FeaturedMarket Update

Two Failed Recovery Moves, NGXASI Spent the 12th Night On its 3rd Recovery Attempt

Extending negative sentiments to the second day, equities trading on the floor of the Nigerian Stock Exchange ended in the negative territory, the lead performance pointer- NSEASI gave up marginal 1Bpts of its trading points, and closed at 38,858.99 from 38,864.33. It was a mixed performance amongst the observed market indices, as shown in the index movement table. Thus, Week to Date, the lead index is 27Bpts below opening, while the total lost points in the month September is now 92Bpts. See the index movement table for details.

Fundamental View

Within the last two trading days observed so far this week, the market had completely returned all recovery made as the previous week was rounding up. It was a saved bloody moment on Monday when the market suddenly trended below 28,600 points before staging a surprise recovery. One would have assumed a buy signal, seeing how attractive the market became below 28,600 points, surprisingly, the market played out another bearish moment today (although the loss was marginal). We are of the opinion that, observing market behaviour further on the next trading day is an intelligent investment decision. Nevertheless, we maintained that, it is time to play the market by third quarter earnings expectations, since the next month commenced the release of 9-months performance numbers. Although the consistent crude oil price improvement is a welcome development, the extent to which Nigeria will benefit from the move strictly depends on its production capacity. We note that the government should play smart, to boost the nation’s advantage in the new wave of price.

Technical View

Reading the daily chart from the 20th August, 2021, it will be noticed that the market is currently going through the third step of resistance to the bear, by trending side-way. The first time was played withing 23rd August to 27th August, before losing to the negative. The second attempt was registered 1st to 9th September, while the third one started on 13th September and its still one. Readings on the weekly chart confirmed that the current side-way moves had already lasted for three weeks.

In other words, WoW market had been on a side-way trend since 19th March, 2021, and its still on. Same trend is spotted on the Monthly pattern. The truth is that, one cannot readily conclude a final pattern for the market at the moment, this is because the chances are halved, though the bear had taken the lead in most recent struggles.

Currently a strong divergence is on the play of MFI, as MFI is currently trending north while price is on the downward path. Technically, this is interpreted a funds entering the market, though price is trending south. The expectation is that, price will eventually trend the way of MFI in the short term

Index Movements

The total value loss by the Market Capitalization of the listed equities during today’s trading activities was N2.781 billion, same as 1Bpts below the opening value. Meanwhile, trading activities for the day produced 14 ADVANCERS and 15 LAGERS. NGXASI Year to Date loss is now 351Bpts while the Market Capitalization Year to Date loss stood at N810.959 billion same as 385Bpts below the year’s opening value.

Gainers & Losers

Leading on the advancers’ log is SkyAvn that gained 9.88% to round up the day at N4.45 from N4.05. Wema Bank followed with 5.13% gain, thus, it ended at N0.82 from N0.78. Flour Mills, UCAP and Jaiz Bank completed the top 5 price percentage gainers’ log with 1.87%, 1.75% and 1.72% respectively.

On the flip side Mansard led with 9.70% price depreciation as it rounded up trade at N2.70 from N2.99. African Prudential followed with 8.59% loss, thus it closed at N5.85 from N6.40. Regalins, Tripple Gee and Courtville completed the top 5 price percentage losers’ log with 6.82%, 6.25% and 5.71% respectively.

Top Performers for the Day

Top 5 Trades

Investors did a total of 302 deals on the shares of Zenith Bank, while a total of 179 transactions were made on Mansard shares through today’s trading session. GTCO was next on the top 5 list with 178 transactions, while Oando and UBA completed the top five (5) trades for the day, as shown in the below table.

Top 5 Performance by Volume

Traders traded 402,18 million units of Honeywell Flour through the day’s trade. UBA followed on the most traded by volume with 11.12 million shares. Transcorp, Fidelity Bank and Wema Bank completed the top 5 most traded shares for the day.

Top Performance by Value

The Value of the shares traded on Honeywell Flour (N1.52 billion) was the highest for the day, followed by Nestle Foods where investors exchange N482.11 million worth of shares. Zenith Bank, Dangote Cement and UBA respectively completed the list as shown in the above table.

NASD-OTC BRIEF

Over the Counter (OTC) Market Index ended in the red territory by shedding 0.67% to close the day’s trade at 737.39, while the market Capitalisation equally rounded up in the negative territory as it gave up 0.67% and close at 640.92 billion. Today’s performance produced three (3) advancers, and two (2) decliners. Kindly view today’s price list Here.

FMDQ-BRIEF

The I&E FX Window opened at N413.69 traded as high as N415.00 before rounding up at N414.50, having transacted a total of $127.68 million through the day. Please note that, margin between the close and open value is 8Bpts down. 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 13.75%, same as 2.25% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate as at ended at 13.00% that is 2.33% below the previous close.

CRUDE OIL PRICE MOVEMENT

As at the time this report was gathered, Brent Crude sells at 77.92$/bbl, this is 148Bpts below the last close price. Safe Trade.

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FeaturedMarket Update

Two Failed Recovery Moves, NGXASI Spent the 12th Night On its 3rd Recovery Attempt

Extending negative sentiments to the second day, equities trading on the floor of the Nigerian Stock Exchange ended in the negative territory, the lead performance pointer- NSEASI gave up marginal 1Bpts of its trading points, and closed at 38,858.99 from 38,864.33. It was a mixed performance amongst the observed market indices, as shown in the index movement table. Thus, Week to Date, the lead index is 27Bpts below opening, while the total lost points in the month September is now 92Bpts. See the index movement table for details.

Fundamental View

Within the last two trading days observed so far this week, the market had completely returned all recovery made as the previous week was rounding up. It was a saved bloody moment on Monday when the market suddenly trended below 28,600 points before staging a surprise recovery. One would have assumed a buy signal, seeing how attractive the market became below 28,600 points, surprisingly, the market played out another bearish moment today (although the loss was marginal). We are of the opinion that, observing market behaviour further on the next trading day is an intelligent investment decision. Nevertheless, we maintained that, it is time to play the market by third quarter earnings expectations, since the next month commenced the release of 9-months performance numbers. Although the consistent crude oil price improvement is a welcome development, the extent to which Nigeria will benefit from the move strictly depends on its production capacity. We note that the government should play smart, to boost the nation’s advantage in the new wave of price.

Technical View

Reading the daily chart from the 20th August, 2021, it will be noticed that the market is currently going through the third step of resistance to the bear, by trending side-way. The first time was played withing 23rd August to 27th August, before losing to the negative. The second attempt was registered 1st to 9th September, while the third one started on 13th September and its still one. Readings on the weekly chart confirmed that the current side-way moves had already lasted for three weeks.

In other words, WoW market had been on a side-way trend since 19th March, 2021, and its still on. Same trend is spotted on the Monthly pattern. The truth is that, one cannot readily conclude a final pattern for the market at the moment, this is because the chances are halved, though the bear had taken the lead in most recent struggles.

Currently a strong divergence is on the play of MFI, as MFI is currently trending north while price is on the downward path. Technically, this is interpreted a funds entering the market, though price is trending south. The expectation is that, price will eventually trend the way of MFI in the short term

Index Movements

The total value loss by the Market Capitalization of the listed equities during today’s trading activities was N2.781 billion, same as 1Bpts below the opening value. Meanwhile, trading activities for the day produced 14 ADVANCERS and 15 LAGERS. NGXASI Year to Date loss is now 351Bpts while the Market Capitalization Year to Date loss stood at N810.959 billion same as 385Bpts below the year’s opening value.

Gainers & Losers

Leading on the advancers’ log is SkyAvn that gained 9.88% to round up the day at N4.45 from N4.05. Wema Bank followed with 5.13% gain, thus, it ended at N0.82 from N0.78. Flour Mills, UCAP and Jaiz Bank completed the top 5 price percentage gainers’ log with 1.87%, 1.75% and 1.72% respectively.

On the flip side Mansard led with 9.70% price depreciation as it rounded up trade at N2.70 from N2.99. African Prudential followed with 8.59% loss, thus it closed at N5.85 from N6.40. Regalins, Tripple Gee and Courtville completed the top 5 price percentage losers’ log with 6.82%, 6.25% and 5.71% respectively.

Top Performers for the Day

Top 5 Trades

Investors did a total of 302 deals on the shares of Zenith Bank, while a total of 179 transactions were made on Mansard shares through today’s trading session. GTCO was next on the top 5 list with 178 transactions, while Oando and UBA completed the top five (5) trades for the day, as shown in the below table.

Top 5 Performance by Volume

Traders traded 402,18 million units of Honeywell Flour through the day’s trade. UBA followed on the most traded by volume with 11.12 million shares. Transcorp, Fidelity Bank and Wema Bank completed the top 5 most traded shares for the day.

Top Performance by Value

The Value of the shares traded on Honeywell Flour (N1.52 billion) was the highest for the day, followed by Nestle Foods where investors exchange N482.11 million worth of shares. Zenith Bank, Dangote Cement and UBA respectively completed the list as shown in the above table.

NASD-OTC BRIEF

Over the Counter (OTC) Market Index ended in the red territory by shedding 0.67% to close the day’s trade at 737.39, while the market Capitalisation equally rounded up in the negative territory as it gave up 0.67% and close at 640.92 billion. Today’s performance produced three (3) advancers, and two (2) decliners. Kindly view today’s price list Here.

FMDQ-BRIEF

The I&E FX Window opened at N413.69 traded as high as N415.00 before rounding up at N414.50, having transacted a total of $127.68 million through the day. Please note that, margin between the close and open value is 8Bpts down. 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 13.75%, same as 2.25% below the previous closing position. Meanwhile, Open Buy-Back (OBB) rate as at ended at 13.00% that is 2.33% below the previous close.

CRUDE OIL PRICE MOVEMENT

As at the time this report was gathered, Brent Crude sells at 77.92$/bbl, this is 148Bpts below the last close price. Safe Trade.

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