May 15, 2020/InvestmentOne Report
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EQUITY:
· The Nigerian equities market closed flat today as NSE-ASI closed at 23,871.33pts. However, the market lost 0.72% for the week. 
· In today’s trade, market breadth index was positive with 18 gainers against 13 losers.
· Today’s performance was mainly due to the gains recorded in STANBIC (+9.91%), NPFMCRFBK (+9.88%), PRESCO (+9.88%), NEIMETH (+9.09%) and FIDSON (+8.78%) which offset the losses recorded in CILEASING (-9.80%), REGALINS (-4.76%), FCMB (-4.44%), OANDO (-3.21%) and VITAFOAM (-1.96%).
· Sector performances were mixed today as Banking (+1.03%) and Consumer Goods (+0.03%) closed in the green while the Industrial (-0.60%) and Oil & Gas (-0.37%) sectors printed negatively.
· In terms of activity levels, total volume and value rose by 21% and 5% respectively compared to yesterday as investors exchanged over 221million units of shares worth over N2.45billion. GUARANTY (+2.27%) was the most actively traded stock with about 30million units of shares worth about N671million.
· The equities market closed flat today. While we believe the risk-off sentiment could have caused the recent sell-off in the market, we retain our stance 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 0.68% and 0.15% against the GBP and USD to close at N469.28 and N386.00 respectively while closing down by 0.15% against the EUR at N418.64.
· At the parallel market, while the Naira lost 1.11% and 1.08% against the USD and EUR to close at N455 and N465 respectively, it closed flat against the GBP at N535.
· Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.
FIXED INCOME:
· Money market rates declined today as Open Buy Back and Overnight rates decreased by 85bps and 98bps to close at 2.75% and 3.42% respectively. The decline in rates may have been as a result of the absence of OMO sales after yesterday’s OMO maturities; this could have eased system liquidity.
· The bond market was mixed today as yields declined at the short and long end of the curve while increasing on mid-tenures. As such, the yields on the 5yr and 10yr benchmark bonds increased by 78bps and 17bps to close at 10.13% and 11.19% respectively. However the yield on the 7yr benchmark bond closed at 10.97%, declining by 22bps.
· 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 | 23,871.33 | Mkt Cap (N’tr) | 12.44 | |
Previous | 23,892.92 | Vol. Traded (m) | 221 | |
Day Change | -0.09% | Vol. Day Chng. | 21% | |
WTD Return | -0.72% | Val. Traded (N’bn) | 2.45 | |
MTD Return | 3.69% | Val. Day Chng. | 5% | |
YTD Return | -11.07% | No. of Deals | 4,330 | |
YTD High | 29,710.56 | No. of Gainers | 18 | |
YTD Low | 20,669.38 | No. of Losers | 13 | |
52wk High | 31,477.51 | Top Sub Sect. (by Vol.) | BNK (56%) | |
52wk Low | 20,669.38 | Top Sub Sect. (by Val.) | BNK (56%) |
