Nigerian Equities Market Update: Re-Appointment of CBN Gov, Listing of MTN Shares, Market may Soon Reverse Losses: 9/5/19

Still plying the negative territory, equities trading on the floor of The Nigerian Stock Exchange gave up 24Bpts of its trading points, and rounded up trade at 28,896.25 from 28,966.41. It was a mixed performance amongst the observed market indices in this report. Thus, Week to Date, activities index is down by 108Bpts while the total lost point within the current month is now 90Bpts. 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 N26.368 billion, same as 24Bpts below the opening value. Meanwhile, trading activities for the day produced 07 ADVANCERS and 19 LAGERS. NSEASI Year to Date loss is now 806Bpts while the Market Capitalization Year to Date loss stood at N860.329 billion same as 734Bpts below the year’s opening value.

The nation’s economic fundamentals remained the major market drivers; leading economic news for the day was the re-appointment of the CBN governor by President Mohammadu Buhari. The president reportedly wrote the Senate for tenure renewal for CBN Governor- Godwon Emefiele whose tenure will expire on 2^nd June, 2019. In our opinion, this is positive news, as it gives clearer direction to investors in the area of monetary policies. Nevertheless, traders were seen maintaining cautiousness through today’s trading hours. Please note that, the general analysts’ consensus posits that the proposed listing of MTN’s shares on the floor of The Nigerian Stock Exchange will brighten the market mood. Though we agreed with this position, we maintained that cautiousness and timely positions in blue chip whose price had been battered by the ongoing bearish moves remained an intelligent investment decision.

As at the time we compiled this report, Brent Crude trades at $70.27/bbl having loss 0.10% to stand below the last close price.

At the interbank rate today, the Naira closed unchanged at N306.95 against the dollar. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N360.61 traded as high as N361.80 before rounding up at N361.09, having transacted a total of $212.35 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 5.71%, same as 0.93% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 4.71%, that is, 1.29% below the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.