Starting up the new week, equities trading on the floor of The Nigerian Stock Exchange resumed bearish run, as the lead performance index NSEASI gave up 37Bpts to round up trade at 29,936.33 from 30,046.70. It was a mixed performance amongst the observed market indices as shown in the index movement table. Leading from the negative ending, total lost points within the current months increased to 365Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N40.629 billion, same as 31Bpts below the opening value. Meanwhile, trading activities for the day produced 16 ADVANCERS and 20 LAGERS. NSEASI Year to Date loss is now 475Bpts while the Market Capitalization Year to Date gain stood at N1.471 trillion same as 1,255Bpts above the year’s opening value.
The National Bureau of Statistics today released the Headline Inflation index for the month of May. According to the report, the rate increased to 11.40% YoY. This was 3Bpts higher than 11.37% recorded in April 2019. On a MoM basis, the Consumer Price Index (CPI) rose by 1.11%, same as 0.17% higher than 0.94% recorded in April 2019.
We maintained that traders should focused on taking full advantage of low valuation of listed equities giving higher priority to those with half year incentives history. Nevertheless, we expect mixed performance through the week with the bear taking the lead. In our opinion, the market awaits new economic blue print especially the implementation of the 2019 Budget.
At the interbank rate today, the Naira closed unchanged at N306.95 against the dollar. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N360.25 traded as high as N361.50 before rounding up at N360.50, having transacted a total of $200.00 million through the day. Please note that, margin between the close and open value is an equivalent of 0Bpts gain. 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 9.43%, same as 3.71% above the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 8.86%, that is, 3.57% above the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.