December 31, 2020/InvestmentOne Report

Please click to download the Market Report for Thursday 31^st December 2020

EQUITY:                         

·         The Nigerian equities market closed the last trading session of the year in the green as NSE-ASI rose by 1.92% to close at 40,270.72pts. Similarly, the year closed on a positive note, gaining 50.03%.

·         However, today’s market breadth index was negative with 18 gainers against 24 losers.

·         Today’s performance was mainly due to the gains recorded in BOCGAS (+10.00%), NNFM (+9.95%), CILEASING (+9.94%), FCMB (+9.90%) and BUACEMENT (+9.87%) which offset the losses recorded in FTNCOCOA (-9.59%), ETERNA (-9.09%), AIICO (-8.87%), INTBREW (-8.32%) and ETI (-7.69%).

·         Sector performances were mixed today with the Industrial (+3.90%) and Oil & Gas (+0.65%) sectors closing positively, while the Banking (-0.89%) and Consumer Goods (-0.80%) sectors closed in the red.

·         In terms of activity levels, while total volume jumped by 91%, total value fell by 12% compared to yesterday, as investors exchanged about 711million units of shares worth over N10.08billion. AIICO (-8.87%) was the most actively traded stock with about 206million units of shares worth about N234million.

·         The equities market closed up today due to the gains recorded in the Industrial and Oil & Gas 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, the Naira closed down by 4.26%, 0.93% and 1.63% against the USD, EUR and GBP to print at N410.25, N483.31 and N539.01 respectively.

·         At the parallel market, the Naira remained flat against the USD, EUR and GBP to close at N470, N573 and N628 respectively.

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

FIXED INCOME:

·         Money market rates rose today as Open Buy Back and Overnight rate increased by 17bps and 25bps to close at 0.33% and 0.58% respectively.  

·         The bond market was somewhat positive today as yields declined on some maturities. We witnessed the yields on the 5yr and 7yr benchmark bonds decrease by 1bp and 64bps to print at 5.44% and 6.50% respectively, while the 10yr benchmark bond inched up by 7bps to close at 7.19%.

·         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: