FeaturedMarket Update

Nigerian Equities Market: Negative Reactions to Earnings Suppressed Lead Activities Index

Despite earnings influx, equities trading on the floor of The Nigerian Stock Exchange rounded up in the negative territory, as the lead performance pointer NSEASI gave up 99Bpts of its trading points and closed at 30,226.77 from 30,527.50. It was a mixed performance amongst the observed market indices as shown in the index movement table. Thus, Week to Date, activities index is down by 262Bpts while the total lost points in the new month is also 262Bpts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N113.667 billion, same as 99Bpts below the opening value.  Meanwhile, trading activities for the day produced 10 ADVANCERS and 28 LAGERS. NSEASI Year to Date loss is now 383Bpts while the Market Capitalization Year to Date loss stood at N367.314 billion same as 313Bpts below the year’s opening value.

Without much argument, it could be concluded that the current bear’s reign around the market arena is fully enhanced by traders’ reactions to unimpressive earnings. It was observed that, higher percentage of the earnings statistics released by equities with December financial year end were below investors’ expectations. Hence, negative reactions. The pressure was so tense that NSEASI breaks its long standing support (30,576.90) with full force. Should the reaction continue for more than a week, we have identified the next support around 29,623.80. Nevertheless, traders are advised to identify entries already created by the consistent drops, and position for short term run that will be ushered in by expected first quarter earnings.

As at the time we compiled this report, Brent Crude trades at $69.75/bbl having gained 0.38% to stand above the last close price.

At the interbank rate today, the Naira closed at N307.00 against the dollar, this is 2Bpts below yesterday’s close.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N360.64 traded as high as N362.00 before rounding up at N360.30, having transacted a total of $357.50 million through the day. Please note that, margin between the close and open value is an equivalent of 8Bpts 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 17.43%, same as 11.88% above the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 16.57%, that is, 11.57% above 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

FeaturedMarket Update

Nigerian Equities Market: Negative Reactions to Earnings Suppressed Lead Activities Index

Despite earnings influx, equities trading on the floor of The Nigerian Stock Exchange rounded up in the negative territory, as the lead performance pointer NSEASI gave up 99Bpts of its trading points and closed at 30,226.77 from 30,527.50. It was a mixed performance amongst the observed market indices as shown in the index movement table. Thus, Week to Date, activities index is down by 262Bpts while the total lost points in the new month is also 262Bpts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N113.667 billion, same as 99Bpts below the opening value.  Meanwhile, trading activities for the day produced 10 ADVANCERS and 28 LAGERS. NSEASI Year to Date loss is now 383Bpts while the Market Capitalization Year to Date loss stood at N367.314 billion same as 313Bpts below the year’s opening value.

Without much argument, it could be concluded that the current bear’s reign around the market arena is fully enhanced by traders’ reactions to unimpressive earnings. It was observed that, higher percentage of the earnings statistics released by equities with December financial year end were below investors’ expectations. Hence, negative reactions. The pressure was so tense that NSEASI breaks its long standing support (30,576.90) with full force. Should the reaction continue for more than a week, we have identified the next support around 29,623.80. Nevertheless, traders are advised to identify entries already created by the consistent drops, and position for short term run that will be ushered in by expected first quarter earnings.

As at the time we compiled this report, Brent Crude trades at $69.75/bbl having gained 0.38% to stand above the last close price.

At the interbank rate today, the Naira closed at N307.00 against the dollar, this is 2Bpts below yesterday’s close.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N360.64 traded as high as N362.00 before rounding up at N360.30, having transacted a total of $357.50 million through the day. Please note that, margin between the close and open value is an equivalent of 8Bpts 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 17.43%, same as 11.88% above the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 16.57%, that is, 11.57% above 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