November 21, 2019/InvestmentOne Report

Please click to download the Market Report for Thursday 21^st  November 2019

EQUITY:

·         The Nigerian equities market closed positive today as NSE-ASI increased by 0.36% to close at 26,872.09pts.

·         Similarly, market breadth index was positive with 21 gainers against 12 losers.

·         Today’s performance was mainly due to the gains recorded in CORNERST  (+10.00%), OANDO (+9.89%), FLOURMILL (+9.85%), IKEJAHOTEL (+9.62%) and FCMB (+7.39%) which offset the losses recorded in CCNN (-10.00%), JAIZBANK (-8.00%), LASACO (-7.41%), UNILEVER (-5.68%) and UBA (-1.94%).

·         Sector performances were positive today. While Oil & Gas (+1.08%), Consumer Goods (+0.57%) and Banking (+0.05%) closed in green, Industrial (-0.45%) closed in red.

·         In terms of activity levels, total volume and value decreased by 10% and 25% respectively, compared to yesterday, as investors exchanged over 239million units of shares worth over N2.28billion. FBNH (+2.74%)  was the most actively traded stock with about 74million units of shares worth about N558million.

·         The equities market closed up today as result of the gains recorded in most sectors. We still maintain our view 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 gained 0.09% and 0.07%  against GBP and EUR to close at N465.91 and N399.35 respectively, it lost 0.09% against USD to close at N362.85.

·         At the parallel market, the Naira closed flat at N360, N464 and N397 against 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 declined today as Open Buy Back and Overnight rates fell to 3.86% and 4.50%  from 14.36% and 15.21% respectively. The decrease in rates may be due to OMO maturities which could have improved system liquidity.

·         The bond market was mixed today as yields moved in different direction across most tenors. As such, while the yields on the 5yr and 7yr benchmark bonds increased by 18bps and 6bps to close  at 12.26% and 12.16% respectively, the yield on the 10yr benchmark bond declined by 7bps close at 12.72%.

·         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: