October 25, 2023/InvestmentOne Report

Please click to download the Market Report for Wednesday 25^th October, 2023

EQUITY:

• The Nigerian equities market marginally declined by 0.02% as the NGX-ASI settled at 67,206.16pts.
• In today s trade, market breadth index was positive with 22 gainers against 18 losers.
• Today s performance was negative as the losses printed in ETRANZACT (-10.00%), SUNUASSUR (-10.00%), DEAPCAP (-7.41%), ETERNA (-7.09%) and UBA (-5.78%) outweighed the gains observed in MULTIVERSE (+9.74%), CHAMS (+9.71%), CAVERTON (+9.35%), FTNCOCOA (+8.97%) and GEREGU (+7.71%).
• Sectoral performance was mostly bearish as the Banking (-1.09%), Oil & Gas (-0.24%), Consumer Goods (-0.16%) and Industrial (-0.10%) sectors closed downwards.
• In terms of activity levels, total volume increased by 3%, while total value decreased by 30%, as investors exchanged about 330 million units of shares worth around N4.43 billion. FIDELITYBK (-0.60%) was the most actively traded stock with about 50 million units of shares worth about N412 million.
• The local bourse was slightly negative today due to the selloffs observed 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 against the GBP and EUR by 1.67% and 0.76% to close at N969.18 and N845.17 respectively, while it depreciated against the USD by 6.86% to close at N847.77.
• Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.

FIXED INCOME:

• Money market rates continued to rise today as Open Buy Back and Overnight rate increased by 50bps and 60bps to close at 3.50% and 4.20%, respectively.
• The bond market traded on a flattish note as yields were unchanged on most maturities across the curve. As such, the yields on the 5yr benchmark bond rose by 8bps to close at 14.10%, while the yields on the 10yr and 20yr benchmark bonds closed flat at 15.00% and 15.57%.
• In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation.

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