NSE index down 0.05% as Lawunion, Japaul Oil, NEM, AIICO Jaizbank shed weight

The Nigerian equities market closed negative today as NSE-ASI lost 0.05% to close at 27,864.84pts.

Similarly, in today’s trade, market breadth index was negative with 14 losers against 13 gainers.

Today’s performances were mainly due to the losses recorded in LAWUNION (-9.84%), JAPAULOIL (-8.33%), NEM (-7.27%), AIICO (-5.88%) and JAIZBANK (-4.55%) which offset the gains recorded in UCAP (+10.00%), LEARNAFRICA (+9.73%), WAPIC (+9.09%), LIVESTOCK (+8.33%) and GUARANTY (+6.38%).

Sector performances were broadly positive today as Banking (+2.09%), Industrial (+0.79%) and Consumer Goods (+0.09%) closed positive. Nonetheless, Oil & Gas remained flat.

 In terms of activity levels, while total volume declined by 1%, total value increased by 14%, compared to yesterday as investors exchanged over 151million units of shares worth over N2.78billion. ZENITHBANK was the most actively traded stock with about 25million units of shares worth about N502million.

 The equities market closed down today as a result of the loss  recorded in MTNN (-3.33%). 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, while the Naira gained  0.01% and 0.58% against USD and EUR to close at  N364.85 and N395.39 respectively, it lost 0.93% against GBP to close at N476.23.

At the parallel market, while the Naira remained flat at N475 and N360 against GBP and USD respectively, it gained 0.25% against EUR to close at N395.

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

FIXED INCOME:

Money market rates fell today as Open Buy Back and  Overnight rates declined to 2.64% and 3.36% from 15.42% and16.00% respectively. We believe the fall in rates may be due to the N440 billion OMO maturities which could have improved system liquidity.

 The bond market was broadly negative today as yields increased across most tenors. While the yields on the 5yr and 7yr benchmark bonds rose by 34bps and 4bps to close at  9.47% and 9.88% respectively, the yield on the 10yr benchmark bond fell by 10bps to close at 10.79%

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

The Nigerian equities market closed negative today as NSE-ASI lost 0.05% to close at 27,864.84pts.

Similarly, in today’s trade, market breadth index was negative with 14 losers against 13 gainers.

 Today’s performances were mainly due to the losses recorded in LAWUNION (-9.84%), JAPAULOIL (-8.33%), NEM (-7.27%), AIICO (-5.88%) and JAIZBANK (-4.55%) which offset the gains recorded in UCAP (+10.00%), LEARNAFRICA (+9.73%), WAPIC (+9.09%), LIVESTOCK (+8.33%) and GUARANTY (+6.38%).

 Sector performances were broadly positive today as Banking (+2.09%), Industrial (+0.79%) and Consumer Goods (+0.09%) closed positive. Nonetheless, Oil & Gas remained flat.

In terms of activity levels, while total volume declined by 1%, total value increased by 14%, compared to yesterday as investors exchanged over 151million units of shares worth over N2.78billion. ZENITHBANK was the most actively traded stock with about 25million units of shares worth about N502million.

 The equities market closed down today as a result of the loss  recorded in MTNN (-3.33%). 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, while the Naira gained  0.01% and 0.58% against USD and EUR to close at  N364.85 and N395.39 respectively, it lost 0.93% against GBP to close at N476.23.

At the parallel market, while the Naira remained flat at N475 and N360 against GBP and USD respectively, it gained 0.25% against EUR to close at N395.

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

FIXED INCOME:

 Money market rates fell today as Open Buy Back and  Overnight rates declined to 2.64% and 3.36% from 15.42% and16.00% respectively. We believe the fall in rates may be due to the N440billion OMO maturities which could have improved system liquidity.

The bond market was broadly negative today as yields increased across most tenors. While the yields on the 5yr and 7yr benchmark bonds rose by 34bps and 4bps to close at  9.47% and 9.88% respectively, the yield on the 10yr benchmark bond fell by 10bps to close at 10.79%

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

Spread the love
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •   
  •   
  •   
  •   
  •  

Leave a Reply