Nigerian Equities Market Update: NSEASI Bled Further on the Wings of Uncertain Economic Direction:03/07/19

In another bearish outing, equities trading on the floor of The Nigerian Stock Exchange closed in the negative region, as the lead performance pointer NSEASI gave up 7Bpts of its trading points and closed at 29,375.25 from 29,395.14. It was fairly a mixed performance amongst the observed market indices as shown in the index movement table. Thus, by this performance, both the Week to Date and Month to Date market loss stood at 197Bpts. See the index movement table for details.

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Value loss by the market capitalization of the listed equities during today’s trading activities was N8.768 billion, same as 7Bpts below the opening value. Meanwhile, trading activities for the day produced 16 ADVANCERS and 23 LAGERS. NSEASI Year to Date loss is now 654Bpts while the Market Capitalization Year to Date gain stood at N1.227 trillion same as 1,047Bpts above the year’s opening value.

Although today’s moves revealed some level of reluctance on the part of traders as the candlestick that represents today’s trade is a bearish reversal candle, the expansion of the losers’ log over the advancers’ log, and the vague economic direction may have dashed all hopes of market recovery.

We are of the opinion that investors should maintained focus on half year earnings, while those already trapped in one equities or the other should maintain calm and avoid any form of panic selling. Please understand that currently, most blue chip prices are relatively cheaper when compared to their respective financial metrics.

As at the time this report was gathered, Brent Crude sells at 63.47$/bbl, this is 35Bpts below the previous close price.

The I&E FX Window opened at N360.17 traded as high as N361.75 before rounding up at N360.61, having transacted a total of $324.71 million through the day. Please note that, margin between the close and open value is an equivalent of 2Bpts gain. 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 4.00%, same as 3.21% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 3.90%, that is, 3.90% above the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.

By Jeariogbe Tunde Segun