FeaturedMarket Update

Panic Selling on NSE as Traders Play Safe against MPC Meeting Outcome

Starting up the new week, equities trading on the floor of The Nigerian Stock Exchange ended in the red, as the lead performance pointer-NSEASI gave up 4Bpts of its trading points and closed at 34,121.78 from 34,136.82. Safe NSE-Lotus II and NSE-Industrial Goods Indexes that gained, other observed market indices in this report closed below their respective opening points. Thus, Week to Date, lead index is 4Bpts below opening, while the total gained points in the month of November is now 1,176Bpts. See the index movement table for details.

Although only five equities gained during today’s trading session, the five stocks, being highly capitalised stocks saved the market from a very high crash. Investors seem to be playing safe against the possibilities of the Monetary Policy Committee (MPC) meeting that commenced today 23rd November, 2020 ending with adjustment in rates. Ordinarily, this seems to be the right approach since the rate is already at disadvantage to fixed income market players especially as the Headline Inflation Rate keep rising.  In our opinion, should the rates be adjusted to favour the fixed income market, government may face lots of difficulties in servicing its bonds commitments. We are therefore hopeful that, the rates will be left unchanged at the end of the ongoing meeting. Nevertheless, we recommend a safe play around the market arena.

The total value lost by the Market Capitalization of the listed equities during today’s trading activities was N7.860 billion, same as 4Bpts below the opening value. Meanwhile, trading activities for the day produced 05 ADVANCERS and 46 LAGERS. NSEASI Year to Date gain is now 2,712Bpts while the Market Capitalization Year to Date gain stood at N4.871 trillion same as 3,759Bpts above the year’s opening value.

Gain on Airtel Africa share price led the advancers’ log with 5.00% gain, as it ended the day at N525.00 from N500.00. Bua-cement followed on the log with 4.77% gain, thus it rounded up today’s trade at N56.00 from N53.45. Dangote Cement, Nestle Foods and Nem Insurance completed the top 5 price percentage gainers’ log with 3.42%, 1.82% and 0.78% respectively.

On the flip side, six listed equities led on the decliners log with 10.00% loss each. The List was led by Custodian that closed at N5.85% from N6.50, followed by Ardova which rounded up at N13.50 from N15.00. others on the list are; Transcorp, Wapco, Livestock Feeds and Honey Well Flour.

Over the Counter Market Index and Capitalisation on a flat note, thus, rounded up at 736.53 and N547.46 billion respectively. Today’s performance produced zero (0) advancer and zero (0) decliner. Kindly view today’s price list Here.

As at the time this report was gathered, Brent Crude sells at 46.10$/bbl, this is 9Bpts above the previous close price.

The I&E FX Window opened at N386.05 traded as high as N394.83 before rounding up at N386.00, having transacted a total of $45.84 million through the day. Please note that, margin between the close and open value is 4Bpts 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 2.50%, same as 1.83% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate as at ended at 2.00% that is 1.33% 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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FeaturedMarket Update

Panic Selling on NSE as Traders Play Safe against MPC Meeting Outcome

Starting up the new week, equities trading on the floor of The Nigerian Stock Exchange ended in the red, as the lead performance pointer-NSEASI gave up 4Bpts of its trading points and closed at 34,121.78 from 34,136.82. Safe NSE-Lotus II and NSE-Industrial Goods Indexes that gained, other observed market indices in this report closed below their respective opening points. Thus, Week to Date, lead index is 4Bpts below opening, while the total gained points in the month of November is now 1,176Bpts. See the index movement table for details.

Although only five equities gained during today’s trading session, the five stocks, being highly capitalised stocks saved the market from a very high crash. Investors seem to be playing safe against the possibilities of the Monetary Policy Committee (MPC) meeting that commenced today 23rd November, 2020 ending with adjustment in rates. Ordinarily, this seems to be the right approach since the rate is already at disadvantage to fixed income market players especially as the Headline Inflation Rate keep rising.  In our opinion, should the rates be adjusted to favour the fixed income market, government may face lots of difficulties in servicing its bonds commitments. We are therefore hopeful that, the rates will be left unchanged at the end of the ongoing meeting. Nevertheless, we recommend a safe play around the market arena.

The total value lost by the Market Capitalization of the listed equities during today’s trading activities was N7.860 billion, same as 4Bpts below the opening value. Meanwhile, trading activities for the day produced 05 ADVANCERS and 46 LAGERS. NSEASI Year to Date gain is now 2,712Bpts while the Market Capitalization Year to Date gain stood at N4.871 trillion same as 3,759Bpts above the year’s opening value.

Gain on Airtel Africa share price led the advancers’ log with 5.00% gain, as it ended the day at N525.00 from N500.00. Bua-cement followed on the log with 4.77% gain, thus it rounded up today’s trade at N56.00 from N53.45. Dangote Cement, Nestle Foods and Nem Insurance completed the top 5 price percentage gainers’ log with 3.42%, 1.82% and 0.78% respectively.

On the flip side, six listed equities led on the decliners log with 10.00% loss each. The List was led by Custodian that closed at N5.85% from N6.50, followed by Ardova which rounded up at N13.50 from N15.00. others on the list are; Transcorp, Wapco, Livestock Feeds and Honey Well Flour.

Over the Counter Market Index and Capitalisation on a flat note, thus, rounded up at 736.53 and N547.46 billion respectively. Today’s performance produced zero (0) advancer and zero (0) decliner. Kindly view today’s price list Here.

As at the time this report was gathered, Brent Crude sells at 46.10$/bbl, this is 9Bpts above the previous close price.

The I&E FX Window opened at N386.05 traded as high as N394.83 before rounding up at N386.00, having transacted a total of $45.84 million through the day. Please note that, margin between the close and open value is 4Bpts 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 2.50%, same as 1.83% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate as at ended at 2.00% that is 1.33% 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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