November 8, 2017/InvestmentOne Research
EQUITIES:
- The Nigerian equities market closed up +0.34% at the end of today’s trading session. Market performance was largely driven by investor interest in shares of DANGCEM (+99pts), INTBREW (+40pts) and FBNH (+12pts) which outweighed declines in ZENITHBANK (-20pts), ACCESS (-8pts) and NB (-5pts).
- Sector performances were mixed as Industrial Goods (+0.46%) ended the day as the best performer while Banking (-0.19%) was the worst performer. In addition, Consumer Goods gained +0.38% while Oil & Gas was flat.
- Total volume and value of shares traded decreased by c.-37% and c.-38% respectively as c.193m units of shares were exchanged worth c N1.81bn. Similar to yesterday, DIAMONDBNK (-0.82%) was the most actively traded stock with c.36m units of shares accounting for 19% of total volume traded.
- The Market Breadth Index closed negative (-0.01x) as 19 stocks declined, topped by UAC-PROP (-4.71%) and 18 stocks that gained, led by INTBREW (+10.24%).
- Going forward, we could see investors take profit on recent gains in the absence of a positive catalyst to drive the market further. However, we see the potential sell-off as an entry opportunity in our recommended quality names.
CURRENCY:
- NGN gained +0.04% against the USD and +0.46% against EUR to close at N360.33 and N417.62 respectively while it lost -0.02% to close at N471.51 against the GBP at the IEFX window.
- At the parallel market segment, the NGN remained unchanged at N363 against the USD and N420 against EUR. However, it gained 0.42% against the GBP to close at N475.
- Going forward, we expect CBN to continue its intervention in the FX market in order to support the naira.
FIXED INCOME:
· System liquidity remained tightly controlled as overnight (22.33%) and Open Buy Back (20.83%) rates remained elevated despite falling by -392bps and -383bps respectively.
· Expectedly, CBN continued its daily OMO auction, selling N2.21bn worth of 99-day bills at a stop rate of 16.00% and N33.48bn for 183-day bills at a stop rate of 17.80%.
· As at the time of writing, the NIBOR rates were yet to be published.
· The bearish sentiment in the bond market continued today as yields spiked across most maturities, which may not be unconnected with CBN’s continued squeeze on liquidity. While yield on the 5yr benchmark bond remained static at 14.83%, yields on the 7yr, 10yr and 20yr benchmark bonds jumped +9bps, +19bps and +24bps to close today’s session at 15.12%, 15.21% and 15.07% respectively.
· Going forward, we expect activities in the bond market to be driven by CBN’s hold on liquidity and foreign investors’ participation in the market.
Below are key NSE statistics as at the end of trades:
Current | 37,138.97 | Mkt Cap (N’tr) | 12.85 | |
Previous | 37,013.57 | Vol. Traded (m) | 193 | |
Day Change | +0.34% | Vol. Day Chng. | -37% | |
WTD Return | +0.54% | Val. Traded (N’bn) | 1.81 | |
MTD Return | +1.25% | Val. Day Chng. | -38% | |
YTD Return | 38.19% | No. of Deals | 3,904 | |
YTD High | 38,198.60 | No. of Gainers | 18 | |
YTD Low | 24,581.99 | No. of Losers | 19 | |
52wk High | 38,198.60 | Top Sub Sect. (by Vol.) | BNK (72%) | |
52wk Low | 24,581.99 | Top Sub Sect. (by Val.) | BNK (50%) |