November 13, 2023/InvestmentOne Report

Please click to download the Market Report for Monday 13^th November, 2023

EQUITY:

• The local equities market fell by 0.30% as the NGX-ASI settled at 70,644.85pts.
• In today s trade, market breadth index was broadly positive with 26 gainers against 19 losers.
• Today s performance was negative as the losses printed in JAPAULGOLD (-9.09%), BUACEMENT (-7.86%), VERITASKAP (-7.41%), UNIVINSURE (-4.00%) and CHAMS (-3.85%) outweighed the gains observed in ALEX (+10.00%), RTBRISCOE (+10.00%), MECURE (+9.95%), MCNICHOLS (+9.84%) and DEAPCAP (+9.68%).
• Sectoral performance was mixed as the Industrial (-3.27%) and Consumer Goods (-0.06%) sector closed downwards, while the Banking (+0.38%) sector closed upwards. Elsewhere, the Oil and Gas sector closed flat.
• In terms of activity levels, total volume and value surged by 762% and 40% respectively, as investors exchanged about 474 million units of shares worth around N7.76 billion. FIDELITYBK was the most actively traded stock with about 94 million units of shares worth about N859 million.
• The Nigerian equities market retraced due to the bearish performance observed in the Industrial and Consumer Goods sectors. Looking ahead, 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 depreciated against the GBP and EUR by 3.17% and 4.06% to close at N1,016.43 and N896.23, respectively. Elsewhere, the USD appreciated by 21.73% to close at N780.14.
• 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 4bps and 32bps to close at 16.92% and 17.90%, 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, 10yr and 20yr benchmark bonds closed flat at 15.48%, 15.50% and 16.51%, respectively.
• 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: