March 30, 2020/InvestmentOne Report
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EQUITY:
· The Nigerian equities market closed negative today as NSE-ASI lost 2.43% to close at 21,330.79pts.
· Similarly, in today’s trade, market breadth index was negative with 11 gainers against 15 losers.
· Today’s performances were mainly due to the losses recorded in MTNN (-10.00%), WEMABANK (-9.62%), INTBREW (-9.26%), PRESTIGE (-8.33%) and UCAP (-8.33%) which offset the gains recorded in BERGER (+9.84%), MOBIL (+9.83%), CADBURY (+9.68%), MEYER (+8.70%) and AFRIPRUD (+8.19%).
· Sector performances were mixed today as Banking (-3.62%) and Consumer Goods (-0.92%) sectors closed in the red while Oil & Gas (+1.77%) and Industrial (+0.01%) indexes closed positive.
· In terms of activity levels, while total volume rose by 86%, total value declined by 42%, compared to Friday as investors exchanged over 466million units of shares worth over N1.93billion. MEYER (+8.70%) was the most actively traded stock with about 201million units of shares worth about N92million.
· The equities market closed down today due to the losses recorded in Banking and Consumer Goods sectors. While we believe the risk-off sentiment could have caused the recent sell-off in the market, we opine that this may be one of the best periods to pick up some quality names with a medium to long term horizon.
CURRENCY:
· At the IEFX window, the Naira lost 1.70% against USD to close at N392.18.
· At the parallel market, while the Naira lost 1.22% and 0.72% against USD and EUR to close at N415 and N420 respectively, it closed flat against GBP at N490.
· Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.
FIXED INCOME:
· Money market rates fell today as Open Buy Back and Overnight rates declined by 97bps and 177bps to close at 14.83% and 15.33% respectively. The decline in rates may be as a result of refunds from Friday’s FX auction which may have improved system liquidity.
· The bond market was positive today as yields declined across most maturities. While the yields on the 7yr and 10yr benchmark bonds declined by 21bps and 5bps to close at 12.54% and 12.97% respectively, the yield on the 5yr benchmark bond remained flat closing at 11.76%.
· 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 | 21,330.79 | Mkt Cap (N’tr) | 11.11 | |
Previous | 21,861.78 | Vol. Traded (m) | 467 | |
Day Change | -2.43% | Vol. Day Chng. | 86% | |
WTD Return | -2.43% | Val. Traded (N’bn) | 1.93 | |
MTD Return | -18.64% | Val. Day Chng. | -42% | |
YTD Return | -20.53% | No. of Deals | 3,659 | |
YTD High | 29,710.56 | No. of Gainers | 11 | |
YTD Low | 21,330.79 | No. of Losers | 15 | |
52wk High | 31,477.51 | Top Sub Sect. (by Vol.) | BNK (30%) | |
52wk Low | 21,330.79 | Top Sub Sect. (by Val.) | BNK (61%) |
