November 16, 2020/InvestmentOne Report

Please click to download the Market Report for Monday 16^th November 2020

EQUITY:

·        The Nigerian equities market closed down today as NSE-ASI lost by 0.75% to close at 34,774.08pts.

·        In today’s trade, market breadth index was negative with 43 losers against 11 gainers.

·        Today’s performance was mainly due to the losses recorded in NAHCO (-10.00%), OANDO (-10.00%), DANGSUGAR (-9.91%), FIDELITYBK (-9.69%) and LIVESTOCK (-9.66%) which offset the gains recorded in BOCGAS (+9.92%), NEIMETH (+8.99%),  UNITYBNK (+8.86%), ARDOVA (+8.11%) and BUACEMENT (+7.69%).  

·        Sector performances were negative today as Banking (-4.43%), Consumer Goods (-3.75%) and Oil & Gas sectors (-3.09%) all dipped, while Industrial (+2.09%) sector closed positively.

·        In terms of activity levels, total volume and value decreased by 46% and 52% respectively compared to yesterday, as investors exchanged about 669million units of shares worth over N7.85billion. ZENITHBANK (-4.24%) was the most actively traded stock with about 94million units of shares worth about N2.51billion.

·        The equities market closed down today due to the losses recorded in most sectors. Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns amidst a low-interest-rate environment. Nonetheless, we reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.

CURRENCY: 

·        At the IEFX window, while Naira inched down by 0.02% and 0.06% against the GBP and EUR to print at N502.88 and N451.43 respectively, it closed flat at N386.00 vs the USD.

·        At the parallel market, the Naira lost 1.06%, 1.17% and 1.47% against the USD, GBP and EUR to close at N475, N607 and N553 respectively.

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

FIXED INCOME:

·        Money market rates were mixed today as Open Buy Back rate printed flat at 0.50%, while Overnight rate was up by 37bps to print at 1.00%.

·        The bond market was somewhat quiet today although yields inched down across some tenures. While we witnessed the yields on the 5yr and 7yr benchmark bonds decline by 2bps and 1bp to close at 2.37% and 3.65% respectively, the 10yr bond inched up by 3bps to print at 4.73%.

·        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: