September 20, 2019/InvestmentOne Report
· The Nigerian equities market closed positive today as NSE-ASI gained 0.19% to close at 27,698.69pts. However, the market lost 0.29% WTD.
· Market breadth index was somewhat positive with 17 gainers against 16 losers.
· Today’s performance was mainly due to the gains in CUTIX (+9.86%), UPL (+9.52%), UNITYBNK (+7.94%), CAVERTON (+7.66%) and STANBIC (+7.26%) which offset the losses recorded in PORTPAINT (-9.72%), ETERNA (-8.33%), ABCTRANS (-8.33%), LASACO (-6.67%) and CADBURY (-6.01%)
· Sector performances were mixed in today’s trade. While Consumer Goods (+0.90%) and Oil & Gas (+0.54%) closed positive. Banking (-1.15%) and Industrial (-0.37%) closed negative.
· In terms of activity levels, total volume declined by 28% while total value rose by 254% compared to yesterday as investors exchanged over 178million units of shares worth over N5.92billion. NB (+1.06%) was the most actively traded stock with about 28million units of shares worth about N1.48billion.
· The equities market closed up today following the gains recorded in the Consumer Goods and Oil & Gas sector. Nonetheless, 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.
· At the IEFX window, while the Naira lost 0.04% against USD to close at N362.39, it gained 1.58% and 0.89% against GBP and EUR to close at N451.14 and N397.45.
· At the parallel market, while the Naira closed flat at N360 and N450 against USD and GBP respectively, it gained 0.25% against EUR to close at N397.
· Going forward, we expect the FX market to continue to see support from CBN’s intervention sales.
· Money market rates decreased today as Open Buy Back and Overnight rates declined from16.86% and 18.07% to 6.43% and 7.57% respectively. The fall in rates may be due to the OMO maturity yesterday as well as inflow from FAAC allocations which could have eased system liquidity.
· The bond market performance was mixed today as yields moved in different directions across most maturities. Consequently, the yields on the 5yr and 10yr benchmark bonds declined by 17bps and 6bps to close at 14.18% and 14.27% respectively. However, the yield on the 7yr benchmark bond was flat to close at 14.25%.
· 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||27,698.69||Mkt Cap (N’tr)||13.48|
|Previous||27,646.15||Vol. Traded (m)||178|
|Day Change||0.19%||Vol. Day Chng.||-28%|
|WTD Return||-0.29%||Val. Traded (N’bn)||5.92|
|MTD Return||0.63%||Val. Day Chng.||254%|
|YTD Return||-11.87%||No. of Deals||3,830|
|YTD High||32,715.20||No. of Gainers||17|
|YTD Low||26,925.29||No. of Losers||16|
|52wk High||34,414.37||Top Sub Sect. (by Vol.)||BNK (49%)|
|52wk Low||26,925.29||Top Sub Sect. (by Val.)|