November 15, 2023/InvestmentOne Report

Please click to download the Market Report for Wednesday 15^th November, 2023

EQUITY:

• The Nigerian bourse increased by 0.19% as the NGX-ASI settled at 71,014.34pts.
• In today s trade, market breadth index was broadly positive with 41 gainers against 19 losers.
• Today s performance was positive as the gains printed in OANDO (+10.00%), OMATEK (+10.00%), MECURE (+9.92%), VETBANK (+9.90%) and CILEASING (+9.87%) outweighed the gains observed in SCOA (-9.68%), SOVRENINS (-8.82%), CORNERST (-4.83%), CADBURY (-4.17%) and AIICO (-4.05%).
• Sectoral performance was positive as the Industrial (+0.81%), Consumer Goods (+0.13%) and Oil & Gas (+0.01%) sector closed upwards, while the Banking (-0.79%) sectors closed downwards.
• In terms of activity levels, total volume declined by 9.17%, while total value advanced by 85% respectively, as investors exchanged about 297 million units of shares worth around N6.23 billion. OANDO (+10.00%) was the most actively traded stock with about 28 million units of shares worth about N315 million.
• The local equities market further gained today due to the positive sentiment observed in major 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 USD and EUR by 6.89% and 2.60% to close at N850.23 and N914.25, respectively. Elsewhere, the GBP appreciated by 0.41% to close at N1077.60.
• 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 Rates surged by 542bps and 508bps to close at 22.25% and 23.00% respectively.
• The bond market traded on a more bearish note today as yields on most maturities moved in increased across the curve. Consequently, the yields on the 5yr benchmark bond remained fell by 22bps to close at 15.27%, while the yield on the 10yr benchmark bond remained flat at 15.71%. Elsewhere, the yield on the 20yr benchmark bond rose by 9bps to close at 16.76%, 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: