FeaturedMarket Update

Nigerian Equities Market: Traders Dare Election Risk, Jostle for Q4 Earnings-25.02/19

Starting up the new week, equities trading on the floor of The Nigerian Stock Exchange rounded up in the positive territory, as the lead performance pointer-NSEASI added 57Bpts and closed at 32,700.12 from 32,515.52. All observed market indices in this report ended above their respective opening points as shown in the index movement table. Thus, total gained point through the second month of the year is now 701Bpts. See the index movement table for details.

Value gained by the market capitalization of the listed equities during today’s trading activities was N68.842 billion, same as 57Bpts above the opening value.  Meanwhile, trading activities for the day produced 25 ADVANCERS and 8 LAGERS. NSEASI Year to Date gain is now 404Bpts while the Market Capitalization Year to Date gain stood at N473.663 billion same as 404Bpts above the year’s opening value.

More traders joined the fourth quarter earnings run today. This is despite the complications of the ongoing election process. Honestly, this is sharply against several analyst predictions (as far back as the last quarter of 2018). Recall that, most analysts had predicted reduced liquidity and strong bear’s presence during the electioneering season. On the contrary, market found and maintained a new trend (an uptrend) even at the pick of the process. In our opinion, this confirmed investors’ strong confidence in the various expected earnings. Please note that history also confirmed similar trend during the 2015 electioneering season. On this ground, we maintained that investors should smartly identify equities in strong fundamental state for timely positions. Already released 3rd quarter earnings will guide in this regard.

As at the time we compiled this report, Brent Crude trades at $64.76/bbl having lost 2.36% to stand below the last close price.

At the interbank rate today, the Naira closed unchanged at N306.85 against the dollar,.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N361.55 traded as high as N362.50 before rounding up at N361.54, having transacted a total of $73.88 million through the day. Please note that, margin between the close and open value is an equivalent of 1Bpts 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 18.79%, same as 1.46% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 17.64%, that is, 1.19% 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: Traders Dare Election Risk, Jostle for Q4 Earnings-25.02/19

Starting up the new week, equities trading on the floor of The Nigerian Stock Exchange rounded up in the positive territory, as the lead performance pointer-NSEASI added 57Bpts and closed at 32,700.12 from 32,515.52. All observed market indices in this report ended above their respective opening points as shown in the index movement table. Thus, total gained point through the second month of the year is now 701Bpts. See the index movement table for details.

Value gained by the market capitalization of the listed equities during today’s trading activities was N68.842 billion, same as 57Bpts above the opening value.  Meanwhile, trading activities for the day produced 25 ADVANCERS and 8 LAGERS. NSEASI Year to Date gain is now 404Bpts while the Market Capitalization Year to Date gain stood at N473.663 billion same as 404Bpts above the year’s opening value.

More traders joined the fourth quarter earnings run today. This is despite the complications of the ongoing election process. Honestly, this is sharply against several analyst predictions (as far back as the last quarter of 2018). Recall that, most analysts had predicted reduced liquidity and strong bear’s presence during the electioneering season. On the contrary, market found and maintained a new trend (an uptrend) even at the pick of the process. In our opinion, this confirmed investors’ strong confidence in the various expected earnings. Please note that history also confirmed similar trend during the 2015 electioneering season. On this ground, we maintained that investors should smartly identify equities in strong fundamental state for timely positions. Already released 3rd quarter earnings will guide in this regard.

As at the time we compiled this report, Brent Crude trades at $64.76/bbl having lost 2.36% to stand below the last close price.

At the interbank rate today, the Naira closed unchanged at N306.85 against the dollar,.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N361.55 traded as high as N362.50 before rounding up at N361.54, having transacted a total of $73.88 million through the day. Please note that, margin between the close and open value is an equivalent of 1Bpts 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 18.79%, same as 1.46% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 17.64%, that is, 1.19% below the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.

Comment here