Recording the third positive day in the year, equities trading on the floor of The Nigerian Stock Exchange added 45Bpts as lead index NSEASI closed the first trading day of the week at 29,964.79 from 29,830.70. It was a mixed performance amongst the observed market indices as shown in the index movement table. After today’s positive move, the total loss point within the month of January adjusted down to 466Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N50.004 billion, same as 45Bpts below the opening value. Meanwhile, trading activities for the day produced 11 ADVANCERS and 11 LAGERS. NSEASI Year to Date loss is now 4.66% while the Market Capitalization Year to Date loss stood at N546.577 million same as 4.66% below the year’s opening value.
Although the market had so far maintained recovery moves for three consecutive trading days, the basis of the gains could not be conclusively established. In our opinion, the gain was induced by the consistent drops that dragged most listed equities to attractive prices. Since the major strength of the bear (upcoming national election) is still intact, we recommend a cautious tread around the market arena. But because listed equities are now relatively cheap, we advice traders to position in fundamentally sound equities, using the third quarter earnings as pointer.
As at the time we compiled this report, Brent Crude trades at $58.99/bbl having gained 1.49% below the last close price.
At the interbank rate today, the Naira closed unchanged at N306.85 against the USDollar, this is 2Bpts gain above the previous day’s close. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N364.58 traded as high as N366.00 before rounding up at N364.30, having transacted a total of $219.98 million through the day. Please note that, margin between the close and open value is an equivalent of 18Bpts 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 35.25%, same as 12.75% above the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 31.67%, that is, 11.67% above the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.