April 3, 2017/InvestmentOne Research
Please click to download the Market Report for Monday 3rd April 2017
The equities market ended the first trading session of the week negative despite the market breadth index closing positive at +0.21x.
- Today’s performance was largely driven by the sell-off in DANGCEM (-194pts), in addition to the declines in GUARANTY (-51pts), UBA (-50pts) and NB (-43pts). These performances more than offset the gains in DANGSUGAR (+22pts), MOBIL (+16pts) and ZENITHBANK (+14pts). Consequently, the NSE-ASI closed down -0.95% to 25,273.03pts, representing a market capitalisation of N8.75tr.
- We highlight that the decline in UBA (-8.15%) was predominantly due to its dividend (55kobo per share) markdown today. ETERNA (-4.72%) led the 7 stocks that declined while UACN (+10.23%) topped the 21 stocks that gained.
- While the Oil & Gas sector (+0.23%) closed positive today, all other major sectors ended in the red. The Banking sector was the worst performer, down -1.57% with the Industrial (-0.73%) and Consumer Goods (-0.06%) sectors also closing in the red.
- Furthermore, market activity declined significantly with total volume and total value down -74% and -83% respectively, compared to last Friday. Investors exchanged a total of 98m units of shares worth N683m. FIDELITYBK (+1.27%) was the most actively traded stock with 27m units of shares accounting for 27% of total volume.
- While we may see some level of support for the market from investors positioning for dividends, the ASI is likely to remain volatile in the near term given the lack of positive news flow to support a momentum. That said, we however advise investors to lengthen their horizon and gradually build position in quality names for a medium to long term horizon.
CURRENCY:
- The NGN recorded a marginal +0.02% gain against the USD at the interbank market to close at N360.30, while also rising by +2.86% and +0.09% against the GBP and EUR to berth at N382.84 and N326.69 respectively.
- At the parallel market, the Naira opened the week on a negative note falling by -1.3% and -0.4% against the USD and GBP to berth at N395 and N480 respectively. It however gained 1.2% against the EUR to settle at N415.
- We expect NGN to remain volatile at the parallel market, as uncertainty regarding CBN’s next move on NGN/USD rate would continue to determine market direction.
FIXED INCOME:
- Both OBB and OVN rates ended today’s session at 10.67% and 11.42% level while the 1month, 3month and 6month NIBOR rates expanded by 20bps, 20bps and 23bps respectively to settle at 16.76%, 20.97% and 23.51% level respectively.
- The bond market opened the week on a bullish note, as yields compressed on most of the tenors. While yields on the 5yr and 7yr benchmark bonds closed flat at 15.64% and 15.62%, yields on the JAN 2026 (10yr benchmark bond) and JUL2030 contracted by 20bps and 9bps to end the session at 15.79% and 15.70% respectively.
- We expect activity in subsequent session to be influenced by liquidity level.
Below are key NSE statistics as at the end of trades:
Current | 25,273.03 | Mkt Cap (N’tr) | 8.74 | |
Previous | 25,516.34 | Vol. Traded (m) | 98 | |
Day Change | -0.95% | Vol. Day Chng. | -74% | |
WTD Return | -0.95% | Val. Traded (N’bn) | 0.68 | |
MTD Return | -0.95% | Val. Day Chng. | -83% | |
YTD Return | -5.96% | No. of Deals | 2,634 | |
YTD High | 26,616.89 | No. of Gainers | 28 | |
YTD Low | 24,581.99 | No. of Losers | 7 | |
52wk High | 31,071.25 | Top Sub Sect. (by Vol.) | BNK (54%) | |
52wk Low | 22,456.32 | Top Sub Sect. (by Val.) | BNK (19%) |
As at time of publishing, the NASD OTC pricelist for Monday 3rd of April 2017 was not available.
