NSEASI Dips -0.14% on Sustained Bearish Run

November 7, 2019/InvestmentOne Report

Please click to download the Market Report for Thursday 7th November 2019

 EQUITY:

  • The Nigerian equities market was negative today, as the NSE-ASI lost 0.14% to close at 26,188.24pts.
  • Similarly, market breadth index was negative with 16 losers against 9 gainers.
  • Today’s performance was mainly due to the selloffs recorded in UNILEVER  (-9.98%), FIDSON (-9.72%), UNIONDAC (-8.33%) and HONYFLOUR (-8.16%) which offset the gains recorded in REGALINS (+5.00%), CHAMS  (+4.35%), JAIZBANK (+3.77%), AIICO (+2.94%) and GUARANTY (+2.86%).
  • Sector performances were mostly mixed today as Consumer Goods (-1.10%) closed in red while Banking  (+0.66%) closed in green. However, Industrial and Oil & Gas closed flat.
  • In terms of activity levels, while total volume rose by 213%, total value decreased by 5% compared to yesterday, as investors exchanged over 726million units of shares worth over N2.97billion. JAIZBANK (+3.77%) was the most actively traded stock with about 502million units of shares worth about N271million.
  • The equities market closed negative today following the loss recorded in Consumer Goods sector. We maintain that investors should take positions in quality names with a medium to long time investment horizon as prices remain attractive at current levels.

CURRENCY:

·         At the IEFX window, while the Naira gained 0.69% and 0.95% against GBP and EUR to close at N462.79 and N398.45 respectively, it lost 0.03% against the USD to close at N362.67.

·         At the parallel market, while the Naira closed flat at N360 and N463 against the USD and GBP respectively, it lost 0.50% against EUR to close at N398.

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

FIXED INCOME:

·         Money market rates declined today as Open Buy Back and Overnight rates were both down 36bps to close at 4.14% and 5.14% respectively. The decline in rates may be due to OMO maturities which could have improved system liquidity.

·         The bond market was mixed today as yields moved in different directions across most tenors. As such, the yield on the 10yr benchmark bond increased by 8bps to close at 13.15% while the yield on the 7yr benchmark bond declined by 47bps to close at 13.12%. However, that of the 5yr benchmark bond remained flat closing at 12.22%.

·         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

26,188.24

Mkt Cap (N’tr)

12.75

Previous

26,223.66

Vol. Traded (m)

                   726

Day Change

-0.14%

Vol. Day Chng.

213%

WTD Return

-0.40%

Val. Traded (N’bn)

                  2.97

MTD Return

-0.63%

Val. Day Chng.

-5%

YTD Return

-16.68%

No. of Deals

3,040

YTD High

32,715.20

No. of Gainers

9

YTD Low

26,188.24

No. of Losers

16

52wk High

33,196.07

Top Sub Sect. (by Vol.)

BNK (25%)

52wk Low

26,188.24

Top Sub Sect. (by Val.)

BNK (72%)

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