November 6, 2017/InvestmentOne Research

Please click to download the Market Report for Monday 6^th November 2017

EQUITIES:  

• On the first trading day of the week, the Nigerian bourse dipped -0.02% to 36,930.83pts.
• Performance was largely weighed down by losses in ZENITHBANK (-24.53pts), UBA (-20.99pts), INTBREW (-15.72pts) and TOTAL (-10.80pts), which more than offset the gains in GUARANTY (+45.99pts).
• Sector performances were mixed in today’s trading session. While Oil & Gas (-0.65%) and Consumer goods (-0.20%) declined, the Banking sector (+0.19%) inched up but the Industrial sector closed flat.
• A total of c.467m units of shares worth c.2.9bn were exchanged by investors in 4,274 deals today. JAIZBANK (-3.23%) was the most actively traded stock with c.226m units of shares accounting for c.49% of total volume traded.
• Market breadth index ended positive (+0.03x) as there were 23 stocks that gained, topped by DIAMONDBNK (+9.75%) and 20 stocks that decliners led by CHAMPION (-4.92%).
• In the absence of a positive catalyst we could see the market trade sideways as investors take profit on recent gains in the market over the near term. However, we see the potential sell-off as an entry opportunity in our recommended quality names.

CURRENCY:

• At the IEFX window, the NGN lost -0.59% and -0.1% against the GBP and EUR to end today’s trading at N471.07 and N415.97 respectively. While it gained +0.14% against the dollar to close the day’s trading at N360.05.
• In the parallel market, the naira continues to trade flat against the USD and GBP to close at N363 and N475 respectively. While it gained 0.94% against the EUR to close the day at N421.
• Going forward, we expect the naira to continue to trade range bound against the basket currencies on the back of CBN’s sustained intervention in the FX market.
  

FIXED INCOME:

·         The movements in money market rates were mixed today, while the Overnight rate fell by 50bps to close at 38.92%, the Open Buy Back rate rose by 117bps to close at 37.50% as market liquidity remained tight.

·         At the OMO auction today, CBN sold N32m for 94-day bill at a stop rate of 16.00% and N25.45bn for 185-day bill at a stop rate of 17.80%.

·         The NIBOR rates rose across the curves today, 1-month, 3-month and 6-month advanced by 11bps, 30bps and 2bps to close at 20.08%, 21.15% and 22.70% respectively.

·         In the bond market, the yield on the 5yr benchmark bond fell by 11bps to close at 14.73% but the yield on the 7yr benchmark bond rose marginally by 1bps to close 15.02%. The yields on the 10yr and 20yr benchmark bonds remained flat 15.01% and 14.75% respectively.  

·         Going forward, we expect market activities to be determined by the level of liquidity in the system as well as foreign investors’ participation in the market. 

Below are key NSE statistics as at the end of trades:

Please find the NASD Pricelist for Monday 6^th November, 2017 below.