Reversing yesterday’s lost points, equities trading on the floor of The Nigerian Stock Exchange rounded up in the positive territory as the lead performance index NSEASI added 56Bpts and closed at 32,381.00 from 32,201.98. Save NSE-Insurance that shed points, other observed market indices gained. Week to Date the market is up by 17Bpts while the total points lost in the month of September is now 708Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N65.355 billion, same as 56Bpts below the opening value. Meanwhile, trading activities for the day produced 27 advancers and 18 lagers. NSEASI Year to Date loss is now 15.33% while the Market Capitalization Year to Date loss stood at N1.787 trillion same as 13.14% below the year’s opening value.
Although we have seen the market attempting recovery of lost grounds, the moves cannot be fully relied upon, since the bull is quite weak compared to the strong bear that currently parades the market arena. Another notable factor about the move is the number of equities that joined the advancers’ log on each gaining day. The weak momentum explained the unwillingness of most investors/traders to agree with the recovery attempts. Whichever way this is viewed, we believe that, given the technical assumption that history will always repeats itself, the market will definitely reverse at due time, thus, stocking portfolios with cheap stocks is strongly recommended.
At the interbank rate today, the Naira remained unchanged at N306.30 against the USDollar. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N363.00 traded as high as N364.75 before rounding up at N363.30, having transacted a total of $598.44 million through the day. Please note that, margin between the close and open value is an equivalent of 10Bpts. 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 10.25%, same as 2.42% below yesterday’s closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 9.50%, that is, 2.33% below the previous day’s 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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