Market Update

Nigerian Equities Market: Update 22nd November, 2016

The bear maintained hold around the market arena as the lead activities index of The Nigerian Bourse swam further south. It was a mixed performance among the observed market indices as shown in the index movement table. Meanwhile, point lost within the new week had grown to 30Bpts while Month to Date loss shifted to 646Bpts.

Value lost by the market capitalization of the listed equities during today’s trading activities was N12.966 billion same as 15Bpts from the opening value. Meanwhile, today’s trading activities produced 11 advancers and 17 lagers. NSEASI YtD return is negative -11.02% while the Market Capitalization YtD loss stood at -N1.085 trillion.

At the just concluded MPC meeting, it was unanimously decided to retain the current stance of the monetary policy, by keeping MPR at 14 percent, alongside all other policy parameters.  This decision goes a long way in confirming the fragility of the Nigerian economy. The monetary policy committee agreed that the outlook for growth and inflation in the medium term will continue to be challenging. Thus, deciding based on the available data and forecast, it was concluded that growth is expected to remain less robust given the absence of sufficient fiscal space.

On the strength of the above, we recommend a long term positions (In tranches) in the following equities; Access Bank, Nascon, Fidson Healthcare, African Prudential, Chemical & Allied Product, Presco & Flourmills and other value stocks. We are of the opinion that trading on equities listed in the Oil and Gas should be done with heightened cautiousness.

Volume Index for today’s activity is 0.84 while buy volume and sell volume momentum is estimated at 47% and 53% respectively.

Comment here

Market Update

Nigerian Equities Market: Update 22nd November, 2016

The bear maintained hold around the market arena as the lead activities index of The Nigerian Bourse swam further south. It was a mixed performance among the observed market indices as shown in the index movement table. Meanwhile, point lost within the new week had grown to 30Bpts while Month to Date loss shifted to 646Bpts.

Value lost by the market capitalization of the listed equities during today’s trading activities was N12.966 billion same as 15Bpts from the opening value. Meanwhile, today’s trading activities produced 11 advancers and 17 lagers. NSEASI YtD return is negative -11.02% while the Market Capitalization YtD loss stood at -N1.085 trillion.

At the just concluded MPC meeting, it was unanimously decided to retain the current stance of the monetary policy, by keeping MPR at 14 percent, alongside all other policy parameters.  This decision goes a long way in confirming the fragility of the Nigerian economy. The monetary policy committee agreed that the outlook for growth and inflation in the medium term will continue to be challenging. Thus, deciding based on the available data and forecast, it was concluded that growth is expected to remain less robust given the absence of sufficient fiscal space.

On the strength of the above, we recommend a long term positions (In tranches) in the following equities; Access Bank, Nascon, Fidson Healthcare, African Prudential, Chemical & Allied Product, Presco & Flourmills and other value stocks. We are of the opinion that trading on equities listed in the Oil and Gas should be done with heightened cautiousness.

Volume Index for today’s activity is 0.84 while buy volume and sell volume momentum is estimated at 47% and 53% respectively.

Comment here