Starting up the new week, equities trading on the floor of the Nigerian Stock Exchange ended in the negative territory, as the lead performance pointer, NSEASI gave up marginal 4Bpt of its trading points, and closed at 39,505.40 from 39,522.34. It was a mixed performance amongst the observed market indices in this report. Thus, WtD, the lead index is 4Bpts below opening, while the total gained points in the month of August is now 249Bpts. See the index movement table for details.
Fundamental View
Against expectations, the July Headline Inflation due for release today 16th August, was not released by the National Bureau of Statistics; recall that, we informed you that the key economic indicator will be due for release today, while the half Year GDP numbers is expected on the 26th of August. Further redefining the nation’s economic fundamental is the news of President Mohammadu Buhari signing into law; the long debated Petroleum Industrial Bill (PIB).
Although this is a step taken in the right direction, we do not see strong investors’ reactions to the news; in our opinion, this is only a step taken towards a long journey, we believed that, further amendment to the bill is inevitable as analyst and other key stakeholders’ reaction will start coming in. We also noted the threatening effect of the Taliban takeover of the Afghanistan government, on the nation’s security, this we believe may discourage investment within the country. Nevertheless, the market still awaits half year numbers from listed equities with December financial year.
Technical View
Technically, the market seems to have met a resistance, as it had spent the third night within its current trading range. Please note that the current trading point had stand as major resistance to NGXASI since the third month of the year. Meanwhile we noted that when the market breaks the resistance (towards the end of May), it was not sustained. On the strength of the above, our highest expectation is for the market to pullback from its current trading point, although we do not rule out the possibilities of a break through the resistance. On the strength of the above stated facts, we recommend that traders should maintain cautiousness around the market arena.
Money Flow Index (MFI) is currently diving south, confirming that funds is exiting the market. As at the end of today’s trade, it rounded up at MFI-54.97 point. Also, MACD is trending at very close gaps, although it recently attempted to open up a bit. RSI Cross Over is already initiated a Buy position, as RSI-5 today crossed RSI-15 up from the downside position. Kindly play by the trend.
Index Movements
The total value lost by the Market Capitalization of the listed equities during today’s trading activities was N8.825 billion, same as 4Bpts below the opening value. Meanwhile, trading activities for the day produced 25 ADVANCERS and 15 LAGERS. NGXASI Year to Date loss is now 190Bpts while the Market Capitalization Year to Date loss stood at N473.872 million same as 225Bpts below the year’s opening value.
Top Gainers & Losers (%)
Leading on the advancers’ log is SFREIT with 9.96% gain over its previous close price, thus it rounded up at N67.90 from N61.75. MRS followed with 9.92% gain, to round up trade at N13.85 from N12.60. May&Baker, HoneyFlour and MBenefit completed the top 5 price percentage gainers log with 9.77%, 9.76% and 8.82% respectively.
On the flip side ABC-Transport led with 8.33% price depreciation as it rounded up trade at N0.33 from N0.36. Lasaco followed with 6.67% loss, thus it closed at N1.40 from N1.50. Livestock Feeds, Fidelity Bank and Champion Breweries completed the top 5 price percentage losers’ log with 4.81%, 4.80% and 4.55% respectively.
Top Performers For the Day
Top 5 Trades
Investors did a total of 287 deals on the shares of GTCO, while a total of 267 transactions were made on Zenith Bank shares through today’s trading session. UBA was next on the top 5 list with 133 transactions, while Dangote Sugar and Oando completed the top five (5) trades for the day, as shown in the below table.
Top 5 Performance by Volume
Traders traded 16.18 million units of Etranzact through the day’s trade. Fidelity Bank followed on the most traded by volume with 10.44 million shares. Transcorp, CHIPLC and Access Bank completed the top 5 most traded shares for the day.
Top Performance by Value
The Value of the shares traded on Nestle Foods (N491.95 Million) was the highest for the day, followed by MTNN where investors exchange N296.05 million worth of shares. Zenith Bank, Dangcem and Access Bank completed the list as shown in the above table.
NASD-OTC BRIEF
Over the Counter (OTC) Market Index ended in the green by gaining 0.04% to close the day’s trade at 745.66, while the market Capitalisation equally rounded up in the positive territory as it added 0.04% and close at 641.09 billion. Today’s performance produced two (2) advancers, and one (1) decliner. Kindly view today’s price list Here.
FMDQ-OTC BRIEF
The I&E FX Window opened at N411.42 traded as high as N415.00 before rounding up at N411.67, having transacted a total of $117.17 million through the day. Please note that, margin between the close and open value is 21Bpts up. We are of the opinion that the FX-Market will trade within same range tomorrow. See below table for Lagos BDC Fx-Rates.
In the money market, the Overnight (O/N) rate closed at 17.50%, same as 0.25% above the previous closing position. Meanwhile, Open Buy-Back (OBB) rate as at ended at 17.00% that is 0.25% above the previous close.
Crude Oil Price Movements
As at the time this report was gathered, Brent Crude sells at 69.65$/bbl, this is 133Bpts below the last close price. Safe Trade
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