NSE index down 0.22% as Vitafoam, Redstarex, UPL, CHIPLC, Jaizbank shed weight

The Nigerian equities market closed negative today as NSE-ASI lost 0.22% to close at 26,974.38pts.

In today’s trade, market breadth index was negative with 16 losers against 11 gainers.

Today’s performances were mainly due to the losses recorded in VITAFOAM (-9.98%), REDSTAREX (-9.98%), UPL (-9.60%), CHIPLC (-9.38%) and JAIZBANK (-8.62%) which offset the gains recorded in HONYFLOUR (+9.38%), FCMB (+6.29%), EKOCORP (+5.77%), UBA (+4.38%) and LASACO (+4.17%).

 Sector performances were broadly positive today as Industrial (+1.95%), Banking (+0.38%) and Consumer Goods (+0.01%) closed in green. However, Oil & Gas closed flat.

 In terms of activity levels, total volume and total value declined by 6% and 23%, compared to yesterday as investors exchanged over 228million units of shares worth over N2.74billion. UBA (+4.38%) was the most actively traded stock with about 81million units of shares worth about N549million.

The equities market closed down today due to the loss recorded in MTNN (-3.45%). 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 lost 0.04% and 0.18% against USD and EUR to close at  N365.52 and N396.43 respectively, it gained 0.61% against GBP to close at N471.46.

 At the parallel market, while the Naira gained 0.21% against GBP to close at N472, it remained flat against USD and EUR to close at N360 and N390 respectively.

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

FIXED INCOME:

 Money market rates were flat today as Open Buy Back and Overnight rates remained unchanged to close at 2.29% and 3.07% respectively. We highlight that this may be due to strong liquidity levels.

 The bond market were broadly flat today as yields remained unchanged across most tenors. As such, while the yields on the 5yr and 7yr benchmark bonds remained flat to close at  7.35% and 8.94% respectively, it declined on the 10yr benchmark bond by 13bps to close at 10.07%.

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

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