NSEASI Dips -0.64% on Sustained Bearish Run

July 18, 2019/InvestmentOne Report

Please click to download the Market Report for Thursday 18th July 2019

EQUITY:

  • The Nigerian equities market closed negative today as NSE-ASI lost 0.64% to close at 27,864.49pts.
  • Similarly, market breadth index was notably negative with 19 losers against 12 gainers.
  • Today’s performance was mainly due to the losses recorded in BERGER (-10.00%), INTBREW (-10.00%), SEPLAT (-9.43%) and CILEASING (-9.17%) which offset the gains in CONOIL (+9.76%), DANGSUGAR (+9.22%), SOVRENINS (+5.00%) and JAPAULOIL (+4.76%).
  • Sector performances were largely negative today as Oil & Gas (-4.74%) saw the biggest sell off. Banking (-1.19%) and Consumer Goods (-0.37%) also closed in the red while Industrial (+0.06%) saw some buy interest.
  • In terms of activity levels, total volume and value declined by 28% and 30% compared to yesterday, as investors exchanged over 175million units of shares worth over N2.71billion respectively.
  • The equities market closed down today due to the losses across most sectors as market sentiment remains weak. Despite the recent losses, we maintain that prices at current levels present decent entry opportunities for investors with medium to long term horizon.

CURRENCY:

·         At the IEFX window, while the Naira closed flat against the USD closing at N361.62, it lost 0.59% and 0.23% against the GBP and EUR to close at N450.68 and N405.06 respectively.

·         At the Parallel market, the Naira closed flat at N360, N462 and N405 against the USD, GBP and EUR respectively.

·         Going forward, we expect the FX market to continue to see support from CBN’s intervention sales.                                                                                                                                    

FIXED INCOME:

·         Despite OMO maturities today, money market rates increased as Open Buy Back rate and Overnight rates rose by 243bps and 250bps to close at 6.29% and 7.00% respectively. The increase in rates may be as a result of CBN’s OMO auction which may have squeezed system liquidity.

·         The bond market was negative today as yields increased across most maturities. While the yields on the 5yr and 7yr benchmark bonds closed flat at 14.27% and 14.06%, the yield on the 10yr benchmark bond rose by 3bps to close at 13.70%.

·         In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation. 

Below are key NSE statistics as at the end of trades:

Current

27,864.49

Mkt Cap (N’tr)

13.58

Previous

28,042.80

Vol. Traded (m)

                   175

Day Change

-0.64%

Vol. Day Chng.

-28%

WTD Return

-2.46%

Val. Traded (N’bn)

                  2.71

MTD Return

-7.02%

Val. Day Chng.

-30%

YTD Return

-11.35%

No. of Deals

2,653

YTD High

32,715.20

No. of Gainers

12

YTD Low

27,864.49

No. of Losers

19

52wk High

37,266.86

Top Sub Sect. (by Vol.)

BNK (69%)

52wk Low

27,864.49

Top Sub Sect. (by Val.)

BNK (49%)

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