May 15, 2019/InvestmentOne report

Please click to download the Market Report for Wednesday 15^th May 2019

      EQUITY:

• The Nigerian equities market closed the third trading session of the week in red as NSE-ASI lost 0.48% to close at 28,286.08pts.  
• Similarly, market breadth index was negative with 11 gainers against 17 losers.
• Today’s performance was driven by the selloffs in WAPIC (-10.00%), FO (-9.87%), CHAMPION (-9.79%), CCNN (-9.15%), COURTVILLE (-7.69%) and JAPAULOIL (-6.67%) which offset the gains in CHAMS (+9.09%), ABCTRANS (+8.00%), THOMASWY (+7.41%), VERITASKAP (+5.00%) and MBENEFIT (+4.76%).
• Sector performances were largely negative today with Industrial (-2.31%) having the worst performance, followed by Oil & Gas (-1.00%). In the same vein, Banking (-0.74%) and Consumer Goods (-0.07%) closed in red.
• In terms of activity levels, total volume and value declined by 12% and 23% compared to yesterday, as investors exchanged 177million units of shares worth N2.08billion. ACCESS (-0.74%) was the most actively traded stock with about 36million units of shares worth about N242million.
• The equities market closed down today following the losses across all sectors. However, we still maintain that prices at current level present a decent entry opportunities for investors with medium to long term horizon.
  

CURRENCY:

·         At the IEFX window, the Naira gained 0.02%, 0.76% and 0.26% against the USD, GBP and EUR to close at N360.53, N464.03 and N402.44 respectively.

·         At the Parallel market, the Naira closed flat against the USD and EUR at N361.00 and N403.00 respectively while it gained 0.21% against the GBP to close at N472.

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

FIXED INCOME:

·         Money market rates decreased today as Overnight and Open Buy Back rates declined to 10.57% and 9.86% from 12.64% and 11.71% respectively. This may not have been unconnected with the anticipation of OMO bills maturing tomorrow which may ease system liquidity.

·         At today’s NTB auction, the CBN sold N4.38billion, N12.92billion and N16.54billion of the 91-day, 182-day and 364-day bill at respective rates of 10.00%, 12.30% and 12.49%. Compared to the last NTB auction, the stop rate on the 91-day remained the same while the stop rates on the 182-day and 364-day bills declined by 19bps and 28bps respectively.

·         The bond market traded with mixed movement  broadly negative today especially at the long end of the curve. While the yields on the 5yr and 7yr benchmark bonds increased by 6bps and 2bps to close at 14.41% each, the yield on the 10yr benchmark bond declined by 7bps to close at 14.36%.

·         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: