NSEASI Declines -0.82% on Bearish Run

August 14, 2019/InvestmentOne Report

Please click to download the Market Report for Wednesday 14th August 2019

 EQUITY:

  • The Nigerian equities market closed negative today as NSE-ASI lost 0.82% to close at 27,083.11pts.
  • Similarly, market breadth index was largely negative with 24 losers against 4 gainers.
  • Today’s performance was mainly due to the losses in UACN(-10.00%), NPFMCRFBK(-9.32%), FLOURMILL(-8.50%), TOTAL(-7.84%) and CHAMS(-7.69%) which offset the gains recorded in CONTINSURE(+4.32%), CUSTODIAN(+3.33%), AFRIPRUD(+1.41%) and UBN(+0.74%).
  • All sectors today closed in the red with Industrial (-1.55%) emerging the top loser followed by Banking (-1.26%), Oil & Gas (-1.12%) and Consumer Goods (-0.46%).
  • In terms of activity levels, total volume jumped by 6% while total value dropped 26% respectively compared to last week Friday, as investors exchanged over 235 million units of shares worth over N3.29billion. GUARANTY (-2.08%) was the most actively traded stock with about 49million units of shares worth about N1.3billion.
  • The equities market closed down today due to the losses recorded in all sectors. Despite the recent losses, we maintain that investors should take positions in quality names with a medium to long term investment horizon.

CURRENCY:

·         At the IEFX window, the Naira gained 0.06%, 0.04% and 0.60% against the USD, GBP and EUR to close at N363.22, N438.62 and N404.94 respectively. 

·         At the Parallel market, the Naira closed flat at N360, N446 and N398 against USD, GBP and EUR respectively.

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

FIXED INCOME:

·         Money market rates increased today as Open Buy Back and Overnight rates rose by 171bps and 179bps to close at 13.86% and 14.64% respectively. The increase in rates may be due to the Treasury bill auction conducted by the CBN and sale of foreign exchange which would have led to a squeeze in system liquidity.

·         At the Treasury bill auction today, the CBN sold a total of N34billion split between the 91-day (N4.39 billion), 182-days (N3 billion) and 364-day (N27 billion) bills, at the respective stop rates of 9.70%, 11.35% and 12.00%. The stop rates on the 182-day and 364-day bills were 75bps and 82bps higher than the stop rates at the previous auction while the stop rate on the 91-day bill was 5bps lower than the previous auction.

·         The bond market performance was largely negative today as yields increased across most maturities. While the yield on the 5yr decreased by 11bps, the 10yr benchmark bonds increased by 16bps to close at 14.03% and 14.22%. However, the yield on the 7yr benchmark bond was flat closing at 14.04%.

·         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

27,083.11

Mkt Cap (N’tr)

13.20

Previous

27,306.81

Vol. Traded (m)

                   235

Day Change

-0.82%

Vol. Day Chng.

6%

WTD Return

-0.82%

Val. Traded (N’bn)

                  3.29

MTD Return

-2.29%

Val. Day Chng.

-26%

YTD Return

-13.83%

No. of Deals

3,922

YTD High

32,715.20

No. of Gainers

4

YTD Low

27,083.11

No. of Losers

27

52wk High

36,299.82

Top Sub Sect. (by Vol.)

BNK (73%)

52wk Low

27,083.11

Top Sub Sect. (by Val.)

BNK (69%)

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