FeaturedMarket Update

Nigerian Equities Market Maintained Trend Despite Upcoming Election: 07/03/19

Taking another negative breadth, equities trading on the floor of The Nigerian Stock Exchange ended in the red. Thus, the All Share Index-NSEASI gave up 35Bpts of its trading points to round up at 32,010.06 from 32,121.74. All observed market indices closed below their respective opening points as shown in the index movement table. Week to Date, the lead activities index is up by 70Bpts, while the total gained point for the month reduced to 103Bpts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N41.648 billion, same as 35Bpts below the opening value.  Meanwhile, trading activities for the day produced 9 ADVANCERS and 26 LAGERS. NSEASI Year to Date gain is now 184Bpts while the Market Capitalization Year to Date gain stood at N216.328 billion same as 185Bpts above the year’s opening value.

Market maintained trend despite the upcoming gubernatorial election, in our opinion, this is because, to a large extent, investors can predict the possibilities from the exercise, as most state are likely to queue behind the ruling party. In other words, few changes are expected, if this assertion comes true. With Corruption fight as the chief lead of the ruling party, we expect little or no change in the fiscal policies. Nevertheless, since the tenure of the current CBN governor will soon elapse, predicting monetary policy direction may be a little difficult. These, plus the earnings season, account for the heightened cautiousness and low trading momentum seen in the market arena in recent times. We therefore maintained that traders should avoid panic selling by holding on to sound fundamentally based equities.

As at the time we compiled this report, Brent Crude trades at $66.30/bbl having gain 0.31% to stand above the last close price.

At the interbank rate today, the Naira closed unchanged at N306.90 against the dollar.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N360.25 traded as high as N361.70 before rounding up at N360.49, having transacted a total of $552.13 million through the day. Please note that, margin between the close and open value is an equivalent of 8Bpts loss. 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 9.58%, same as 0.17% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 8.50%, that is, 0.33% 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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FeaturedMarket Update

Nigerian Equities Market Maintained Trend Despite Upcoming Election: 07/03/19

Taking another negative breadth, equities trading on the floor of The Nigerian Stock Exchange ended in the red. Thus, the All Share Index-NSEASI gave up 35Bpts of its trading points to round up at 32,010.06 from 32,121.74. All observed market indices closed below their respective opening points as shown in the index movement table. Week to Date, the lead activities index is up by 70Bpts, while the total gained point for the month reduced to 103Bpts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N41.648 billion, same as 35Bpts below the opening value.  Meanwhile, trading activities for the day produced 9 ADVANCERS and 26 LAGERS. NSEASI Year to Date gain is now 184Bpts while the Market Capitalization Year to Date gain stood at N216.328 billion same as 185Bpts above the year’s opening value.

Market maintained trend despite the upcoming gubernatorial election, in our opinion, this is because, to a large extent, investors can predict the possibilities from the exercise, as most state are likely to queue behind the ruling party. In other words, few changes are expected, if this assertion comes true. With Corruption fight as the chief lead of the ruling party, we expect little or no change in the fiscal policies. Nevertheless, since the tenure of the current CBN governor will soon elapse, predicting monetary policy direction may be a little difficult. These, plus the earnings season, account for the heightened cautiousness and low trading momentum seen in the market arena in recent times. We therefore maintained that traders should avoid panic selling by holding on to sound fundamentally based equities.

As at the time we compiled this report, Brent Crude trades at $66.30/bbl having gain 0.31% to stand above the last close price.

At the interbank rate today, the Naira closed unchanged at N306.90 against the dollar.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N360.25 traded as high as N361.70 before rounding up at N360.49, having transacted a total of $552.13 million through the day. Please note that, margin between the close and open value is an equivalent of 8Bpts loss. 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 9.58%, same as 0.17% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 8.50%, that is, 0.33% below the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.

Comment here