June 24, 2020/InvestmentOne Report

Please click to download the Market Report for Wednesday 24^th June 2020

 EQUITY:

·           The Nigerian equities market closed down today as NSE-ASI lost 0.38% to close at 24,655.05pts.

·           Similarly, in today’s trade, market breadth index was negative with 22 losers against 17 gainers.

·           Today’s performance was mainly due to the losses recorded in PZ (-10.00%), SEPLAT (-9.98%), INTBREW (-9.89%), ARBICO (-9.57%) and NEIMETH (-9.52%) which offset the gains recorded in CHAMS (+9.52%), CHAMPION (+7.95%), UNITYBNK (+7.41%), AIICO (+6.67%) and NAHCO (+5.98%).

·           Sector performances were somewhat negative today as Oil & Gas (-4.11%) and Consumer Goods (-1.63%) sectors closed negative, while the Banking (+0.24%) sector closed in the green. However, Industrial sector closed flat.

·           In terms of activity levels, total volume and value increased by 13% and 24% compared to yesterday as investors exchanged over 189million units of shares worth over N1.92billion. FBNH (+0.95%) was the most actively traded stock with about 44million units of shares worth about N241million.

·           The equities market closed negatively today on the back of the losses recorded in Oil & Gas and Consumer Goods sectors. Although market sentiments have tilted positive over the past few weeks, 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. We urge our clients to be cautious and only take positions in fundamental names. 

CURRENCY:   

·           At the IEFX window, the Naira gained by 0.94% and 0.59% against the GBP and EUR to close at N482.23 and N437.42 respectively, while it lost versus the USD by 0.14% to close at N387.17.

·           At the parallel market, while the Naira closed down by 0.60% against the EUR at N498, it closed flat against the GBP to close at N555. However, It gained by 1.08% against the USD to close at N455.

·           Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.   

FIXED INCOME:

·           Money market rates increased slightly today as Overnight rate rose by 8bps to 15.75%, while Open buy back rate closed flat at 14.67%.

·           The bond market was mostly quiet today although yields moved downwards across some maturities.While the yields on the 7yr and 10yr benchmark bonds closed flat at  9.66% and 10.01% respectively, the yield on the 5yr benchmark bond inched up by 4bps to 7.15%.

·           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: