FeaturedMarket Update

Equities Market to Follow Economic Dictates as Half Year Earnings Season Winds up: 6/08/19

Equities trading on the floor of The Nigerian Stock Exchange rounded up trade in the bearish territory; as the lead performance pointer NSEASI gave up 51Bpts of its trading points and rounded up trade at 27,527.40 from 27,669.38. Save NSE-Industrial Goods Index that gained, other observed market indices in this report closed in the red. Thus, Week to Date, activities index is 37Bpts below opening while total lost points in the new month is now 69BPts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N69.190 billion, same as 51Bpts below the opening value.  Meanwhile, trading activities for the day produced 06 ADVANCERS and 23 LAGERS. NSEASI Year to Date loss is now 1,242Bpts while the Market Capitalization Year to Date gain stood at N1.693 trillion same as 1,445Bpts above the year’s opening value.

It is no more news that the half year corporate earnings took the market back the lane rather than impacting portfolios positively. Even now that the earnings season is winding up, market will have to dance to the tune of economic developments, especially in the name of ministerial appointments. Please note that, President Mohammedu Buhari is reportedly set to inaugurate the recently approved ministers by the Senate on the 21st of August, while the hosting which was previously scheduled for 15th & 16th August had now been shifted to 19th & 20th August. Should the market insist further on the appointments, the Month of August will enjoy longer outing with the bear.

Although the season is currently being prolonged by few banking equities with standing policy of half year interim dividend, we are of the opinion that intelligent investment style at the moment is to exit high for more volume at lower prices.

As at the time this report was gathered, Brent Crude sells at 58.63$/bbl, this is 115Bpts below the previous close price.

The I&E FX Window opened at N362.43 traded as high as N364.00 before rounding up at N362.92, having transacted a total of $169.75 million through the day. Please note that, margin between the close and open value is an equivalent of 20Bpts gain. 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 5.21%, same as 0.79% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 4.64%, that is, 0.79% below the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.

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FeaturedMarket Update

Equities Market to Follow Economic Dictates as Half Year Earnings Season Winds up: 6/08/19

Equities trading on the floor of The Nigerian Stock Exchange rounded up trade in the bearish territory; as the lead performance pointer NSEASI gave up 51Bpts of its trading points and rounded up trade at 27,527.40 from 27,669.38. Save NSE-Industrial Goods Index that gained, other observed market indices in this report closed in the red. Thus, Week to Date, activities index is 37Bpts below opening while total lost points in the new month is now 69BPts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N69.190 billion, same as 51Bpts below the opening value.  Meanwhile, trading activities for the day produced 06 ADVANCERS and 23 LAGERS. NSEASI Year to Date loss is now 1,242Bpts while the Market Capitalization Year to Date gain stood at N1.693 trillion same as 1,445Bpts above the year’s opening value.

It is no more news that the half year corporate earnings took the market back the lane rather than impacting portfolios positively. Even now that the earnings season is winding up, market will have to dance to the tune of economic developments, especially in the name of ministerial appointments. Please note that, President Mohammedu Buhari is reportedly set to inaugurate the recently approved ministers by the Senate on the 21st of August, while the hosting which was previously scheduled for 15th & 16th August had now been shifted to 19th & 20th August. Should the market insist further on the appointments, the Month of August will enjoy longer outing with the bear.

Although the season is currently being prolonged by few banking equities with standing policy of half year interim dividend, we are of the opinion that intelligent investment style at the moment is to exit high for more volume at lower prices.

As at the time this report was gathered, Brent Crude sells at 58.63$/bbl, this is 115Bpts below the previous close price.

The I&E FX Window opened at N362.43 traded as high as N364.00 before rounding up at N362.92, having transacted a total of $169.75 million through the day. Please note that, margin between the close and open value is an equivalent of 20Bpts gain. 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 5.21%, same as 0.79% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 4.64%, that is, 0.79% below the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.

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