Resuming after the two days holiday, equities trading on the floor of The Nigerian Stock Exchange ended in the red, as the lead performance pointer NSEASI gave up 130Bpts of its trading points to round up trade at 30,527.07 from 30,928.29. It was a mixed performance amongst the observed market indices as shown in the index movement table. Both Week to Date and Month to Date returns were negative 175Bpts. See the index movement for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N178.207 billion, same as 131Bpts below the opening value. Meanwhile, trading activities for the day produced 23 ADVANCERS and 20 LAGERS. NSEASI Year to Date loss is now 287Bpts while the Market Capitalization Year to Date gain stood at N1.723 trillion same as 1,471Bpts above the year’s opening value.
Leading events in the market arena includes the second court ordered reinstatement of the former Securities and Exchange Dg- Mounir Gwazo, and the SEC alleged infraction of securities regulations by the management of Oando. Further questioning fairness around the market is the recent events surrounding the listing of MTNN on the floor of the exchange.
Despite the above, we are of the opinion that the current mixed reaction amongst traders is majorly due to low fundamental news after the release of first quarter financial statistics. We are of the opinion that positioning for half year earnings should form the basis of investment at the moment; equities with half year interim dividend history should top selection list. We expect mixed performance in the next few trading days from now.
At the interbank rate today, the Naira closed at N306.95 against the dollar representing 2Bpts gain over Friday close. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N360.60 traded as high as N361.50 before rounding up at N360.67, having transacted a total of $330.61 million through the day. Please note that, margin between the close and open value is an equivalent of 2Bpts 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 9.21%, same as 1% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 8.29%, that is, 1% below the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.