March 29, 2017/InvestmentOne Research
Please click to download the Market Report for Wednesday 29th March 2017
EQUITIES
- Following sell-off in some Banking and Consumer names, the All Share Index shed -0.55% to close in the red for the second day in a row, taking YTD return to -5.98% while the index market capitalisation settled at c.N8.74trillion.
- This performance was reflective of decline in GUARANTY (-149.96pts), UNILEVER (-20.93pts) and OANDO which cancelled out the gain in TRANSCOHOT (+10.17pts), TOTAL (+9.86pts) and FO (+7.58pts).
- In today’s session, there were 21 gainers led by TRANSCOHOT (+10.04%) compared to 15 decliners topped by GUARANTY (-6.49%). Hence, market breadth index (+0.26x) closed positive. The decline in GUARANTY was due to adjustment of the stock price for final dividend of N1.75k.
- With bulk trades of over 283m units of CUTODYINS stocks, market turnover strengthened compared to previous session, as investors exchanged over 521m units of stocks worth c.N2.20bn.
- The Oil and Gas tracker (+0.38%) was the lone gainer among the major sectoral indexes. Banking (-2.44%) and Consumer (-0.19%) closed in the red while the industrial tracker closed flat
- In the near term, we expect the ASI to remain volatile given investors’ attraction to decent return in the Fixed Income space amidst fragile macro situation. That said, we however see likelihood of a shift in the FX policy regime as a potential catalyst for a rebound in equities’ performance. Hence, we advise investors to tread with caution while seeking decent entry point to build position in quality names over an extended investment horizon.
CURRENCY:
- While the NGN remained at N306 levels against the USD, it gained +3.95% to 379.80 against the GBP and +3.85% to N328.93 against the EUR.
- At the parallel market, the NGN lost -1.32% against the USD to N380 and -1.06% to N470 against the GBP while it closed flat at N400 against the EUR.
- Going forward, we may see the NGN continue to appreciate in the parallel market as CBN maintains its intervention in the FX market.
FIXED INCOME:
- While the 1month NIBOR rate shed 8bps to 16.34%, the 3month and 6month NIBOR rates increase by 21bps and 9bps to 21.13% and 23.15% respectively.
- Yields trended upwards in the bond market today as investors were largely bearish. The increase in yields was mainly on the March 2036, up 4bps to 15.76%. While the yield on the 5yr and 7yr benchmark bonds closed flat at 15.64% and 15.62% respectively, the yield on the 10yr benchmark bond increased by 2bps to 15.80%.
- While N51bn worth of OMO bills will be maturing on tomorrow, we expect CBN to keep system liquidity tight in defence of the local currency. As such, we expect yields to remain range bound in the absence of offshore demand.
Below are key NSE statistics as at the end of trades:
Current | 25,267.68 | Mkt Cap (N’tr) | 8.74 | |
Previous | 25,406.72 | Vol. Traded (m) | 522 | |
Day Change | -0.55% | Vol. Day Chng. | 172% | |
WTD Return | -0.74% | Val. Traded (N’bn) | 2.20 | |
MTD Return | -0.24% | Val. Day Chng. | 9% | |
YTD Return | -5.98% | No. of Deals | 2,703 | |
YTD High | 26,616.89 | No. of Gainers | 21 | |
YTD Low | 24,581.99 | No. of Losers | 15 | |
52wk High | 31,071.25 | Top Sub Sect. (by Vol.) | BNK (35%) | |
52wk Low | 22,456.32 | Top Sub Sect. (by Val.) | BNK (16%) |
Please find below the NASD OTC pricelist for Wednesday 29th of March 2017.
Company | Symbol | Prev Close | Close Price | Chg | % Chng | Deals | Volume | Value |
Central Securities Clearing System (CSCS) Plc | SDCSCSPLC | 6.00 | 6.70 | 0.70 | 11.67 | 1 | 500,000 | 3,350,000.00 |
Friesland Campina WAMCO Nigeria Plc | SDFCWAMCO | 133.01 | 127.01 | -6.00 | -4.51 | 6 | 8,000 | 1,117,680.00 |
Niger Delta Exploration and Production Plc | SDNDEP | 110.00 | 121.00 | 11.00 | 10.00 | 2 | 104,194 | 12,602,574.00 |
Nipco Plc | SDNIPCOPLC | 75.92 | 75.00 |
