November 28, 2017/InvestmentOne Report

Please click to download the Market Report for Tuesday 28^th November 2017

EQUITIES:

·         The NSE-ASI reversed its previous loss as it closed positive today, following the gains in NB (+147pts), STANBIC (+53pts), DANGCEM (+49pts), ACCESS (+15pts) and FBNH (+6pts) which cancelled out the losses in PZ (-13pts), DANGSUGAR (-9pts) and GUINNESS (-6pts).

·         As a result, the equities market gained +0.68% to close at 37,503.73pts, representing a market capitalisation of N13.06tr.

·         Also, market breadth index closed positive (+0.14x) as 25 stocks gained against 11 stocks that declined. ETERNA (+4.99%) topped the gainers’ chart, while PZ (-4.82%) was the worst performer.

·         Most sectors closed positive today with Consumer Goods (+1.25%) as the best performer. Banking (+0.31%) and Industrial (+0.30%) also closed the session in the green. However, Oil and Gas lost -0.31% to be the lone decliner.

·         The total volume and value rose by c.16% and c.0.63% to 1.1bn units of shares and N4.80bn respectively compared to yesterday’s figures. WAPIC was the most actively traded stock with c.655m units of shares worth c. N327m.

·         The Nigerian bourse closed in the green today, as the bullish sentiment across major sectors drove the market to a positive close. Going forward, we expect the market to be stable in the near term in the absence of any major positive catalyst. However, we remain optimistic on our recommended names and advise entry into them ahead of the next earnings season and corporate action.

CURRENCY:

·         The local currency plunged 0.01% against the USD in the IEFX window. However, it appreciated 0.67% against the GBP to close N474.79 and 0.22% against the EUR to close N426.15.

·         In the parallel market, the naira shed 0.84% and 0.94% against the GBP and EUR respectively, while it maintained its current level against the USD at N364.

·         We expect the local currency to trade within its current band in coming sessions, as the CBN continues its FX intervention sales to defend the local currency.

FIXED INCOME:

·         Overnight and Open Buy Back rates shed 2175bps and 1983bps to close 13.58% and 12.67% respectively, despite CBN sales of OMO bills worth c. N24bn today.

·         As at the time of writing this report, NIBOR rates were not available.

·         In today’s OMO auction, CBN sold c.N13.8bn for 93-day bill at a stop rate of 15.80% and c.N10.6bn for 191-day bill at a stop rate of 17.55%.

·         While most tenors in the bond segment closed flat, the Jan 2022 and March 2024 instrument increased 5bps and 6bps to close 14.52% and 14.79%, while the Jan 2026 and March 2027 instrument declined 8bps and 3bps to close 14.55% and 14.79% respectively.

·         We expect the market outcome in coming sessions to be largely determined by liquidity levels and foreign investors participation.

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