Please click to download the Market Report for Wednesday 21^st August 2019

 EQUITY:

• The Nigerian equities market closed positive today as NSE-ASI gained 1.09% to close at 27,352.94pts.
• Similarly, in today’s trade, market breadth index was positive with 23 gainers against 16 losers.
• Today’s performance was mainly due to thegains recorded in HONYFLOUR (+9.68%), ETI (+9.60%), MANSARD (+9.41%), UNIONDAC (+9.09%) and NESTLE (+7.03%) which offset the losses in FO (-10.00%), OKOMUOIL (-9.18%),LIVESTOCK (-8.89%),WAPIC (-5.56%) and ACCESS (-4.62%).
• Sector performances were mixed today with Consumer Goods (+3.46%) emerging the top gainer followed by Banking (+0.39%) which also closed positive. However, Oil & Gas (-0.74%) and Industrial (-0.08%) both closed negative.
• In terms of activity levels, total volume and total value increased by 74% and 40% respectively compared to yesterday, as investors exchanged over 363million units of shares worth over N4.52billion. UBA was the most actively traded stock with about 65million units of shares worth about N382million.
• The equities market closed up today following the gains in Consumer Goods and Banking sectors.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 0.24%, 0.25% and 0.11% against the GBP, USD and EUR to close at N439.04, N362.77 and N401.27 respectively. 

·         At the Parallel market, while the Naira closed flat at N360 and N443 against the USD and GBP respectively, it depreciated by 0.25% against EUR to close at N398.

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

FIXED INCOME:

·         Money market rates increased today as Open Buy Back and Overnight rose by 429bps and 500bps to close at 22.86% and 25.36% respectively.

·         The bond market performance was somewhat positive today with yields declining at the short end of the curve while remaining flat at the long end. Consequently, the yields on the 5yr and 7yr benchmark bonds declined by 14bps and 22bps to close at 14.33% and 14.10% respectively. However, the yield on the 10yr benchmark bond rose by 6bps to close at 14.33%.

·         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: