April 10, 2017/InvestmentOne Research
Please click to download the Market Report for Monday 10th April 2017
EQUITIES:
- With trades worth c.N585mn, the Nigerian bourse opened the week in the red, as the All Share index declined by -0.47% to berth at 25,626.37pts dragged by sell-off in Consumer and Banking trackers.
- Today’s performance was reflective of the decline in NB (-58.87pts), DANGSUGAR (-30.75pts) and GUARANTY (-17.14pts) which cancelled out the gains in TOTAL (+10.53pts), FIDELITY (+6.75pts) and FBNH (+2.09pts).
- Investors’ sentiment as gauged by market breadth index (-0.13x) closed negative as 22 stocks led by OANDO (-4.75%) closed lower as against eight (8) stocks led by FIDELITY (+9.52%) that advanced.
- Market turnover was however mixed as volume traded increase by +78% to 189m units of stocks while value turnover declined by -38% to c.N585m. STACO led the volume chart with 100m units of stocks traded accounting for 53% of total volume.
- With marginal gain of +0.04%, the Oil and gas tracker was the lone gainer while the Consumer and Banking trackers declined by -1.41% and -0.47% respectively.
- With the FY2016 earning season coming to an end, we expect the ASI to remain volatile in the near term as no positive catalysts exist to drive market momentum. That said, we however advise investors to lengthen their horizon and seek decent entry point as they gradually build position in quality names.
CURRENCY:
- Due to the sustained intervention by CBN at the interbank market, the NGN continued to close flat at N306 levels. However, the NGN lost -2.78% to N390.74 against the GBP while it gained +0.35% to N324.50 against the EUR.
- At the parallel market, the NGN remained flat at N405 against the USD, N490 against GBP and N425 against the EUR.
- Going forward, we expect CBN’s continued intervention in the FX market to support the local currency in the near term.
FIXED INCOME:
- CBN conducted an OMO auction today, selling close to N20bn in 185-day and 325-day bills at 18.00% and 18.60% stop rates. This squeeze on system liquidity led to the 700bps expansion in the O/N and OBB rates to 22.75% and 21.67% respectively.
- As at time of writing, money market rates had yet to be published.
- Yield movement in the bond market was limited in today’s session with the yields on the 5yr, 7yr and 10yr bonds flat at 15.71%, 15.67% and 15.83% respectively. However, the yield on the Feb 2020 fell by 8bps to 15.78% while the yield on the June 2019 and March 2036 shed 2bps to 15.79% and 15.77% respectively.
- In the near term, we may see yields trend south on the release of the NBS’ inflation report on Thursday, which is likely to show a decline in headline inflation on the higher base effect of 2016.
Below are key NSE statistics as at the end of trades:
Current | 25,626.37 | Mkt Cap (N’tr) | 8.87 | |
Previous | 25,746.52 | Vol. Traded (m) | 192 | |
Day Change | -0.47% | Vol. Day Chng. | 78% | |
WTD Return | -0.47% | Val. Traded (N’bn) | 0.58 | |
MTD Return | 0.43% | Val. Day Chng. | -36% | |
YTD Return | -4.64% | No. of Deals | 2,626 | |
YTD High | 26,616.89 | No. of Gainers | 8 | |
YTD Low | 24,581.99 | No. of Losers | 22 | |
52wk High | 31,071.25 | Top Sub Sect. (by Vol.) | BNK (21%) | |
52wk Low | 22,456.32 | Top Sub Sect. (by Val.) | BNK (34%) |
NASD OTC pricelist for Monday 10th of April 2017
Company | Symbol | Prev Close | Close Price | Chg | % Chng | Deals | Volume | Value |
CENTRAL SECURITIES CLEARING SYSTEM PLC | CENTRAL SECURITIES CLEARING SYSTEM PLC | 6.64 | 6.12 | -0.52 | -7.83 | 3 | 1,000,000 | 6,120,520.00 |
Niger Delta Exploration and Production Plc | SDNDEP | 130.00 | 143.00 | 13.00 | 10.00 | 1 | 1,957 | 251,865.90 |
NIPCO PLC | NIPCO PLC | 70.10 | 70.10 | 0.00 | 0.00 | 1 | 50,000 | 3,505,000.00 |
