Nigerian Equities Market Update: NSEASI Resumed July on a Bearish Note; Gave up 118Bpts: 1/07/19

Starting off the month of July, equities trading on the floor of The Nigerian Stock Exchange ended in the negative territory as the lead performance pointer NSEASI gave up 118Bpts of its trading points and closed at 29,614.61 from 29,966.87. Safe NSE-Insurance and NSE-Oil &Gas that added points, other observed market indices rounded up below their respective opening points. Thus both Week to Date and Month to Date market loss is 118Bpts. 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 N155.230 billion, same as 118Bpts below the opening value. Meanwhile, trading activities for the day produced 21 ADVANCERS and 16 LAGERS. NSEASI Year to Date loss is now 578Bpts while the Market Capitalization Year to Date gain stood at N1.329 trillion same as 1,134Bpts above the year’s opening value.

Today’s loss represents the reversal of all gained points in the last two trading days of June. Although the candlestick representing today’s activities still rest on the support line (as mentioned in our previous reports), the thick black nature of the candle signaled a more determine bear around the market.

Nevertheless, we maintained that investors should play by expected half year earnings projections. Recall that the month of July is expected to usher in half years financials of equities with December financial year and few others with March year end. Our expectations is targeted towards half year incentives and the rush that will accompany same.

As at the time this report was gathered, Brent Crude sells at 65.00$/bbl, this is 26Bpts above the previous close price.

The I&E FX Window opened at N360.23 traded as high as N361.40 before rounding up at N360.57, having transacted a total of $140.92 million through the day. Please note that, margin between the close and open value is an equivalent of 5Bpts 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 8.93%, same as 4.29% above the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 8.14%, that is, 4.14% above the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.