August 19, 2019/InvestmentOne Report

Please click to download the Market Report for Monday 19^th August 2019

 EQUITY:

• The Nigerian equities market closed positive today as NSE-ASI gained 0.71% to close at 27,115.89.pts.
• Similarly, market breadth index was positive with 20 gainers against 13 losers.
• Today’s performance was mainly due to the gains in COURTVLLE (+10.00%), UACN (+6.67%), FCMB (+5.00%), AIICO (+4.92%) and OANDO (+4.48%) which offset the losses recorded in CADBURY (-9.71%), CHAMS (-8.70%), UNITYBNK (-5.80%), MANSARD (-5.56%) and JAIZBANK (-5.41%).
• Sector performances were mixed with Banking (+1.34%) emerging the top gainer followed by Oil & Gas (+0.50%). However, Industrial (-0.25%) and Consumer Goods (-1.59%) closed negative.
• In terms of activity levels, while total volume declined by 3%, total value increased by 18% compared to Friday, as investors exchanged over 251million units of shares worth over N4.17billion. WAPCO (-1.79%) was the most actively traded stock with about 47million units of shares worth about N660million.
• The equities market closed up today following the gains recorded mainly in the Banking, Oil& Gas sectors as well as MTNN. Despite the recent losses, we maintain that investors should take positions in quality names with a medium to long term investment horizon.

CURRENCY:

·         At the IEFX window, the Naira gained 0.02% and 0.03% against the GBP and USD to close at N441.38 and N363.32 respectively. However, it lost 0.03% against the EUR to close at N403.27. 

·         At the Parallel market, the Naira closed flat at N360 against USD and appreciated by 0.67% and 0.50% against GBP and EUR to close at  N445 and N396 respectively.

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

FIXED INCOME:

·         Money market rates surged today as Open Buy Back and Overnight rates rose by 10.29% and 10.71% to close at 28.29% and 30.29% respectively. The increase in rates may be due to FX sales which could have squeezed system liquidity.

·         The bond market performance was slightly negative today as  yields increased across some maturities. While the yields on the 5yr and 10yr were flat at 14.48% and 14.32% respectively, the yield on the 7yr benchmark bond inched up by 24bps closing at 14.32%.

·         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: