FeaturedMarket Update

Nigerian Equities Market Dives Further South Despite the Release of Q4-2019 GDP

Bearish sentiments extended to the new week, as the lead performance index of the Nigerian Stock Exchange rounded up the first trading day of the week in the negative territory. Thus, NSEASI gave up 127Bpts and closed at 27,041.03 from 27,388.62. All observed market indices in this report closed below their respective opening points. Thus, Week to Date, market is 127Bpts below opening while the total lost points in the month of February is now 625Bpts. See the index movement table for details.

Value loss by the Market Capitalization of the listed equities during today’s trading activities was N181.078 billion, same as 127Bpts below the opening value. Meanwhile, trading activities for the day produced 05 ADVANCERS and 33 LAGERS. NSEASI Year to Date gain is now 74Bpts while the Market Capitalization Year to Date gain stood at N1.128 trillion same as 871Bpts above the year’s opening value.

At the end of today’s trading activities only five (5) stocks closed above their opening points, they are led by LawUnion with 9.59% each to close at N0.80 from N0.73. Linkage Assurance followed with 4.65% to close at N0.45 from N0.43. Completing the top five price percentage gainers are; May & Baker (2.75%), SterlingBank (2.74%) and Vitafoam (0.22%).

Meanwhile, the 33 decliners was led by BOC GASES, Glaxo-Smithkline and NCR with 10.00% price loss to close at N4.05, N4.50 and N2.43 from N4.50, N5.00 and N2.70 respectively. SkyAvn and Cadbury completed the top five price percentage losers’ log with 9.92% and 9.89% respectively.

According to the National Bureau of Statistics this morning, the economy of Nigeria advanced 2.55% year-on-year in the fourth quarter of 2019 compared to an upwardly revised 2.28% rise in the previous period. It was the strongest expansion since the third quarter of 2015, mainly driven by the oil sector (6.36% vs 6.49% in Q3), amid higher crude oil production (2.00 million barrels per day, up from 1.91 mbpd in the same period a year earlier) and more favourable prices. Nevertheless, investors reacted negatively in the face of intense insecurity challenges, global uncertainties, oil price volatility, climate change, and lack of policy direction.

As at the time this report was gathered, Brent Crude sells at 56.30$/bbl, this is 220Bpts below the previous close price.

The I&E FX Window opened at N364.75 traded as high as N366.50 before rounding up at N365.36, having transacted a total of $71.67 million through the day. Please note that, margin between the close and open value is 30Bpts 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 3.30%, same as 0.53% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 2.40% that is 0.60% below 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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