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NSE: Investors Remain Upbeat as Benchmark Index Records Gain for Three Consecutive Session

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L – R: Shows Ade Bajomo, Executive Director, Market Operations and Technology, NSE; Mrs. Adesola Sotande-Peters, Finance Director, Unilever Plc; Oscar Onyema, CEO, NSE; Mr. Yaw Nsarkolu, Managing Director, Unilever Plc and Pai Gamde, Ag. Head, Corporate Services Division, NSE at the Facts Behind the Issue Presentation at the Exchange on Thursday in Lagos.

August 3, 2017/Cordros Research

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EQUITIES

  • Investors in the equities market remained upbeat, as the ASI (+0.62%) recorded gains for the third consecutive session to close at 37,135.23 points.
  • Today’s performance improved the Year-to-Date and Month-to-Date returns to 38.18% and 3.60% respectively.
  • Among sector indices, the Consumer Goods (+2.59%), Industrial goods (+2.17%) and Banking (+2.06%) indices led the pack following investor interests in DANGSUGAR (+9.80%), NB (+0.67%), WAPCO (+0.43%), CCNN (+4.93%), GUARANTY (+2.59%) and ZENITH (+1.60%), respectively. Meanwhile, the Oil and Gas (-2.62%) and Insurance (-0.39%) indices took more dips following selloff in the shares of MOBIL (-3.59%) and AIICO (-3.39%), respectively.
  • Market breadth remained positive with 25 gainers and 17 losers. Total volume traded in today’s session increased by 64.18% to 412 million shares, valued at N4.72 billion and exchanged in 4,207 deals.

  • We expect the market to close bullish as investors take position ahead of more corporate releases.   

CURRENCY

  • As at the time of writing, the NGN – in the interbank segment – strengthened against all the currencies we track. The NGN/USD (+0.02%), NGN/GBP (+3.22%) and NGN/EUR (+2.42%) appreciated to N355.55, N475.94 and N430.23 respectively. Conversely, in the parallel market, the LCY recorded losses across board with the NGN/USD (-0.55%), NGN/GBP (-0.42%) and NGN/EUR (-0.47%) closing at N365, N475 and N424, respectively. Meanwhile, in the I/E FX window, NGN/USD (+0.36%) appreciated to N367.19%. 

FIXED INCOME AND MONEY MARKET

  • The overnight rate contracted by 242 bps to 17.75% driven by the inflow of N85.42 billion from maturing OMO bills. In a bid to reduce the impact on liquidity, the apex bank offered OMO bills worth N110 billion while N130.1 billion was allotted – comprising of N3.56 billion of the 189-day and N134.53 billion of the 364-day bills at  respective stop rates of 17.5% and 18.55%.
  • The treasury bills market resumed on a bullish note after the three-day suspension by the FMDQ, with average yields contracting by 23 bps to 17.30%. Bills on the short (-59 bps), mid (-12 bps) and long (-3 bps) contracted to 15.26%, 18.19% and 18.28%, respectively, owing to demand for 28-SEPT-2017, 1-FEB-2018 and 14-JUNE-2018 bills, respectively.
  • Activities in the bonds space was mixed with average yields expanding by less than 1bp to 16.34%. Bond on the short (+1 bp) contracted to 16.79% owing to demand for 29-JUNE-2019, while snippets of sell-offs ensued at the mid and long ends of the curve with average yield expanding by less than 1bp to 16.43% and 16.24% respectively.

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