October 30, 2019/InvestmentOne Report

Please click to download the Market Report for Wednesday 30^th October 2019

EQUITY:

·         The Nigerian equities market reversed its loss today, as the NSE-ASI gained 0.25% to close at 26,310.77pts.

·         However, market breadth index was negative with 8 gainers against  11 losers.

·         Today’s performance was mainly due to the gains in UPL (+10.00%), LAWUNION (+8.89%), UACN (+7.50%) and DANGCEM (+2.05%) which offset the losses recorded in AFROMEDIA (-9.76%), FLOURMILL (-9.68%), WEMABANK (-6.67%), WAPCO (-6.62%) and UNITYBNK (-6.35%).

·         Sector performances were mixed today. While Banking (+0.11%) closed in the green, Consumer Goods (-0.32%) and Industrial (-0.66%) closed negative. However, Oil & Gas was flat

·         In terms of activity levels, total volume and value decreased by 41% and 35% respectively compared to yesterday as investors exchanged over 157million units of shares worth over N1.81billion. MULTIVERSE was the most actively traded stock with about 25million units of shares worth about N5million.

·         The equities market closed positive today following the gains recorded in Banking sector as well as DANGCEM (+2.05%) (as a result of the recent announcement of a proposed share buy-back which spurred buy-interest in the stock). 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 0.32%, 0.15% and 7.79% against GBP, USD and EUR to close at N462.88, 362.58 and N399.77 respectively.

·         At the parallel market, the Naira closed flat at N360, N463, and N400 against the USD, GBP and EUR respectively.

·         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 fell by 28bps and 8bps to close at 2.79% and 3.71% respectively. The decline in rates may be hinged on the anticipation of OMO maturities which should hit the system tomorrow.

·         At the NTB auction today, the DMO sold N28.02billion, N10.62billion and N93.92billion of the 91-day, 182-day and 364-day bill respectively. The respective stop rates declined by 131bps, 55bps and 144bps to 9.49%, 10.45% and 11.50%.

·         The bond market was broadly positive today as yields declined across all tenors. Consequently. the yields on the 5yr, 7yr and 10yr benchmark bonds shed 38bps, 26bps and 46bps to close at 12.52%, 13.09% and 13.37% 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: