November 14, 2023/InvestmentOne Report

Please click to download the Market Report for Tuesday 14^th November, 2023

EQUITY:

• The local bourse rose by 0.33% as the NGX-ASI settled at 70,876.35pts.
• In today’s trade, market breadth index was broadly positive with 36 gainers against 16 losers.
• Today’s performance was positive as the gains printed in NNFM (+10.00%), MECURE (+9.98%), CILEASING (+9.97%), LIVINGTRUST (+9.96%) and MEYER (+9.96%) outweighed the gains observed in REDSTAREX (-9.76%), FTNCOCOA (-9.29%), MBENEFIT (-5.77%), CAVERTON (-4.83%) and PRESTIGE (-4.44%).
• Sectoral performance was mixed as the Industrial (+1.39%) and Banking (+0.69%) sector closed upwards, while the Oil & Gas (-0.89%) and Consumer Goods (-0.11%) sectors closed downwards.
• In terms of activity levels, total volume and value declined by 31% and 56% respectively, as investors exchanged about 327 million units of shares worth around N3.37 billion. JAPAULGOLD (+2.78%) was the most actively traded stock with about 45 million units of shares worth about N83 million.
• The Nigerian equities market advanced today due to the buy-ins recorded in the Industrial and Banking 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 USD by 6.65% and 1.96% to close at N1,008.19 and N795.41, respectively. Elsewhere, the EUR appreciated by 0.86% to close at N861.78.
• Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.

FIXED INCOME:

• Money market rates were mixed today as Open Buy Back was down by 9bps to close at 16.83%, while the Overnight Rate inched higher by 2bps to close at 17.92%, respectively.
• The bond market had a mixed performance as yields on most maturities moved in different directions across the curve. Consequently, the yields on the 5yr benchmark bond remained flat at 15.48%, while the yields on the 10yr and 20yr benchmark bonds rose by 21bps and 15bps to close at 15.71% and 16.66%, 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: