July 6, 2017/InvestmentOne Research
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EQUITIES:
- Nigerian stocks ended a four-day bearish run with the benchmark, NSE-ASI gaining +0.16% to berth at 32,354.78pts. Hence, the index YTD returns rose to +20.39% while investors’ wealth increased by c.N18bn as market capitalisation closed at c.N11.15trillion.
- Buying interest in DANGCEM (+95.75pts), ZENITHBANK (+18.28pts) and UBA (+12.67pts) was largely responsible for today’s positive close, offsetting the decline in NB (-77.39pts), STANBIC (-14.56pts) and FLOURMILL (-8.70pts).
- However, market breadth index (-0.03x) closed in the negative zone as 20 stocks led by OANDO (+4.97%) advanced while 23 stocks topped by MAYBAKER (-3.18%) declined. GUARANTY and TRANSCORP were the most actively traded stocks with over 36m and 21m units respectively.
§ With the exception of Consumer tracker (-1.13%) which closed in the red, Oil & Gas (+1.15%), Banking (+0.53%) and Industrial (+0.49%) trackers ended the session with gains.
- As we approach Q2 2017 earnings season, we expect investors to build position in some quality names in anticipation of interim dividend payment. Hence, we see support to ASI performance in the coming sessions.
CURRENCY:
- The NGN continued to close at N305-306 levels against the USD at the interbank market as CBN maintained its daily intervention at the end of trading. However, the NGN lost -0.25% to N407.48 against the GBP and -0.70% to N359.02 against the EUR.
- At the parallel market, the NGN closed flat at N365 against the USD, N468 against the GBP and N412 against the EUR.
§ Going forward, we expect the local currency to continue to see support from the CBN’s intervention sales, with the Apex bank offering $100m in forwards to the market yesterday.
FIXED INCOME:
- Following the inflow from the N65bn OMO maturity today, the Overnight and Open-Buy-Back rates fell to 14.92% and 14.50%, from 80.59% and 78.33% respectively. While the 1month NIBOR rate increased by 10bps to 20.12%, the 3month and 6month NIBOR rates fell by 6bps and 21bps to 22.00% and 24.14% respectively.
- Although yield movement remained largely muted, investors were largely bearish particularly at the tail end of the curve with the yields on the July 2034 and March 2036 increasing by 1bp and 2bps to both close at 15.96%. Yields on the 5yr, 7yr and 10yr benchmark bonds were unchanged at 16.10%, 15.88% and 16.19% respectively.
- In the coming sessions, we expect market activity to be influenced by liquidity levels.
Below are key NSE statistics as at the end of trades:
Current | 32,354.78 | Mkt Cap (N’tr) | 11.15 | |
Previous | 32,302.32 | Vol. Traded (m) | 169 | |
Day Change | 0.16% | Vol. Day Chng. | -46% | |
WTD Return | -2.30% | Val. Traded (N’bn) | 3.63 | |
MTD Return | -2.30% | Val. Day Chng. | 22% | |
YTD Return | 20.39% | No. of Deals | 4,312 | |
YTD High | 34,375.60 | No. of Gainers | 20 | |
YTD Low | 24,581.99 | No. of Losers | 23 | |
52wk High | 34,375.60 | Top Sub Sect. (by Vol.) | BNK (52%) | |
52wk Low | 24,581.99 | Top Sub Sect. (by Val.) | BNK (43%) |
