November 16, 2023/InvestmentOne Report

Please click to download the Market Report for Thursday 16^th November, 2023

EQUITY:

• The local bourse inched higher by 0.02% as the NGX-ASI settled at 71,025.16pts.
• In today’s trade, market breadth index was negative with 33 losers against 24 gainers.
• Today’s performance was positive as the gains printed in NSLTECH (+10.00%), DEAPCAP (+10.00%), CILEASING (+9.95%), NNFM (+9.85%) and SCOA (+9.82%) outweighed the gains observed in ABCTRANS (-10.00%), ETRANZACT (-9.93%), VETBANK (-9.83%), THOMASWY (-8.95%) and GUINEAINS (-8.33%).
• Sectoral performance was bearish as the Banking (-0.35%) and Oil & Gas (-0.18%) sectors closed downwards, while the Consumer Goods (+0.31%) sector closed upwards. Elsewhere, the Industrial sector was unchanged.
• In terms of activity levels, total volume advanced by 63%, while total value declined by 30% respectively, as investors exchanged about 484 million units of shares worth around N4.38 billion. REGALINS (-2.78%) was the most actively traded stock with about 104 million units of shares worth about N36 million.
• The slight increase in the local bourse today was driven by the positive sentiment observed in MTNN and the Consumer Goods sector. 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 NAFEM window, the Naira depreciated against the GBP, USD and EUR by 0.27%, 2.70% and 0.39% to close at N1049.87, N841.14 and N918.27 respectively.
• Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.

FIXED INCOME:

• Money market rates were down today as Open Buy Back and Overnight Rates declined by 4bps and 8bps to close at 22.21% and 22.92% respectively.
• The bond market traded on a flat note today as yields on most maturities remained unchanged across the curve. Consequently, the yields on the 5yr, 10yr and 20yr benchmark bonds remained flat to close at 15.27%, 15.71% and 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: