As traders slowed down for the next MPC Meeting, equities trading on the floor of the Nigerian Stock Exchange ended in the green territory, as the lead performance pointer, NSEASI added marginal 1Bpt, and closed at 37,952.65 from 37,947.18. Safe NSE-Premium and NSE-Banking Indexes that shed points, other observed market indices in this report closed marginally above their respective opening points. Thus, WtD, the lead index is 1Bpts above opening, while the total gained points in the month of July is now 12Bpts. See the index movement table for details.
Fundamental View
According to the national bureau of statistics, Nigeria’s annual inflation rate eased slightly for the 3rd straight month to 17.75% in June of 2021, from 17.93% in May, amid a small slowdown in prices of food & non-alcoholic beverages (21.83% vs 22.28% in May) and despite an official 7.70% naira devaluation in May. On a monthly basis, consumer prices inched up 1.06%, following a 1.01% rise in the previous month. Please note that the market still awaits the MPC meeting for the month of July, scheduled to come up between 27th to 28th July, 2021, the outcome of the meeting and the above stated Headline Inflation numbers are the two key economic numbers in determining investment in the nation’s bourse. We also note that, leading fundamental in the month of August will be the half year earnings release. We are of the opinion that, the banking stocks and few other half year dividend policies should be investors target at the moment.
Technical View
After today’s trade, the market maintained sideway trend, as trading pattern on NGXASI closed on a flat note. A support had been sported for NGXASI around 37,662.8 point, please understand that, price is currently respecting the resistance as it trends very close to it. Nevertheless, the reluctant performance around the resistance is worrisome. Technically, any fundamental fault will violate the support, while positive market news will lift it through the positive territory.
Sampling few indicators, we observed the followings; Money Flow Index (MFI) shows that fund is currently entering the market, and a divergence had been observed between the price and MFI. While price is trending side-way, MFI is looking up. Conventionally, this is an indication that the bulls may take the lead. MACD is also on the attempt of crossing its signal line, although this is a newly initiated move, and will strictly require confirmation, it agrees with MFI assertion.
RSI Cross Over seems to also be in agreement with both MFI and MACD, as it is also making attempt to signal a short term buy signal. On the strength of the above, we recommend that traders should watch closely for buy recommendation confirmation from some of these indicators on the next trading day.
Index Movements
The total value gained by the Market Capitalization of the listed equities during today’s trading activities was N2.847 billion, same as 1Bpts above the opening value. Meanwhile, trading activities for the day produced 22 ADVANCERS and 10 LAGERS. NSEASI Year to Date loss is now 576Bpts while the Market Capitalization Year to Date loss stood at N1.282 trillion same as 609Bpts below the year’s opening value.
Gainers & Losers
Leading on the advancers’ log is Eterna Oil with 10.00% gain above its previous close point, thus it rounded up at N7.15 from N6.50. UPL followed with 9.93% gain to round up trade at N1.55 from N1.41. Cutix, Regency Alliance and Learn Africa completed the top 5 price percentage gainers log with 8.87%, 8.89% and 8.76% respectively.
On the flip side FTNCocoa led with 7.32% loss, as it rounded up trade at N0.38 from N0.41. Sovereign Insurance followed closely with 6.06% loss to close at N0.31 from N0.33. ETI, Sterling Bank and UBN completed the top 5 price percentage losers’ log with 3.77%, 3.21% and 2.68% respectively.
Top Performers Log
Top 5 Trades
Investors did a total of 243 deals on the shares of Zenith Bank, while a total of 199 transactions were made on GTCO shares through today’s trading session. Jaiz Bank was next on the top 5 list with 189 transactions, while Access Bank and UBA completed the top five (5) trades for the day, as shown in the below table.
Top 5 Performance by Volume
Traders traded 217.12 million units of Jaiz Bank through the day’s trade. Sterling Bank followed on the most traded by volume with 78.18 million shares. Wema Bank, Sovereign Insurance and Universal Insurance completed the top 5 most traded shares for the day.
Top Performance by Value
The Value of the shares traded on Nigerian Breweries (N138.74 million) was the highest for the day, followed by Sterling Bank where investors exchange N119.55 million worth of shares. Jaiz Bank, UACN and Zenith Bank completed the list as shown in the above table.
NASD-OTC BRIEF
Over the Counter (OTC) Market Index ended in the red by giving up 0.44% to close the day’s trade at 750.81, while the market Capitalisation equally rounded up in the negative territory as it shed 0.44% and close at 652.58 billion. Today’s performance produced zero (0) advancers, and two (2) decliners. Kindly view today’s price list Here.
CRUDE OIL PRICE MOVEMENT
As at the time this report was gathered, Brent Crude sells at 69.07$/bbl, this is 66Bpts above the last close price.
FMDQ-OTC BRIEF
The I&E FX Window opened at N411.10 traded as high as N412.20 before rounding up at N411.67, having transacted a total of $168.19 million through the day. Please note that, margin between the close and open value is 31Bpts 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 11.50%, same as 6.75% above the previous closing position. Meanwhile, Open Buy-Back (OBB) rate as at ended at 11.00% that is 6.50% above the previous close. Safe Trade.
BDC PRICE RATES
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