August 23, 2017/InvestmentOne Research
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EQUITIES:
- The Nigerian equities market closed positive for the second consecutive trading session today driven by the gains in bellwether stocks; NB (+46pts), ZENITHBANK (+41pts), ACCESS (+33pts) and STANBIC (+25pts), which more than offset the declines in WAPCO (-22pts), TOTAL (-11pts) and FLOURMILL (-10pts). Consequently, the ASI gained +0.26% to close at 37,059.21pts representing a market capitalisation of N12.77tr.
- However, market breadth index ended negative (-0.05x) as 17 stocks gained compared with 21 stocks that declined. CAVERTON (+9.52%) was the market’s best performer while SKYEBANK (-7.46%) led the losers’ chart.
- Furthermore, major sector performance was mixed as the Banking (+1.02%) and Consumer Goods (+0.27%) sectors closed positive while the Industrial (-1.05%) and Oil & Gas (-0.78%) declined.
- Investors exchanged 264m units of shares worth N5.5bn, a +8% and +51% increase in total volume and value respectively compared to yesterday’s session. ZENITHBANK (+1.95%) led the market in regards to both total volume and value with c.57m units of shares worth N1.32bn.
- Despite market breadth index closing negative today, the ASI ended positive as investors took advantage of yesterday’s sell-off in the banking sector. Interest in the banking sector also drove market activity, which rebounded to c.N5.5bn today. Going forward, we expect the market to be volatile with the markdown on GUARANTY tomorrow while the release of UBA’s Q2 2017 results could provide some level of support to the ASI.
CURRENCY:
- The NGN gained +0.27% to N463.38 against the GBP at the IEFX window while it shed 0.39% and -0.40% to N361 and N427.55 against the USD and the EUR respectively.
- At the parallel market, the local currency remained flat at N370 against the USD, N475 against the GBP and N432 against the EUR.
- Going forward, we expect the NGN to continue to see support from the CBN’s FX intervention sales, with the Apex bank selling $195m to the market on Monday.
FIXED INCOME:
- The Overnight and Open Buy Back rates spiked to 96.00% and 91.67% from 25.17% and 24.17% respectively, as CBN maintained its squeeze on system liquidity. The Apex bank sold close to N58bn worth of OMO bills today at 17.95% and 18.55% stop rates. As at the time of writing, money market rates were yet to be published.
- Although N96bn worth of OMO bills will be maturing on tomorrow, we expect CBN to maintain its stance on keeping a tab on liquidity levels. As such, we see rates in the money market staying high in the near term.
- At the bond market the CBN’s stance on system liquidity continued to constrain activity levels. However investors were largely bearish with the yields on the June 2019 and July 2021 inching up 2bps and 9bps to 16.89% and 16.51% respectively. While the yields on the 5yr and 7yr benchmark bonds were unchanged at 16.37% and 16.40% respectively, the yield on the 10yr benchmark bond fell by 3bps to 16.53%.
- Going forward, we believe market activity may continue to be influence by liquidity levels.
Below are key NSE statistics as at the end of trades:
Current | 37,059.21 | Mkt Cap (N’tr) | 12.77 | |
Previous | 36,962.48 | Vol. Traded (m) | 264 | |
Day Change | 0.26% | Vol. Day Chng. | 8% | |
WTD Return | 0.38% | Val. Traded (N’bn) | 5.53 | |
MTD Return | 3.39% | Val. Day Chng. | 51% | |
YTD Return | 37.90% | No. of Deals | 3,803 | |
YTD High | 38,198.60 | No. of Gainers | 17 | |
YTD Low | 24,581.99 | No. of Losers | 21 | |
52wk High | 38,198.60 | Top Sub Sect. (by Vol.) | BNK (76%) | |
52wk Low | 24,581.99 | Top Sub Sect. (by Val.) | BNK (60%) |
