The Nigerian equities market closed up today as NSE-ASI gained 0.29% to close at 23,941.75pts.
In today’s trade, market breadth index was positive with 24 gainers against 13 losers.
Today’s performance was mainly due to the gains recorded in OKOMUOIL (+9.99%), NEIMETH (+9.72%), BOCGAS (+9.59%), FIDSON (+9.12%) and UNITYBNK (+8.89%) which offset the losses recorded in LASACO (-7.41%), CORNERST (-6.78%), JAIZBANK (-6.78%), WAPIC (-6.25%) and TRANSCORP (-4.17%).
Sector performances were mixed today as Industrial (+0.94%) and Banking (+0.51%) closed in the green while the Consumer Goods (-1.41%) and Oil & Gas (-0.08%) sectors printed negatively.
In terms of activity levels, total volume and value rose by 49% and 20% respectively compared to last week Friday as investors exchanged over 331million units of shares worth over N2.93billion. ACCESS(+2.40%) was the most actively traded stock with about 84million units of shares worth about N523million.
The equities market closed slightly positive today on the back of gains recorded in Industrial and Banking sectors. While we believe the risk-off sentiment could have caused the recent sell-off in the market, we retain our stance that this may be one of the best periods to pick up some quality names with a medium to long term horizon.
CURRENCY:
At the IEFX window, the Naira lost by 0.73%, 0.46% and 0.09% against the EUR, GBP and USD to close at N421.72, N471.46 and N386.33 respectively.
At the parallel market, while the Naira closed flat at N455 and N465 against the USD and EUR respectively, it lost 1.87% against the GBP at N545.
Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.
FIXED INCOME:
Money market rates declined today as Open Buy Back and Overnight rates decreased by 92bps and 109bps to close at 1.83% and 2.33% respectively.
The bond market was broadly positive today as yields declined across most maturities. While the yields on the 5yr and 7yr benchmark bonds remained flat at 10.13% and 10.96% respectively, the yield on the 10yr benchmark bond declined by 5bps closing at 11.14%.
In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation.
