June 29, 2017/InvestmentOne Report

Please click to download the Market Report for Thursday 29^th June 2017

EQUITIES:

• The Nigerian equities market continued its positive momentum today, gaining +1.88% to close at 33,269.84pts representing a market capitalisation of c.N11.40tr.
• Today’s performance was mainly driven by the gains in DANGCEM (+247pts), NB (+97pts), UBA (+50pts), STANBIC (+45pts) and ACCESS (+38pts), which more than offset the profit taking in GUARANTY (-26pts).
• Market breadth index closed positive at +0.21x as 37 stocks gained led by PZ (+9.90%) while MAYBAKER (-4.88%) topped the 14 stocks that declined.
• Market activity improved today as investors exchanged 439m units of shares worth N4.81bn, representing a +14% and +45% increase in total volume and value respectively. UBA (+5.22%) was the most actively traded stock with c.176m units of shares accounting for c.40% of total volume.
• Going forward, we expect the market to see support from the PFA investment guidelines and the reforms in the FX market. However, we highlight the potential for profit taking.
  

CURRENCY:

§  The NGN closed flat at N305.90/$, however recorded marginal decline of -0.43% and -0.54% against the GBP and EUR to close at N409.31 and N359.92 respectively.

§  At the parallel market, the Naira closed relatively flat against the USD, GBP and EUR to end the session at N368, N465 and N410 levels respectively.

§  We expect NGN performance to continue to see support from intervention sales by the apex bank as well as improved liquidity at the IEFX window…

FIXED INCOME:

• Money market rates eased across tenors following inflow of c.N236bn OMO maturity. The O/N and OBB contracted by over  475bps and 500bps to end the session at 4.85% and 4.00% respectively. The 1month , 3month and 6month NIBOR rates also contracted by 5bps, 2bps and 39bps to berth at 19.37%, 21.41% and 23.31% respectively.
• In its bid to drain system liquidity following inflow from OMO maturity, the apex bank sold c.N6.5bn and c.N72.81bn worth of OMO bills at 18% and 18.6% stop rates in today’s auction.
• Yields on FGN bonds trended mixed today as improvement in system liquidity from OMO maturity spurred demand on some tenors. While yield on the 5yr benchmark bond expanded by 3bps to 16.20%, yields on the 7yr and 10yr benchmark bonds contracted by 2bps each to close at 15.89% and 16.20% respectively.
• We expect activity in subsequent session to be influenced in liquidity levels.

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

NASD Pricelist for Thursday 29^th June, 2017