Please click to download the Market Report for Tuesday 6^th August 2019

EQUITY:

• The Nigerian equities market closed negative today as the NSE-ASI lost 0.51% to close at 27,527.40pts.
• Similarly, market breadth index was negative today with 23 losers against 6 gainers.
• Today’s performance was mainly due to the losses recorded in BETAGLAS (-9.95%), CADBURY (-9.65%), CAVERTON (-8.00%) and CHAMS (-6.90%) which offset the gains in WAPCO (+1.40%), ACCESS (+1.64%), CCNN (+3.46%) and STERLNBANK (+3.48%).
• Sector performances were broadly negative today with Oil & Gas (-1.18%) emerging the top loser. While Banking (-0.72%) and Consumer Goods (-0.12%) closed in the red, Industrial (+0.01%) closed in the green.
• In terms of activity levels, while total volume fell by 39%, total value rose by 60% compared to yesterday, as investors exchanged over 1.71 million units of shares worth over N2.62billion. ACCESS (+1.64%) was the most actively traded stock with about 65million units of shares worth about  N409million.
• The equities market closed down today due to the losses in all sectors except the Industrial Sector. 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, the Naira lost 0.11%, 0.20% and 0.05% against the GBP, USD and EUR to close at N440.41, N362.92 and  N405.91 respectively.

·         At the Parallel market, while the Naira was flat against the USD and EUR to close at N360 and N397 respectively, it depreciated by 0.70% against the GBP to close at N448.

·         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 Open Buy Back rate and Overnight rates shed 79bps each to close at 4.64% and 5.21% respectively. The decline in rates may be due to the inflow from failed FX bids which could have improved system liquidity.

·         The bond market performance was negative today as yields increased across most maturities. While the yields on the 5yr and 10yr benchmark bonds closed flat at 13.61% and 13.69%, the yield on the 7yr benchmark increased by 4bps to close at 13.65%.

·         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: