FeaturedMarket Update

More Opportunities for Long Term Investors as NSEASI Lost Further-17/09/2018

Trading activities on the floor of The Nigerian Stock Exchange ended the first trading day of the week in the negative territory, as the lead performance pointer NSEASI gave up 39Bpts to round trade at 37,201.98 from 32,327.59. It was a mixed performance amongst the observed market indices as shown in the index movement table. By this performance, the total point lost in the current month is now 759Bpts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N45.859 billion, same as 39Bpts below the opening value.  Meanwhile, trading activities for the day produced 18 advancers and 23 lagers. NSEASI Year to Date loss is now 15.80% while the Market Capitalization Year to Date loss stood at N1.853 trillion same as 13.62% below the year’s opening value.

Market fundamentals that should guide traders decision includes the first increase posted by the nation’s headline inflation figure at 11.23% in August 2018 compare to 11.14% in July 2018, which breaks the trajectory of consistent decline in inflation rate since February 2017, increase in the Nigeria’s crude oil output and perhaps the resignation of the Finance Minister- Kemi Adeosun. But for the very strong effect of the upcoming national election, market seems deaf to these tradable fundamental factors and has continued in its royal entertainment of the bear. Interestingly, the consistent drop had increased the chances of making good profit in the long term.

At the interbank rate today, the Naira closed 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 N362.87 traded as high as N364.50 before rounding up at N362.93, having transacted a total of $223.45 million through the day. Please note that, margin between the close and open value is an equivalent of 7Bpts. 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 12.67%, same as 0.67% below yesterday’s closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 11.83%, that is, 1.17% 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.

Comment here

This site uses Akismet to reduce spam. Learn how your comment data is processed.