FeaturedMarket Update

Nigerian Stock Market Drives Further South, As Market Correction Continues- See Our Trading Strategy

 

As the market re-visited correction moves, equities trading on the floor of The Nigerian Stock Exchange rounded up the negative territory, thus, the lead performance pointer-NSEASI gave up 59Bpts of its trading points, and closed at 39,697.62 from 39,931.63. Safe NSE-Insurance index that gained, all other observed market indices in this report closed below their respective openings. Thus, Week to Date, the lead activities index is 26Bpts below opening, while the total lost points in the month of March is now 26Bpts. See the index movement table for details.

At the end of today’s trade, the lead performance index-NSEASI trades below 40,000 support point, and is now moving towards the next support, which is sported around 38,700.00 point, should the index break this point, the next visible support is far down 34,396.3 point. Explaining this move technically, one can say that, the force that sharply moved the market during the last bullish run may be exiting the market at the moment, if this assertion is correct, then, correction is a inevitable, except the market gets another attraction that could induce patronage.

Please understand that, technically, the ongoing negative move can be best described as Market Correction, and the consistent downtrend could be linked to the consistency with which it gained during the last bullish run. Note that, the full year earnings season may not be strong enough to end the correction, except it is further helped by favourable/positive economic indices. Nevertheless, we believed that the pull backs, will definitely create several entry opportunities, most of which will be more glaring at the end of the ongoing earnings season. We equally believed that, playing dividend stock will reduce investment risk around the market at the moment.

The situation of the economy at the moment are; high headline inflation rate, risk of consistent increase in PMS price, consistent drop in the translational rate of the naira against the dollar, disjoint policy direction, amongst others. Nevertheless, the increase in the crude oil price around the world, is a plus for the government, as the product now sells above the budget benchmark price. Please understand that, the central bank of Nigeria through its monetary policy team had been very dynamic in their policy decision till date, thus, we expect its policy to effectively address most of these issues as things unveils. Thus, we maintained that, playing earnings numbers by dividend stocks remain an intelligent investment decision at the moment.

The total value lost by the Market Capitalization of the listed equities during today’s trading activities was N122.432 billion, same as 59pts below the opening value. Meanwhile, trading activities for the day produced 17 ADVANCERS and 26 LAGERS. NSEASI Year to Date loss is now 142Bpts while the Market Capitalization Year to Date loss stood at N286.768 billion same as 136Bpts below the year’s opening value.

Academy Press led the gainers list for the day with 9.76% gain, as it closed at N0.45 from N0.41. Pz-Cussons followed on the log with 9.38%, thus, it rounded up trade at N5.25 from N4.80. Royalex and Beta Glass gained 8.00% each, to close at N0.27 and N54.00 from N0.25 and N50.00 respectively, and Regency Alliance completed the top 5 price percentage gainers log with 7.69%.

On the flip side, Mutual Benefit led the with 10.00% loss as it rounded up trade at N0.36 from N0.40. Ardova followed on the list with 9.97%, thus, it ended today’s trade at N16.25 from N18.05. Champion Breweries, INITSPLC and Sterling Bank completed the top 5 price percentage losers’ log with 9.69%, 9.62% and 8.75% respectively.

Over the Counter Market Index and Capitalisation closed on a red note by 1.73%, thus, each rounded up at 696.13 and N499.48 billion respectively. Today’s performance produced zero (0) advancer and three (3) decliners. Kindly view today’s price list Here.

As at the time this report was gathered, Brent Crude sells at 62.64$/bbl, this is 165Bpts below the previous close price. Please note that the CBN spot reference price as at close of business on 26th February is 66.30$/bbl.

The I&E FX Window opened at N410.11 traded as high as N415.00 before rounding up at N411.63, having transacted a total of $59.17 million through the day. Please note that, margin between the close and open value is 59pts up. 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 4.83%, same as 1.92% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate as at ended at 4.33% that is 1.67% below the previous close. Safe Trade.

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FeaturedMarket Update

Nigerian Stock Market Drives Further South, As Market Correction Continues- See Our Trading Strategy

 

As the market re-visited correction moves, equities trading on the floor of The Nigerian Stock Exchange rounded up the negative territory, thus, the lead performance pointer-NSEASI gave up 59Bpts of its trading points, and closed at 39,697.62 from 39,931.63. Safe NSE-Insurance index that gained, all other observed market indices in this report closed below their respective openings. Thus, Week to Date, the lead activities index is 26Bpts below opening, while the total lost points in the month of March is now 26Bpts. See the index movement table for details.

At the end of today’s trade, the lead performance index-NSEASI trades below 40,000 support point, and is now moving towards the next support, which is sported around 38,700.00 point, should the index break this point, the next visible support is far down 34,396.3 point. Explaining this move technically, one can say that, the force that sharply moved the market during the last bullish run may be exiting the market at the moment, if this assertion is correct, then, correction is a inevitable, except the market gets another attraction that could induce patronage.

Please understand that, technically, the ongoing negative move can be best described as Market Correction, and the consistent downtrend could be linked to the consistency with which it gained during the last bullish run. Note that, the full year earnings season may not be strong enough to end the correction, except it is further helped by favourable/positive economic indices. Nevertheless, we believed that the pull backs, will definitely create several entry opportunities, most of which will be more glaring at the end of the ongoing earnings season. We equally believed that, playing dividend stock will reduce investment risk around the market at the moment.

The situation of the economy at the moment are; high headline inflation rate, risk of consistent increase in PMS price, consistent drop in the translational rate of the naira against the dollar, disjoint policy direction, amongst others. Nevertheless, the increase in the crude oil price around the world, is a plus for the government, as the product now sells above the budget benchmark price. Please understand that, the central bank of Nigeria through its monetary policy team had been very dynamic in their policy decision till date, thus, we expect its policy to effectively address most of these issues as things unveils. Thus, we maintained that, playing earnings numbers by dividend stocks remain an intelligent investment decision at the moment.

The total value lost by the Market Capitalization of the listed equities during today’s trading activities was N122.432 billion, same as 59pts below the opening value. Meanwhile, trading activities for the day produced 17 ADVANCERS and 26 LAGERS. NSEASI Year to Date loss is now 142Bpts while the Market Capitalization Year to Date loss stood at N286.768 billion same as 136Bpts below the year’s opening value.

Academy Press led the gainers list for the day with 9.76% gain, as it closed at N0.45 from N0.41. Pz-Cussons followed on the log with 9.38%, thus, it rounded up trade at N5.25 from N4.80. Royalex and Beta Glass gained 8.00% each, to close at N0.27 and N54.00 from N0.25 and N50.00 respectively, and Regency Alliance completed the top 5 price percentage gainers log with 7.69%.

On the flip side, Mutual Benefit led the with 10.00% loss as it rounded up trade at N0.36 from N0.40. Ardova followed on the list with 9.97%, thus, it ended today’s trade at N16.25 from N18.05. Champion Breweries, INITSPLC and Sterling Bank completed the top 5 price percentage losers’ log with 9.69%, 9.62% and 8.75% respectively.

Over the Counter Market Index and Capitalisation closed on a red note by 1.73%, thus, each rounded up at 696.13 and N499.48 billion respectively. Today’s performance produced zero (0) advancer and three (3) decliners. Kindly view today’s price list Here.

As at the time this report was gathered, Brent Crude sells at 62.64$/bbl, this is 165Bpts below the previous close price. Please note that the CBN spot reference price as at close of business on 26th February is 66.30$/bbl.

The I&E FX Window opened at N410.11 traded as high as N415.00 before rounding up at N411.63, having transacted a total of $59.17 million through the day. Please note that, margin between the close and open value is 59pts up. 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 4.83%, same as 1.92% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate as at ended at 4.33% that is 1.67% below the previous close. Safe Trade.

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