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Nigerian Equities Market Update: The Bear Paused Around Major Support as NSEASI Gave Up Marginal 2Bpts: 20/06/19


Equities trading on the floor of The Nigerian Stock Exchange took another marginal ride with the bear, as the lead performance pointer- NSEASI gave up 2Bpts and closed at 29,765.31 from 29,772.72. It was a mixed performance amongst the observed market indices in this report. Thus, Week to Date, market is 94Bpts below opening while a total of 420Bpts had been lost in the month of June. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N3.265 billion, same as 2Bpts below the opening value.  Meanwhile, trading activities for the day produced 25 ADVANCERS and 14 LAGERS. NSEASI Year to Date loss is now 530Bpts while the Market Capitalization Year to Date gain stood at N1.396 trillion same as 1,191Bpts above the year’s opening value.

As noted in our report yesterday, the market is currently trading around a major support point located at 29,623.00 point. So far, it had been seemingly reluctant as it approaches the said point. Please understand that the candlestick pattern that represented today’s trading activities is a reversal pattern which also confirmed the strength of the said support. The question is, will the support rescue the market from the bear as it does on 10th January, 2019?

Nevertheless, we maintained that traders should focused on taking full advantage of low valuation of listed equities giving higher priority to those with half year incentives history. In conclusion, we expect mixed performance for the rest of the week with the bear taking the lead. In our opinion, the market awaits new economic blue print especially the implementation of the 2019 Budget.

As at the time this report was gathered, Brent Crude sells at 64.85$/bbl, this is 40Bpts above the previous close price.

The I&E FX Window opened at N360.25 traded as high as N361.60 before rounding up at N360.69, having transacted a total of $274.78 million through the day. Please note that, margin between the close and open value is an equivalent of 4Bpts 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 7.50%, same as 0.21% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 6.88%, that is, 0.38% 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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