August 14, 2017/InvestmentOne Research
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EQUITIES:
- Due to sell-off in DANGCEM (-248pts), as well as Tier 1 banking names; UBA (-30pts) and ZENITHBANK (-23pts), which more than offset the gains in NB (+46pts) and ETI (+22pts), the Nigerian equities market closed down -0.65% to 37,950.96pts.
- While the Consumer Goods sector closed positive (+0.25%), all other major sectors ended in the red. The Industrial sector was the worst performer, down -1.08% whilst the Oil & Gas and Banking sector lost -0.34% and -0.28% respectively.
- Furthermore, market activity declined compared to last Friday as investors exchanged 316m units of shares worth N4.2bn. This represented a -11% and -33% decrease in total volume and value respectively.
§ Also market breadth index closed negative (-0.09x) as 18 stocks advanced, against 27 stocks that declined. FIDSON (+4.68%) was the market’s best performer compared to CILEASING (-9.26%) which led the losers’ chart.
- Although expectation of earnings release from the remaining Tier 1 names yet to release should be supportive of the ASI, the potential for further profit-taking on recent gains remains.
CURRENCY:
- At the IEFX window, the NGN firmed by +0.63% against the USD to berth at N362.50. It also recorded marginal gains of +0.24% and +0.35% against the GBP and EUR to end the session at N472.19 and N428.60 levels respectively.
- In the parallel market, the Naira lost -0.27% and -0.47% against the Dollar and EUR to close at N368 and N432 levels respectively while closing flat against the GBP at N476.
- We expect NGN’s performance to continue to see support from FX sales by the apex bank as well as traction with IEFX window.
FIXED INCOME:
- Money market rates inched up across tenors today as CBN further squeezed system liquidity via sales of c.N180m and c.N9.21bn worth of OMO bills at 17.95% and 18.55% stop rates respectively. The Overnight and Open-Buy-Back rates rose to 99.25% and 99.60%.
- In subsequent sessions, we expect upward pressure on rates as system liquidity remain low.
- In response to limited system liquidity, the bond market opened the week on a bearish note as yields inched up across tenors. While yields on the 5yr and 10yr benchmark bonds closed flat at 16.36% and 16.53% , yield on the 7yr benchmark bond expanded by 13bps to 16.48%.
- We expect activity in subsequent session to be influenced by liquidity level.
Below are key NSE statistics as at the end of trades:
Current | 37,950.96 | Mkt Cap (N’tr) | 13.08 | |
Previous | 38,198.60 | Vol. Traded (m) | 316 | |
Day Change | -0.65% | Vol. Day Chng. | -11% | |
WTD Return | -0.65% | Val. Traded (N’bn) | 4.22 | |
MTD Return | 5.88% | Val. Day Chng. | -33% | |
YTD Return | 41.21% | No. of Deals | 4,055 | |
YTD High | 38,144.02 | No. of Gainers | 18 | |
YTD Low | 24,581.99 | No. of Losers | 27 | |
52wk High | 38,198.60 | Top Sub Sect. (by Vol.) | BNK (84%) | |
52wk Low | 24,581.99 | Top Sub Sect. (by Val.) | BNK (81%) |
