September 19, 2019/InvestmentOne Report

Please click to download the Market Report for Thursday 19^th September 2019

EQUITY:

·         The Nigerian equities market closed negative today as NSE-ASI lost 0.13% to close at 27,646.15pts.

·         However, market breadth index was positive with 23 gainers against 16 losers.

·         Today’s performance was mainly due to the losses in  UPL (-8.70%), NEIMETH (-8.33%), CUTIX (-7.79%), ABCTRANS (-7.69%) and CHAMS (-7.69%) which offset the gains recorded in CHIPLC (+10.00%), UACN (+9.93%), LINKASSURE (+9.80%), CONTINSURE (+9.79%) and PZ (+9.30%).

·         Sector performances were largely positive in today’s trade. While Consumer Goods (+0.62%), Oil & Gas (+0.14%) and Industrial (+0.06%)  closed positive, Banking (-1.50%) closed negative.

·         In terms of activity levels, total volume and total value declined by 35% and 69% respectively compared to yesterday as investors exchanged over 246million units of shares worth over N1.68billion. FBNH (+0.93%) was the most actively traded stock with about 72million units of shares worth about N390million.

·         The equities market closed down today following the loss recorded in the Banking sector. 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 0.44% and 0.12% against GBP and  EUR to close at N458.28 and N400.98 respectively, it gained 0.01% against USD to close at N362.26.

·         At the parallel market, while the Naira closed flat at N360 and N450 against USD and GBP respectively, it gained 0.25% against EUR to close at N396.

·         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 inched up by 229bps and 250bps to 16.86% and 18.07% respectively. The increase in rates may be due to OMO Auctions conducted which could have squeezed system liquidity.

·         At the OMO auction conducted, the CBN sold a total of N351.01billion, split between the 91-day, 175-day and 364-day bills at the respective stop rates of 11.59%, 11.79% and 13.50%.

·         The bond market performance was mixed today as yields moved in different directions across most maturities. Consequently, the yield on the 7yr benchmark bonds declined by 1bp to close at 14.25% while the yield on the 10yr benchmark bond increased by 6 basis point to close at 14.21%. However, the yield on the 5yr bond was flat to close at 14.35%.

·         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: