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Stocks Inch up as All Share Index climb 0.28%

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L – R: Shows Professor Mashood Baderin, Head, School of Law, SOAS University of London; Oscar Onyema, CEO NSE; Baroness Valerie Amos, Director, SOAS University of London; HE Mrs. Toyin Saraki, Wife, Senate President, Wellbeing Foundation Africa and Dr. Emilia Onyema, Senior Lecturer, International Commercial Law, SOAS University of London at the Closing Gong Ceremony

April 25, 2017/Cordros Research

Kindly find the full report attached

EQUITIES

  • The Nigerian equities market advanced, with the All Share Index climbing 0.28% to 25,818.87 points.
  • Today’s performance increased the Month-to-Date return to 1.19%, while it reduced the Year-to-Date loss to 3.93%.
  • The Oil & Gas (+1.07%) index recorded the largest gain, following demand for the shares of MOBIL (+4.94%) and OANDO (+1.31%). Likewise, the Banking (+0.32%), Insurance (+0.20%), and Industrial Goods (+0.74%) indices closed higher, owing to investor interest in GUARANTY (+0.78%), NEM (+5.00%), and WAPCO (+1.56%) respectively. The Consumer Goods (-0.15%) index bucked the trend, as investors sold-off their holdings in NB (-0.40%) and CHAMPION (-4.86%).
  • Market breadth was positive, with 24 gainers versus 12 losers. The total volume of trades declined by 39.82% to 127.43 million shares, valued at N909.33 million, and exchanged in 3,176 deals.
  • Corporate Release: Q1 2017 earnings- CADBURY (PAT: -86.18% y/y).
  • We expect market performance to further reflect investor reaction to Q1-2017 earnings.

CURRENCY

  • Further to yesterday’s intervention, the CBN offered USD246.2 million to authorized commercial lenders to meet the demand of SMEs, as well as invisible transactions.  In the interbank segment, the NGN/GBP (-0.28%) and NGN/EUR (-3.46%) weakened to N406.77 and N342.71 respectively, while the NGN/USD (+0.02%) strengthened to N305.90. In the parallel market, the NGN/USD (-0.78%) declined to N388, while the NGN/GBP (+1.01%) strengthened to N490. The NGN/EUR remained flat at N415. Meanwhile, in the Investors and Exporters’ window, the NGN/USD (+0.57%) strengthened to N374.96.

FIXED INCOME AND INTERBANK

  • The money market overnight rate contracted by 100 bps to 33.67%, perhaps in anticpation of a deluge of inflows this week, estimated at +N700 billion. The apex bank also mopped up N4.05 billion across the 170-day (N0.48 billion vs. N5.00 billion offered) and 331-day (N3.57 billion vs.N10.00 billion offered) bills.
  • Investors remained upbeat in the treasury bills market, with average yield contracting by 8 bps to 18.23%.  Yields at the mid (-7 bps) and long (- 15 bps) ends of the curve moved southward, owing to demand for the 26-OCT-17 (- 46 bps to 18.36%) and 2-NOV-17 (- 51 bps to 17.86%) bills respectively. Conversely, yield expanded at the short (+3 bps) segment, as the 25-MAY-27 (+146 bps to 16.28%) and 22-JUN-17(+7 bps to 18.46%) bills came under pressure.
  • Likewise, the bond market closed on a bullish note, with 86% of traded bonds attracting investor interest. Yields at the short (- 22 bps), mid (-7 bps), and long (- 5 bps) ends of the curve contracted, following demand for the MAY 2018 (-33 bps to 20.57%), FEB 2020 (-14 bps to 16.05%), and JUL 2034 (-21 bps to 15.77%) maturities respectively. Overall, average yield eased 8 bps to 16.50%. 

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