FeaturedMarket Update

Nigerian Equities Market Update: NSEASI Extends Loosing Streak, Gives Up 36Bpts: 10/06/19

Extending losing streak to the sixth consecutive trading day, equities trading on the floor of The Nigerian Stock Exchange rounded up the first day of the week in the negative territory, as the lead performance pointer NSEASI gave up 36Bpts of its trading points and closed at 30,322.19 from 30,432.13. Safe NSE-Insurance that added marginal points, other observed market indices in this report closed below their respective openings. Thus, total lost points in the month of June increased to 240Bpts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N48.420 billion, same as 36Bpts below the opening value.  Meanwhile, trading activities for the day produced 15 ADVANCERS and 20 LAGERS. NSEASI Year to Date loss is now 353Bpts while the Market Capitalization Year to Date gain stood at N1.633 trillion same as 1,394Bpts above the year’s opening value.

Leading events in the market arena includes the second court ordered reinstatement of the former Securities and Exchange Dg- Mounir Gwazo, and the recent suspension of Oando Annual General Meeting by the Securities and Exchange Commission. Although this move confirmed accurate regulations which further guarantee investors’ protection, investors are not happy that the management of Oando shortchanged them for years while jerking executive pay.

Despite the above, we are of the opinion that the current mixed reaction amongst traders is majorly due to low fundamental news as the first quarter earnings season winds up. We are of the opinion that positioning for half year earnings should form the basis of investment at the moment; equities with half year interim dividend history should top selection list. We expect mixed performance in the next few trading days from now.

At the interbank rate today, the Naira closed at N306.95 against the dollar representing 2Bpts loss over Friday close. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N359.94 traded as high as N361.50 before rounding up at N360.63, having transacted a total of $114.83 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.

In the money market, the Overnight (O/N) rate closed at 12.71%, same as 1.29% above the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 12.29%, that is, 1.43% above 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: NSEASI Extends Loosing Streak, Gives Up 36Bpts: 10/06/19

Extending losing streak to the sixth consecutive trading day, equities trading on the floor of The Nigerian Stock Exchange rounded up the first day of the week in the negative territory, as the lead performance pointer NSEASI gave up 36Bpts of its trading points and closed at 30,322.19 from 30,432.13. Safe NSE-Insurance that added marginal points, other observed market indices in this report closed below their respective openings. Thus, total lost points in the month of June increased to 240Bpts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N48.420 billion, same as 36Bpts below the opening value.  Meanwhile, trading activities for the day produced 15 ADVANCERS and 20 LAGERS. NSEASI Year to Date loss is now 353Bpts while the Market Capitalization Year to Date gain stood at N1.633 trillion same as 1,394Bpts above the year’s opening value.

Leading events in the market arena includes the second court ordered reinstatement of the former Securities and Exchange Dg- Mounir Gwazo, and the recent suspension of Oando Annual General Meeting by the Securities and Exchange Commission. Although this move confirmed accurate regulations which further guarantee investors’ protection, investors are not happy that the management of Oando shortchanged them for years while jerking executive pay.

Despite the above, we are of the opinion that the current mixed reaction amongst traders is majorly due to low fundamental news as the first quarter earnings season winds up. We are of the opinion that positioning for half year earnings should form the basis of investment at the moment; equities with half year interim dividend history should top selection list. We expect mixed performance in the next few trading days from now.

At the interbank rate today, the Naira closed at N306.95 against the dollar representing 2Bpts loss over Friday close. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N359.94 traded as high as N361.50 before rounding up at N360.63, having transacted a total of $114.83 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.

In the money market, the Overnight (O/N) rate closed at 12.71%, same as 1.29% above the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 12.29%, that is, 1.43% above 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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