July 13, 2017/InvestmentOne Research

Please click to download the Market Report for Thursday 13^th July 2017

 EQUITIES:

• The All Share Index continued the positive momentum by recording a +0.80% gain today. Therefore, the ASI closed at 33,246.91pts representing a market capitalisation of N11.46bn. Meanwhile, YTD performance stands at +23.71%.
• Today’s trading session saw gains in DANGCEM (+84.34pts), GUARANTY (+59.98pts) and STANBIC (+30.28pts) offset declines in NB (-33.94pts), ACCESS  (-12.63pts) and FBNH (-7.32pts).
• Momentum in the Banking sector slowed down today as Oil & Gas and Industrial names inched up. Three sectors led by the Oil and Gas (+2.82%) sector closed positive today. Other sectorial  gainers include the Industrial (+2.04%) and Banking (+0.85%) sectors, while the Consumer Goods (-0.01%) sector was the only loser today.
• The Market Breadth Index (MBI) closed positive (+0.15x) today as there were 33 gainers led by MOBIL (+9.49%) and 19 decliners led by CHAMPION (-7.00%).
• Investors exchanged c.289m units of shares worth c.N3.82bn in 3,631 deals today. When this is compared to yesterday’s trading session, it represents an improvement across board as 271m units of shares worth N2.77bn were exchanged. It is worthy of note that the volume and value turnover recorded today are MTD highs. UBA (+0.11%) was the most actively traded stock with 114m units of stocks  representing 39% of total volume.
• We believe that investors would continue to position for anticipated positive Q2 earnings scorecards across quality names. However, we highlight the potential for profit taking on recent gains.

CURRENCY:

• As CBN maintained its daily intervention at the end of trading at the interbank market, the NGN continued to close at N305-306 levels against the USD. However, the NGN gained +0.17% to N358.48 against the EUR while it shed -0.25% to N406.41 against the GBP.
• The local currency remained relatively stable at the parallel market today closing at N368 against the USD, N472 against the GBP and N420 against the EUR. At the Investors and Exporters’ FX window, the NGN gained +0.95% to close at N362.80 against the USD.
• Going forward, we expect the NGN to continue to see support from the CBN’s FX sales.

FIXED INCOME:

• Both the O/N and OBB rates eased to 8.25% and 7.33% from 15.17% and 14.33% levels respectively yesterday following inflow from OMO maturity of c.N90bn. The 1month, 3month and 6month NIBOR rates  also declined by 25bps, 19bps and 46bps to close at 19.83%, 21.51% and 22.75% respectively.
• In its bid to drain excess system liquidity from OMO maturity, the apex sold c.N28.19bn worth of OMO bills today to investors at 17.95% and 18.55% stop rates.
• Yields on FGN bonds trended mixed today as the bond market was relatively quiet due to limited demands. While yield on the 7yr benchmark bond gained 3bps to 15.99%, yield on the 10yr benchmark lost 5bps to berth at 16.22%. 5yr benchmark bond yield  however closed flat at 16.10%.
• Going forward, we expect market activity to be influenced by liquidity levels.
  

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