March 12, 2020/InvestmentOne Report
Please click to download the Market Report for Thursday 12th March 2020
EQUITY:
· The Nigerian equities market closed negative today as NSE-ASI lost 3.72% to close at 22,695.88pts.
· In today’s trade, market breadth index was negative with 44 losers against 3 gainers.
· Today’s performances were mainly due to the losses recorded in OANDO (-10.00%), AFRIPRUD (-10.00%), FIDELITYBK (-10.00%), FLOURMILL (-10.00%) and NB (-10.00%) which offset the gains recorded in CAVERTON (+10.00%), SKYAVN (+9.83%) and STANBIC (+3.35%).
· Sector performances were negative today as Consumer Goods (-2.74%), Industrial (-0.93%), Banking (-8.51%) and Oil & Gas (-0.82%) indices closed in the red.
· In terms of activity levels, total volume and value fell by 24% and 44% respectively compared to yesterday as investors exchanged over 1.06billion units of shares worth over N9.81billion. ZENITHBANK (-9.96%) was the most actively traded stock with about 433million units of shares worth about N4.70billion.
· The equities market closed down today due to the losses recorded in all sectors. While we believe the risk-off sentiment on the back of weak oil price as well as the impact of Coronavirus could have caused the recent sell-off in the market, we opine that this may be one of the best periods to start picking some of the quality names with a medium to long term horizon.
CURRENCY:
· At the IEFX window, while the Naira gained 2.16% and 1.08% against GBP and EUR to close at N463.13 and N409.30 respectively, it lost 1.52% against USD to close at N374.00.
· At the parallel market, while the Naira lost 1.32% against USD to close at N385, it gained 0.49% against EUR to close at N410. However, it remained flat against GBP to close at N485.
· 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 3.29% and 4.00% from 12.83% and 13.83% respectively. The reduction in rates may be as a result of OMO maturities which may have improved system liquidity.
· The bond market was negative today as yields increased across most tenors. As such, while the yields on the 7yr and 10yr benchmark bonds remained flat to close at 12.80% and 10.81% respectively, the yield on the 5yr benchmark bond decline by 92bps to close at 10.46%
· 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 | 22,695.88 | Mkt Cap (N’tr) | 11.83 | |
Previous | 23,572.75 | Vol. Traded (m) | 1,059 | |
Day Change | -3.72% | Vol. Day Chng. | -24% | |
WTD Return | -13.64% | Val. Traded (N’bn) | 9.81 | |
MTD Return | -13.43% | Val. Day Chng. | -44% | |
YTD Return | -15.45% | No. of Deals | 5,501 | |
YTD High | 29,710.56 | No. of Gainers | 3 | |
YTD Low | 22,695.88 | No. of Losers | 44 | |
52wk High | 32,173.66 | Top Sub Sect. (by Vol.) | BNK (89%) | |
52wk Low | 22,695.88 | Top Sub Sect. (by Val.) | BNK (84%) |