November 23, 2023/InvestmentOne Report

Please click to download the Market Report for Thursday 23^rd November, 2023

EQUITY:

• The Nigerian bourse rebounded by 0.07% as the NGX-ASI settled at 71,052.85pts.
• In today’s trade, market breadth index was significantly positive with 34 gainers against 20 losers.
• Today’s performance was positive as the gains printed in BETAGLAS (+10.00%), MULTIVERSE (+9.98%), ENAMELWA (+9.97%), MECURE (+9.97%) and INFINITY (+9.84%) outweighed the losses observed in ELLAHLAKES (-9.89%), OMATEK (-9.17%), TANTALIZER (-6.25%), ACADEMY (-5.56%) and MCNICHOLS (-5.56%).
• Sectoral performance was mixed as the Industrial (+0.04%) and Banking (+0.03%) sectors closed in the green, while the Consumer Goods(-0.05%) sector closed southwards. Elsewhere, the Oil and Gas sector closed flat.
• In terms of activity levels, total volume rose by 32% while total value reduced by 53%, as investors exchanged about 564 million units of shares worth around N3.44 billion. UNIVINSURE (+8.33%) was the most actively traded stock with about 164 million units of shares worth about N43 million.
• The local equities market ended on a positive note due to the buy-ins witnessed in the Banking and Industrial 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 NAFEM window, the Naira weakened against the GBP, USD and EUR by 0.35%, 1.15% and 0.17% to close at N1008.56, N840.53 and N877.36, respectively.
• Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.

FIXED INCOME:

• Money market rates remained elevated today due to tight system liquidity as Open Buy Back and Overnight Rates surged by 184bps and 150bps to close at 25.67% and 26.67% respectively.
• The bond market traded on a flat note today as yields on most maturities remained unchanged across the curve. Consequently, the yield on the 5yr benchmark bond remained constant to close at 15.27% while the yields on the 10yr and 20yr benchmark bonds climbed by 64bps and 7bps to close at 16.34% and 16.96%, 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: