The Nigerian equities market on Friday closed negative today as NSE-ASI lost 0.39% to close at 27,755.87pts.
Similarly, in today’s trade, market breadth index was negative with 19 losers against 9 gainers.
Today’s performances were mainly due to the losses recorded in NEIMETH (-10.00%), GUINNESS (-10.00%), NPFMCRFBK (-9.76%), CHAMS (-9.68%) and JAPAULOIL (-9.09%) which offset the gains recorded in CAVERTON (+9.60%), LASACO (+8.33%), LIVESTOCK (+7.69%), LAWUNION (+4.55%) and UPL (+4.17%).
Sector performances were broadly negative today as Banking (-1.69%), Consumer Goods (-0.30%), Oil & Gas (-0.19%) and Industrial (-0.07%) closed in red.
In terms of activity levels, total volume and value declined by 12% and 54%, compared to yesterday as investors exchanged over 133million units of shares worth over N1.28billion. ZENITHBANK (-1.26%) was the most actively traded stock with about 22million units of shares worth about N430million.
The equities market closed down today as a result of the losses recorded across 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.
At the IEFX window, Naira gained 0.24%, 0.02% and 0.12% against GBP, USD and EUR to close at N475.10, 364.76 and N394.91 respectively.
At the parallel market, while the Naira remained flat at N360 against USD, it gained 0.25% and 0.42% against EUR and GBP to close at N394 and N473 respectively.
Going forward, we expect the FX market to continue to see support from CBN’s intervention sales.
Money market rates fell today as Open Buy Back and Overnight rates decreased by 14bps and 11bps to close at 2.50% and 3.25%. We believe the fall in rates may be due to OMO and Bond maturities (yesterday) could have improved system liquidity.
The bond market was broadly negative today as yields increased across most tenors. As such yields on the 5yr, 7yr and 10yr benchmark bonds rose by 26bps, 51bps and 9bps to close at 9.73%, 10.39% and 10.88% respectively.
In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation.