July 3, 2017/InvestmentOne Research
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EQUITIES:
- The NSE-ASI opened the quarter on a negative note, falling by -1.05%. This decline was largely due to sell-offs in DANGCEM (-148pts), ZENITHBANK (-35pts) and GUARANTY (-33pts) which more than offset gains in PZ (+17pts), HONYFLOUR (+4pts) and ACCESS (+3pts).
- All the major sectors also witnessed a decline led by the Oil and Gas sector (-1.81%) and followed by the Banking (-1.13%), Industrial (-0.64%) and Consumer goods (-0.28%) sectors..
- Investors exchanged c.162m units of shares worth c.N1.52bn in 3,488 deals. This represents -53% and -55% decline in both volume and value turnover respectively. ACCESS (+2.53%) was the most actively traded stock with c.21m units of shares, representing 13% of total volume.
- The market breadth index was negative at -0.12x at the close of trading today. 17 stocks led by HONYFLOUR (+9.66%) gained while 29 stocks led by MAYBAKER (-9.54%) closed lower.
- In the near term, we see support to ASI performance from recent reform in the FX market and revised PFA investment guideline which requires increased allocation to equities.
CURRENCY:
§ The NGN dipped marginally by -0.02% against the USD to close at N305.95 while also losing -1.49% and -0.95% against the GBP and EUR to settle at N407.66 and N358.09 respectively.
§ In the parallel market, the local unit gained +0.05% against the USD to close at N365. It however remained unchanged against the GBP and EUR to close at N465 and N410 levels respectively.
§ We expect NGN/USD equilibrium to remain relatively stable given support from FX intervention sales by the apex bank.
FIXED INCOME:
- Both O/N and OBB rose to 15.67% and 14.83% as against 5.75% and 5.33% level respectively on Friday following sales of OMO bills by the apex bank.
- In today’s auction, the apex bank sold c.N765m and c.N44.66bn worth of 199-day and 339-day bills at 17.59% and 18.55% stop rates respectively.
- The bond market was relatively quiet today, though demands on some long-dated instruments exerted downward pressure on yields on these maturities. While yield on the 7yr benchmark bond closed flat, yields on the 5yr and 10yr benchmark bonds contracted by 3bps and 4bps to berth at 16.08% and 16.15% respectively.
- We expect activity in subsequent session to be influenced in liquidity levels.
Below are key NSE statistics as at the end of trades:
Current | 32,769.80 | Mkt Cap (N’tr) | 11.33 | |
Previous | 33,117.48 | Vol. Traded (m) | 162 | |
Day Change | -1.05% | Vol. Day Chng. | -53% | |
WTD Return | 2.02% | Val. Traded (N’bn) | 1.52 | |
MTD Return | 11.09% | Val. Day Chng. | -55% | |
YTD Return | 21.94% | No. of Deals | 4,797 | |
YTD High | 34,375.60 | No. of Gainers | 17 | |
YTD Low | 24,581.99 | No. of Losers | 29 | |
52wk High | 34,375.60 | Top Sub Sect. (by Vol.) | BNK (50%) | |
52wk Low | 24,581.99 | Top Sub Sect. (by Val.) | BNK (39%) |
