September 24, 2019/Cordros Report

Please click to download the Market Report for Tuesday 24^th September 2019

EQUITY:

·         The Nigerian equities market closed negative today as NSE-ASI lost 1.08% to close at 27,352.24pts.

·         Similarly, market breadth index was negative with 28 losers against 6 gainers.

·         Today’s performance was mainly due to the losses in  CADBURY (-9.91%), STERLNBANK (-8.64%), STANBIC (-8.28%), CORNERST (-7.14%) and DANGSUGAR (-6.33%) which offset the gains recorded in ABCTRANS (+9.68%), NPFMCRFBK (+7.96%), UACN (+6.99%) and COURTVILLE (+5.00%).

·         Sector performances were entirely negative in today’s trade led by Banking (-2.39%), which was followed by Oil & Gas (-0.53%), Consumer Goods (-0.36%) and Industrial (-0.17%).

·         In terms of activity levels, total volume and total value rose  by 41% and 218% respectively compared to yesterday as investors exchanged over 154million units of shares worth over N2.83billion. NB was the most actively traded stock with just over 37million units of shares worth about N1.96billion.

·         The equities market closed down today following the losses recorded in the all sectors. 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, the Naira lost 0.65%, 0.02% and 0.30% against GBP, USD and EUR to close at N452.59, N362.29 and N398.94 respectively.

·         At the parallel market, while the Naira closed flat at N360 and N397 against USD and EUR respectively, it weakened by 0.22% against GBP to close at N454.

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

FIXED INCOME:

·         Money market rates decreased today as Open Buy Back and Overnight rates both declined by 14bps to close at 3.86% and 4.57% respectively. The fall in rates may be due to refunds from FX bids which could have eased system liquidity.

·         The bond market performance was negative today as yields moved northwards across most maturities. Consequently, the yields on the 5yr, 7yr and 10yr benchmark bonds increased by 12bps, 28bps and 1bp to close at 14.29% 14.30% and 14.36%.respectively.

·         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: