September 2, 2019/InvestmentOne Report

Please click to download the Market Report for Monday 2^nd September 2019

EQUITY:

·         The Nigerian equities market opened the month on a positive note as NSE-ASI gained 0.14% to close at 27,525.09pts.

·         Similarly, market breadth index was positive with 22 gainers against 17 losers.

·         Today’s performance was mainly due to the gains in CCNN (+9.78%), CORNEST (+9.52%), UBA (+5.98%), NESTLE (+5.94%) and GLAXOSMITH (+3.47%) which offset the selloffs recorded in UACN (-10.00%), CHAMPION (-9.80), AFRIPRUD (-9.25%), CHAMS (-7.69%) and UPL (-7.38%)

·         Sector performances were positive with Consumer Goods (+3.12%) emerging the top gainer. In the same vein, Industrial (+1.45%), Banking (+0.94%) and Oil & Gas (+0.18%) all closed positive today.

·         In terms of activity levels, total volume and total value declined by 11% and 14% respectively compared to last Friday as investors exchanged over 112million units of shares worth over N1.56billion. ZENITHBANK (+2.03%) was the most actively traded stock with about 16million units of shares worth about N284million.

·         The equities market closed up today following the gains recorded in all sectors. We maintain that investors should take positions in quality names with a medium to long time investment horizon as prices remain attractive at current levels. 

CURRENCY:

·         At the IEFX window, the Naira gained 0.58% and 0.94% to close at N397.90 and 437.56 against EUR and GBP respectively. However, it lost 0.03% against USD to close at N362.73.

·         At the parallel market, while the Naira closed flat at N360 and N398 against USD and EUR respectively. It gained 0.22% against the GBP to close at N445.

·         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 and Overnight rates shed 43bps and 64bps to close at 8.86% and 9.86% respectively.The decline in rates may not be unconnected to the refunds from failed FX bids which could have improved system liquidity.

·         The bond market was somewhat flat today as yields remained unchanged across most maturities. While the yield on the 5yr and 10yr benchmark bonds rose by 9bps and 3bps to close at 14.37% and 14.17% respectively, the yield on the 7yr benchmark bond closed flat at 14.13%.

·         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: