July 17, 2017/InvestmentOne Research
Please click to download the Market Report for Monday 17th July 2017
EQUITIES:
- At the end of today’s trading session, the NSE-ASI closed positive with a +0.12% gain thereby opening the week on a positive note and continuing the bullish run that has seen the index close positive for the eighth consecutive trading session. While the ASI closed at 33,301.43pts, market capitalization berth at N11.48bn. YTD performance of the ASI is currently +23.91%.
- We saw gains in NB (+77.57pts), UNILEVER (+37.23pts) and FO (+16.42pts) offset the declines in OANDO (-25.23pts), UBA (-21.13pts) and FBNH (-17.77pts) in today’s market.
- Sectorial performance was evenly mixed today as the Consumer Goods (+1.29%) and Industrial (+0.03%) sectors were the gainers, while the Oil & Gas (-0.51%) and Banking (-0.46%) sectors were the decliners today.
- Despite the gains recorded, the Market Breadth Index (MBI) was negative (-0.03x) as there were 23 gainers and 26 decliners. The gainers were led by UNILEVER (+10.24%), while OANDO (-9.54%) led the decliners.
- In today’s trades, c.323m units of stock worth N2.73bn were exchanged in 3,830 deals. This represents a mixed performance when compared to Friday’s session where c.312m units of shares worth N3.27bn were traded. NIGERINS was the most traded stock as c.150m units of its stock were exchanged.
- We saw the ASI continue its positive momentum today largely due to the gains in Consumer Goods names. Going forward, we believe investors may continue to position for positive earnings scorecards across quality names. However, the potential for profit taking remains.
CURRENCY:
- At the interbank market, the NGN closed relatively flat at N305.90 and N410.95 against the USD and GBP while shedding -0.06% against the EUR to berth at N360.51. That said, the Naira closed at N362.21 at the IEFX window with intra-day high of N376 and low of N347 against the USD.
- In the parallel market, the local unit closed flat against the USD, GBP and EUR at N367, N472 and N420 respectively.
- In the coming sessions, we expect continued support to NGN performance from FX sales by the apex bank as well as traction at the IEFX window.
FIXED INCOME:
- CBN conducted an OMO auction today, selling close to N20bn worth of bills at 17.95% and 18.55% stop rates as it maintained its defence of the local currency. However, the Overnight and Open-Buy-Back rates declined by -283bps to 6.92% and 6.17% respectively. As at time of writing, NIBOR rates were yet to be published.
- At the bond market today, yield movement was muted which may not be unconnected with the strain on liquidity levels from CBNs OMO and FX auctions. Yields on the 5yr, 7yr and 10yr benchmark bonds remained unchanged at 16.12%, 16.02% and 16.24% respectively.
- The bond market ended the week on a bearish note as limited demand due to low system liquidity continues to constrain trading activities. While yields on the 5yr and 7yr benchmark bonds gained 1bp and 3bps to berth at 16.12% and 16.01% respectively, 10yr benchmark bond’s yield shed 1bp to 16.24%.
- Going forward, we expect market activity to be influenced by liquidity levels.
Below are key NSE statistics as at the end of trades:
Current | 33,301.43 | Mkt Cap (N’tr) | 11.48 | |
Previous | 33,261.66 | Vol. Traded (m) | 323 | |
Day Change | 0.12% | Vol. Day Chng. | 4% | |
WTD Return | 0.12% | Val. Traded (N’bn) | 2.73 | |
MTD Return | 0.56% | Val. Day Chng. | -16% | |
YTD Return | 23.91% | No. of Deals | 3,113 | |
YTD High | 34,375.60 | No. of Gainers | 23 | |
YTD Low | 24,581.99 | No. of Losers | 26 | |
52wk High | 34,375.60 | Top Sub Sect. (by Vol.) | BNK (34%) | |
52wk Low | 24,581.99 | Top Sub Sect. (by Val.) | BNK (38%) |
