Posting a bold recovery move, equities trading on the floor of The Nigerian Stock Exchange added a whooping 208Bpts to round trade at 33,114.44 from 32,440.17. Save NSE-Oil&Gas that shed points, other observed market indices closed in the positive territory. The performance shot the week to Date returns to the green zones by 176Bpts while the Month to Date loss adjusted down to 498Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N242.108 billion, same as 204Bpts above the opening value. Meanwhile, trading activities for the day produced 26 advancers and 20 lagers. NSEASI Year to Date loss is now 13.41% while the Market Capitalization Year to Date loss stood at N1.520 trillion same as 11.17% below the year’s opening value.
In a very close vote of 3 to 4 that would have resulted in the tightening of rates, the monetary committee members voted to retain all rates. Thus, MPR was retained at 14%, the asymmetric corridor was retained at +200/-500 basis points around the MPR; CRR at 22.5% and liquidity ratio was retained at 30%. Please understand that this move go against several analysts predictions/expectations. Please note that most equities currently sell at very cheap price considering the height they fell from and their sound/unshaken fundamentals.
At the interbank rate today, the Naira closed unchanged at N306.35 against the USDollar. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N363.47 traded as high as N364.50 before rounding up at N366.00, having transacted a total of $176.49 million through the day. Please note that, margin between the close and open value is an equivalent of 15Bpts drop. 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 19.42%, same as 10.33% above yesterday’s closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 18.00%, that is, 9.76% above the previous trading day’s 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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