As MPC rounded up its July meeting, equities trading on the floor of the Nigerian Stock Exchange ended in the negative territory, thus, the lead performance pointer- NGXASI gave marginal 2Bpts of its trading points, and closed at 52,308.88 from 52,319.94. It was a mixed performance amongst the observed market indices in this report, as shown in the index movement table. Thus, Week to Date, the lead index is 18Bpts above the opening point, while the total gained points in the month July is now 95Bpts. See the index movement table for details.
July, 2022 MPC Meeting Outcome
The Central Bank of Nigeria raised its monetary policy rate by 100 bps to 14% at its July 2022 meeting, following a 150bps hike in May and bringing borrowing costs to the highest since February 2019 amid concerns that persistent inflationary pressures could weigh on the country’s fragile recovery. Please note that, Headline Inflation accelerated for a fifth straight month to 18.6% in June 2022, the highest rate since January 2017, and well above the central bank’s target range of 6%-9%. In our opinion, this will further reduce attraction to the stock market.
Technically, judging by the lead index performance, the leading market trend remains an uptrend, meanwhile, the market had consistently put up strong resistance against the bear before today’s trade. Observing the lead index trend pattern WoW, one may be tempted to predict rapid gains, since the last candlestick formation completely swallowed the previous week candle, but combining the last two trading days candle (today inclusive) it is clear that, the market is currently struggling under a key resistance point. Also, it is necessary to note that, the next feasible resistance is only few points from its current trading point. On the strength of this, recommend heightened cautiousness around the market, though we maintained that stocking goods during price crash session is an intelligent investment decision.
The total value loss by the Market Capitalization of the listed equities during today’s trading activities was N5.965 billion, same as 2Bpts below the opening value. Meanwhile, trading activities for the day produced 16 ADVANCERS and 16 LAGERS. NGXASI Year to Date gain is now 2,246Bpts while the Market Capitalization Year to Date gain now stood at N5.917 trillion same as 2,651Bpts above the year’s opening value.
Leading on the advancers’ log is RT-Briscoe with 10.00% price appreciation that rounded up its share price at N0.44 from N0.40. Glaxo-Smithkkline followed with 9.02% price appreciation, thus, rounding up the day’s trade at N6.65 from N6.10. Cornerstone Insurance came third on the log with 6.45% gain, closing at N0.66 from N0.62. Courteville and FTN-Cocoa completed the top 5 price percentage gainers’ log with 6.38% and 6.06% respectively.
On the lager’s log, Multiverse topped with 9.50% loss, having dropped from N1.79 to N1.62, Japaul Gold followed on the log with 7.41%, thus, it ended at N0.25 from N0.27 where it closed on the last trading day. Academy Press was third on the list with 7.00% loss that rounded up its price at N1.86 from N2.00. Completing the top five (5) price percentage losers’ log are Caverton and UPDC with 6.57% and 4.03% price loss respectively. See our top performers’ log for details.
Top 5 Trades
Investors did a total of 419 deals on the shares of GTCO, while a total of 271 transactions were made on Zenith Bank shares through today’s trading session. MTNN was next on the top 5 list with 237 transactions, while ACCESSCORP and UBA completed the top five (5) trades for the day, as shown in the below table.
Top 5 Performance by Volume
Traders traded 74.27 million units of UBA shares through the day’s trade. Accesscorp followed on the most traded by volume with 16.09 million shares. AIICO, FBNH, and GTCO completed the top 5 most traded shares for the day.
Top Performance by Value
The Value of the shares traded on Seplat shares (N876.34 Million) was the highest for the day, followed by UBA where investors exchange N556.83 million worth of shares. Seplat, GTCO and Accesscorp respectively completed the list as shown in the above table.
Please note that the following dates are due within the week, the recently announced N2.60 cash dividend by Bua-Cement will be credited to investors account from 21st July, 2022, while Nahco N0.41 dividend and 1FOR5 scrip closure date is today 18th July, 2022.
In Conclusion, we strictly recommend a cautious trade around the market arena, and maintained that, investors should adopt long term investment strategies, while taking advantage of dropping prices. Safe Trade.