April 5, 2017/InvestmentOne Research

Please click to download the Market Report for Wednesday 5^th April 2017

EQUITIES:

• Following the gains in WAPCO (+65pts) MOBIL (+34pts), GUARANTY (+28pts), OANDO (+19pts) and ZENITHBANK (+18pts), which offset the sell-off in ETI (-21pts) and PZ (-8pts), the equities market closed positive for the first trading session this week.  
• In addition, all major sectors closed in the green with the Industrial sector (+4.42%) the best performer. The Oil & Gas, Banking and Consumer Goods sectors also gained +3.33%, +1.19% and +0.06% respectively. Consequently, the NSE-ASI inched up +0.81% to 25,471.69pts, representing a market capitalisation of N8.81tr.
• Furthermore, the market breadth index closed positive at +0.07x, as 23 stocks gained compared to 15 stocks that declined. MOBIL (+10.25%) was the market best performing stock while TRANSEXPR (-8.08%) led the losers’ chart. 
• However, market activity declined compared to yesterday with total volume and total value down -12% and -30% respectively. Investors exchange 159m units of shares worth N1.13bn. FIDELITYBK was the most actively traded stock with c.49m units of shares accounting for c.31% 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:

• At the interbank market, the NGN remains stable at N306 level, but shed -3.08% and -2.71% against the GBP and EUR to settle at N393.28 and N335.71.
• In the parallel market, the NGN weakened by -2.02% and -1.03% against the USD and GBP to settle at N398 and N485 level respectively, while closing flat at N415 level against the Euro..
• In the near term, we expect NGN performance to reflect the impact of USD sales to BDCs by the apex bank.
  

FIXED INCOME:

• System liquidity ended the session at c.N62bn positive, as both OVN and OBB advanced by 250bps and 225bps to settle at 12.5% and 11.5% respectively. The 1month, 3month and 6month NIBOR rates also expanded by 58bps,54bps and 13bps to settle at 16.93%, 21.21% and 23.42% respectively.
• The CBN today offered c.N156bn worth of T-bill in three different maturities to investors. The outcome of the auction is still being awaited
• Following release of April bond circular in which the DMO proposed to raise c.N135b worth of bond compared to N130b in March, the bond market was relatively quiet today. However, sell-off in some tenors at the short-end of the curve drove yields up marginally. Yields on the 5yr and 7yr benchmark bonds expanded by 2bps and 4bps to berth at 15.67% and 15.65% respectively while yield on the 10yr benchmark bond closed flat 15.83%.
• We expect activity in subsequent session to be influenced by liquidity level.
  

Below are key NSE statistics as at the end of trades:

NASD OTC pricelist for Wednesday 5^th of April 2017