September 6, 2017/Cordros Research
Daily Market Update 06-Sept-2017
- After five consecutive days of sell-off, the equities market rebounded with bargain hunting across most sectors. The NSE ASI appreciated by 0.57% to 35,609.07 points.
- Today’s performance increased the Month-to-Date and Year-to-Date returns to 0.29% and 31.74%, respectively.
- The Oil & Gas (+1.32%) index recorded the largest gain, following interest in SEPLAT (+3.44%) shares. Followed by the Consumer Goods (+0.78%) and Banking (+0.10%) indices, driven by demands for NB (+1.39%), GUINNESS (+10.24%), ZENITHBANK (+2.86%), and STANBIC (+1.27%) stocks. On the flip side, the Industrial Goods (-0.53), and Insurance (-0.38%) indices closed negative, following sell-off in the shares of WAPCO (-1.34%), CCNN (-1.11%), AIICO (-3.51%), and CUSTODYINS (-2.78%), respectively.
- Market breadth remained negative, howbeit modest, with 23 losers and 22 gainers, led by PZ (-4.98%) and GUINNESS (+10.24%) shares, respectively. Accordingly, total volume traded increased by 22.52%, valued at N5.42 billion, and exchanged in 4,066 deals.
- We expect gains to extend in tomorrow’s trading session, as investors take bargain in value stocks.
CURRENCY
- Yesterday, the apex bank injected USD250 million in the FX market – comprising USD100 million in the Retail Secondary Market Intervention Sales (SMIS) segment, USD80 million in the Small and Medium Enterprises (SMEs) window, and USD70 million in the invisibles segment. At the time of writing, the CBN’s referenced USD/NGN closed flat at N305.90.The Bloomberg’s referenced GBP/NGN (-0.54%) and EUR/NGN (-0.49%) weakened to close at respective rates of N467.85, and N427.54, while the USD/NGN closed flat at N305.90.However, in the parallel market, the EUR/NGN (-0.23%) weakened to N431, while the USD/NGN and GBP/NGN closed flat at N365, and N470, respectively.In the I&E FX window, the NGN strengthened against the USD (+0.29%) to N359.33.
FIXED INCOME AND MONEY MARKET
- The overnight money market rate contracted by 167 bps to 11.00% against 12.67% yesterday, following anticipation of maturing OMO bills tomorrow, valued at N135.41 billion. Furthermore, in a bid to subdue the effect of the maturing bills on system liquidity, the apex bank offered OMO bills valued at N60 billion, allotting N50 million (vs. N10 billion offered) of the 92-day bill and N39.81billion (vs. N50 billion offered) of the 183-day bill, at respective stop rates of 16.00% and 17.95%.
- The overnight money market rate contracted by 167 bps to 11.00% against 12.67% yesterday, despite mop up via OMO bills wherein the apex bank offered bills valued at N60 billion, allotting N50 million (vs. N10 billion offered) of the 92-day bill and N39.81billion (vs. N50 billion offered) of the 183-day bill, at respective stop rates of 16.00% and 17.95%. The contraction is attributed to the anticipation of maturing OMO bills tomorrow, valued at N135.41 billion.
- In the bond market, average yield contracted by 6 bps to 16.54%. Yields at the mid (-9 bps) and long (-6 bps) segments contracted to 16.71% and 16.48%, respectively, as investors demanded for the 15-JULY-2021 (-18 bps), and 22-JAN-2026 (-17 bps) bonds. However, there were snippets of selloffs at the short end of the curve (less than 1 bp), as investors sold the 29-JUNE-2019 bond.
- Daily Market Update 06-Sept-2017
