Equities Close Third Trading Session in Red, Down -0.09%

October 4, 2018/InvestmentOne Report

Please click to download the Market Report for Thursday 4^th October 2018

EQUITIES:                                                                                                                                                     

• The Nigerian equities market closed the third trading session of the week in the red, losing  0.09%.
• However, market breadth index was somewhat with 19 gainers against 18 stocks that declined.
• Today’s performance was driven by the losses in NIGERINS (-9.68%), NEIMETH (–9.23%), ROYALEX (-9.09%), RTBRISCOE (–8.70%), UNIONDAC (-6.45%), and LASACO (-6.25%)  which more than offset gains in CUTIX (+10.00%), SOVRENINS (+9.09%), AGLEVENT (+8.11%) and CCNN (+7.76%).
• Sector performances were positive with Oil & Gas (+0.47%) emerging the best performer, this was followed by Industrial (+0.40%) and Banking (+0.39) which also closed positive. However, Consumer Goods (-0.71%) closed in the negative region emerging the worst performer.
• In terms of activity level, total volume and value increased by 11% and 8% respectively as investors exchanged 151million units of shares worth N1.54billion respectively. FCMB (-3.91%) was the most actively traded with 29million units of shares worth about N50million.
• Despite the recent sell-off in the equities market in the previous weeks, we believe this presents decent entry opportunities in our quality names.
  

CURRENCY:

·         At the IEFX window, while Naira shed 0.21% against GBP to close at N471.70, it gained 0.06% and 0.04% against USD and EUR to close at N363.57 and N417.09 respectively.

·         In the parallel market, the Naira remained unchanged at N361/USD and 417/EUR. However it depreciated by 0.42% to close at N478/GBP.

·         Going forward, we expect the FX market to continue to see support from CBN’s intervention sales.

FIXED INCOME:

·         Despite maturity of N261billion worth of OMO bills today, money market rates rose as the Overnight and Open Buy Back rates increased by 758bps and 742bps to close at 12.58% and 11.67% respectively. This may be as a result of the CBN OMO auction which may have led to a squeeze in liquidity system.

·         In today’s OMO auction, CBN sold N80.62billion and N472.37billion worth of the 182-day, and 364-day bill at respective stop rates of 12.50% and 13.50% respectively.

·         The bond market was negative today as yields increased across most tenors. Consequently, the yield on the 5yr, 7yr and 10yr benchmark bond increased by 18bps, 15bps and 5bps to close at 14.96%, 14.98% and 15.13% respectively.

·         In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation. 

Below are key NSE statistics as at the end of trades: