June 13, 2019/InvestmentOne Report

EQUITY:

• The Nigerian equities market closed the third trading session of the week on a negative note as NSE-ASI lost 0.23% to close at 30,029.15pts.
• Similarly, market breadth index was negative with 15 losers against 14 gainers.
• Today’s performance was mainly due to the sell offs in CILEASING (-9.87%), NPFMCRFBK (-9.72%), UAC-PROP (-8.48%), PRESCO (-5.17%) and LIVESTOCK (-4.76%) which offset the gains in GLAXOSMITH (+9.15%), MAYBAKER (+6.33%), MBENEFIT (+5.00%), UCAP (+3.60%) and AFRIPRUD (+2.35%).
• Sector performances were mostly positive today as gains were recorded in Oil & Gas (+0.22%), Banking (+0.09%) and Consumer Goods (+0.02%). However, Industrial (-0.55%) closed in the red.
• In terms of activity levels, total volume and value increased by 4% and 69% compared to Tuesday, as investors exchanged over 242million units of shares worth over N5.95billion respectively. GUARANTY (+0.98%) was the most actively traded stock with over 78million units of shares worth about  N2.41billion.
• The equities market closed down today due to the fall recorded in DANGCEM despite the gains across most sectors. However, we still maintain that prices at current levels present decent entry opportunities for investors with a medium to long term horizon.

CURRENCY:

·         At the IEFX window, while the Naira gained by 0.38% and 0.39% against the GBP and EUR to close at N456.64 and N406.20 respectively, it lost 0.01% against the USD at N360.67.

·         At the Parallel market, while the Naira closed flat at N360 against the USD, it closed at N462 and N403 losing 0.43% and 0.25% against the GBP and EUR respectively.

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

FIXED INCOME:

·         Money market rates declined today as Overnight and Open Buy Back shed 379bps and 328bps to close at 5.71% and 5.43% respectively. The decline in rates may be due to maturity of OMO bills which may have eased system liquidity.

·         The bond market was mixed today as yields declined at the short end of the curve but increased at the long end. While the yields on the 5yr and 7yr benchmark bonds declined by 2bps and 5bps to close at 14.55% and 14.67% respectively, the yield on the 10yr benchmark bond rose by 8bps to close at 14.69%.

·         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: