November 13, 2019/InvestmentOne Report

Please click to download the Market Report for Wednesday 13^th November 2019

EQUITY:

·         The Nigerian equities market closed negative as NSE-ASI lost 0.44% to close at 26,357.61pts.

·         Similarly, market breadth index was negative with 15 losers against 13 gainers.

• Today’s performance was mainly due to the losses recorded in TOTAL (-9.98%), PZ  (-9.91%), CHIPLC (-7.14%), UNILEVER (-5.61%) and OANDO (-3.90%) which offset the gains recorded in IKEJAHOTEL  (+9.09%), AGLEVENT (+7.14%),  JAIZBANK (+7.14%), FIDELITYBK (+3.83%) and ACCESS (+3.14%).
• Sector performances were broadly negative today as Oil & Gas (-2.98%) emerged the worst performing sector. Industrial (-0.95%) and  Consumer Goods (-0.40%) also closed in red. Nonetheless Banking (+0.11%) closed positive.
• In terms of activity levels, total volume and total value rose by 61% and 55% compared to this time yesterday, as investors exchanged over 611million units of shares worth over N11.10billion. ZENITHBANK (+2.30%) as the most actively traded stock with about 337million units of shares worth about N5.79billion.
• The equities market closed down today following the losses recorded in most 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 gained 0.04% and 0.24% against USD and EUR to close at N362.52 and N397.49  respectively. However it lost 0.13% against GBP to close at  N463.40.

·         At the parallel market, while the Naira closed flat at N360 against USD, it gained 0.22% and  0.25% against GBP and EUR to close at N464 and N398.

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

FIXED INCOME:

·         Money market rates increased today as Open Buy Back and Overnight rates rose by 300bps and 343bps to close at 8.14% and 9.00% respectively. The increase in rates may be due to  Treasury Bill auction conducted which could have reduced system liquidity.

·         At the Treasury bill auction conducted, the CBN sold a total of N125.24billion, split between the 91-day, 182-day and 364-day bills at the respective stop rates of 7.79%, 9.00% and 10.00%. The stop rates for the 91, 182 and 364 day bills declined by 170bps, 145bps and 150bps respectively.

·         The bond market was positive today as yields declined across most tenors. While the yields on the 7yr and 10yr benchmark bonds declined by 47bps and 3bps to close at 12.25% and 13.01% respectively, the yield on the 5yr benchmark bond increased by 11bps to close at 12.32%.

·         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: