April 20, 2017/InvestmentOne Research
Please click to download the Market Report for Thursday 20th April 2017
EQUITIES:
- Amidst massive slide in turnover, the Nigerian bourse closed in the red as the All Share Index shed -0.19% dragged by decline in heavyweight Industrial and Banking trackers.
- This performance was reflective of sell pressure in DANGCEM (-49.61pts), ETI (-20.30pts) and 7UP (-9.77pts) which offsets the gain in NB (+23.08pts), STANBIC (+14.29pts) and SEPLAT (+8.20pts).
- Market breadth index (+0.01x) however closed positive as 16 stocks advanced led by AFRIPRUD (+4.98%) compared to 15 stocks that declined topped by 7UP (-5.00%).
- Volume and value turnover declined by -54% and -45% respectively as investors exchanged 147m units of stocks worth c.N843m in 2,578 deals. TRANSCORP and DIAMONDBANK were the most actively traded stocks with 28m and 24m units respectively.
- Sectoral performance was mixed as gain in Oil & Gas (+0.48%) and Consumer (+0.04%) were countered by decline in Banking (-0.31%) and Industrial (-0.28%).
- As Q1 2017 earnings season kicks off, we expect investors’ reaction to earnings scorecard to influence market direction. That said, we however advise investors to lengthen their horizon and gradually build position in quality names as limited participation by FPI and PFAs would continue to detract from market momentum.
CURRENCY:
- Due to CBN’s continued intervention at the interbank market, the local currency closed flat at N306 levels against the USD. With this said, the NGN lost -3.03% to N404.09 against the GBP and -0.47% to N338.97 against the EUR.
- At the parallel market, the NGN continued to appreciate against major currencies today, gaining +4.00% to N385 against the USD, +1.01% to N495 against the GBP and +3.66% to N410 against the EUR.
- Going forward, we believe the NGN may be influenced by the frequency of CBN’s market intervention sales.
FIXED INCOME:
- Following the N25bn OMO maturity today, the Open-Buy-Back and the Overnight rates declined to 26.67% and 29.33%, from 120.84% and 133.33% respectively. This occurred despite CBN selling N225m worth of OMO bills at 18.00% and 18.60% stop rates respectively.
- At the bond market, investors remained largely bearish with yields trending upwards on average. While the yield on the July 2021 declined by 13bps to 16.63%, the yield on the 7yr benchmark bond increased by 9bps to 16.07%. The yield on the 5yr and 10yr benchmark bonds were flat at 15.87% and 16.08% respectively.
- Despite the N26bn OMO maturity today, we expect CBN to continue to keep system liquidity tight. As such, we expect money market rates and yields in the bond market to remain range bound in the coming sessions.
Below are key NSE statistics as at the end of trades:
Current | 25,282.75 | Mkt Cap (N’tr) | 8.75 | |
Previous | 25,331.77 | Vol. Traded (m) | 148 | |
Day Change | -0.19% | Vol. Day Chng. | -54% | |
WTD Return | -0.89% | Val. Traded (N’bn) | 0.84 | |
MTD Return | -0.92% | Val. Day Chng. | -45% | |
YTD Return | -5.92% | No. of Deals | 2,578 | |
YTD High | 26,616.89 | No. of Gainers | 16 | |
YTD Low | 24,581.99 | No. of Losers | 15 | |
52wk High | 31,071.25 | Top Sub Sect. (by Vol.) | BNK (64%) | |
52wk Low | 22,456.32 | Top Sub Sect. (by Val.) | BNK (66%) |
Please find below the NASD OTC pricelist for Thursday 20th of April 2017.
Company | Symbol | Prev Close | Close Price | Chg | % Chng | Deals | Volume | Value |
ACORN PETROLEUM PLC | SDACORN | 0.32 | 0.32 | 0.00 | 0.00 | 1 | 70,000 | 22,400.00 |
AFRILAND PROPERTIES PLC | SDAFRILAND | 3.70 | 3.33 | -0.37 | -10.00 | 4 | 38,125 | 126,956.25 |
CENTRAL SECURITIES CLEARING SYSTEM PLC | SDCSCSPLC | 6.60 | 6.70 | 0.10 | 1.52 | 5 | 320,000 | 2,140,507.00 |
FRIESLAND CAMPINA WAMCO NIGERIA PLC | SDFCWAMCO | 137.00 | 146.49 | 9.49 | 6.93 | 14 | 112,200 | 16,364,753.50 |
INDUSTRIAL AND GENERAL INSURANCE PLC | SDIGIPLC | 0.09 | 0.09 | 0.00 | 0.00 | 1 | 10,000 | 900.00 |
