October 3, 2019/InvestmentOne Report

Please click to download the Market Report for Thursday 3^rd October 2019

 EQUITY:

·         The Nigerian equities market closed negative today as NSE-ASI lost 0.84% to close at 27,085.69pts.

·         Similarly, market breadth index was negative with 18 losers against 12 gainers.

·         Today’s performance was mainly due to the losses recorded in NESTLE (-9.99%), BETAGLAS (-9.96%), COURTVILLE (-9.09%), UNILEVER (-7.68%) and UCAP (-4.31%) which offset the gains in NIGERINS (+10.00%), NEIMETH (+9.09%), CAVERTON (+8.33%), ETI (+8.28%) and LAWUNION (+7.69%).

·         Sector performances were mixed today. While Consumer Goods (-5.42%) and Oil & Gas (-0.09%) closed negative, Industrial (+0.79%) and Banking (+0.16%) index closed in green.  

·         In terms of activity levels, total volume and total value fell by 14% and 2% respectively compared to yesterday as investors exchanged over 151million units of shares worth over N2.52billion. GUARANTY was the most actively traded stock with just over 45million units of shares worth about N1.24billion.

·         The equities market closed down today following the losses witnessed in Consumer Goods and Oil & Gas 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 lost 1.09%, 0.08% and 1.20% against the GBP, USD and EUR to close at N448.98, N362.52 and N398.44 respectively.

·         At the parallel market, while the Naira closed flat at N360 against USD, it gained 0.66% and 1.27% against GBP and EUR to close at N450 and N390 respectively.

·         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 were down by 343bps and 350bps to close at 8.57% and 9.64% respectively. The fall in rates may be due to OMO maturities which may have improved system liquidity.

·         The bond market performance was largely flat today as yields remained unchanged across most maturities. Similarly, the yields on the 5yr, 7yr and 10yr benchmark bonds were flat to close at 14.17%, 14.14% and 14.31% 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