Starting up the first trading day of the month, equities trading on the floor of The Nigerian Stock Exchange ended in the positive territory as the lead performance pointer, NSEASI added 14Bpts to its trading points, and closed at 27,565.09 from 27,525.81. Safe NSE-Premium Index that shed points other observed market indices in this report gained. Thus, both Week and Month to Date market returns stood at 14Bpts. See the index movement table for details.
Value gained by the Market Capitalization of the listed equities during today’s trading activities was N13.391 billion, same as 14Bpts above the opening value. Meanwhile, trading activities for the day produced 23 ADVANCERS and 17 LAGERS. NSEASI Year to Date loss is now 1,230Bpts while the Market Capitalization Year to Date gain stood at N1.689 trillion same as 1,441Bpts above the year’s opening value.
Starting from the 16th of August, the market had put up several recovery attempts, especially after the swearing in of the new ministers. Although momentum is evidently low and recovery is relatively mild compared to the long bearish session, we are of the opinion that such is typical of long bearish market; it is normal for traders to panic out after few gains while those who are confidence of the market recovery potential will usually pressure the recovery attempt.
On the strength of the above, we maintained that traders should maintain gradual positions in equities with positive fundamentals, projecting possible outcomes of the third quarter earnings will also be a good guide to stock selection.
As at the time this report was gathered, Brent Crude sells at 60.08$/bbl, this is 59Bpts above the previous close price.
The I&E FX Window opened at N362.58 traded as high as N364.00 before rounding up at N362.73, having transacted a total of $75.13 million through the day. Please note that, margin between the close and open value is 6Bpts loss. We are of the opinion that the FX-Market will trade within same range tomorrow. See below table for Lagos BDC Fx-rates.
In the money market, the Overnight (O/N) rate closed at 9.86%, same as 0.64% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 8.86, that is, 0.43% below the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.