Please click to download the Market Report for Wednesday 7^th June 2017

EQUITIES:  

• The All Share Index reversed yesterday’s negative close, posting +1.51% gain at the end of today’s session supported by buying interest in SEPLAT (+30.14pts), DANGCEM (+469.85pts) and STANBIC (+29.12pts). This offset the decline in some Banking and Consumer names including the likes of FBNH (-67.93pts), GUARANTY (-25.71pts) and NB (-22.85pts).
• Market breadth index however fell into the negative zone as 26 stocks led by INTERBREW (+10.12%) advanced compared to 27 decliners led by FBNH (-9.62%).
• Activity levels also declined compared to previous session with volume and value turnover down by -33% and  -38% to 499m units of stocks worth c.N4.07bn. FBNH topped both volume and value turnover with 99m units of stocks worth c.N639m.
• Industrial  and Oil & Gas trackers were up +2.01% and +2.97% largely supported by +4.75% and +5% uptick in both DANGCEM and SEPLAT while Consumer index recorded a marginal gain of +0.66%. On the flip side, Banking tracker shed -0.61% largely due to profit-taking on FBNH (-9.22%).
• In the near term, we expect profit-taking on recent gains in the index. That said, we however reiterate our expectation of continued support to ASI’s performance from recent reform in the FX market as well as new PFA guideline which requires increased investment allocation to equity.

CURRENCY:

• Due to CBN’s sustained intervention at the interbank market, the NGN continued to close at N305-306 levels. However, the NGN lost -0.4% to N407.25 against the GBP while it was relatively unchanged at N354.21 against the EUR.
• At the parallel market, the NGN appreciated by +1.1% to N368 against the USD and +1.1% to N465 against the GBP while it lost -0.5% to N412 against the EUR. The NGN also appreciated by +1.4% at the I&E FX window to close at N373.53 against the USD.
• We expect NGN performance to continue to see support from FX sales by CBN and  improved liquidity at the IEFX window.
  

FIXED INCOME:

• Money market rates continued to expand today as CBN conducted another OMO auction as part of its goal of keeping system liquidity low in defence of the local currency. The Apex bank sold N10.5bn worth of OMO bills at 18.00% and 18.60% stop rates. Consequently, money market rates expanded across all tenors. The 3month NIBOR rate increased by 23bps to 22.05%, while the 6month and 1month NIBOR rates inched up 14bps and 6bps to 24.21% and 20.13% respectively.
• While the majority of yields in the bond market closed unchanged today, investors were bullish towards the March 2036, the 5yr benchmark bond and March 2027 bonds with yields falling by 6bps, 5bps and 2bps to 15.96%, 16.14% and 16.25% respectively. Yields on the 7yr and 10yr benchmark bonds were unchanged at 16.03% and 16.16% at close of trading today.
• Despite N74bn worth of OMO bills maturing later this week, we expect CBN to keep system liquidity tight in defence of the local currency. As such, we see money market rates remaining high while yields in the bond market are likely to remain range bound in the absence of offshore demands.

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

NASD Pricelist for Wednesday 7^th June, 2017