Equities trading on the floor of The Nigerian Exchange today ended in the red as the bears retook control of market direction. Total lost points by the lead indicator was 14Bpts, thus, it rounded up trade at 32,108.30 from 32,154.03. Safe NSE-Banking Index that added points, other observed market indices closed below their respective opening points. Week to Date, market is down by 5Bpts while lost points within the new month is 110Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N16.696 billion, same as 14Bpts below the opening value. Meanwhile, trading activities for the day produced 18 advancers and 17 lagers. NSEASI Year to Date loss is now 16.04% while the Market Capitalization Year to Date loss stood at N1.887 trillion same as 13.87% below the year’s opening value.
It’s indeed a very confusing moment for msot traders as the market consistently lost more points to the bears, trading precision had almost been lost by many and so few numbers of listed equities now controls market direction.
Compounding the dull trading sessions around the market arena are several analyst predictions of possible negative impact likely to dent confidence due to the ongoing minimum wage saga between the federal government and Nigerian labor congress. Please understand that, going by the weak third quarter earnings by listed equities, analyst now lower fourth quarter earnings forecasts which had systematically induced lower valuation of most underperformed companies. We maintained that traders should play cautiously around the market arena.
As at the time we compiled this report, Brent Crude trades at $72.30/bbl having gained 0.17% from the last close price.
At the interbank rate today, the Naira closed unchancged at N306.65 against the USDollar. See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N363.51 traded as high as N364.60 before rounding up at N363.58, having transacted a total of $228.80 million through the day. Please note that, margin between the close and open value is an equivalent of 1Bpts 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 4.58%, same as 0.83% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 3.83%, that is, 1.00% below the previous close. We are of the opinion that the money market will maintain this range on the next business day. Safe Trade.