August 2, 2022/InvestmentOne Report

Please click to download the Market Report for Tuesday 2nd August, 2022   

EQUITY:                

• The local bourse closed in green by 1.35% as the NGX-ASI settled at 50,626.40pts.
• In today’s trade, market breadth index was positive with 19 gainers as against 9 losers.
• Today’s performance was positive as the gains printed in HONYFLOUR (+9.66%), JAIZBANK (+9.46%), CAVERTON (+8.18%), JAPAULGOLD (+8.00%) and MANSARD (+7.56%) offset the losses recorded in MCNICHOLS (-9.76%), WAPIC (-9.76%), CHAMS (-8.00%), NGXGROUP (-2.73%) and UBA (-2.08%).
• Sector performances were bullish today as the Consumer Goods (+2.74%), Banking (+0.63%) and Industrial (+0.02%) sectors closed in green. Elsewhere, the Oil and Gas sector closed flat.
• In terms of activity levels, total volume declined by 27% while total value increased by 26%, as investors exchanged about 129million units of shares worth N2.86billion. FBNH(+3.30%) was the most actively traded stock with about 15million units of shares worth about N160million.
• The equities market closed higher today due to the appreciation seen across 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, the Naira appreciated by 0.07%, 0.03% and 0.20% against the GBP, USD and EUR to close at N521.01, N428.88 and N435.50 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 rate and Overnight rate increased by 433bps and 450bps to close at 14.33% and 15.00% respectively.
• The bond market traded on a bearish note as yields increased on most maturities. The yields on the 5yr and 7yr benchmark bonds rose by 17bps and 59bps to close at 11.91% and 11.98% respectively while the yield on the 10yr benchmark bond closed flat at 11.85%.
• 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: