September 16, 2019/InvestmentOne Report

Please click to download the Market Report for Monday 16^th September 2019

 EQUITY:

·         The Nigerian equities market closed negative today as NSE-ASI lost 0.74% to close at 27,574.32pts.

·         However, market breadth index was positive with 25 gainers against 13 losers.

·         Today’s performance was mainly due to the losses in  UNITYBNK (-10.00%), AIRTELAFRI (-10.00%), CHAMS (-7.69%), INITSPLC (-6.67%) and CAP (-6.06%) which offset the gains recorded in CORNEST (+10.00%), NEM (+9.55%), OKOMUOIL (+9.30%), CADBURY (+8.37%) and LIVESTOCK (+7.69%).

·         Sector performances was largely positive with Banking (+1.57%), emerging the top gainer. Followed by Consumer Goods (+0.22%) and Oil & Gas (+0.07%). However, Industrial (-1.14%) closed negative.

·         In terms of activity levels, total volume and total value rose by 64% and 11% respectively compared to last week Friday as investors exchanged over 271million units of shares worth over N2.91billion. FBNH was the most actively traded stock with about 57million units of shares worth about N309million.

·         The equities market closed down today following the losses recorded in Industrial and AIRTELAFRI (-10.00%) . Nonetheless, 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, while the Naira lost 0.32% and 0.10% against GBP and USD  to close at N448.34 and N362.32 respectively, it gained 0.83% against EUR to close at N401.61.

·         At the parallel market, while the Naira closed flat at N360 against USD, it lost 0.44% and 0.25% against GBP and EUR to close at N448 and N395 respectively.

·         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 rates increased to 33.86% and 36.36% from 22.43% and 24.71% respectively last week Friday. The increase in rates may be due to FX auction which could have squeezed system liquidity

·         The bond market performance was positive today as yields declined across most maturities. While the yields on the 5yr and 7yr bond were both flat at 14.32%, the yields on the 10yr bond increased by 6bps to close at 14.28%

·         In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation.

Below are key NSE statistics as: