Equities trading on the floor of The Nigerian Stock Exchange recorded the first profit taking move today, as the lead performance index-NSEASI gave up 15Bpts and rounded up trade at 32,413.92 from 32,462.31. It was a mixed performance amongst the observed market indices as shown in the index movement table. Week to Date, the market is in the green by 280Bpts while the total gained points in the current month is now 608Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N18.047 billion, same as 15Bpts below the opening value. Meanwhile, trading activities for the day produced 19 ADVANCERS and 22 LAGERS. NSEASI Year to Date gain is now 313Bpts while the Market Capitalization Year to Date gain stood at N366.938 billion same as 313Bpts below the year’s opening value.
In our opinion, today’s pull back action was long due, as the risk of playing one directional market is high. It is technically expected that traders who had gained points from their respective equities of trade during the bullish moves will catch in on their profits, hence the pullback. Although it is a modest reversal compared to the large points added to the market trading point by the bull, we expect more traders to wake up to profit taking’s call, as the market commenced on the next trading day. For traders who missed out in the just concluded bullish run, this pullback action is an opportunity to position for the next run. Please understand, that, should the market timely contest the profit taking effect, such that it reversed to positivity before the last low, we will finally confirm that a new trend is fully in place.
As at the time we compiled this report, Brent Crude trades at $63.86/bbl having gained 0.25% above the last close price.
At the interbank rate today, the Naira closed unchanged at N306.75 against the. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N361.88 traded as high as N362.50 before rounding up at N362.03, having transacted a total of $131.99 million through the day. Please note that, margin between the close and open value is an equivalent of 4Bpts 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 23.17%, same as 4.33% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 20.00%, that is, 4.17% below the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.