-END RALLY

Trading on the Nigerian Stock Exchange on Monday was an interesting, but mixed session after three straight day of a seeming bull transition as the week started on a negative note due to high selling pressure and low demand for stocks that was evident in the general financial market, with bonds closing on sell side and pushing yields marginally higher, while money market instruments like Treasury Billswere slightly bearish, due to tight liquidity amidst the sustained foreign exchange market intervention and sale of OMO by the Central Bank of Nigeria (CBN).

This circular flow of money is expected to continue in the financial market as capital looks for opportunity for better returns without losing sight of safety, with no major trigger for the equities’ market at a time the Q3 numbers are already available and the direction each company is tilted is known. More so, investors have also taken into account the major positive economic data made available. The major factor investors could be watching to take advantage of now is the expected Santa Claus and year-end rally that comes in the weeks leading to Christmas and towards the end of December which suggests that oscillation of trend and volatility will continue till another earnings reporting season kicks off in February, ahead of the release of audited numbers by companies with December year end.

The market’s technicals were lousy and mixed on huge volume and negative market breadth that reflected a pullback in all sectoral indexes, except the NSE Insurance and Oil/Gas which closed up. The day started out on a margin down slide that was sustained till the midday but had a little up movement to an intraday high of 37,393.29, before closing the day lower at 37,250.78, while forming a double top that supports pullback.
The high volume in the market for the day was driven by Wapic Insurance and quick service restaurant chain- Tantalizer which may likely approach the market soon for primary activities, especially as they made no impact on the market indicators with their prices remaining unchanged irrespective of the high volume traded.Volume index for the day stood at 2.70 with selling position of 88%, while buying volume was 12% of the total day transaction to halt the up market.

Meanwhile, at the close of trading, the composite NSEAll-Share Index shed 115.13 basis points to close at 37,250.78, from the 37,365.91 points it opened, representing a 0.31% decline, just as market capitalisation slipped N36.49bn to close at N12.97trfrom the previous N13.01tr, representing a 0.28% value loss.The slower percentage fall in market cap was due to the admission of the 800m ordinary shares of oil servicing company- Global Spectrum for listing on the NSE by way of introduction at N5.00 each, adding N4bn to the market’s value.
The downturn in the market resulted from losses suffered bymedium and high cap stocks like Zenith Bank, Access Bank, UBA, Flourmills Unilever, Guinness, Double One,Stanbic IBTC and Ecobank Transnational Incorporated, as investors and traders took profit, a situation that negatively impacted the ASI’s year-to-date returns, dragging it down to 38.61%, just as YTD growth in market capitalisation stood at N3.73tr, representing a 40.29% rise over the year’s opening value.

Market breadth was negative as the number of decliners outnumbered advancers in the ratio of 24:18on a huge traded volume that was higher than Friday level.
Market activities in terms of volume and value were mixed as volume was up by 8.29% to 942.72m shares from previous day’s 870.58munits,while value dropped by 5.17% to N4.78bn,from N5.04bn. Other heavy transaction drivers during the day were Fidelity Bank, Zenith Bank and Transcorp Plc, which topped volume chart.
Law Union & Rock Insurance recovered from its string of losses, topping the advancers’ table with its 4.92% gain to close at N0.64 per shareon market forces, followed by NahcoAviance, which notched 4.87% to close at N4.09 on market forces and strong Q3 numbers.
On the flipside, Newrest ASL shed a further 4.88% to close at N5.85 each on market forces and unimpressive Q3 numbers, ahead of Portland Paints,which lost 4.76% to close at N2.00 each, also on market forces.

TODAY’S OUTLOOK

With just three days to end the month of November, expect volatility to continue as traders take profit and balance their trading positions, which might influence price positively or negatively, depending on market momentum on the strength of liquidity and ahead of the year-end season, since the price of oil in the international market remains relatively high, ahead of the Organisation of Petroleum Exporting Countries (OPEC) meeting on Thursday that would determine whether there would be an extension in production cut beyond Q1 2018, or a further supply cut to boost price.
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.
Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available (Home Study Pack), you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467 or 08111811223.

Attention! Attention!! Attention!!!

INVEST 2018 TRADERS & INVESTORS FINANCIAL SUCCESS SUMMIT
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.

Dream it! Wish it! Do it! Enjoy it! Don’t Miss out

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2017/11/market-update-for-november-27-2017.html

MARKET UPDATE FOR NOVEMBER 28, 2017




NIGERIA’S INDEX TURNS GREEN ON REALIGNMENTS INHEAVY WEIGHT, FINANCIAL SECTOR STOCKS


Nigeria’s stock market had a spectacular Tuesday and a fantastic run up from the opening point of the session to continue its volatility on the strength of positive sentiments as market and economic fundamentals improved on the strength of the recently released corporate earnings and macro-economic data, which taken together tell a fantastic story.
As we mentioned in our update for Monday, funds will continue to seek opportunities for better returns without losing sight of safety, especially when calculated risk are taken in the hope of higher returns. The inflow from retail foreign exchange by the CBN has in one way or the other improved money flow in the financial market.

The market opened on Tuesday with a little pullback that continued to move front and back in the mid-morning and then charged forward by midday to attain an afternoon peak of 37,541.88 after touching intraday low of 37,212.61 to break out the market’s recent resistance after forming a double top on the index movement chart to close higher and reverse previous day’s bear market.
Technicals were positive and strong on huge volume with positive market breadth supported by the high buying pressure of 88% to reverse the previous day’s selling volume of 88% as revealed by the volume index at 2.91 and buying position of 88%. Selling pressure was 12% of the total transaction to halt Monday’s down market.

It is not out of place to warn that this current breakout is very fragile and calls for caution in this short primary bullish market. The sectoral indexes followed the path of the Composite index, except the NSE Oil/Gas and NSE Lotus that were lower.
The All Share Index gained 252.95 basis points to close at 37,503.73, from the 37,250.78 points, representing a 0.68% growth and in the same direction with market capitalisation which gained N88.09bn to close at N13.06tr from the previous day’s N12.97tr, representing a 0.68% value gained in inventors’ portfolio.

Upturn in the market was driven by price appreciation of low,medium and high cap stocks like Dangote Cement, which recently opened its latest plant in Congo;Stanbic IBTC, Zenith Bank, UBA, Dangote Flour, Unilever, Forte Oil, Nigerian Breweries and FBNH, which together impacted positively on the ASI’s year-to-date returns, taking it to 39.55%, just as YTD growth in market capitalisation stood at N3.81tr, representing a 41.25% rise over the year’s opening value.
Market breadth was positive as the number of advancers outpaced decliners in the ratio of 25:11on a huge traded volume that was higher than previous day’s level that was boosted by Wapic Insurance and Diamond Bank.

Market activities in terms of volume and value were up by 16.90% and 0.42% respectively to 1.10bn shares worth N4.8bn from previous day’s 942.72munits valued at N4.78bn. Other heavy transaction drivers during the day were Zenith Bank, FBNH and Tantalizer Plc, that also topped volume chart.
Eterna oil topped the advancers’ table with its 4.99% gain to close at N4.21 per share on low price attraction and impressive Q3 numbers, followed by GSPLC which notched 4.95% to close at N5.51 on market forces.
On the flipside, PZ shed a further 4.32% to close at N22.72 each on market forces and profit taking, ahead of Aiico, which lost 3.57% to close at N0.54 each, also on market forces.

TODAY’S OUTLOOK

With month end underway, expect volatility to continue as traders take profit and balance their trading positions, which might influence price positively or negatively, depending on market momentum on the strength of liquidity and ahead of the year-end season, since the price of oil in the international market remains relatively high, ahead of the Organisation of Petroleum Exporting Countries (OPEC) meeting tomorrow that will determine whether there would be an extension in production cut beyond Q1 2018, or a further supply cut to boost price.

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.
Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable

Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available (Home Study Pack), you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467 or 08111811223.

Attention! Attention!! Attention!!!

INVEST 2018 TRADERS & INVESTORS FINANCIAL SUCCESS SUMMIT
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 OshomaMomoh, 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.

Dream it! Wish it! Do it! Enjoy it! Don’t Miss out

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2017/11/market-update-for-november-28-2017.html

Be Entrepreneurs, Not Job Seekers, Emefiele Tasks Varsity Graduates

(Photo Caption) University of Nigeria Nsukka (UNN) 2017 convocation lecturer and Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, in warm handshake with Prof. Chukwuma Soludo former CBN Governor, Chairman of the 2017 convocation lecture on Thursday, November 30, 2017. Emefiele and Soludo were 1984 graduates of UNN.

The Governor, Central Bank of Nigeria (CBN), Godwin Emefiele, on Thursday, November 30, 2017, enjoined graduates of the nation’s universities to change their mindsets by work towards becoming entrepreneurs and employers of labour than job seekers
Emefiele, who spoke while delivering the 47th Convocation Lecture of the University of Nigeria, Nsukka, Enugu State, insisted that in spite of its many challenges, Nigeria remains a land of limitless opportunities.
Graduates, he said, can explore and take advantage of these challenges to become job creators in the economy at a time of rising unemployment.

To enable the youths become job creators, the CBN Governor, who spoke on: “A mindset for Succeeding in Today’s Nigeria,” however warned that failure to galvanise the youths could boomerang against the Nigerian society.
Emefiele, who is also an alumnus of the University, said the CBN, as part of its effort to address the challenge of unemployment on the one hand and the promotion of entrepreneurship among the youths, had designed and formulated policies and programmes aimed at direct real sector intervention.

He therefore encouraged Nigerian youth with not more than five years post-service experience to take advantage of the CBN’s Youth Entrepreneurship Development Programme (YEDP), run in collaboration with banks and the National Youth Service Corps (NYSC).
Citing examples of successful entrepreneurs and businesses in Nigeria and abroad, Emefiele further challenged the graduating students to take identify opportunities in their respective environments, motivate themselves, create innovative ideas that would turn their ideas into profitable ventures.
Speaking on current economic developments and policies of the CBN, Emefiele recalled that several global shocks that affected the Nigerian economy were amplified due to the country’s over-reliance on the oil sector for its foreign exchange revenue and for government finances.

The apex bank, he recalled, embarked on some proactive policy measures such as policy tightening, restriction of forex for imports of 41 non-essential commodities, exchange rate management and development financing in key sectors in order to keep the economy sound.
Citing indicators such as the decline in inflation, improvement in forex supply, accretion to the foreign reserves and improvements in the World Bank’s “doing business indicators,” as well as the significant boost in local production, Emefiele said the Nigerian economy had turned the corner and the worst days were behind.

Earlier, in is his welcome address, Vice Chancellor of UNN, Prof. Benjamin Chukwuma Ozumba said the convocation lecture was one of the prestigious public lectures hosted by the institutions, following which the convocation lecture was usually reserved for men and women whose achievements will motivate and inspire graduating students and the entire university community to greater achievements.
He listed some of the projects being embarked on by the university, for which solicited funding support to accomplish them, assuring that the initiatives would not only increase entrepreneurship and innovation, but help curb youth restiveness in the country.
One of the highpoints of the convocation lecture, which was graced by Governor Ifeanyi Ugwuanyi, of Enugu State, was the presentation of plaques and the Lion laptops manufactured by the University to Emefiele as well as a former Governor of the CBN, Prof. Chukwuma Soludo, who was Chairman of the event.

http://investdata.com.ng/2017/12/entrepreneurs-not-job-seekers-emefiele-tasks-varsity-graduates/#more

Lafarge Africa Executives Visit NSE For Fact Behind N140bn Rights Offer

(Photo News) From left, Olumide Orojimi, Head, Corporate Communications, The Nigerian Stock Exchange (NSE); Bola Adeeko, Head, Corporate Services Division, NSE; Michel Puchercos, Group Managing Director/CEO, Lafarge Africa Plc; Tony Ibeziako, Ag. Head, Capital Market Division, NSE and Femi Onifade, Head, International Primary Market, NSE during Lafarge Africa Plc Facts Behind the Offer at The Exchange on Thursday, November 30, 2017.

http://investdata.com.ng/2017/12/lafarge-executives-visit-nse-fact-behind-n140bn-rights-offer/#more

NSE: Market Cap Soar By N519.639bn In Nov., As Index Notch 41.19% YTD

Despite the volatility that earmarked the month, trading on the Nigerian Stock Exchange (NSE) closed with the value of investors’ worth or market capitalization climbing by N519.639bn in November on Thursday at N13.214tr from N12.694tr at the end of October.
The average price movement or All-Share index rose from 36,680.29 basis points to 37,944.60 in November, representing a difference of 1,264.31bp or 3.45% for the month.
On a Year-To-Date (YTD) basis, the index was up by 11,069.98bp or 41.19% in the 11 months between January and November 2017, while capitalization grew by N3.885tr or 42.02%.

In absolute terms, for the month of November, according to data by the NSE, Dangote Cement, the biggest company by market capitalization gained the most, as its N21 per share, or 9.38% gain translated to additional N357.84bn to its value for the month, helped by Thursday’s N4.00 notch. Also, Dangote Cement, at the end of November, stood at N4.174tr, representing 31.58% of total market capitalization, from 33%, apparently due to new listings resulting from recently successful rights issues, particularly by Guinness and Unilever Nigeria. The figure is further expected to reduce when new shares of DangCem’s arch-rival, Lafarge Africa, about N140bn arising from the ongoing rights issue is listed on the NSE.

The general rise in the NSE composite index for the month may not be unconnected with the plethora of positive economic and market data, particularly the robust improvements in performance of listed companies for the period. There were also the growth in Nigeria’s GDP from 0.71 (reviewed for the second quarter), to 1.4% as released by the National Bureau of Statistics (NBS), the Purchasing Managers’ Index (PMI); just as the price of oil, Nigeria’s mainstay, at the international market continued to rise, amidst the country’s stable production output helped by the sustained peace in the volatile Niger-Delta region.

In percentage terms, Fidelity Bank was the biggest gainer for the period, as its share price improved by 35.53%; followed by NAHCO Aviance with 32.31%; Diamond Bank, 24.75%; Cadbury, 23.24% and International Breweries, 22.47%. Dangote Sugar gained 20.33%; Medview Air, 19.74%; FBN Holdings, 15.16%; Forte Oil, 14.98%; Eterna, 14.59%; Caverton, 13.49%; NEM Insurance, 12.80%; University Press, 11.16%; BOCGas, 10.36%; and United Capital, 9.63%; among others.

The biggest laggard during the month was Linkage Assurance, which lost 27.91% of the month’s opening price; C & I Leasing, 24.72%; Airline Services, 20.45%; and Nigerian Breweries, 11.80%. Champion Breweries dropped 10.98%; Neimeth Parmaceutical, 10.77%; GlaxoSmithKline Consumer, 9.52%; Transnational Corporation of Nigeria, 5.56%; Beta Glass, 5% and Fidson Healthcare, 4.76%; among others.

http://investdata.com.ng/2017/12/nse-market-cap-soar-n438-23bn-nov-index-notch-41-19-ytd/

7-Up Plans Delisting, Offers N19.332bn To Buy Out Minority Shareholders

Preparatory to eventually delisting its shares from the Nigerian Stock Exchange (NSE), like Nigerian Bottling Company, the board of c makers of Pepsi Cola and Mirinda, among others, on Thursday offered to buy-out minority shareholders in a deal expected to gulp N19.332bn.

In a notice to the NSE titled: “announcement of proposed acquisition,” signed by Samuel Uboh of Equity Services Limited, the company secretary, SBC said its board has received an offer from Affelka S.A., its majority shareholder, “to acquire all the outstanding and issued shares of SBC that are not currently owned by Affelka.”
The statement expects that the transaction entails Affelka offering N112.70 per unit for the 171,542,574 ordinary shares of 50 kobo each via a Scheme of Arrangement.

The offer, it continued, is pursuant to Section 539 of the Companies & Allied Matters Act Cap. C20 Laws of the Federation of Nigeria 2004 and other applicable rules and regulations.
The offer covers 26.78% of the company’s issued share capital at 15% premium on the last traded share price on August 9, 2017, “being the last business day prior to the date the proposal was received from Affelka and 21.8% premium on the trading price as at close of trading on November 28, 2017.
While urging shareholders to exercise caution when dealing in its shares until further notice, SBC said the deal has received the nod of the Securities & Exchange Commission (SEC), subject to approval of shareholders at a court-ordered meeting and the sanction of the Federal High Court.

Hint of the delisting is coming six years and almost two months after NBC delisted from the exchange on September 7, 2011, after Coca-Cola Hellenic (CCH) with 66.4% control offered a buy-out of the minority shareholders.
SBC was listed exactly 31 years ago on Monday, December 1, 1986.

http://investdata.com.ng/2017/11/7-plans-delisting-offers-n19-332bn-buy-minority-shareholders/#more

Nigerian Market Outlook: Where To Invest Ahead Of Santa Claus, Year-End Rallies

The global economy recorded stronger recovery and growth in recent times as revealed by the piles of positive data emanating from the developed world in the form of stronger GDP numbers, especially the rise in commodity prices, particularly crude oil. Despite these, uncertainties are mounting high with the recent North Korea missile attack on the U.S. border and geo-political issues that remain a cause for concern among investors. Economic risk of rate hike in the amidst economic growth as Q3 GDP and other data continue to push stock markets up, despite the long expected correction due to over- valuation.
Back home, Investdata sees the possibility of the Nigerian market breaking out of the recent resistance level is high with the trend ability and momentum that rebounded after Moody’s downgrade and MSCI reshuffling induced pullbacks. This is due to end of year expectations that triggered demand for stocks on the strength of stronger corporate earnings and stronger inflows as positive macro-economic data confirmed that the economy is on the growth path, notwithstanding the fact that it is slow at 1.4% as shown in the Q3 GDP figure released by the National Bureau of Statistics (NBS).
In the new month, Investdata expects inflation for the month of November to continue its gradual downward movement; just as the PMI has further improved to support recovery in the manufacturing sector given that Q3 numbers from the sector beat market and analysts’ expectations.
With only few quarterly earnings expected in this month and new trading pattern unfold as a result of seasonal changes, investors and traders are expected to reposition and balance their portfolios ahead of full year earnings in 2018, based on their interpretation of the scorecards and changes that will keep the market oscillating.
The Q3 numbers had revealed the financial position and health of the companies and indeed the market, while the low valued stocks with high upside potentials should be the target of investors. The strong intrinsic value remains a plus and should guide investors to know where to look while seeking to invest profitably for the remaining days of the year and beyond.
Traders and investors who understand the importance of combining fundaments and technical analysis in making investment decisions in the stock market should take this opportunity of any pullback in prices to position in some sectors for short, medium and long term gains, especially in the fast moving consumer goods, banking, agribusiness, building material and healthcare after carefully study of the recent price pattern and fundamental data available in the market.

What to expect in December
• The extension of the oil production cut to December 2018 is likely to have positive impact on crude oil price and influence government revenue positively, which may also attract more inflow in the economy in form of portfolio or direct investment that will support the market.
• Seasonal trending with few late filers of quarterly numbers expected, with no impact on the market. However, blue-chip companies will continue to oscillate on the strength of company and market fundamentals as repositioning and rebalancing stays till end of the year.
• The oscillating trend of equity prices as a result of repositioning of portfolio along the line of positive numbers by foreign and local investors will boost activities in the final month of the year.
• Market outlook for the new month remains mixed as few quarterly and no full year earnings are expected. But positive sentiments and strong momentum may not be out of place as the market expects the economic recovery to be strengthened with the last minute implementation of the 2017 budget.
• The relative low Price-to-Earnings ratio in the market may further attract demand for stocks. Investors must however invest wisely, using bids, offers and volume when taking decisions as a trader.
• Managing risk and protecting capital at this point is very important, so you will be able to determine when to buy or sell, by watching the stocks and the market, using technical analysis.
• Let numbers released by companies guide you decision and time to stay in that position.

To start your financial success journey in 2018 join us at INVEST 2018 TRADERS & INVESTORS FINANCIAL SUCCESS SUMMIT
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.

Dream it! Wish it! Do it! Enjoy it! Don’t Miss out
Best regards

http://investdata.com.ng/2017/12/nigerian-market-outlook-invest-ahead-santa-claus-year-end-rallies/#more

INVEST 2018 TRADERS & INVESTORS FINANCIAL SUCCESS SUMMIT

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.

Dream it! Wish it! Do it! Enjoy it! Don’t Miss out

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2017/11/invest-2018-traders-investors-financial_29.html

INVEST 2018 TRADERS & INVESTORS FINANCIAL SUCCESS SUMMIT

WHAT STOCK MARKET INVESTORS MUST CONSIDER IN THE 2018 PRE-ELECTION YEAR



In every economy of note around the globe, it has long being established that the political mood of the country has effect on its financial markets as investors and at such times, particularly foreign portfolio managers stay as close to cash as possible, in a pre-election year depending on their own perception of where the votes may swing in the Presidential ballot.

The reading of the a nation’s electoral cycle and how investors perceive whether there could be a change in leadership, is a major factor that results in much of the uncertainty pre-election years have been known for. This, it is believed can, and does spike market volatility and businesses, especially when it is seen that a new party may take power.
In such cases, portfolio investors begin to reduce their risk and exposures, at least until they are able to gauge precisely where the new government would tilt, which can take some time in the early stage of that administration.

In the United States, with a long history of democracy, a link has long been established showing that the pre- and post-election periods typically have opposite effects on investors’ optimism.
Research has also established a theory called the "presidential election cycle theory," which states that the financial markets exhibit weakening trends in the year following a presidential election, just as a UBS report concluded that the S&P 500 moves from high to low and returns to high again for one complete cycle.

Markets have been known also to react positively to a more business-friendly party, just as there is more market volatility because of the uncertainty of who will be elected than when the outcome is fairly certain, according to a report from Merrill Lynch.
It has also been established that the U.S pre-election activities affect international markets, interest rates and currency markets, among others.
Back home, the trend is catching up as the Nigerian stock market becomes more and more internationalized, unlike up to a decade ago, when the mantra was that the bourse was most often oblivious to what happens in the domestic and external environments.
Before we go further, let us see what the case has been here since 1998 when Nigeria had its first pre-election year preparatory to its return to democracy governance for the fourth time after independence in 1960.

Beginning from 1999, the country was governed by the Peoples Democratic Party (PDP) until the 2015 election when the All Progressives Congress (APC), a fusion of political parties was elected, with its candidate Muhammadu Buhari as president.

Pre-Election Years Market Trend & Performance
1998 TO 2014
Years
Open
Close
%
1998
6,440.51
5,680.06
Down by 11.8%
2002
10,903.80
12,059.20
Up by 10.60%
2006
24,085.80
33,189.30
Up by 37.8%
2010
20,827.17
24,770.52
Up by 18.93%
2014
41,329.19
34,657.15
Down by 16.14%
2017 To Date
26,874.62
37,709.20
Up by 40.32%


From the above table prepared by Investdata Consulting Ltd, one can see that the Nigerian market has not only gradually become matured, it has become more sensitive to happenings both in the domestic and international environment, just as the politico-economic space are beginning to align.
From the above analysis about the U.S markets and elections therefore, it can be seen that the 2015 election remained the most uncertain in the country’s political history, following the amalgamation of parties when the PDP’s then President Goodluck Jonathan was given a real fight by a more cohesive opposition.

Notice also that ahead of that Presidential poll, the 2014 pre-election year stock market remains the first to close negative since 1998, shedding 16.14%, compared to the closing level in previous pre-election years when it was always positive. It actually notched 37.8% in 2006, when the PDP’s Olusegun Obasanjo completed his second term and seamlessly handed over to another party member- late Presidential Umar Yar’Adua, at a time many people believed there was no strong opposition to the ruling party.

Besides the effects of the political cycle, share price movement is directly related to such fundamentals as company performance, movement in key macro-economic variables and government actions. The investor really needs to know about the right time to act to reap bountifully in any market situation.

Riding The Tide In An Election Year
Ambrose Omordion, Chief Research Officer, Investdata Consulting Ltd, believes that enough patterns have been provided to enable effective reading of investors mood in a pre-election year, chief of which is the need to target fundamentally strong companies with improving earnings that will drive price after the election.

Investors, he says, must fix their gave on companies with good corporate governance that will most likely attract new and returning foreign portfolio investors; besides those with direct core foreign ownership in place that are likely to increase their stake arising from an expected political stability and reforms.
Investors, he adds, must rely on Technical and Fundamental Analyses of such target companies to know the ‘Buy’ and ‘Sell’ price for maximum profit while mitigating risk.


Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2017/12/what-stock-market-investors-must.html

MARKET ROUNDUP FOR NOVEMBER 2017



NIGERIA’S INDEX POISED TO FINISH 2017 STRONG, AMIDST SEASONAL CHANGES, OIL PRICE IMPACT

A healthy combination of the continued impact of the third quarter earnings surprises and positive macro-economic indices which confirmed the nation’s improved recovery continued to impact basic indices of the Nigerian Stock Exchange (NSE) as they confirmed that the economy remains on the path of growth, despite being slower than expected. It was however strong enough to influence equity prices positively such that the market closed the month of November higher, building on the gains recorded in the preceding month and reflecting the high demand for stocks. Growth in the period under review was helped by the rising foreign investment inflows in spite of the nation’s downgrade by Moody’s and decision of the MSCI Frontier Market Index within the period under consideration.

The manufacturing activities in the current year continues to improve as a result of gradual increase in the purchasing power of Nigerians and increasing productivity that is reflected in the monthly Purchasing Managers’ Index for the last eight months, according to data from the Central Bank of Nigeria (CBN), from 55.0 in October to 55.9 last month.

More specifically, the first three quarterly results of companies listed on the exchange generally reveal improvements in earnings and profit among players in consumer and industrial goods sectors, most of which beat expectations to reflect the impact of the CBN’s intervention in the foreign exchange segments of the inter-bank market.This is because most of these companies rely on forex in one way or the other to source raw materials, particularly when there are no locally available alternatives. Another important factor is the declining rise in headline inflation over the past nine months. Expectedly, these improving numbers have also impacted the price movement of these companies.

During the month’s 22 trading sessions, the market was up in 15 and down in seven, continuing a two-month uptrend that impacted year-to-date gain positively, lifting it to 41.19%,which is attributable to factors mentioned above. These have ensured that the Nigerian stock market remains one of the best performing in Africa and globally as many stocks on the exchange remain relatively undervalue, despite its high margin of safety.

Meanwhile, the composite NSE All-Share Index in the month gained a total of 1,264.31 basis points, closing at 37,944.60 after touching a high of 38,057.71 and low of 36,427.31 within the period, compared to the 36,680.29 at which it opened. The closing point represented a 3.45% growth during the month on a strong buy-market position that impacted on stock prices to sustain the uptrend to the recent year resistance level that any breakout will confirm new rally.

Buying pressure of the total transactions for the period was 93%, and selling position, 7% to sustain the bull-run in the last quarter of the year,while volume index for the period stood 1.60.Market capitalisation gained N519.64 billion to close higher at N13.22 trillion, from N12.69 trillion, representing a 4.18% value gained. The uptrend continue on impressive numbers as foreign investors increased their position in the market in reaction to more positive macro-economic data that being released.
Transactions in volume and value for the month were up by 74.87% and 84.75to 10.02bn shares worth N117.86bn,as against the 5.73bnunits valued at N63.8bn recorded in the preceding month.
Market breadth for the month was positive with the advancers outnumbering decliners in the ratio of 42:31 to continue the bull transition, irrespective of mixed sentiments and profit taking during the period.

Sectoral indexes performance chart followed the path of the composite index, except for the NSE Consumer Goods and NSE ASeM that closed on the down side. The bar chart below shows that the NSE Premium and Lotus indices drove the market the most in the month under review, with the former gaining 7.73%, as a result of price appreciation of Dangote Cement and FBNH, while the later followed with 6%. They thereby outperformed the composite NSE All-Share Index during the period, ahead of the NSE Industrial index which climbed 4.66% up to reflect the improving performance of the companies in that sector, while the NSE Pensionand NSE30 indices grew 2.96% and 2.36% respectively, revealing investors’ interest in blue-chip and dividend-paying stocks, amidst the oscillating sentiments and attractive low Price-To-Earnings ratio attraction.
Other sectors that closed up during the month were: The NSE Banking, NSE Insurance, NSE Main Board and NSE Oil/Gas.

Sectoral indexes that closed in the red are NSE Consumer Goods and NSE ASeM, shedding 0.82%and 0.05% respectively, creating opportunities for investors and traders to position, due to their improved earnings that will continue due to impact of the positive macro-economic data on the sectors and economy.




Best And Worst Performing

Best performing stocks for the period under view was Fidelity Bank, which rallied on the strength of its successful Eurobond outing and improved numbers, with positive sentiment as a leader among the nation’s second tier banks. It gained 35.53% of its opening price; followed by another service provider–NahcoAviance, which appreciated by 32.31%; ahead of Diamond Bank’ 24.75% notch, while consumer goods followed in this step- Cadbury climbed 23.24%, International Brewery and Dangote Sugar were up by 22.27% and 20.33% respectively. Low and medium caps top the best performing stock table for the month which included: Medview Air with 19.17%; FBNH 15.16%, Forte Oil 14.98%, Eterna, 14.59% and Caverton, 13.49%; among others.

Best Performing Stocks in November
Securities
Sector
Open
Close
% Change
Fidelity Bank
Financial
1.52
2.06
35.53
Nahco
Services
3.25
4.30
32.31
Diamond Bank
Financial
1.01
1.26
24.75
Cadbury
Consumer Goods
10.50
12.94
23.24
International Breweries
Consumer Goods
48.99
60.00
22.47
Dangote Sugar
Consumer Goods
15.00
18.05
20.33
Med-view Airline
Services
1.52
1.82
19.74
FBNH
Finanical
6.20
7.14
15.16
Forte Oil
Oil/Gas
40.00
45.99
14.98
Eterna
Oil/Gas
3.70
4.24
14.59
Caverton
Services
1.26
1.43
13.49
NEM
Insurance
1.25
1.41
12.80
University Press
Services
2.15
2.39
11.16
Boc Gas
Industrial Goods
4.15
4.58
10.36
United Capital
Other Financial
3.01
3.30
9.63
Dangote Cement
Industrial Goods
224.00
245.00
9.38
Dangote Flour
Consumer Goods
9.53
10.30
8.08
Source; Investdata Research

The worst performing stock for the period wasLinkage Assurance, whichshed 27.91% of its opening price, amidst profit taking and activities of market forces; followed byC&I Leasing, which lost 24.72% also as a result of profit booking and its proposed primary activities/share reconstructing. The share price of Newrest ASLfell by 20.45%; Nigerian Breweries closed 11.80% lower for the month on serious profit taking, making it attractive at its current price; just as Champion Brewery dropped10.98% on the back of market forces.

Worst Performing Stocks in November
Securities
Sector
Open
Close
% Change
Linkage Assurance
Insurance
0.86
0.62
-27.91
C&I Leasing
Services
1.78
1.34
-24.72
Newrest ASL
Services
7.48
5.95
-20.45
Nigerian Breweries
Consumer Goods
150.00
132.30
-11.80
Champion
Consumer Goods
2.46
2.19
-10.98
Neimeth
Healthcare
0.60
0.51
-10.77
GSK
Healthcare
31.98
27.46
-9.52
UACN
Conglomerates
26.00
23.00
-6.87
Vitafoam
Consumer Goods
1.50
1.33
-5.72
Transcorp
Conglomerates
165.00
150.00
-5.56
Source: Investdata Research

Technical View on Monthly Time Frame


Index action for the month remained in the rising channel and above the 20/50-Day moving average on improved trade volume, while reflecting the increasing demand for stock as market and economic fundamentals continue on the path ofgrowth to keep strong momentum despite the mixed sentiments and strong volatility. With the improved economic data and current trading pattern, ahead of Santa Claus and year-end rally in preparation for full year earnings reporting season in Q1 2018, market technicalsremainpositive. Thisis likely to remain so in the new month as seasonal changes and impact of oil price remain at play in the market.

Where To Invest In Hope Of Santa Claus, Year End Rally
The global economy recorded stronger recovery and growth in recent times as revealed by the piles of positive data emanating from the developed world in the form of stronger GDP numbers, especially the rise in commodity prices, particularly crude oil. Despite these, uncertainties are mounting high with the recent North Korea missile attack on the U.S. border and geo-political issues that remain a cause for concern among investors. Economic risk of rate hike in the amidst economic growth as Q3 GDP and other data continue to push stock markets up, despite the long expected correction due to over- valuation.

Back home, the possibility of market breaking out of the recent resistance level is high with the trend ability and momentum that rebounded after Moody’s downgrade and MSCI reshuffling induced pullbacks. This is due to end of year expectations that triggered demand for stocks on the strength of stronger corporate earnings and stronger inflows as positive macro-economic data confirmed that the economy is on the growth path,notwithstanding the fact that it is slow at 1.4% as shown in the Q3 GDP figure released by the National Bureau of Statistics (NBS).

In the new month, we expect inflation for the month of November to continue its gradual downward movement; just as the PMIhas further improved to support recovery in the manufacturing sector given that Q3 numbers from the sector beat market and analysts’ expectations.
With only few quarterly earnings expected in this month and new trading pattern unfold as a result of seasonal changes, investors and traders are expected to reposition and balance their portfolios ahead of full year earnings in 2018, based on their interpretation of the scorecards and changes that will keep the market oscillating.

The Q3 numbers had revealed the financial position and health of the companies and indeed the market, while the low valued stocks with high upside potentials should be the target of investors. The strong intrinsic value remains a plus and should guide investors to know where to look while seeking to invest profitably for the remaining days of the year and beyond.
Traders and investors who understand the importance of combining fundaments and technical analysis in making investment decisions in the stock market should take this opportunity of any pullback in prices to position in some sectors for short, medium and long term gains, especially in the fast moving consumer goods, banking, agribusiness, building material and healthcare after carefully study of the recent price pattern and fundamental data available in the market.

What to expect in December
· The extension of the oil production cut to December 2018 is likely to have positive impact on crude oil price and influence government revenue positively which may also attract more inflow in the economy in form of portfolio or direct investment that will support the market.
Seasonal trending with few late filers of quarterly numbers expected, with no impact on the market. However, blue-chip companies will continue to oscillate on the strength of company and market fundamentals as repositioning and rebalancing stays till end of the year.

The oscillating trend of equity prices as a result of repositioning of portfolio along the line of positive numbers by foreign and local investors will boost activities in the final month of the year.
Market outlook for the new month remains mixed as few quarterly and no full year earnings are expected. But positive sentiments and strong momentum may not be out of place as the market expects the economic recovery to be strengthened with the last minute implementation of the 2017 budget.

The relative low Price-to-Earnings ratio in the market may further attract demand for stocks. Investors must however invest wisely, using bids, offers and volume when taking decisions as a trader.
Managing risk and protecting capital at this point is very important, so you will be able to determine when to buy or sell, by watching the stocks and the market, using technical analysis.
Let numbers released by companies guide you decision and time to stay in that
position.https://investdataltd..com.ng/2017/12/market-roundup-for-november.html

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED NOVEMBER 30, 2017

https://investdataltd..com.ng/2017/12/investdata-price-earnings-tracking-for.html

MARKET UPDATE FOR DECEMBER 4, 2017



INDICATORS STAY FLAT AS TRADERS TAKE PROFIT, INVESTORS REPOSITION FOR YEAR-END SEASON

Trading on the Nigerian Stock Exchange started off the week on a positive noteto consolidate the four straight trading sessions of bull transition with mixed technical,after Friday’s public holiday declared by the Federal Government.
The day started out with a little upside movement which the index held to throughout the mid-morning but oscillated by the midday to afternoon, hitting intraday highs of 38,023.27 and low of 37,913.99 on mixed sentiments as traders booked profit from the recent rally.

The composite index closed higher in the last hour to extend the five-wave trend, slightly touching the 38,000 level that had become a resistant in recent times and pullback, but it was not strong enough to make the cross meaningful. The volume traded remained high despite the huge drop that was driven by last week’s crossed deal in Transcorp that influenced transaction for that day.
The recent $455m surge in the nation’s external reserves, which took it to $34.82bn in one week as a result of crude oil price crossing $64 per barrel, is expected to boost government revenue and attract more foreign inflows as Central Bank of Nigeria (CBN) intervention in the foreign exchange market continues to impact positively on the value of the Naira. Already, the Purchasing Managers’ Index (PMI) at 55.9 for November, from 55 at the end of previous month,an indication of growth in Nigeria’s manufacturing sector and that the nation’s productivity is still expanding. This will continue to impact the real sector as shown by numbers from manufacturing stocks, offering insights into what investors should expect at the end of the current financial year.

The mixed sentiment on Monday was revealed by volume index of 1.22 with buying pressure of 55% and selling volume of 45% of the total transaction to continue the bull-run. This trend may likely continue depending on market forces, since institutional money flow is green and looking up, but there is need for caution in this short primary bullish market because profit taking is underway. NSE Banking, NSE Oil/Gas, NSE Insurance and NSE 30 were in red while NSE Consumer goods that had laggard before now outperformed the composite index as numbers continuing to reveal trading and investing opportunity in that.

Meanwhile, the All Share Index gained marginal 29.98 basis points to close at 37,974.58, from the 37,944.30 points, representing a 0.08% growth and similarly, marketcapitalisationwas up by N10.76bn to close at N13.23tr from previous day’s N13.22tr, representing a 0.08% value gain. The sustained market upbeat for the day was driven by price appreciation in medium and high cap stocks like Dangote Flour, FBNH, NB, TOTAL Nigeria, Seplat, Dangote Sugar, UBN and Dangote Cement. This impacted positively on the ASI’s year-to-date returns, taking it to 41.30%, just as YTD growth in market capitalisation stood at N3.9tr, representing a 42.87% rise over the year’s opening value.
Market breadth on Monday was negative as the number of decliners widened to outpace advancers in the ratio of 25:19 on a high traded volume that was lower than previous day’s level.

Transactions in terms of volume and value were down by 95.75% and 70.27% respectively to 500.19m shares worth N6.36bn from previous day’s 11.77bn units valued at N21.38bn. The day’s activity was driven by Custodian Allied Insurance, FBNH, Zenith Bank, Transcorp and Fidelity Bank, which topped the volume chart.
Cadbury topped the advancers’ table with a gain of 10.125 to close at N14.25 on market forces, followed by Diamond Bank with 9.94% appreciation to N1.37 on positive sentiment that the recent sales of its investment in SA will boost bottom line.
On the flipside, Fidson Healthcare shed 5% to close at N3.61 each on market forces and profit taking, ahead of Guinness Nigeria, which lost 4.99% to close at N92.35 each, on profit taking.

TODAY’S OUTLOOK

Expectvolatility tocontinue,as traderstake profit, while investors repositionahead of year-end and Santa Claus season amidst improving and positive economic data.
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.

Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available (Home Study Pack), you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467 or 08111811223.

Best regards
Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2017/12/market-update-for-december-4-2017.html

MARKET UPDATE FOR DECEMBER 5,2017



SANTA CLAUS RALLY: INDICATORS SOAR AS PROFIT TAKING SLOWS DOWN, INVESTORS GO AFTER VALUE STOCKS

The stock market had a spectacular Tuesday, solidifying the bull transition as it broke out the year’s strong resistance level to a new 52-week high on strong and positive technicals that revealed increasing demand for stocks as buying pressure outweighed the effects of ongoing profit taking activities leaving the bourse bullish on a primary short-term. The fantastic run up further strengthened the market’s standing as one of the best performing in the world and Africa, with its year-to-date return of 43.24%, at a time the globe markets hit an all-time high of $100tr worth according to a report by analysts at Morgan Stanley.

The market opened on a little upside in the early hours of the session but ran strongly in the mid-morning to the afternoon when it reached the intraday peak of 38,515.91 before pulling back in the last minutes of the trading session, but gently from the 52 weeks high.
As mentioned in our update yesterday, the composite index strongly broke-out the psychological line of 38,000 to extend the five-wave trend on a huge volume of trades that suggests accumulation by smart money. This is not unexpected, given the strong fundamentals, but low valuation of companies listed on the exchange, and positive economic data which also reveal growth prospect. On the economic front, despite the cap on Nigeria’s output by the Organisation of Petroleum Exporting Countries (OPEC) to 1.8 million barrels per day, the rising oil price would definitely result in increased government revenue, following which the worry should now be how to maintain the fragile peace in the volatile Niger Delta region by actively engaging the people, thereby giving them a sense of belonging.

One way to achieve this is to faithfully undertake the modular refinery, among other projects, while investing in their well-being, thereby reducing the temptation to seek fabled greener pastures abroad. This is important, given that about 98% of the youths who either died in Libyan concentration camps or on the Mediterranean sea, while attempting to cross into Europe, are of Niger-Delta origin, particularly Edo and Delta States. Beyond these and with the highly unpredictable movement in oil price, it is important for government at all levels to significantly reduce wastage and plug leakages in the system, while focusing on projects that will boost the economic fundamentals and impact the living standard of Nigerians.

Meanwhile, Nigeria’s stock market volume index on Tuesday stood at 1.24, buying pressure was 96% and selling volume, 4% of the total transaction to continue the bull-run, an indication of positive sentiments during the day’s trading. This trend is likely to continue as institutional money flow is green and looking up, but there is need for caution, even as profit taking slows down with the market looking up. The NSE Oil/Gas and NSE Insurance were the day’s laggards, while other sectorial indexes closed on the same path as the All-Share index.

The composite Index gained 519.85 basis points to close at 38,494.43, from the 37,974.58 points, representing a 1.37% growth, just as market capitalisation went up by N181.04bn to close at N13.41tr from previous day’s N13.23tr, representing a 1.37% appreciation in investors’ portfolio. The upturn was sustained by value gain in low, medium and high cap stocks like Dangote Cement, FBNH, Dangote Flour, PZ, UBA, Unilever, Dangote Sugar, NB, ETI, Access Bank, GTBank, Zenith Bank and Guinness Nigeria. This impacted positively on the All-Share Index’s year-to-date returns, taking it to 43.24%, just as YTD growth in market capitalisation soared to N4.16tr, representing a 44.98% rise over the year’s opening value.

Market breadth on was positive as the number of advancers widened to outnumbered decliners in the ratio of 32:11on a high traded volume that was higher than previous day’s level.
Transactions in terms of volume and value were up by 4.43% and 18.32% respectively to 522.35m shares worth N7.52bn from previous day’s 500.19m units valued at N6.36bn. The day’s activity was driven by Custodian Allied Insurance, GTBank, Fidelity Bank,Diamond Bank and Zenith Bank, which topped the volume chart.

The best performing stock for the day was Learn Africa, whichnotched 8.25% to close at N1.05 on market forces, followed by Cadbury Nigeria’s 7.37% to N15.30 on market sentiment.
On the flipside, Continental Reinsuranceshed 5% to close at N1.38 each on market forces and profit taking, ahead of Chellaram’s4.94%loss to close at N3.04 each, on market forces.

TODAY’S OUTLOOK

Expect market volatility to linger as traders profit taking slows down, while investors goes for value stocks ahead of year-end and Santa Claus season amidst improving and positive economic data.
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.
Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available (Home Study Pack), you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467 or 08111811223.

Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2017/12/market-update-for-december-52017.html

MARKET UPDATE FOR DECEMBER 7, 2017



NIGERIA’S NSE REMAINS VOLATILE, AMIDST PROFIT TAKING, FUND MANAGERS CONTINUE ACCUMULATION

The stock market had another positive session on Thursday as the bull rampage extend to its seven straight trading day of up market. This came with an increased volume of trades to confirm the era of sustained confidence in the entire market and indeed the recovery in the Nigerian, as investors and analysts begin to appreciate the Q3 numbers from quoted companies and expectations for the earnings season, all of which are supporting the price movement. These and more are factors that must be playing out among foreign and institutional investors as they seek to balance their positions on the back of the recent review of the MSCI Frontier Market index, resulting in the improved forex inflow already seen.
Added to these are the 2018 full year earnings reporting season in view, amidst the surge of positive economic data pointing to brighter future that is capable of supporting further movements of equity prices.

We must however not lose sight of the fact that all of the blue chips, consumer goods and banking stocks have so far rallied and their technicals improved,which could attract some profit taking, which should not be unexpected after the market has rallied for seven consecutive days.
Meanwhile, Thursday’s trading started out with a little pop to the upside, then a pullback, which was retested, and when that was successful, the NSE All-Share index extended to another session highs between midday to afternoon, hitting a strong intraday high of 39,623.52 basis from opening low of 39,075.30 and then closed the day higher on positive market breadth.

The market breaking out of another resistance level of 39,341.50 ushered more stocks to their new 52-week highs which was supported by improving liquidity given the renewed confidence occasioned by the nation’s rising external reserve and low stock valuation in the market.
Market volume index for Thursday stood at 2.20, with buying pressure of 84% and selling volume, 16% of the total transaction to keep the bull-run, despite the mixed sentiments that reflected in some stocks that succumbed to profit taking pressure.

Meanwhile, the composite NSEASI gained 458.84 basis points to close at 39,534.14, from the 39,075.30 points, representing a 1.17% growth, just as market capitalisation appreciated by N159.8bn to close at N13.77tr from previous day’s N13.61tr, representing a 1.17% value gain. The sustained uptrend result from price appreciation in low, medium and high cap stocks that impacted positively on the ASI’s year-to-date returns, pushing up to 47.11%, just as YTD growth in market capitalisation galloped to N4.52tr, representing a 48.90% rise over the year’s opening value.

Market breadth for the day remained positive as the number of advancers out paced decliners in the ratio of 28:17on a high traded volume that was higher than previous day’s level.
Transactions in terms of volume and value were up by 50.16% and 39.18% respectively to 1.06 billion shares worth N10.16bn from previous day’s 703.68m units valued at N7.3bn. The day’s activity was driven exclusively by banking industry stocks: FCMB, UBA, FBNH, Zenith Bank and Fidelity Bank,which topped the volume chart.

At the end trading, UBN and Fidelity Bank topped the advancers table, gaining 10.11% and 7.65% respectively to close at N7.19 and N2.42 on positive market forces.
On the flipside, Total Nigeria shed 5% to close at N228.01 each on market forces and profit taking, ahead of AXA Mansard’s 4.65% loss to close at N2.05 each, on market forces.

TODAY’S OUTLOOK

Being the last trading day of the week, market volatility will continue as traders take profit from the ongoing rally, while at the same time institutional investors continue their accumulation of shares ahead of year-end and Santa Claus season amidst improving and positive economic data, and in view of 2018 full year earnings reporting season.

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.

Get your home study pack today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable
Comprehensive training materials on stock Trading and Investing for Financial Independence series are Available (Home Study Pack), you can play and watch on your mobile phone, laptop, desktop and Tv. Kindly call or send yes to 08032055467 or 08111811223.

Ambrose Omordion
CRO | Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdataltd..com.ng/2017/12/market-update-for-december-7-2017.html

MARKET UPDATE FOR WEEK ENDED DECEMBER 8 AND OUTLOOK FOR DEC 11-15, 2017



THOUGH PROFIT TAKERS LURK, INFLOW OF FUNDS POWER EQUITY PRICES HIGHER IN SANTA CLAUS RALLY

The benchmark index of the Nigerian Stock Exchange over the past week was bullish with the consumer goods and banking indexes outperforming the general market, due to increased demand for equities of these sectors as a result of their impressive numbers, confidence in their management teams and adherence to good corporate governance that continues to attract inflows from domestic institutional and foreign investors alike. There is also attention focused on stocks that are likely to increase dividend payout in 2018 for the 2017 financial year which is gradually but surely winding down.
The inflow of funds to the equities market is not unexpected, given the fact that rates in the money market are on the downward swing in recent times, given also the intra-market moves seen in the last eight days with the gradual drop in interest rates on money market instruments. This is despite the fact that the benchmark Monetary Policy Rate (MPR) remains at 14%, which fueled the volume of trades seen last week, resulting in three consecutive weeks of up market. This is a sign that the bull transition is still alive, despite the profit taking that halted the seven days of bull rampage, looking at the market breadth at this point, using the cumulative AD line which takes the difference between the number of advancing and declining issues each day, and adding the result to the previous day’s value.

In a healthy market, you want to see the market breadth either tracking or leading the index, such that periods where market breadth lags and diverge from index, it is a red flag for analysts and discerning investors.
For example, in the chart above, the NSE All-Share index’s action has formed a double bottom chart pattern that supports uptrend and the orange line, which is the cumulative A/D Line over the last four years. Could the index movement and orange line be any more similar in direction? Based on this measure at least, market internals remain healthy for now, as market forces in the new week determine the next direction.

Market technicalities for the period under view were good as buying pressure was 77% and selling positions stood at 23%, the week’s volume index was 1.91 of total transaction. The year’s resistance level was broken out on a weekly high of 39,656.53 to remain above the psychological line of 39,000 point from the low of 37, 913.99 basis points. At the same time, the index formed a double bottom chart pattern on a rising channel that supports continuation or reversal of current trend with year-end round the corner. Market breadth was positive and widened to reflect the value gain of equities.
The All-Share index for the period gained 1,312.93 points to close at 39,257.53 points, from an opening figure of 37, 944.60 points, representing a 3.46% growth on a higher volume of transactions that were driven by financial services and conglomerates.

Market capitalisation for the period closed higher at N13.67tr from the opening value of N13.22tr, representing a 3.46% appreciation in investors’ positions, with low and medium cap stocks dominating the advancers’ log as a result of their high upside potentials and low price attraction, considering impressive numbers of quoted companies as more banking stocks feature on the table.
The rally was due to inter market fund movement and inflows from foreign players positioning in the low, medium and high cap stocks that parade improving numbers, which positively lifted the NSE ASI’s year-to-date return to 46.08%, while growth in market capitalisation for the period jumped to N4.27tr trillion, representing a 48.18% gain from the year’s opening value.

Market breadth for the week was positive with advancers’ outnumbering decliners in the ratio of 47:20 on a high volume of trades that were lower than previous week’s.
International markets over the past week were marginally positive as investors expressed concerns over the rising threat from North Korea, as well as the slow-down in investing activities amidst positive global economic data.
In U.S, equities were mixed irrespective of their better-than-expected number, as non-farm payrolls rose to 228,000 which was better than the estimated 190,000; while average hourly earnings rose to 0.2% for a 2.5% annual pace; whereas the Eurozone economy expanded by 0.6% in Q3, pointing to a stronger than expected year.

In Asia, Japan’s economy also expanded at 2.5% annual pace for Q3, even as the relative improvement in oil price boosted activities in many economies of the world as reflected in the Q3 GDP data released recently around the globe.
Back home, the NSE opened the week on a positive note with marginal gain of 0.08% to consolidate the previous trading session’s up market, which was sustained on Tuesday with improved gain of 1.37% that continued to the midweek and Thursday when the benchmark index gained 1.51%, and 1.17% respectively. It was however halted on Friday as traders and investors booked profit to slow down the rally as the index succumbed to pressure, losing 0.70% in the process to the close the week 3.46% better.

The composite NSE index and sectoral indices closed higher for the period, except for the NSE Oil/Gas, NSE ASeM and NSE Industrial that fell by 0.47%,1.04% and 1.37% respectively to close the week.
Market transaction for the week, in terms of volume and value, were mixed as volume fell by 76.72% to 3.32bn shares, up from the previous week’s 14.26bn units, while value climbed marginally by 3.96% to N36.45bn, from previous week’s N35.06bn.
The best performing stock for the week was FBN Holding, which hit a new 52-week high, after gaining 26.33% to close at N9.02, while Cadbury rebounded on market sentiment to close at N15.90, gaining 22.87% to top the advancers table on the strength of market forces.

The worst performing equity for the period was Total Nigeria, which lost 5.39% as its share price was adjusted for the interim dividend of N3.00 per share, closing at N228.01; followed by 5.37% slide in the price of International Breweries to close at N56.78 per share with investors and traders taking profit in reaction to its unimpressive Q2 numbers, as the company consolidates the recent gains arising from the recent fusion with its unlisted sister companies.

During the week also, Flour mills submitted an application to NSE for approval its right issue, while UBN listed additional shares of 51,299,322 units as a result of its (LTTIP) Long term Transformation Incentive Plan, and 7-Up released details of its Scheme of Arrangement to minority shareholders

Market Outlook
This week, expect a continuation of the volatility, as funds are searching for better opportunity in the financial market and profit taking in the mix of portfolio re-positioning as seasonal changes influence stock prices amidst the volley of positive economic data.
However, one thing that remains very clear in the current market situation is: Smart investors are accumulating and enhancing their positions in selected stocks.

Again, we advise that investors allow numbers to guide their decisions while re-positioning for the rest of the year trading activities, especially now that prices of stocks are oscillating amidst improving economic and market fundamentals.
It is time to use your technical tools to take decision by knowing the support and resistant level to reposition or exit any position.

Investing in the stock market is in phases. You must know this in order to manage your trading and investment risk. For stocks that should be on your shopping list to buy in this end of the year and ahead of 2018 full year earnings season, sign up to INVESTDATA BUY AND SELL signal setup by calling 08032055467 or text Signal.

Get your home study pack on INVEST 2018 today and ride with the current recovery on Nigeria’s stock market and economy. By investing and trading knowledgeable in this recovery market.
Stock market trading and investing materials for Financial Independence series are Available. Kindly call or send yes to 08032055467 or 08111811223.


Meanwhile, to all participant who brazed the heavy showers to be at last Saturday's INVEST 2018 TRADERS & INVESTORS FINANCIAL SUCCESS SUMMIT, it is our hope that it was worth your while and to our facilitators, we say a very big thank you.

https://investdataltd..com.ng/2017/12/market-update-for-week-ended-december-8.html

INVESTDATA PRICE & EARNINGS TRACKING FOR THE WEEK ENDED DECEMBER 8, 2017

https://investdataltd..com.ng/2017/12/investdata-price-earnings-tracking-for_11.html

Buhari Visits Own Farm In Katsina, Seeks A Nigeria That Grows What It Eats

President Muhammadu Buhari took time off to visit his farm in Daura, Katsina State on Sunday, ahead of his travel to France.
According to a tweet from his personal twitter handle @MBuhari, the President who expressed hope that such would inspire one person to take to farming, restated his vision of a Nigeria that feeds itself.
The tweet, which was accompanied with pictures of him in the farm read:

I’m spending a few days at home in Daura before I travel to France for the One Planet Summit. Today I paid a visit to my farm. I grow fruits & vegetables,& keep cattle. I hope this will inspire one more person to take up farming. My vision is for a country that grows what it eats

http://investdata.com.ng/2017/12/buhari-visits-farm-katsina-seeks-nigeria-grows-eats/#more