Please click to download the Market Report for Monday 5^th July 2021

EQUITY:

·        The Nigerian equities market closed positive today as NSE-ASI inched up by 0.02% to close at 38,220.01pts.

·        Similarly, in today’s trade, market breadth index was positive with 27 gainers against 16 losers.

·        Today’s performance was mainly due to the gains recorded in CUTIX (+10.00%), NCR (+9.69%), REGALINS (+9.52%), UAC-PROP (+9.30%) and WAPIC (+9.26%) which offset the losses recorded in REDSTAREX (-9.81%), ABCTRANS (-8.11%), NPFMCRFBK (-6.98%), PRESCO (-6.04%) and CHAMS (-4.76%).

·        Sector performances were mixed today with the Banking (+0.63%) and Oil and Gas (+0.51%) sectors closing in the green, while the Consumer Goods (-0.39%) and Industrial (-0.06%) sectors closed negatively.  

·        In terms of activity levels, while total volume rose by 35%, total value decreased by 7% compared to last Friday, as investors exchanged about 283million units of shares worth about N1.87billion.FIDELITYBK (-0.86%) was the most actively traded stock with about 28million units of shares worth about N64million.  

·        The equities market closed up today due to the gains recorded in the Banking and Oil & gas sectors. Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space. 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 the Naira lost by 0.06% and 0.34% vs the EUR and GBP closing at N486.98 and N567.59 respectively, it inched up by 0.03% against the USD at N411.13.

·        At the parallel market, the Naira was flat closing at N595, N710 and N503 against the EUR, GBP and USD 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 fell by 175bps each at 10.25% and 10.75% respectively.

·        The bond market traded on a negative note today as yields inched up across most maturities. We witnessed the yields on the 5yr, 7yr and 10yr benchmark bonds close up by 1bp, 4bps and 7bps at 11.81%, 12.21% and 12.28% respectively.

·        In the near term, we expect marketactivity to be influenced by liquidity levels and foreign investor participation.  

Below are key NSE statistics as at the end of trades: