November 9, 2023/InvestmentOne Report

Please click to download the Market Report for Thursday 9^th November, 2023

EQUITY:

• The Nigerian equities market climbed by 0.07% as the NGX-ASI settled at 70,819.58pts.
• In today’s trade, market breadth index was neutral with 26 gainers against 26 losers.
• Today’s performance was positive as the gains printed in UPDC (+9.91%), MECURE (+9.85%), SCOA (+9.73%), JAPAULGOLD (+9.58%) and UACN (+8.47%) offset the losses observed in VFDGROUP (-10.00%), MULTIVERSE (-9.38%), REGALINS (-8.57%), DAARCOMM (-8.33%) and CHAMS (-5.21%).
• Sectoral performance was mixed as the Banking (+0.21%) sectors closed buoyant while the Consumer Goods (-0.06%) and Industrial (-0.02%) sector closed negative. Elsewhere, the Oil and Gas sector closed flat.
• In terms of activity levels, total volume and value rose by 2% and 71% respectively, as investors exchanged about 569 million units of shares worth around N16.79 billion. JAPAULGOLD (+9.58%) was the most actively traded stock with about 114 million units of shares worth about N209 million.
• The local bourse closed upwards due to the positive sentiments surrounding the Banking sector. 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 by 2.63% to close at N984.77 while it weakened against the USD and EUR by 0.55% and 1.81% to close at N874.71 and N897.36, 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 gained by 38bps and 21bps to close at 16.88% and 17.63%, respectively.
• The bond market traded on a quiet note as yields remained unchanged on most maturities across the curve. Consequently, the yields on the 5yr and 10yr benchmark bonds rose by 23bps and 2bps to close at 15.48% and 15.50%, respectively while the yield on the 20yr benchmark bonds remained constant to close at 16.51%.
• 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: