Equities trading on the floor of The Nigerian Stock Exchange suffered another loss today as the lead performance index NSEASI gave up 9Bpts of its trading points and rounded up trade at 32,423.57 from 32,454.03. It was a mixed performance amongst the observed market indices as shown in the index movement table. Both Week to Date and Month to Date market return are in the red by 105Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N11.118 billion, same as 9Bpts below the opening value. Meanwhile, trading activities for the day produced 19 advancers and 18 lagers. NSEASI Year to Date loss is now 15.22% while the Market Capitalization Year to Date loss stood at N1.772 trillion same as 13.02% below the year’s opening value.
Even though the market is already in the third quarter earnings season, market maintained a downtrend. According to the Director, Corporate Communications at CBN, Mr Isaac Okorafor, the dwindling nature of the nations’ external reserves is strictly due to the recent yield raise in the United States. According to him, this had attracted more institutional funds out of the system. Thus we are of the opinion that this also explained the bearish nature of investment activities on the nation’s bourse. We also believed that investors engaged in the ongoing political activities are currently forcing funds off the market, thereby suppressing activities further.
As at the time we compiled this report, Brent Crude trades at $84.99/bbl having added 0.08% to its closing price on Monday 1st October, 2018.
At the interbank rate today, the Naira closed unchanged 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 N363.75 traded as high as N365.00 before rounding up at N363.57, having transacted a total of $392.90 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 12.58%, same as 7.58% below yesterday’s closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 11.67%, that is, 7.42% 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.