Please click to download the Market Report for Monday 22^nd July 2019

EQUITY:

• The Nigerian equities market closed negative today as NSE-ASI lost 0.40% to close at 27,808.69pts.
• Similarly, market breadth index was negative with 19 losers against 14 gainers.
• Today’s performance was mainly due to the losses recorded in NASCON (-10.00%), CHIPLC (-9.68%), LINKASSURE (-9.38%) and CILEASING (-8.08%) which offset the gains in AFRIPRUD (+8.82%), UBA (+8.18%), IKEJAHOTEL (+6.57%) and SOVRENINS (+4.76%).
• Sector performances were mixed today as Banking (+0.42%) and Industrial (+0.24%) closed in the green while Consumer Goods (-0.94%) and Oil & Gas (-0.16%) closed negatively.
• In terms of activity levels, while total volume rose by 4% total value declined by 21% compared to last week Friday, as investors exchanged over 286million units of shares worth over N2.24billion respectively.
• The equities market closed down today due to the losses in the Consumer goods and Oil & Gas sectors. Despite the recent losses, we maintain that prices at current levels present decent entry opportunities for investors with medium to long term horizon.
  

CURRENCY:

·         At the IEFX window, while the Naira closed flat against the USD at N361.48, it gained 0.41% and 0.36% against the GBP and EUR closing at N449.32 and N403.67 respectively.

·         At the Parallel market, while the Naira closed flat against the USD at N360, it gained 0.65% and 0.49% against the GBP and EUR closing at N458 and N403 respectively.

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

FIXED INCOME:

·         Money market rates increased as Open Buy Back rate and Overnight rates rose by 764bps and 850bps to close at 19.57% and 21.14% respectively. The increase in rates may be as a result of withdrawals for FX auction today, which may have squeezed system liquidity.

·         The bond market was positive today as yields declined, particularly along the longer end of the curve. While the yields on the 5yr and 10yr benchmark bonds closed flat at 14.27% and 13.65%, the yield on the 7yr benchmark bond declined by 43bps to close at 13.63%.

·         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: