FeaturedMarket Update

Nigerian Equities Market Update: Despite Reversed Recovery Moves, We Maintained Medium-Long Term Positioning Approach

For the second time within the last trading week of August, equities trading on the floor of The Nigerian Stock Exchange ended in the negative territory as the lead performance pointer NSEASI gave up 32Bpts of its trading points and closed at 27,602.77 from 27,691.85.  NSE-Lotus II and NSE-Industrial Goods gained, NSE-Consumer Goods was flat while other observed market indices in this report ended below their respective opening points. Thus, Week to Date, market is 71Bpts below opening, while the Month to Date return is 42Bpts below its starting point. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N43.336 billion, same as 32Bpts below the opening value.  Meanwhile, trading activities for the day produced 16 ADVANCERS and 36 LAGERS. NSEASI Year to Date loss is now 1,218Bpts while the Market Capitalization Year to Date gain stood at N1.707 trillion same as 1,457Bpts above the year’s opening value.

The positive mood that followed the ministers’ swearing in seems to have been challenged by the fear of few key economic expectations. Major amongst such are the expected slowdown of the Q2-GDP numbers, scheduled for released in the first week of September and the dwindling oil price.

Meanwhile, we maintained that traders should take advantage of the lowly priced equities, considering those with strong fundamental base. Please note that reshuffling portfolios against the third quarter earnings is also necessary. Technically, long term downtrend have been cautioned, implying that little fundamental push from the economy will attract sharp response from the investing public. On the strength of these, we conclude that traders should pay close attention to unfolding events locally and in global space.

As at the time this report was gathered, Brent Crude sells at 59.91$/bbl, this is 40Bpts above the previous close price.

The I&E FX Window opened at N362.71 traded as high as N364.00 before rounding up at N362.88, having transacted a total of $191.91 million through the day. Please note that, margin between the close and open value is an equivalent of 3Bpts loss. 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 12.38%, same as 1.14% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 11.43, that is, 1.14% 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 Update: Despite Reversed Recovery Moves, We Maintained Medium-Long Term Positioning Approach

For the second time within the last trading week of August, equities trading on the floor of The Nigerian Stock Exchange ended in the negative territory as the lead performance pointer NSEASI gave up 32Bpts of its trading points and closed at 27,602.77 from 27,691.85.  NSE-Lotus II and NSE-Industrial Goods gained, NSE-Consumer Goods was flat while other observed market indices in this report ended below their respective opening points. Thus, Week to Date, market is 71Bpts below opening, while the Month to Date return is 42Bpts below its starting point. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N43.336 billion, same as 32Bpts below the opening value.  Meanwhile, trading activities for the day produced 16 ADVANCERS and 36 LAGERS. NSEASI Year to Date loss is now 1,218Bpts while the Market Capitalization Year to Date gain stood at N1.707 trillion same as 1,457Bpts above the year’s opening value.

The positive mood that followed the ministers’ swearing in seems to have been challenged by the fear of few key economic expectations. Major amongst such are the expected slowdown of the Q2-GDP numbers, scheduled for released in the first week of September and the dwindling oil price.

Meanwhile, we maintained that traders should take advantage of the lowly priced equities, considering those with strong fundamental base. Please note that reshuffling portfolios against the third quarter earnings is also necessary. Technically, long term downtrend have been cautioned, implying that little fundamental push from the economy will attract sharp response from the investing public. On the strength of these, we conclude that traders should pay close attention to unfolding events locally and in global space.

As at the time this report was gathered, Brent Crude sells at 59.91$/bbl, this is 40Bpts above the previous close price.

The I&E FX Window opened at N362.71 traded as high as N364.00 before rounding up at N362.88, having transacted a total of $191.91 million through the day. Please note that, margin between the close and open value is an equivalent of 3Bpts loss. 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 12.38%, same as 1.14% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 11.43, that is, 1.14% 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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