April 2, 2020/InvestmentOne Report
Please click to download the Market Report for Thursday 2nd April 2020
EQUITY:
· The Nigerian equities market closed positive today as NSE-ASI inched up by 0.10% to close at 21,121.20pts.
· However, in today’s trade, market breadth index was negative with 19 losers against 7 gainers.
· Today’s performances were mainly due to the gains recorded in DANGCEM (+9.93%), LIVESTOCK (+9.38%), GLAXOSMITH (+9.09%), FLOURMILL (+5.48%) and UNIONDAC (+4.00%).which offset the losses recorded in NB (-9.27%), HONYFLOUR (-8.16%), INTBREW (-6.54%), MTNN (-5.69%) and FBNH (-5.13%)
· Sector performances were mixed today as Industrial (+2.37%) closed in the green, while Banking (-2.19%) and Consumer Goods (-1.89%) closed negative. However, Oil & Gas closed flat
· In terms of activity levels, total volume and value rose by 65% and 62% respectively, compared to yesterday as investors exchanged over 256million units of shares worth over N2.8billion. ZENITHBANK (-3.51%) was the most actively traded stock with about 100.8million units of shares worth about N1.1billion.
· The equities market closed up today due to the gain recorded in the Industrial sector. 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 gained 0.67%, 0.39% and 0.72% against the USD, GBP and EUR closing at N383, N479.05 and N420.62 respectively.
· At the parallel market, the Naira closed flat against USD, GBP and EUR at N415, N500 and N420 respectively.
· 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 283bps and 300bps to close at 5.50% and 6.08% respectively. The decline in rates may be as a result of OMO maturity to the tune of N117billion, higher than the N4billion sold at the auction today, which may have improved system liquidity.
· The bond market was slightly positive today as yields declined across some maturities. While the yield on the 5yr benchmark bond was flat closing at 11.75%, the yield on the 10yr benchmark bond declined by 7bps closing at 12.60%. The yield on the 7yr benchmark bond inched up by 7bps closing at 12.61%.
· 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 | 21,121.20 | Mkt Cap (N’tr) | 11.01 | |
Previous | 21,100.54 | Vol. Traded (m) | 256 | |
Day Change | 0.10% | Vol. Day Chng. | 65% | |
WTD Return | -3.39% | Val. Traded (N’bn) | 2.86 | |
MTD Return | -0.84% | Val. Day Chng. | 62% | |
YTD Return | -21.31% | No. of Deals | 4,418 | |
YTD High | 29,710.56 | No. of Gainers | 7 | |
YTD Low | 21,100.54 | No. of Losers | 19 | |
52wk High | 31,477.51 | Top Sub Sect. (by Vol.) | BNK (81%) | |
52wk Low | 21,100.54 | Top Sub Sect. (by Val.) | BNK (69%) |
