May 29, 2020/InvestmentOne Report
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EQUITY:
· The Nigerian equities market closed the week in the green, as NSE-ASI gained 0.40% to close at 25,267.82 pts. WTD performance printed at +0.25%.
· In today’s trade, market breadth index was negative with 20 losers against 14 gainers.
· Today’s performance was mainly due to the gains recorded in MANSARD (+9.73%), NEIMETH (+9.71%), CADBURY (+8.13%), BUACEMENT (+7.69%) and CAVERTON (+7.50%) which offset the losses recorded in LEARNAFRCA (-9.60%), DANGSUGAR (-7.86%), VITAFOAM (-7.50%), JAIZBANK (-6.67%) and ETI (-6.42%).
· Sector performances were mixed today as Industrial (+4.92%) and Oil & Gas (+0.63%) closed in the green, while Banking (-1.93%) and Consumer Goods (-0.65%) sectors closed down.
· In terms of activity levels, while total volume declined by 6%, total increased by 30% compared to yesterday as investors exchanged over 326million units of shares worth over N4.48billion. FBNH (-2.73%) was the most actively traded stock with about 75million units of shares worth about N410million.
· The equities market closed positive today on the back of gains recorded in Industrial and Oil & Gas sectors. 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, while the Naira lost 0.61% and 0.97% against the GBP and EUR to close at N478.12 and N431.02 respectively, it closed flat against the USD at N385.94.
· At the parallel market, the Naira gained by 0.66%, 0.93% and 1.06% against the USD, GBP and EUR to close at N450, N540 and N470 respectively.
· 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 dropped by 47bps and 42bps to 2.20% and 3.00% respectively.
· The bond market was positive today as yields declined across most tenures. Consequently, the yields on the 5yr, 7yr and 10yr benchmark bonds fell by 99bps, 34bps and 26bps to close at 8.51%, 10.30% and 10.72% respectively.
· 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 | 25,267.82 | Mkt Cap (N’tr) | 13.16 | |
Previous | 25,166.01 | Vol. Traded (m) | 326 | |
Day Change | 0.40% | Vol. Day Chng. | -6% | |
WTD Return | 0.25% | Val. Traded (N’bn) | 4.48 | |
MTD Return | 9.76% | Val. Day Chng. | 30% | |
YTD Return | -5.86% | No. of Deals | 5,647 | |
YTD High | 29,710.56 | No. of Gainers | 14 | |
YTD Low | 20,669.38 | No. of Losers | 20 | |
52wk High | 31,307.00 | Top Sub Sect. (by Vol.) | BNK (65%) | |
52wk Low | 20,669.38 | Top Sub Sect. (by Val.) | BNK (48%) |
