Nigerian Bourse Index Rebounds by 0.45% amid Renewed Bargain Hunting

January 23, 2020/InvestmentOne Report

Please click to download the Market Report for Thursday 23rd January 2020

 

EQUITY:

·         The Nigerian equities market closed positive today as NSE-ASI gained 0.45% to close at 29,591.29pts.

·         Similarly, market breadth index was flat with 14 losers against 14 gainers.

·         Today’s performance was mainly due to the gains recorded in which CAP (+10.00%), UNILEVER (+8.06%), CHAMS (+6.45%), TRANSCORP (+4.85%) and FIDELITYBK (+4.55%) offset the losses recorded in LINKASSURE (-8.33%), WAPIC (+7.89%), HONYFLOUR (-7.69%), AIICO (+5.68%)  and JAIZBANK (-4.41%).

·         Sector performances were positive today as Industrial (+1.94%), Oil & Gas (+1.53%), Consumer Goods (+0.37%) and Banking (+0.13%) closed in green.

·         In terms of activity levels, while total volume declined by 38%, total value increased by 112% compared to yesterday, as investors exchanged over 197million units of shares worth over N7.71billion. UBA (-1.14%) was the most actively traded stock with about 27million units of shares worth about N227million.

·         The equities market closed up today as result of the gains recorded in the all sectors. We still maintain our view 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, the Naira gained 0.25%, 0.34% and 0.10% against GBP, EUR and USD to close at N475.68, N399.93 and N362.51 respectively.

·         At the parallel market, while the Naira closed flat against the USD and GBP to close at N362 and N478 respectively, it lost 0.50% against the 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 rose today as Open Buy Back and Overnight rates increased by 79bps and 71bps to close at 2.93% and 3.57% respectively. This may be due to OMO auction today which could have reduced liquidity.

·        At the OMO auction today, CBN sold N14billion and N226biilion of the 180-day and 362-day bills at respective stop rates of 11.67% and 13.11%. The stop rates were similar to the last OMO auction.

·         The bond market was positive today as yields declined across tenors. As such, the yields on the  5yr, 7yr and 10yr benchmark bonds declined by 17bps, 13bps and 16bps to close at  9.93%, 11.04% and 11.15% respectively.

·         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

29,591.29

Mkt Cap (N’tr)

15.24

Previous

29,458.21

Vol. Traded (m)

              197

Day Change

0.45%

Vol. Day Chng.

-38%

WTD Return

-0.09%

Val. Traded (N’bn)

             7.71

MTD Return

10.24%

Val. Day Chng.

112%

YTD Return

10.24%

No. of Deals

5,052

YTD High

29,710.56

No. of Gainers

14

YTD Low

26,968.79

No. of Losers

14

52wk High

32,715.20

Top Sub Sect. (by Vol.)

BNK (62%)

52wk Low

26,092.82

Top Sub Sect. (by Val.)

O&G (68%)

Leave a Comment

Your email address will not be published. Required fields are marked *

*