It was a bullish Santa Claus ride today as trading activities on the floor of The Nigerian Stock Exchange added a whooping 388Bpts and rounded up at 31,967.01 from 30,773.64. It was generally green performance amongst the observed market indices as shown in the index movement table. By this outstanding performance, all lost points so far in the month of December were wiped off, thus, Month to Date market returns is now 354Bpts into the green territory. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N435.897 billion, same as 388Bpts above the opening value. Meanwhile, trading activities for the day produced 36 ADVANCERS and 5 LAGERS. NSEASI Year to Date loss is now 14.20% while the Market Capitalization Year to Date loss stood at N1.932 trillion same as 16.41% below the year’s opening value.
It was indeed a grand move today as market mood turned bright, most active listed equities lined up on the advancers’ log while decliners’ log shrank. The big question is, will today’s gain be sustained? In our opinion, the major market fundamental in the name of the presidential election is still very active, and nothing had changed the low expectations of the full year earnings, although a school of taught believed that accounts reshuffling could be necessary as the year closed, it is not certain that such will change the general market trend (downtrend). We therefore warn against playing into bull-trap as today’s gain stands higher probability of being reversed.
As at the time we compiled this report, Brent Crude trades at $51.16/bbl having gained 0.69% from the last close price.
At the interbank rate today, the Naira closed unchanged at N306.95 against the USDollar. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N364.66 traded as high as N365.50 before rounding up at N364.34, having transacted a total of $133.50 million through the day. Please note that, margin between the close and open value is an equivalent of 5Bpts gain. 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 13.75%, same as 11.33% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 12.67%, that is, 9.00% below the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.