Having observed the independent day on Monday as declared by the Federal Government, Equities trading on the floor of the Nigerian Stock Exchange rounded up the first trading day of the week (which also doubled as the first in the month of October/4th quarter of the year) in the negative territory as the lead performance index gave up 17Bpts and closed at 32,711.65 from 32,766.37. It was a mixed performance amongst the observed market indices as shown in the index movement table. See table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N19.978 billion, same as 17Bpts below the opening value. Meanwhile, trading activities for the day produced 15 advancers and 17 lagers. NSEASI Year to Date loss is now 14.46% while the Market Capitalization Year to Date loss stood at N1.667 trillion same as 12.25% below the year’s opening value.
If there is any time when the bear face the risk of being challenged, it is now, as businesses are being rounded up for the third quarter financials, and investors keenly awaits performance indices from equities with December financial year. In our opinion, regardless of market’s trend response to the season, traders should strategically identify equities with strong fundamental back up and position in such with medium and long term investment objectives. We believe that such equities, though may drop further, stand the chance of returning good profit at the end of 2019 first quarter.
As at the time we write this report, Brent Crude trades at $84.87/bbl having added 0.08% to its closing price on Monday 1st October, 2018.
At the interbank rate today, the Naira closed at N306.40 against the USDollar. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N363.38 traded as high as N365.00 before rounding up at N363.88, having transacted a total of $289.73 million through the day. Please note that, margin between the close and open value is an equivalent of 1Bpts drop. We are of the opinion that the FX-Market will trade within same range tomorrow.
In the money market, the Overnight (O/N) rate closed at 5.58%, same as 1.58% below yesterday’s closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 4.83%, that is, 1.17% below the previous trading day’s close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.