July 6, 2021/InvestmentOne Report

Please click to download the Market Report for Tuesday 6^th July 2021

EQUITY:

·        The Nigerian equities market closed positive today as NSE-ASI inched up by 0.52% to close at 38,418.04pts.

·        Similarly, in today’s trade, market breadth index was positive with 28 gainers against 10 losers.

·        Today’s performance was mainly due to the gains recorded in MAYBAKER (+9.65%), UAC-PROP (+9.57%), TOTAL (+9.24%), CHIPLC (+9.23%) and UPL (+9.21%) which offset the losses recorded in ETERNA (-9.73%), LINKASSURE (-9.41%), UNITYBNK (-8.06%), WAPIC (-5.08%) and JAIZBANK (-1.72%).

·        Sector performances were positive today with the Oil and Gas (+4.90%), Banking (+3.29%), Industrial (+0.08%) and  Consumer Goods (+0.07%) sectors all closing in the green.

·        In terms of activity levels, total volume and value rose by 2% and 29% respectively compared to yesterday, as investors exchanged about 289million units of shares worth about N2.42billion.FIDELITYBK (+0.43%) was the most actively traded stock with about 42million units of shares worth about N97million.  

·        The equities market closed up today due to the gains recorded in all major 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 gained by 0.61% and 0.63% vs the EUR and GBP closing at N484.48 and N565.09 respectively, it inched down by 0.08% against the USD at N411.45.

·        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 both fell by 50bps each to close at 9.75% and 10.25% 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 7bps, 9bps and 6bps at 11.88%, 12.30% and 12.34% 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: