FeaturedMarket Update

Half Year Earnings Excitement; NGXASI Closes 47Bpts North

As the half year earnings season finally kicked off, equities trading on the floor of the Nigerian Stock Exchange ended in the positive territory, thus, the lead performance pointer, NSEASI added 47Bpt to its trading point, and closed at 38,849.08 from 38,667.90. Safe NSE-Insurance Index that shed points, other observed market indices in this report closed above their respective opening points. Thus, WtD, the lead index is 47Bpts above opening, while the total gained points in the month of July is now 248Bpts. See the index movement table for details.

Fundamental View

Although the Monetary Policy Committee (MPC) commenced its 280th meeting today, the release of earnings numbers currently entering the market seem to have lifted investors’ fear on the outcome of the meeting. In our opinion, since the nation’s economic recovery is still very slow, we expect the committee to leave all rates at status-quo. Meanwhile, technically, the market (measured by the lead index trend pattern) is trending closer to its previous highest high (on 11th June, 2021). Please understand that there are two major resistances for the market to crack before one can safely conclude that a new trend have finally commenced. The first is the June high (39,262.7) while the second is the May High (39,875.7). Combining Fundamental knowledge with the technical view, we are of the opinion that, the market holds enough strength to crack these points, especially if good number of listed equities emerged with positive earnings numbers, and the MPC Meeting concludes as expected.

Technical View

As noted above, the market lead indicator, NGXASI is trending high, looking towards June and then May highest high. Please understand that, as at the end of today’s trading activities, NGXASI had climbed over July high; and is now attempting June High, in other words, the month of July is currently in the positive territory.

Sampling few indicators, we observed the followings; Money Flow Index (MFI) is now in a flat state, even when the market is already trending north, although this is a kind of divergence, we are of the opinion that, confirming if MFI will finally agrees with the NGXASI price pattern on the next trading day is necessary. RSI Cross Over is a buy, as RSI-5 remained above RSI-15. On the 19th July, MACD touched its signal line and trended back north. As at the end of today’s trade, MACD had crossed to the bullish side.  Although Profit Taking Activities is expected after few positive days, we are of the opinion that the next trading day will still close on a positive note. Safe Trade.

Index Movements

The total value gained by the Market Capitalization of the listed equities during today’s trading activities was N94.398 billion, same as 47Bpts above the opening value. Meanwhile, trading activities for the day produced 29 ADVANCERS and 16 LAGERS. NSEASI Year to Date loss is now 353Bpts while the Market Capitalization Year to Date loss stood at N815.822 billion same as 387Bpts below the year’s opening value.

Gainers & Losers

Leading on the advancers’ log is Oando with 9.82% gain above its previous close point, thus it rounded up at N4.36 from N3.97. FTNCocoa followed with 9.76% gain to round up trade at N0.45 from N0.41. Ardova, BOC Gases and Livestock Feeds completed the top 5 price percentage gainers log with 9.75%, 9.74% and 9.64% respectively.

On the flip side Universal Insurance led with 9.09% loss, as it rounded up trade at N0.20 from N0.22. Linkage Assurance followed with 7.14% loss to close at N0.65 from N0.70. Sovereign Insurance, African Prudential and Regency Alliance completed the top 5 price percentage losers’ log with 6.90%, 6.52% and 6.25% respectively.

Top Performers

Top 5 Trades

Investors did a total of 356 deals on the shares of Zenith Bank, while a total of 261 transactions were made on GTCO shares through today’s trading session. Access Bank was next on the top 5 list with 238 transactions, while UCAP and UBA completed the top five (5) trades for the day, as shown in the below table.

Top 5 Performance by Volume

Traders traded 30.54 million units of Fidelity Bank through the day’s trade. Access Bank followed on the most traded by volume with 14.71 million shares. UBA, GTCO and Wema Bank completed the top 5 most traded shares for the day.

Top Performance by Value

The Value of the shares traded on GTCO (N378.31 million) was the highest for the day, followed by Zenith Bank where investors exchange N199.79 million worth of shares. Access Bank, Airtel Africal and UBA completed the list as shown in the above table.

NASD-OTC BRIEF

Over the Counter (OTC) Market Index ended in the red by giving up 0.12% to close the day’s trade at 753.52, while the market Capitalisation equally rounded up in the negative territory as it shed 0.12%  and close at 654.93 billion. Today’s performance produced one (1) advancer, and one (1) decliner. Kindly view today’s price list Here.

Crude Oil Price Movement

As at the time this report was gathered, Brent Crude sells at 74.50$/bbl, this is 54Bpts above the last close price.

FMDQ-OTC BRIEF

The I&E FX Window opened at N411.50 traded as high as N412.20 before rounding up at N411.50, having transacted a total of $139.49 million through the day. Please note that, margin between the close and open value is 0Bpts up. 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 15.50%, same as 13.00% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate as at ended at 15.00% that is 12.50% below the previous close. Safe Trade.

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