FeaturedMarket Update

Nigerian Equities Market Bowed to Profit Taking after 7 Straight Bullish Runs

Starting off the first day of the new week, equities trading on the floor of The Nigerian Stock Exchange gave up 88Bpts as the lead performance pointer NSEASI rounded up trade at 30,732.72 from 31,005.17. Safe NSE-Insurance and NSE-Industrial Goods that added points, other observed market indices closed below their respective opening points. Thus, total lost points in the month of January increased to 222Bpts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N101.599 billion, same as 88Bpts below the opening value.  Meanwhile, trading activities for the day produced 13 ADVANCERS and 18 LAGERS. NSEASI Year to Date loss is now 222Bpts while the Market Capitalization Year to Date loss stood at N260.211 million same as 222Bpts below the year’s opening value.

The market experienced the hit from various traders catching in on the seven days consistent bullish run. You will recall that trading activities on the equities market resumed a surprising bullish run immediately after a heavy fall of 9th January. During this time, we have reiterated that the underlining market negative fundamental which saw the market through several bearish zones is still valid, thus we advised cautiousness around the market arena. In all fairness, today’s move can not conclusively confirm the return on the bear, rather it is more of a profit taking. We therefore recommend that traders await a confirmation of the bear presence from the early hour of trade on Tuesday, especially on equities that are neither in the breakeven point nor profit line.

As at the time we compiled this report, Brent Crude trades at $62/26/bbl having gained 0.48% below the last close price.

At the interbank rate today, the Naira closed at N306.85 against the USDollar representing 2Bbpts gain against last close.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N363.18 traded as high as N365.80 before rounding up at N362.46, having transacted a total of $409.07 million through the day. Please note that, margin between the close and open value is an equivalent of 9Bpts 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 27.17%, same as 11.00% above the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 25.33%, that is, 10.00% above the previous 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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FeaturedMarket Update

Nigerian Equities Market Bowed to Profit Taking after 7 Straight Bullish Runs

Starting off the first day of the new week, equities trading on the floor of The Nigerian Stock Exchange gave up 88Bpts as the lead performance pointer NSEASI rounded up trade at 30,732.72 from 31,005.17. Safe NSE-Insurance and NSE-Industrial Goods that added points, other observed market indices closed below their respective opening points. Thus, total lost points in the month of January increased to 222Bpts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N101.599 billion, same as 88Bpts below the opening value.  Meanwhile, trading activities for the day produced 13 ADVANCERS and 18 LAGERS. NSEASI Year to Date loss is now 222Bpts while the Market Capitalization Year to Date loss stood at N260.211 million same as 222Bpts below the year’s opening value.

The market experienced the hit from various traders catching in on the seven days consistent bullish run. You will recall that trading activities on the equities market resumed a surprising bullish run immediately after a heavy fall of 9th January. During this time, we have reiterated that the underlining market negative fundamental which saw the market through several bearish zones is still valid, thus we advised cautiousness around the market arena. In all fairness, today’s move can not conclusively confirm the return on the bear, rather it is more of a profit taking. We therefore recommend that traders await a confirmation of the bear presence from the early hour of trade on Tuesday, especially on equities that are neither in the breakeven point nor profit line.

As at the time we compiled this report, Brent Crude trades at $62/26/bbl having gained 0.48% below the last close price.

At the interbank rate today, the Naira closed at N306.85 against the USDollar representing 2Bbpts gain against last close.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N363.18 traded as high as N365.80 before rounding up at N362.46, having transacted a total of $409.07 million through the day. Please note that, margin between the close and open value is an equivalent of 9Bpts 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 27.17%, same as 11.00% above the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 25.33%, that is, 10.00% above the previous 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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