Trading activities on the floor of The Nigerian Stock Exchange maintained bearish trend as the lead performance index NSEASI took another 15Bpts into the negative territory. Safe NSE-Banking Index that added points, other observed market indices in this report closed below their respective opening points. Thus, Week to Date, market is down by 91Bpts while the total lost points in the month of June is now 417Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N20.305 billion, same as 15Bpts below the opening value. Meanwhile, trading activities for the day produced 21 ADVANCERS and 19 LAGERS. NSEASI Year to Date loss is now 527Bpts while the Market Capitalization Year to Date gain stood at N1.399 trillion same as 1,194Bpts above the year’s opening value.
Technically, the market is currently trading around a major support point located around 29,623.00 point. So far, it had been seemingly reluctant as it approaches the said point. Safe few investors that may choose to take advantage of half year earnings and those catching in on low price opportunities, there seem to be little or no fundamental boost to back up recovery at this point.
Nevertheless, we maintained that traders should focused on taking full advantage of low valuation of listed equities giving higher priority to those with half year incentives history. In conclusion, we expect mixed performance for the rest of the week with the bear taking the lead. In our opinion, the market awaits new economic blue print especially the implementation of the 2019 Budget.
At the interbank rate today, the Naira closed unchanged at N306.95 against the dollar. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N360.10 traded as high as N361.50 before rounding up at N360.53, having transacted a total of $100.05 million through the day. Please note that, margin between the close and open value is an equivalent of 1Bpts 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 7.50%, same as 0.21% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 6.88%, that is, 0.38% below the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.