Nigerian Equities Market: NSEASI Closed Red, As Traders Seek Policy Direction: 6/05/19

Starting up the first trading day of the week, equities trading on the floor of The Nigerian Stock Exchange rounded up in the negative territory, as the All Share Index NSEASI gave up marginal 5Bpts to close at 29,197.41 from 29,212.00. It was a mixed performance amongst the observed market indices as shown in the index movement table. Week to Date activities log is below opening be 5Bpts, while the new month remained in the green territory by 13Bpts. 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 N5.683 billion, same as 5Bpts below the opening value. Meanwhile, trading activities for the day produced 14 ADVANCERS and 14 LAGERS. NSEASI Year to Date loss is now 710Bpts while the Market Capitalization Year to Date loss stood at N743.344 billion same as 638Bpts below the year’s opening value.

As noted in our previous update, since the first quarter financial season is now rounding up, market performance will now depend on the economic fundamentals and individual listed equities news. It is also the time to play technical charts especially for very liquid listed equities. Recall that we mentioned the presence of a double bottom which technically indicates that market might takes some positive moves. Unfortunately, market fundamentals look somehow weak to fully support the assertion. We are of the opinion that investors’ heightened cautiousness is induced by unclear policy directions, as most are careful not to jump the gun by assuming that policy direction will follow very similar pattern to what had been observed before now. We therefore maintained our recommendation of heightened cautiousness around the market arena.

As at the time we compiled this report, Brent Crude trades at $71.24/bbl having gain 0.39% 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 N360.50 traded as high as N361.50 before rounding up at N361.24, having transacted a total of $109.52 million through the day. Please note that, margin between the close and open value is an equivalent of 16Bpts 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 12.07%, same as 6.14% above the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 11.36%, that is, 6.07% above the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.