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    Saturday, January 11, 2020

    Equity Market Sustains New Year Bullish Run, Gained 9.07% w/w

    The local bourse this week continued its excellent run in the New Year, as it closed  Northward in all the five trading sessions.

    As such, the NSE-ASI and NSE-Market Capitalization value grew by 9.07% w/w and 16.55% w/w to close for this week at 29,415.39 absolute points and ₦15.17 trillion respectively as against 27,526.35 absolute points and ₦12.80 trillion last Friday. This is nominal terms translates to a week-on-week gain of ₦2.15 trillion in Market Capitalization.

    It is pertinent to note that the variation in percentage gained in NSE-ASI and Market Capitalization was due to the listing of 33.86 billion ordinary shares of  50 kobo each at N35 per share by BUA Cement Plc, following the ratification of its merger with CCNN.

    Four of the five sectors closed positive on a week-on-week basis, led by; Industrial goods (+22.27%), Banking (+8.36%) Insurance (+2.05%), and Consumer goods  (+0.82%), while Oil & Gas (-0.02%) sector closed negatively.

    DANGCEM top the gainers’ table this week; appreciating by 21.13% w/w, while UPDCREIT shed 18.60 % w/w to lead the loser’s table.

    Overall, a total turnover of 2.68 billion shares worth ₦32.65 billion in 30,956  deals was traded this week by investors on the floor of The Nigerian Stock  Exchange in contrast to a total of 2.31 billion shares valued at ₦21.68 billion that exchanged hands last week in 14,906 deals. A total of Fifty-one (51) equities appreciated at price during the week, higher than Forty-four (44) equities in the previous week.

    Twenty(20) equities depreciated in price, lower than twenty-  four(24) equities in the previous week, while Ninety-two(92) equities remained unchanged, lower than Ninety-seven (97)equities recorded in the preceding week.
    Market Outlook: Week ending January 17, 2020

    Though we anticipate seeing some profit taking by speculative investors in the early part of next week. We believe the market still has an attractive valuation to drive positive performance next week.

    FX, EXTERNAL RESERVE & CRUDE OIL MARKET
    The Naira this week strengthened against the USD at both Inter-bank rate and I&E windows. The Naira at the Inter-bank market this week closed at ₦306.95/USD compared to ₦307.00/USD last Friday, while it gained 0.65% at the I&E window to close at ₦362.60 /USD as against ₦364.98/USD last week Friday.

    On the other hand, the balance of the foreign reserve this week fell by $200 million from last week position of $38.49 billion to $38.29 billion (9-Jan-2020).

    Oil prices within the week shot to $70 a barrel due to the tension in the Middle  East.

    However, the commodity lost w/w as the threat of war in the Middle East, a major oil-producing region, receded and investors switched their attention to economic growth prospects and demand for crude. The Brent benchmark crude oil price declined by $3.67/barrel w/w to $64.93/barrel as against $68.60/barrel last week.

    Precious metal edged down week-on-week, after breaking the $1,600 level on Wednesday for the first time in nearly seven years as easing tensions in the  Middle East prompted investors to move back to riskier bets

    Gold spot price gained 2.32% to $1,559.89 per Ounce. Similarly, cocoa spot price grew by 1.50% to close on Thursday at $2,486.18 per Ton.
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