FeaturedMarket Update

The Bears Recaptured the Market as NSEASI Gave up 14Bpts

The bears recaptured the market today as trading activities on the floor of The Nigerian Stock Exchange gave up 14Bpts and the lead performance pointer NSEASI closed at 32,109.92 from 32,152.90. It was a mixed performance amongst the observed market indices as 3 indices gained while 6 dipped. Week to Date, lead activities index is down by 28Bpts while a total of 110Bpts had been lost so far in the month of November. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N16.054 billion, same as 14Bpts below the opening value.  Meanwhile, trading activities for the day produced 16 advancers and 15 lagers. NSEASI Year to Date loss is now 15.93% while the Market Capitalization Year to Date loss stood at N1.871 trillion same as 13.75% below the year’s opening value.

Market mood remained dull as activities logs shrank; only 31 listed equities dictated the market direction, while others closed flat. In our opinion, traders should carefully guide against the heightened fear that now hooves around the market; in other words, care should be taken to avoid panicking out of positions, as such will finally result into real loss. It is glaring that the current political cloud now bedeviling the market will clear off, at least at the end of 2019 first quarter. It is also needful to catch in on several entry opportunities now available in most blue chips due to the prolonged bear stay around the market arena.

As at the time we compiled this report, Brent Crude trades at $65.85/bbl having loss 0.27% from the last close price.

At the interbank rate today, the Naira closed unchanged at N306.70 against the USDollar.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N363.45 traded as high as N365.00 before rounding up at N364.24, having transacted a total of $147.41 million through the day. Please note that, margin between the close and open value is an equivalent of 0.15Bpts loss. 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 6.42%, same as 0.17% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 5.75%, that is, 0.08% 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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