Nigerian Equities Market: More Losers Emerged as NSEASI Gave Up 34Bpts: 7/5/19

Maintaining negative path, equities trading on the floor of The Nigerian Stock Exchange gave up 34Bpts of its trading points, and rounded up trade at 29,096.41 from 29,196.87. Safe NSE-Industrial goods index that gained, other observed market indices in this report rounded up below their respective opening points. Thus, Week to Date, activities index is down by 40Bpts while the total lost point within the current month is now 22Bpts. See the index movement table for details.

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Value loss by the market capitalization of the listed equities during today’s trading activities was N37.757 billion, same as 34Bpts below the opening value. Meanwhile, trading activities for the day produced 11 ADVANCERS and 32 LAGERS. NSEASI Year to Date loss is now 743Bpts while the Market Capitalization Year to Date loss stood at N785.102 billion same as 670Bpts below the year’s opening value.

As traders/investors gazed at the ministerial list and possible economic reform policies of President Mohammadu Buhari after May 29^th, the fear that the rift between US and China could impair and impact the Nigerian economy had compounded the dent on the general market fundamentals. Since the friction between the two giant economies is expected to rub off on global output, we are of the opinion that most institutional investors will definitely be taken aback. As noted today, this is beginning to drag south the oil price; should this continue without timely control, Fx inflow might be affected and this will invariably impacted the CBN Fx intervention method negatively. Please understand that since the current earnings season had come to its tail end, economic trend will now play large roll in market trend.

As at the time we compiled this report, Brent Crude trades at $69.80/bbl having loss 1.44% to stand below the last close price.

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 N360.65 traded as high as N362.50 before rounding up at N360.99, having transacted a total of $157.85 million through the day. Please note that, margin between the close and open value is an equivalent of 7Bpts 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 10.88%, same as 1.21% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 10.07%, that is, 1.29% below the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.