FeaturedMarket Update

Traders Indecisive as MPC Keeps Policy Parameters Unchanged: 22/01/19

Topping trading points by marginal 1Bpts, equities trading on the floor of The Nigerian Stock Exchange rounded up on a near flat note, as the lead performance index-NSEASI closed at 30,736.88 from 30,732.72. It was a mixed performance amongst the observed market indices as shown in the index movement table. Thus, Week to Date the lead activities index is down by 87Bpts while the total lost points in the month of January is now 221Bpts. See the index movement table for details.

Value added by the market capitalization of the listed equities during today’s trading activities was N1.553 billion, same as 1Bpts above the opening value.  Meanwhile, trading activities for the day produced 26 ADVANCERS and 10 LAGERS. NSEASI Year to Date loss is now 221Bpts while the Market Capitalization Year to Date loss stood at N258.657 million same as 221Bpts below the year’s opening value.

Technically observing today’s trading activities, it was established that the candlestick pattern representing today’s trading activities is a Doji. A Doji is a candle without a body, only tails; this majorly confirms traders’ indecisiveness. In other words, one can safely conclude that traders are generally indecisive at the end of today’s trade. Meanwhile, at the conclusion of the Monetary Policy Committee (MPC) meeting today, it was decided by a vote of eleven (11) members to keep the policy parameters unchanged from their current levels. This is in line with general analysts’ expectations, recall that we have noted in our previous reports that rates are better left at status quo since the country is currently in the election period. We therefore maintained that traders should play cautiously around the market arena.

As at the time we compiled this report, Brent Crude trades at $60.89/bbl having gained 1.85% below the last close price.

At the interbank rate today, the Naira closed unchanged at N306.85 against the USDollar.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N362.70 traded as high as N365.00 before rounding up at N362.42, having transacted a total of $375.36 million through the day. Please note that, margin between the close and open value is an equivalent of 1Bpts 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 19.08%, same as 8.08% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 17.50%, that is, 7.83% 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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FeaturedMarket Update

Traders Indecisive as MPC Keeps Policy Parameters Unchanged: 22/01/19

Topping trading points by marginal 1Bpts, equities trading on the floor of The Nigerian Stock Exchange rounded up on a near flat note, as the lead performance index-NSEASI closed at 30,736.88 from 30,732.72. It was a mixed performance amongst the observed market indices as shown in the index movement table. Thus, Week to Date the lead activities index is down by 87Bpts while the total lost points in the month of January is now 221Bpts. See the index movement table for details.

Value added by the market capitalization of the listed equities during today’s trading activities was N1.553 billion, same as 1Bpts above the opening value.  Meanwhile, trading activities for the day produced 26 ADVANCERS and 10 LAGERS. NSEASI Year to Date loss is now 221Bpts while the Market Capitalization Year to Date loss stood at N258.657 million same as 221Bpts below the year’s opening value.

Technically observing today’s trading activities, it was established that the candlestick pattern representing today’s trading activities is a Doji. A Doji is a candle without a body, only tails; this majorly confirms traders’ indecisiveness. In other words, one can safely conclude that traders are generally indecisive at the end of today’s trade. Meanwhile, at the conclusion of the Monetary Policy Committee (MPC) meeting today, it was decided by a vote of eleven (11) members to keep the policy parameters unchanged from their current levels. This is in line with general analysts’ expectations, recall that we have noted in our previous reports that rates are better left at status quo since the country is currently in the election period. We therefore maintained that traders should play cautiously around the market arena.

As at the time we compiled this report, Brent Crude trades at $60.89/bbl having gained 1.85% below the last close price.

At the interbank rate today, the Naira closed unchanged at N306.85 against the USDollar.  See below table for BDC rates by four major locations within the country. Meanwhile, the I&E FX Window started from N362.70 traded as high as N365.00 before rounding up at N362.42, having transacted a total of $375.36 million through the day. Please note that, margin between the close and open value is an equivalent of 1Bpts 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 19.08%, same as 8.08% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate ended at 17.50%, that is, 7.83% 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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