FeaturedMarket Update

Nigerian Equities Market Pauses Bearish Moves, As MPC Holds Rates Constant

Pausing bearish moves, trading activities on the floor of The Nigerian Stock Exchange rounded up in the positive territory, as the lead performance pointer NSEASI added 19Bpts to its trading points, and closed at 21,741.16 from 21,700.98. It was a mixed performance amongst the observed market indices as shown in the index movement table. Thus, Week to Date, Lead activities index is 206Bpts below opening while the total lost points in the month of March is now 1,707Bpts. See the index movement table for details.

Today’s positive move was coincidental with the conclusion of the MPC meeting. The monetary Policy Committee while concluding its two day meeting considered the continued rise in domestic prices; the glut in oil supplies and low oil prices in the wake of the current global shocks (Coronavirus); exchange rate pressure and other domestic monetary and fiscal responses to the evolving crises. In view of these, the Committee decided by a unanimous vote to retain the Monetary Policy Rate (MPR) at 13.5 per cent and to hold all other policy parameters constant. Although the market rounded up in the green, we do not see the market fully recovering from the grip of the bear soon, nevertheless, we are of the opinion that the long bearish moves now presented listed equities at very attractive prices, thus we recommend long term positions in fundamentally strong equities.

Value gained by the Market Capitalization of the listed equities during today’s trading activities was N20.941 billion, same as 19Bpts above the opening value. Meanwhile, trading activities for the day produced 19 ADVANCERS and 10 LAGERS. NSEASI Year to Date loss is now 1,900Bpts while the Market Capitalization Year to Date loss stood at N1.628 trillion same as 1,257Bpts below the year’s opening value.

Leading on the advancers’ log is NPF-Microfinance with 9.52% gain, as it rounded up the day at N1.15 from N1.05. Stanbic IBTC followed with 9.43% gain that closed its price at N26.10 from N23.85. Transcorp, Jaiz Bank and SKYAVN completed the top 5 price percentage gainers’ with 8.93%, 8.89% and 8.66% respectively.

Caverton led the decliners’ log with 10.00% as it rounded up trade at N2.25 from N2.50. Conoil followed with 9.93%, closing at N13.15 from N14.60. Nascon, ETI and Cadbury completed the top 5 price percentage losers log with 9.57%, 8.99% and 8.85% respectively.

As at the time this report was gathered, Brent Crude sells at 27.15$/bbl, this is 12Bpts above the previous close price.

The I&E FX Window opened at N381.00 traded as high as N387.75 before rounding up at N380.53, having transacted a total of $56.20 million through the day. Please note that, margin between the close and open value is 6Bpts down. We are of the opinion that the FX-Market will trade within same range tomorrow. See below table for Lagos BDC Fx-Rates.

In the money market, the Overnight (O/N) rate closed at 5.25%, same as 1.68% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 4.83% that is 1.17% 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 Pauses Bearish Moves, As MPC Holds Rates Constant

Pausing bearish moves, trading activities on the floor of The Nigerian Stock Exchange rounded up in the positive territory, as the lead performance pointer NSEASI added 19Bpts to its trading points, and closed at 21,741.16 from 21,700.98. It was a mixed performance amongst the observed market indices as shown in the index movement table. Thus, Week to Date, Lead activities index is 206Bpts below opening while the total lost points in the month of March is now 1,707Bpts. See the index movement table for details.

Today’s positive move was coincidental with the conclusion of the MPC meeting. The monetary Policy Committee while concluding its two day meeting considered the continued rise in domestic prices; the glut in oil supplies and low oil prices in the wake of the current global shocks (Coronavirus); exchange rate pressure and other domestic monetary and fiscal responses to the evolving crises. In view of these, the Committee decided by a unanimous vote to retain the Monetary Policy Rate (MPR) at 13.5 per cent and to hold all other policy parameters constant. Although the market rounded up in the green, we do not see the market fully recovering from the grip of the bear soon, nevertheless, we are of the opinion that the long bearish moves now presented listed equities at very attractive prices, thus we recommend long term positions in fundamentally strong equities.

Value gained by the Market Capitalization of the listed equities during today’s trading activities was N20.941 billion, same as 19Bpts above the opening value. Meanwhile, trading activities for the day produced 19 ADVANCERS and 10 LAGERS. NSEASI Year to Date loss is now 1,900Bpts while the Market Capitalization Year to Date loss stood at N1.628 trillion same as 1,257Bpts below the year’s opening value.

Leading on the advancers’ log is NPF-Microfinance with 9.52% gain, as it rounded up the day at N1.15 from N1.05. Stanbic IBTC followed with 9.43% gain that closed its price at N26.10 from N23.85. Transcorp, Jaiz Bank and SKYAVN completed the top 5 price percentage gainers’ with 8.93%, 8.89% and 8.66% respectively.

Caverton led the decliners’ log with 10.00% as it rounded up trade at N2.25 from N2.50. Conoil followed with 9.93%, closing at N13.15 from N14.60. Nascon, ETI and Cadbury completed the top 5 price percentage losers log with 9.57%, 8.99% and 8.85% respectively.

As at the time this report was gathered, Brent Crude sells at 27.15$/bbl, this is 12Bpts above the previous close price.

The I&E FX Window opened at N381.00 traded as high as N387.75 before rounding up at N380.53, having transacted a total of $56.20 million through the day. Please note that, margin between the close and open value is 6Bpts down. We are of the opinion that the FX-Market will trade within same range tomorrow. See below table for Lagos BDC Fx-Rates.

In the money market, the Overnight (O/N) rate closed at 5.25%, same as 1.68% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 4.83% that is 1.17% 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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