October 23, 2019/InvestmentOne Report
Please click to download the Market Report for Tuesday 23rd October 2019
EQUITY:
· The Nigerian equities market closed on a positive note as NSE-ASI gained 0.12% to close at 26,397.94pts.
· However, market breadth index was negative with 11 losers against 8 gainers.
· Today’s performance was mainly due to the gains in OMOMORBNK (+10.00%), UAC-PROP (+9.00%), AGLEVENT (+7.69%), UBA (+2.63%) and FBNH (+1.89%) which offset the losses recorded in UNIONDAC (-8.33%), LASACO (-7.14%), JAIZBANK (-6.25%), ACCESS (-3.40%) and WAPCO (-2.97%).
· Sector performances were negative today with Banking (-0.80%), Oil & Gas (-0.32%), Industrial (-0.07%) and Consumer Goods (-0.01%) closing in red.
· In terms of activity levels, total volume and value fell by 58% and 64% respectively compared to this time yesterday as investors exchanged over 291million units of shares worth over N2.78billion. OMOMORBNK (+10.00%) was the most actively traded stock with about 123million units of shares worth about N67million.
· The equities market closed up today following the gain recorded in DANGCEM. 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 0.53% and 0.20% against GBP and EUR to close at N465.15 and N401.38 respectively, it gained 0.10% to close at N362.12 against the USD.
· At the parallel market, while the Naira closed flat at N360 and N403 against the USD and EUR respectively, it gained 0.22% against GBP to close at N462.
· 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 declined by 93bps and 64bps to 3.50% and 4.36% respectively. The decline in rates may be due to OMO maturities which could have improved system liquidity.
· The bond market was broadly positive today as yields declined across most tenors. While the yields on the 5yr and 7yr benchmark bonds increased by 14bps and 11bps to close at 14.26% and 14.19%, the yield on the 10yr benchmark declined by 4bps to close at 14.16%.
· 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:
Current | 26,397.94 | Mkt Cap (N’tr) | 12.85 | |
Previous | 26,365.83 | Vol. Traded (m) | 291 | |
Day Change | 0.12% | Vol. Day Chng. | -58% | |
WTD Return | -0.19% | Val. Traded (N’bn) | 2.78 | |
MTD Return | -4.46% | Val. Day Chng. | -64% | |
YTD Return | -16.01% | No. of Deals | 2,668 | |
YTD High | 32,715.20 | No. of Gainers | 8 | |
YTD Low | 26,365.83 | No. of Losers | 11 | |
52wk High | 33,196.07 | Top Sub Sect. (by Vol.) | MOR (42%) | |
52wk Low | 26,365.83 | Top Sub Sect. (by Val.) | CONS (38%) |
