Market Update

Five Consecutive Nights with the Bear- NSEASI Trading Point Drops to 30,611.55

Completing five straight red days, equities trading on the floor of The Nigerian Stock Exchange spent another night with the bear, as the lead performance pointer NSEASI gave up 133Bpts and closed at 30,611.55 from 31,023.47. Safe NSE-Consumer Goods and NSE-Insurance that added points, other observed market indices dipped. Week to Date, lead activities index is 337Bpts below opening point while a total of 571Bpts had been lost within the month of November. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N150.383 billion, same as 133Bpts below the opening value.  Meanwhile, trading activities for the day produced 12 ADVANCERS and 23 LAGERS. NSEASI Year to Date loss is now 19.96% while the Market Capitalization Year to Date loss stood at N2.433 trillion same as 17.88% below the year’s opening value.

Ordinarily the political season should improve volatility around the market arena but for the corruption fight policy, we expect heightened cautiousness which will in-turn defile usual impact of the season on market liquidity. On the strength of this, we expect the bear to dominate market performance through the rest of the year; this fact becomes more valid when the poor earnings released for the third quarter by equities with December financial year is put into consideration. Nevertheless, it should be noted that the dwindling prices of equities has created several entry opportunities for long term investors.

As at the time we compiled this report, Brent Crude trades at $59.42/bbl having gained 0.66% from the last close price.

At the interbank rate today, the Naira closed unchanged N306.80 against the USDollar.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N363.88 traded as high as N365.60 before rounding up at N364.08, having transacted a total of $390.15 million through the day. Please note that, margin between the close and open value is an equivalent of 2Bpts 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 14.83%, same as 3.17% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 13.83%, that is, 3.33% 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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Market Update

Five Consecutive Nights with the Bear- NSEASI Trading Point Drops to 30,611.55

Completing five straight red days, equities trading on the floor of The Nigerian Stock Exchange spent another night with the bear, as the lead performance pointer NSEASI gave up 133Bpts and closed at 30,611.55 from 31,023.47. Safe NSE-Consumer Goods and NSE-Insurance that added points, other observed market indices dipped. Week to Date, lead activities index is 337Bpts below opening point while a total of 571Bpts had been lost within the month of November. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N150.383 billion, same as 133Bpts below the opening value.  Meanwhile, trading activities for the day produced 12 ADVANCERS and 23 LAGERS. NSEASI Year to Date loss is now 19.96% while the Market Capitalization Year to Date loss stood at N2.433 trillion same as 17.88% below the year’s opening value.

Ordinarily the political season should improve volatility around the market arena but for the corruption fight policy, we expect heightened cautiousness which will in-turn defile usual impact of the season on market liquidity. On the strength of this, we expect the bear to dominate market performance through the rest of the year; this fact becomes more valid when the poor earnings released for the third quarter by equities with December financial year is put into consideration. Nevertheless, it should be noted that the dwindling prices of equities has created several entry opportunities for long term investors.

As at the time we compiled this report, Brent Crude trades at $59.42/bbl having gained 0.66% from the last close price.

At the interbank rate today, the Naira closed unchanged N306.80 against the USDollar.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N363.88 traded as high as N365.60 before rounding up at N364.08, having transacted a total of $390.15 million through the day. Please note that, margin between the close and open value is an equivalent of 2Bpts 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 14.83%, same as 3.17% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 13.83%, that is, 3.33% 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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