October 24, 2019/InvestmentOne Report

Please click to download the Market Report for Thursday 24^th October 2019

 EQUITY:

·         The Nigerian equities market closed on a negative note as NSE-ASI lost 0.15% to close at 26,357.24pts.

·         Similarly, market breadth index was broadly negative with 20 losers against 5 gainers.

·         Today’s performance was mainly due to the losses in GUINNESS (-9.88%), GLAXOSMITH (-9.88%), IKEJAHOTEL (-9.32%), UAC-PROP (-9.17%) and MCNICHOLS (-6.12%) which offset the gains recorded in FO (+10.00%), CHIPLC (+8.82%), STERLNBANK (+2.78%), DANGSUGAR (+1.47%) and CONTINSURE (+1.29%).

·         Sector performances were negative today. While Industrial (-0.40%), Consumer Goods (-0.28%) and Banking (-0.27%) closed in red, Oil & Gas (+0.54%) closed in green.

·         In terms of activity levels, while total volume increased by 54%, total value fell by 41% respectively compared to this time yesterday as investors exchanged over 449million units of shares worth over N1.64billion. OMOMORBNK was the most actively traded stock with about 272million units of shares worth about N150billion.

·         The equities market closed down today following the losses recorded in most 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 gained 0.31%, 0.09% and 0.47% against GBP, USD and EUR to close at N461.28 and N362.17 and N398.71 respectively.

·         At the parallel market, while the Naira closed flat at N360 and N403 against the USD and EUR respectively, it lost 0.22% against GBP to close at N463.

·         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 increased by 57bps and 43bps to 4.07% and 4.79% respectively. The increase in rates may be due to OMO auction conducted which could have squeezed system liquidity.

·         At the OMO auction today, the CBN sold a total of N350billion split between 105, 189 and 364 day bills at the respective stop rates of 11.79%, 11.55% and 13.34%.

·         The bond market was broadly positive today as yields declined across most tenors. While the yields on the 5yr and 7yr benchmark bonds declined by 5bps and 6bps to close at 14.07% and 14.14%, the yield on the 10yr benchmark remained flat closing 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: