Daily Equities Market update Less activities, more sell-offs NASDUSI turns southwards by -3.31% March 27, 2019
Headline JBERGER notifies on matters relating to the 49 th AGM. MAYBAKER appoints chief(dr) Samuel Maduka Onyishi as a Director of the company. ETERNA approves its FY 18 Audited Financial Statements. Market Summary/e The equities market seemed not to have woken to the supports channeled towards it by the monetary authority (MPC) and international trade scenario. However, Morgancapital research understands the influence of response and action lag which drag the impact of policy on it target objectives. Thus, in a bid to validate the position of the new expansionary monetary policy empirically, we shall provide answers to the following questions in episode. 1. What is the historical relationship between the capital market performance and monetary policy rate (MPR), and its degree of impact?, 2. will lending rate trail the cut in MPR and 3. Will the rate stimulate credit to private sector?. To the first question, the figure below established an inverse relationship between the equities market and MPR, however weak as other factors which influence capital market performance are excluded from the analysis. This result simply means when MPR increases, market cap is likely to decrease and vice versa. Therefore, the policy cut is expected to expedite the long-awaited equities market rally, ceteris paribus. Money Market Rates Rate(%) %Δ Overnight rate 17.29-7.14 Open Buy 16.43-6.00 Daily Commodity Price Watch Previous Current Daily (%) Brent($/PB) 66.69 67.1 0.61 Gold 1,321.59 1311.36-0.77 Silver 15.58 15.3-1.80 Platinum 858.76 855.84-0.34 Copper 285.4 286.2 0.28 NASD OTC Indicators PARAMETER Previous Current Daily (%) USI 755.38 730.37-3.31 Capitalization ( 'Bn) 542.69 524.73-3.31 Volume Traded 134460 290539 116.08 Value Traded ( '000) 2333461 56498862 2321.25 Deals Executed 8 10 25.00. Source: MorganCapital Research
That said, the bourse finished in negative territory today by -0.67% to 30,829.45, following the continued sell pressure in PRESCO, GUARANTY, WEMABANK, WAPIC and PZ from the previous losses. Similarly, profit taking drove the prices of NEM, DANGFLOUR, ACCESS and FBNH in the red from gains recorded. On the flip side, investors buying interest pushed UBN and TRANSCORP uptrends while positive sentiment was sustained in UNIONDAC, CADBURY, ZENITHBANK, FIDELITYBK and AFRIPRUD. Consequent upon the negative sentiments, market cap dipped N78.74billion to end at N11.59trillion. Furthermore, the Relative Strength Index (RSI) continued southwards to 35.27 from 39.14 as the Year-to-Date(YTD) return also dipped further to -1.91%. Similar to the tepid activities witnessed yesterday, total volume and value traded today declined by -8.54% and -16.58% to close at 131.43million and N1.40billion respectively which were exchange in 2786 deals. Review of Sectoral Performance Sectors mostly finished in the bearish market today save for marginal uptick in industrial goods sector(0.03%) upon price appreciation in CUTIX 9.73%. On the other hand, insurance sector (-1.32%) dipped the most following sell-offs in NEM - 5.53%, NIGERINS -4.55%, LASACO -3.23% and WAPIC -2.5%. In the same vein, banking sector and oil/gas indexes dropped -0.98% and -0.84% upon price depreciation in STANBIC -5.15%, GUARANTY -3.74%, WEMABANK -2.67% and SEPLAT -1.82%. Consumer goods index also shed -0.39% as a result of decline in the prices of FLOURMILL -5.01%, NASCON -4.21%, DANGFLOUR -3.93% and GUINNESS -2.42%. Movement of NSEASI(Year-to-Date) Relative Strength Index(RSI) Source: MorganCapital Research
NSE Market Indices Return Open(points) Close(points) Daily(%) WtD(%) MtD(%) YTD(%) NSE All Share Index 31,038.86 30,829.45-0.67-1.00-2.80-1.91 NSE Banking Sector Index 410.94 406.92-0.98-2.13-1.02 2.14 NSE Industrial Goods Index 1,254.07 1,254.48 0.03-1.26-1.47 1.34 NSE Consumer Goods Index 698.55 695.86-0.39-1.12-4.72-7.07 NSE Oil & Gas Index 279.81 277.46-0.84-1.10-7.08-8.22 NSE Insurance Index 128.36 126.66-1.32-1.43-4.96 0.14 Source: NSE, MorganCapital Research Investors Sentiment: The Market breadth closed negative at 0.58x At the end of trading session today, 11 counters ended in the bull market while 19 finished downtrends. Thus, investors should continue to trade cautiously and manage the seemingly long bearish market impatience response. Source: MorganCapitalitrade
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